SPHRi Mock Exam Three 1

When choosing technology solutions, several criteria should be evaluated. What criterion description below is NOT true?

Which of the following sample measurements is the LEAST appropriate for evaluating an organization’s global diversity?

Which of the following is NOT an HRIS application?

In which of the following types of cultures is a detailed contract, as opposed to a verbal agreement or a handshake, more likely to be a necessity?

What type of training utilizes demonstration and hands-on performance of job tasks to be accomplished?

Which of the following represents a shift in thinking in the philosophy of performance management?

The leadership of an organization has determined that its strategic direction and technology position would be significantly compromised if five key employees were to leave. What process should management consider in order to best protect its intellectual capital?

What is the process that measures whether an employee accomplishes work requirements?

A total rewards statement

Which of the following is NOT a step in the scientific method?

An HR leader has noticed a reduction in an organization’s employee turnover statistics. The HR team recently completed a career development initiative that enhanced leadership training programs, implemented individual development plans for leadership program participants and launched a new mentoring program. Over the past two quarters, several groups of employees were selected and started the organization’s leadership development program. Which of the following employee needs is NOT addressed through this program?

Which of the following statements about mentoring programs is NOT usually true?

Which core competency, as identified by the Human Resource Competency Study (HRCS), is the foremost indicator of outstanding performance?

In which type of benchmarking does an organization compare its level of achievement to the achievement of the best organizations in the world, regardless of industry?

A warehouse distribution organization has been concentrating on coaching and developing its employees. The manager of the distribution department adjusts his leadership style to what is necessary for each employee depending on the employee’s level of job development and maturity. The manager of the marketing department does not change his leadership style but rather changes the factors surrounding a situation to manage the marketing department employees. Which theory is the marketing manager following?

What form of justice evaluates whether reward amounts are fair?

What aspect of a staffing plan is reflected through using a common language, having a common process, describing assumptions explicitly and including multiple perspectives?

Which of the following is NOT a step in the HR service delivery model?

Which of the following is NOT a difference between succession planning and replacement planning?

Which of the following does not facilitate work/life balance?

The mean for salary data can be calculated as an unweighted average when organizations provide only

Examples of the Incubator corporate culture are most likely to be found in

An HR leader has noticed a reduction in an organization’s employee turnover statistics. The HR team recently completed a career development initiative that enhanced leadership training programs, implemented individual development plans for leadership program participants and launched a new mentoring program. Over the past two quarters, several groups of employees were selected and started the organization’s leadership development program. Given the description of the enhanced leadership program, which of the following career development characteristics may represent a potential addition to the program?

Which of the following is NOT a common application of a typical HRIS?

What is a major advantage of an organization having internal equity?

What type of assessment is most likely to be conducted near the beginning of the development of a global staffing plan

Within the 12-step model for developing and using key performance indicators (KPIs) for the current and future success of the organization, four of the steps are: (1) Recording performance measures; (2) Selecting organization-level KPIs; (3) Identifying organization-wide critical success factors; (4) Selecting team-level performance measures. Which of the following represents the optimal order of the above steps?

Which of the following does NOT illustrate the shared value concept of corporate social responsibility?

What is the difference between succession planning and replacement planning?

Which of the following is most likely to be true about voluntary benefits in a nonheadquarters country?

Which of the following statements about encouraging employees to report unethical or illegal behaviors or acts is NOT TRUE?

Which of the following is most unlikely to be caused by globalization?

According to a 2009 SHRM survey, which leadership competencies are most important for senior HR leaders?

Which of the following is NOT a goal of orientation?

An organization recently surveyed the 10% of its customer base that generates 40% of its revenue. Survey results indicate that the organization has more competition based on price, and a new competitor is able to deliver products faster and for less cost. Customers offered several observations about the stellar responsiveness of the organization’s customer service team. When asked about product quality, these customers observed that the organization’s products lasted longer and that there were fewer problems in comparison to competing products. What action listed below is the BEST way for the organization to create a sense of urgency?

