Deck 2: Human Resource Strategy and Planning

Question 1

In the context of qualitative methods of HR forecasting, _____ requires experts to meet face-to-face.

A) a simulation model
B) the Delphi technique
C) a nominal group
D) statistical regression analysis

Answer 1

C

Question 2

Sadie, an HR manager at Olive Inc., is measuring the wealth created by each employee of the company. She uses an approach that requires that all policies, procedures, measures, and methods use cost of capital as a benchmark against which their return is judged. Which of the following financial measures is Sadie using in this scenario?

A) Human capital return on investment (HCROI)
B) Human economic value added (HEVA)
C) Human capital value added (HCVA)
D) Return on investment (ROI)

Answer 2

B

Question 3

The term _____ refers to the process of identifying a plan for the orderly replacement of key employees in an organization.

A) outplacement
B) succession planning
C) job enrichment
D) benchmarking

Answer 3

B

Question 4

Trevor, an HR Manager at Maple Inc., wants to use the balanced scorecard to assess whether the organization is managing its bottom line effectively. In this scenario, which of the following is a financial measure that Trevor should consider?

A) The company's succession planning
B) The company's conformance with standards
C) The company's operating margins
D) The company's training and development programs

Question 5

Jantee, a Senior Manager at LionShare Inc., is responsible for the strategic planning process in his organization. He is currently implementing a strategy. Which of the following stages of the strategic planning process is Jantee most likely to have completed immediately before the implementation stage?

A) Stating the organizational mission
B) Conducting a SWOT analysis
C) Establishing goals and objectives
D) Formulating supporting functional strategies

Question 6

Which of the following is typically the last step in the strategic planning process for an organization?

A) Formulating supporting functional strategies
B) Evaluating and reassessing strategy
C) Establishing goals and objectives
D) Stating the organizational mission

Question 7

Which of the following is a factor of the internal environment of an organization?

A) The quality of talent in the organization
B) The company's customers
C) The political forces affecting the organization
D) The company's competitors

Question 8

Which of the following scenarios best illustrates outsourcing?

A) Octagon Inc., an American smartphone company, exports its products to different countries in Europe and North America.
B) Hexagon Corp. entices its employees to volunteer to leave the organization by offering severance benefits.
C) Oasis Inc., an American publishing company, transfers the task of payroll processing to Crimson Inc., an American HR consulting company.
D) Eagle Inc. rehires retirees on a part-time or temporary basis to fill talent gaps in the organization.

Question 9

Maria, a Brand Manager at MediaDay Inc., is formulating a strategic plan for her organization. She has identified the organizational mission and conducted a SWOT analysis of the business. Which of the following is most likely to be Maria's next step in the strategic planning process?

A) Evaluating and reassessing strategies
B) Implementing strategies
C) Establishing goals and objectives
D) Formulating supporting functional strategies

Question 10

LuChen, an HR Manager at Sunny Day, is completing the HR planning process. Which of the following should be her last step?

A) Reviewing the organization's strategic plans
B) Developing HR staffing plans and actions
C) Compiling HR planning forecasts
D) Assessing the external and the internal workforce

Question 11

Which of the following is a qualitative method of HR forecasting?

A) Simulation models
B) Estimates
C) Staffing ratios
D) Productivity ratios

Question 12

Which of the following scenarios best illustrates offshoring?

A) Octagon Inc., an American smartphone company, has moved its manufacturing operations to China.
B) Hexagon Inc. entices its employees to volunteer to leave the organization by offering severance benefits.
C) Crimson Inc., an American HR consulting company, processes payroll for the employees of Oasis Inc., an American publishing company.
D) Eagle Inc. rehires retirees on a part-time or temporary basis to fill talent gaps in the organization.

Question 13

Which of the following best defines a multinational corporation?

A) An organization that has facilities and other assets in at least one country other than its home country
B) An organization that imports goods from other countries to its home country
C) An organization that exports goods from its home country to other countries
D) An organization that outsources at least one of its functions or operations to another company

Question 14

Which of the following is the guiding force behind the strategic planning process for an organization?

A) The organizational mission
B) The organizational design
C) The organizational hierarchy
D) The organizational culture

Question 15

_____ is a qualitative method of HR forecasting that relies on general guidelines applied to a specific situation within an organization.

A) Statistical regression analysis
B) The rule