The MOST effective corporate citizenship program is one that

Which of the following is the MOST essential driver for individual performance plans in the performance management process?

What choice is NOT an aspect of an organization’s operations that requires HR’s involvement with mitigating risk?

A South American company and a European company purchase shares in an electronics manufacturing firm. The companies share profits, control and liability according to the amount each has invested. This is an example of

All are examples of violations of intellectual property protection principles EXCEPT which of the following?

Trade unions may limit an organization’s strategic choices in all of the following ways EXCEPT

Assimilation is the ongoing process of

A project manager would be more inclined to use a PERT chart rather than a Gantt chart when she needs to

Which of the following statements is NOT a guiding principle for coaching?

A difference between management and leadership is that

A small organization has recently doubled the size of its workforce to 150 employees. The HR director received approval to purchase an HRIS to help deal with the increase in reporting requirements as a result of the larger workforce. Under these circumstances, what is the BEST course of action for the HR director?

When implementing a merger and acquisition strategy, which of the following has the MOST impact on long-term success?

Once KPIs have been determined and measured and metrics have been derived, what tool is BEST for presenting the information?

Which of the following statements about globalization is NOT true?

Decentralization of authority works most effectively in organizations in which

The McKinsey 7-S framework consists of strategy, structure, systems, shared values, skills, staff and style. Within the context of strategic planning, the purpose of the framework is to

What statement below does NOT describe how policies, procedures and work rules contribute to employee relations?

The informal knowledge management system relates to

Typical outplacement programs do NOT include which of the following?

If an organization’s competitive advantage is cost leadership, which of the following practices is most likely to happen?

From the list below, which statement is NOT an accurate description of the competitive model?

When using a flow analysis to forecast internal people movement, which of the following does HR NOT need to consider?

Which appraisal method evaluates performance using self, peers, direct reports, management and sometimes customers and suppliers?

Which of the following statements BEST defines the values and ethics of organizational expectations and personal behaviors?

Which of the following is true of auditory learners?

Which of the following is NOT an issue associated with managing knowledge resources?

In low-context cultures, the focus of communication is on

Of the technologies listed below, which has the PRIMARY mission of sharing information in meaningful ways to promote employee learning?

Which of the following is NOT an outcome associated with effective job evaluation processes?

Which term refers to a company building a new global location from the ground up?

Talent pools work BEST when they are focused on

Which of the following is an internal factor that is considered in an environmental scan?

What component of the HR budget may include funding for creation of a knowledge management system?

Which of the following performance measurements can be determined based on two or more measures?

The MOST significant reason that information technology departments are seen as strategic partners in an organization is that

Selection is the process

Which is the FIRST step in the four-step service delivery model?

The process of creating an ethical environment MUST begin with

Which measure of variation shows how scores are spread out from the mean

Which of the following characteristics is NOT considered to be typical of transformational leaders?

Which of the following business activities is likely to be higher in the value chain?

What is the mean of the following numbers? 3 5 5 5 6 7 7 8 8

IBM Global Services conducts a bi-annual survey regarding innovation with CEOs worldwide. Prior to 2010, these CEOs sought business model innovation. With the 2010 survey, what new crucial need emerged?

Virtual global teams are so prevalent and productive today because of advances in which of the following?

An organization has chartered three cross-functional teams with representation from senior management, middle management and employees. Each team has distinct goals that focus on different aspects of the customer experience. Every six weeks, the teams share their accomplishments. What approach to planning and implementing the change has the organization adopted?

Why is a global mindset important?

Which aspect of the legal environment addresses minimum wage and overtime pay issues?

When considering technology for the purpose of measurement, metrics and analytics, which of the following is NOT important?

Which of the ILO occupational safety and health categories of conventions and recommendations addresses industry-specific safety conditions and hazards?

The HR value proposition includes five elements that create the foundation for all HR activities. These elements include external realities, HR professionalism, HR practices, HR resources and

International assignees are also referred to as

Which of the following is considered direct compensation?

Which of the following is NOT an example of an external recruiting technique?

Which of the following measures of central tendency is the value that occurs most frequently in a distribution?

The HR function at a mid-sized oil exploration and production company is seeking to deploy a human capital risk analysis process throughout the company. The executive management team suggests focusing on a portion of the workforce as a pilot program. The HR leadership recommends conducting the risk analysis for employees who are responsible for the daily operations at oil wells, off-shore drilling rigs and oil refineries. This group of employees represents approximately 70% of the workforce and includes approximately 30% of the organization’s skill sets. What choice is NOT a potential assumption associated with HR’s suggested approach?

Which of the following is an HR-related transactional activity?

An organization is in the strategy formulation phase of strategic planning. Which of the following is an example of an action they would take during this phase?

Which of the following are examples of perquisites?

Which part of the SWOT analysis identifies the core competencies of a global enterprise?

Organizational branding, as a way for organizations to attract and retain top talent, requires a corporate strategy that begins with

Which Six Sigma process would an organization use to develop a new product?

Which of the following best describes the difference between replacement planning and succession planning?

Purpose statements for security-related prevention measures are listed below. Which of the purpose statements is NOT an accurate representation of the prevention measure?

Module 1 Case Study: Mergers and Acquisitions – The case study provides you with an opportunity to apply your HR problem-solving skills in a real-world environment. It presents you with a variety of situations related to human resources. Each situation is accompanied by a series of case study questions. Begin the case study by reading the background information, which provides an overview of the organization and its key employees. After you have read the background information, review the situations in order and answer the multiple-choice questions. Note: There is only one correct answer for each question. Organizational Profile: Südwesten Bank is seeking an acquisition partner in the Southeast Asian region. Südwesten Bank’s headquarters are in Switzerland. They have operations in the European Union and South America with over 1,500 employees. An acquisition growth strategy was chosen over an organic growth strategy to achieve the following objectives: Achieve 5% market share in the Southeast Asian region within two years. With a presence in the Southeast Asian Pacific region, existing client portfolios are estimated to grow 2% as these clients have more options to invest in the new region. Expand European market share with the addition of Southeast Asian clients who have European investments and interests. Offset capital used for the acquisition through synergies (that is, consolidation of technology infrastructures, rationalization of administrative staff needs, consolidation of facilities, etc.). To carry out this crucial strategic initiative, a team of seven executives has been chartered. The team includes a Deputy CFO in Finance, a General Manager of Risk in Internal Audit and Risk, a Senior Manager of Systems in Information Technology, a Director of Communications and Marketing in Customer Relations, a General Manager of Strategy and Sales in Business Development, a General Manager of Marketing in Marketing and you as the Deputy HR Director in Human Resources. This is an ad-hoc team formed specifically for the acquisition efforts and reports to the Board of Directors. The team was initially charged with evaluating the potential organizations to be acquired. After an agreement is negotiated this team will perform due diligence tasks, prepare the integration plan and execute assimilation efforts. You, as Deputy HR Director, are the Human Resources executive on the acquisition team. Situation 1: Preparation for the M&A – Südwesten Bank has engaged an advisory firm whose specialty includes a thorough familiarity with investment banking organizations in Asia Pacific region. Over the course of several months, preliminary negotiations have progressed with two business opportunities. Q1 Which of the following contributes the LEAST to your understanding of the financial objectives for the deal?

Südwesten Bank is seeking an acquisition partner in the Southeast Asian region. Südwesten Bank’s headquarters are in Switzerland. They have operations in the European Union and South America with over 1,500 employees. An acquisition growth strategy was chosen over an organic growth strategy to achieve the following objectives: Achieve 5% market share in the Southeast Asian region within two years. With a presence in the Southeast Asian Pacific region, existing client portfolios are estimated to grow 2% as these clients have more options to invest in the new region. Expand European market share with the addition of Southeast Asian clients who have European investments and interests. Offset capital used for the acquisition through synergies (that is, consolidation of technology infrastructures, rationalization of administrative staff needs, consolidation of facilities, etc.). To carry out this crucial strategic initiative, a team of seven executives has been chartered. The team includes a Deputy CFO in Finance, a General Manager of Risk in Internal Audit and Risk, a Senior Manager of Systems in Information Technology, a Director of Communications and Marketing in Customer Relations, a General Manager of Strategy and Sales in Business Development, a General Manager of Marketing in Marketing and you as the Deputy HR Director in Human Resources. This is an ad-hoc team formed specifically for the acquisition efforts and reports to the Board of Directors. The team was initially charged with evaluating the potential organizations to be acquired. After an agreement is negotiated this team will perform due diligence tasks, prepare the integration plan and execute assimilation efforts. You, as Deputy HR Director, are the Human Resources executive on the acquisition team. Situation 1: Preparation for the M&A – Südwesten Bank has engaged an advisory firm whose specialty includes a thorough familiarity with investment banking organizations in Asia Pacific region. Over the course of several months, preliminary negotiations have progressed with two business opportunities. Q2 The Director of Communications and Marketing is concerned about retaining sales personnel at the bank being acquired. Which choice provides the SMALLEST contribution for addressing this talent management concern?

Südwesten Bank is seeking an acquisition partner in the Southeast Asian region. Südwesten Bank’s headquarters are in Switzerland. They have operations in the European Union and South America with over 1,500 employees. An acquisition growth strategy was chosen over an organic growth strategy to achieve the following objectives: Achieve 5% market share in the Southeast Asian region within two years. With a presence in the Southeast Asian Pacific region, existing client portfolios are estimated to grow 2% as these clients have more options to invest in the new region. Expand European market share with the addition of Southeast Asian clients who have European investments and interests. Offset capital used for the acquisition through synergies (that is, consolidation of technology infrastructures, rationalization of administrative staff needs, consolidation of facilities, etc.). To carry out this crucial strategic initiative, a team of seven executives has been chartered. The team includes a Deputy CFO in Finance, a General Manager of Risk in Internal Audit and Risk, a Senior Manager of Systems in Information Technology, a Director of Communications and Marketing in Customer Relations, a General Manager of Strategy and Sales in Business Development, a General Manager of Marketing in Marketing and you as the Deputy HR Director in Human Resources. This is an ad-hoc team formed specifically for the acquisition efforts and reports to the Board of Directors. The team was initially charged with evaluating the potential organizations to be acquired. After an agreement is negotiated this team will perform due diligence tasks, prepare the integration plan and execute assimilation efforts. You, as Deputy HR Director, are the Human Resources executive on the acquisition team. Situation 1: Preparation for the M&A – Südwesten Bank has engaged an advisory firm whose specialty includes a thorough familiarity with investment banking organizations in Asia Pacific region. Over the course of several months, preliminary negotiations have progressed with two business opportunities. Q3 Since Südwesten Bank is actively seeking an acquisition partner, the HR function can proactively prepare to support this strategy. What action below represents the BEST preparatory action for the human resources function to execute prior to the selection of a firm to be acquired?

Situation 2: Perform Due Diligence – Wei Hu Bank headquartered in Singapore has conditionally accepted a proposal from Südwesten Bank. Wei Hu Bank is a privately-owned, medium-sized investment banking firm with 150 employees. Most employees reside in Singapore. Wei Hu does have an office in Hong Kong. They specialize in managing portfolios for high-wealth individuals and corporations whose operations are headquartered in Southeast Asia. Wei Hu Bank was not actively seeking a strategic partner prior to being contacted. Upon their conditional acceptance of the Südwesten Bank’s proposal, the Wei Hu Board of Directors formed a divestiture team composed of representatives from their HR, customer relations, information technology and marketing functions. The current Chief Executive Officer will lead this team. He is the majority ownership partner. The proposal has been conditionally accepted. During due diligence, both firms evaluate conditions, identify any liabilities, evaluate the terms of the offer and negotiate the final contractual conditions based upon the due diligence results. HR representation during due diligence concentrates on the human capital aspects of the transaction. Q1 What due diligence topic listed below will begin to assess the similarities or differences between the organizations’ cultures?

Situation 2: Perform Due Diligence – Wei Hu Bank headquartered in Singapore has conditionally accepted a proposal from Südwesten Bank. Wei Hu Bank is a privately-owned, medium-sized investment banking firm with 150 employees. Most employees reside in Singapore. Wei Hu does have an office in Hong Kong. They specialize in managing portfolios for high-wealth individuals and corporations whose operations are headquartered in Southeast Asia. Wei Hu Bank was not actively seeking a strategic partner prior to being contacted. Upon their conditional acceptance of the Südwesten Bank’s proposal, the Wei Hu Board of Directors formed a divestiture team composed of representatives from their HR, customer relations, information technology and marketing functions. The current Chief Executive Officer will lead this team. He is the majority ownership partner. The proposal has been conditionally accepted. During due diligence, both firms evaluate conditions, identify any liabilities, evaluate the terms of the offer and negotiate the final contractual conditions based upon the due diligence results. HR representation during due diligence concentrates on the human capital aspects of the transaction. Q2 One of your goals as the HR representative is to identify any unforeseen liabilities directly attributed to managing human capital for both organizations. Which investigative task would identify FEWER unforeseen liabilities attributable to human capital?

Before you continue to the integration planning phase, let’s re-visit the strategic objectives that Südwesten Bank established for its acquisition activity. They want a partner that enables them to move into a new market and achieve the following: A 5% market share in the Southeast Asian region within two years. Grow existing client portfolios by 2% through new opportunities in the Southeast Asian markets. Expand European market share with the addition of Southeast Asian clients who have European investments and interests. Offset capital used for the acquisition through synergies (that is, consolidation of technology infrastructures, rationalization of administrative staff needs, consolidation of facilities, etc.). The integration planning phase produces a plan that describes how the combined organization will function and achieve its strategic vision. Q1 Südwesten Bank has a centralized HR function and an HRIS. There is a local office for South American operations in Rio de Janeiro. What statement below describes the LEAST effective transition plan for the Singapore HR function?

Before you continue to the integration planning phase, let’s re-visit the strategic objectives that Südwesten Bank established for its acquisition activity. They want a partner that enables them to move into a new market and achieve the following: A 5% market share in the Southeast Asian region within two years. Grow existing client portfolios by 2% through new opportunities in the Southeast Asian markets. Expand European market share with the addition of Southeast Asian clients who have European investments and interests. Offset capital used for the acquisition through synergies (that is, consolidation of technology infrastructures, rationalization of administrative staff needs, consolidation of facilities, etc.). The integration planning phase produces a plan that describes how the combined organization will function and achieve its strategic vision. Q2 The General Manager of Strategy and Sales and the Director of Communications and Marketing have requested an integration plan for retaining key individuals at Wei Hu. Which of the following items IS NOT necessary to include as part of this retention plan?

Post-Closing Challenges – The final phase of the process is the implementation, monitoring and evaluation of the new combined organization. The combined organization will experience new people and organizational issues that require HR support. Q1 After an acquisition has been finalized, organizations will always encounter challenges. Experience has shown that some of these challenges can be mitigated during due diligence. What challenge below is more difficult to investigate and mitigate during due diligence?

The final phase of the process is the implementation, monitoring and evaluation of the new combined organization. The combined organization will experience new people and organizational issues that require HR support. Q2 HR has a crucial evaluative role in assisting senior management to determine if the acquisition has met its strategic goals. What task below represents the best method for measuring HR effectiveness in the combined organization?

The final phase of the process is the implementation, monitoring and evaluation of the new combined organization. The combined organization will experience new people and organizational issues that require HR support. Q3 The acquisition team is examining corporate identity implications with introducing the Südwesten Bank and Wei Hu brands to the combined customer base. What choice below represents a task that the HR function could undertake for this acquisition initiative?

The final phase of the process is the implementation, monitoring and evaluation of the new combined organization. The combined organization will experience new people and organizational issues that require HR support. Q4 As the assimilation efforts proceed, HR will be responsible for managing employee motivation and engagement. Which choice is the LEAST effective HR task for effectively managing employee motivation and engagement?

Organizational Profile – Melhor Casa is headquartered in Rio de Janeiro, Brazil. This company manufactures durable household goods such as appliances, furnaces and air conditioning units. Melhor Casa has manufacturing plants located throughout Brazil and two plants in Mexico. The company is partway through a multi-year information technology infrastructure project deploying an enterprise resource planning system (ERP). This infrastructure project has four phases. Implementation of the human resource information system (HRIS) is part of the second phase. Melhor Casa recently completed phase one of the infrastructure project which included finance and inventory. HRIS Project Team – The HRIS project team has representation from the following business functions: Human resources, Information technology, Finance and accounting, Legal and compliance, Manufacturing operations, Quality assurance and the Audit Department. You are the project team leader. Your human resources implementation team has a staff of 10 human resource employees and will be supplemented with a team of consultants. Each business function has additional staff supporting this initiative. Information technology has 15 development staff members assigned to the project. The manufacturing operations function has representation from each manufacturing facility and two staff members from headquarters supporting the initiative. Overall, the project team has approximately 50 people. HRIS Implementation Information – There will be significant changes from the HRIS implementation. As project team manager, one of your primary responsibilities will be mitigating and communicating these changes. Some of the anticipated changes include: The headquarters HR staff headcount will be reduced by 30%. Employees will be using an Internet-based self-service portal to request and execute many of their human resource needs. Manufacturing line employees do not currently have ready access to computers – centrally located kiosks will be deployed to provide necessary access. The existing payroll, personnel records and expense reimbursement systems will be replaced. Employees will access these crucial functions through an Internet-based self-service portal. All employees will require training on using the self-service portal. Situation 1: Determine the HRIS Characteristics – The HRIS architecture you are implementing has a single database that is located at headquarters. The HRIS will use the same system screens world-wide, with appropriate language changes by country. To make the HRIS transition smoother and easier, certain HRIS modules will be rolled-out to managers and administrative staff, before opening the system to all employees. Q1 What type of HRIS is being implemented?

What is the name of this implementation approach?

The implementation of the HRIS makes more HR data accessible to the organization’s employees. Which of the following is a potential privacy issue that the implementation team should anticipate and plan for?

Address Changes to HR Function – The HR function will experience many changes both during and after the HRIS implementation. As project manager, you are responsible for preparing the communication plans and managing change throughout the effort. During the implementation phase, the HR headquarters staff will support the implementation while also continuing existing tasks. After implementation, the HR headquarters staff will be reduced by 30%. Q1 What choice represents the BEST approach for communicating these changes to the HR function?

The HR function will experience many changes both during and after the HRIS implementation. As project manager, you are responsible for preparing the communication plans and managing change throughout the effort. During the implementation phase, the HR headquarters staff will support the implementation while also continuing existing tasks. After implementation, the HR headquarters staff will be reduced by 30%. Q2 Which choice is the LEAST effective method for managing change within the HR function during the HRIS project?

Situation 3: HRIS Implementation – A group of managers have been selected as participants in the pilot for the self-service portal. The HRIS implementation team has converted the pilot participants’ employment records and information to the HRIS. Q1 Which action below is the LEAST effective task to include as part of the pilot for the self-service portal?

A group of managers have been selected as participants in the pilot for the self-service portal. The HRIS implementation team has converted the pilot participants’ employment records and information to the HRIS. Q2 Some pilot participants have observed that using the self-service portal requires more time than the former process of filling out a form. What choice below is the BEST response to address this observation?

Organizational Profile – Mary Richards has just been appointed HR Director International for a registered US company, which specializes in manufactured food products. The company has revenue of approximately US$4B and has recently acquired a European entity, which currently has revenue of US$2B. That company is based in the United Kingdom and has branch offices and manufacturing facilities in Spain, Germany, France, Italy and Poland. The combined company has several strategic challenges to address in the upcoming six months, the company must: Maintain market share and experience market share growth during subsequent quarters. Integrate products and launch a combined brand – Achieve synergies from the combined organization; in particular redundant operations will need to be reduced. The Chairman, CEO and the Board, have asked Mary to join the executive team in a consultative role. They want Mary to lead a measurement initiative that will result in a combined and integrated measurement strategy. The effort would start with HR KPIs and metrics. The executive sponsor for the metrics initiative along with the HR leadership team members are as follows: Mary Richards, HR Director, International; Joe Travis, Chief Human Resources Officer; John Bailey, HR Director, US; Barry Irvine, Senior Human Resources Officer. Situation 1: Alignment with Strategic Plan – Both the existing organization and the recently acquired organization have been using HR Key Performance Indicators (KPIs) to measure HR effectiveness. The business strategic plan includes several HR initiatives. Q1 Joe (the CHRO) wants to create a baseline to measure the impact of upcoming HR strategic initiatives. Which statement does NOT contribute to establishing a baseline for the HR KPIs?

Building a Combined Measurement Plan – Mary wants to build a measurement plan that summarizes HR KPIs and metrics for the combined organization. While Mary prepared the baseline for the measurement plan, she noticed that several KPIs and HR metrics were calculated differently between organizational entities. Q1 What is Mary’s BEST solution for measuring the HR effectiveness of the combined organization?

Situation 3: HR Expenses and Synergies from Acquisition – In conjunction with the merger, functional areas have been tasked with looking at synergies. The HR function is tasked with reducing the function’s budget by 10%. Joe, the CHRO, wants an expense reduction plan that meets the budget reduction target while maintaining the organization’s strategic commitments to people development and integrating the combined organization’s HR operations. Q1 All of the actions below should be part of the expense reduction plan EXCEPT:

In conjunction with the merger, functional areas have been tasked with looking at synergies. The HR function is tasked with reducing the function’s budget by 10%. Joe, the CHRO, wants an expense reduction plan that meets the budget reduction target while maintaining the organization’s strategic commitments to people development and integrating the combined organization’s HR operations. Q2 Mary has obtained the following HR-related benchmarks for the food manufacturing industry. HR-Related Benchmarks: Revenue per FTE, HR to Employee Ratio, HR Expense to FTE Ratio and HR Expense to Operating Expense Ratio, respectively; Industry Value: $50,250, 0.84, $834 and 0.9%, respectively; Combined Organization’s Value: $51,345, 0.90, $910 and 0.85% respectively. Based upon a comparison to the industry benchmarks, which statement below is NOT an applicable conclusion about how the combined organization invests in its employees?

Mary has obtained the following HR-related benchmarks for the food manufacturing industry. HR-Related Benchmarks: Revenue per FTE, HR to Employee Ratio, HR Expense to FTE Ratio and HR Expense to Operating Expense Ratio, respectively; Industry Value: $50,250, 0.84, $834 and 0.9%, respectively; Combined Organization’s Value: $51,345, 0.90, $910 and 0.85% respectively. Based upon these benchmarks, what choice represents a potential recommendation to include in the HR expense reduction plan?

Situation 4: Influence of Employee Development for New Performance Management System – As part of the new performance management system initiative, each employee will attend training about the performance management system. Mary has been asked to measure the influence of the training on results for the new performance management system. Mary decides that she should begin by calculating a baseline percentage of employees receiving regular performance reviews. She needs to combine the existing KPI results from the two organizations. Then, she’ll observe how the KPI changes as the new system deploys. Q1 Entire Organization Prior to Acquisition Acquired Organization – Average Total Number of Employees (over previous 12 months): 3,000 and 1,200; Total Number of Employees Who Received a Performance Review: 2,400 and 1,150. What choice represents the combined percentage of employees receiving regular performance reviews?

Influence of Employee Development for New Performance Management System – As part of the new performance management system initiative, each employee will attend training about the performance management system. Mary has been asked to measure the influence of the training on results for the new performance management system. Mary decides that she should begin by calculating a baseline percentage of employees receiving regular performance reviews. She needs to combine the existing KPI results from the two organizations. Then, she’ll observe how the KPI changes as the new system deploys. Q1 Entire Organization Prior to Acquisition Acquired Organization – Average Total Number of Employees (over previous 12 months): 3,000 and 1,200; Total Number of Employees Who Received a Performance Review: 2,400 and 1,150. What choice represents the combined percentage of employees receiving regular performance reviews?

Mary decides to calculate the metrics for the development program. She begins with calculating the training costs per employee and uses the following information: Total number of employees equals 4,210. Development costs for the training are US$ 30,000. Knowledge management system toolkit development costs are US$ 20,000. Training facility costs (rental, printing, etc.) for the HR function training are US$ 7,000. Salary and other expenses for instructors are US$ 250,000. What are the training costs per employee for the performance management system training?

Mary continues by calculating the number of training hours per employee using the following information: Total number of employees equals 4,210. There are 200 managers. Every employee attends the session that describes the new process and how to complete the self-appraisal online. This session is 4 hours. Managers attend an additional session that describes how to complete the performance evaluation and conduct appraisal meetings. This session is 4 hours. What are the training hours per employee associated with the performance management system training?

Organizational Profile – JCG is a management consulting firm headquartered in Taipei, Taiwan. JCG specializes in advising their clients about product innovation and management. Over the last 5 years, JCG has experienced more competition from large multinational management consulting firms expanding into JCG’s niche product innovation market. Recently, JCG lost several high potential employees to these multinational competitors. Exit interview results were conducted with the departing high potential employees. Several recurring reasons for departure were identified, including: The employees felt that JCG offered fewer opportunities for advancement than the multinational firms. The employees felt that JCG offered fewer development opportunities than the multinational firms. The multinational firms offered higher compensation than JCG. The employees felt that other multinational firms offered more challenging jobs. Situation 1: Determine a Plan – As the HR Director, you have been chartered by the Board of Directors to prepare a plan for effectively retaining high potential employees. Q1 Which of the following items addresses most of the recurring reasons from the exit interviews?

A high-potential employee program represents a significant investment for JCG. What item below is the LEAST effective action that you would take to determine a baseline prior to developing the program?

Determine Competency Gaps – The Board of Directors has provided funding to specify the composition of a high potential employee program, prepare a Request for Proposal (RFP) and identify the candidates for the program. The budget includes monies for engaging experts to create a plan for the program. Your project plan includes the following tasks: Analysis of current staff competencies and skills; Revision of existing job competency models; Benchmarking activities for similar high potential programs; Need analysis to determine employee development program requirements. A Taipei university offers an extensive catalog of courses and seminars available to business organizations. The university’s research team offers consulting services such as competency profile development. You plan to engage the services of this research team to: Revise the competency directory for the program to address both functional and leadership competencies. Provide a curriculum covering these competencies as a guide for the learning design and delivery. Potential candidates for program have been selected. The CHRO and CEO met with the candidates to describe progress to date. Each candidate was asked to participate in a skills and competency evaluation. The results from these evaluations will be used by the candidate and their immediate manager to identify informal development opportunities prior to a full launch of the program. Q1 Which choice below IS NOT a meaningful way for HR to support these pre-program launch development activities?

Institute a Job Rotation Program – High potential programs often include opportunities for the participants to take on new assignments. You have suggested that the high potential program include the opportunity for its participants to rotate into new roles. Q1 What consideration should NOT be evaluated when identifying jobs to be part of this rotation program?

Innovative Ways to Offer Leadership Development – There are several high potential employees in the program who would benefit from expanding their leadership competencies. The CHRO has indicated that there are budget constraints with providing a training program for leadership development for the next two years. Q1 Which of the following learning engagements is MOST relevant to developing high-potential employees?

Measuring the Program – The Board of Directors has requested that you regularly assess and provide updates regarding the high potential employee program. Q1 What choice below is the LEAST meaningful action for communicating to the board about the progress of the high-potential employee program?

What choice below would NOT be a factor in assessing the success of the high-potential employee program from the participant’s perspective?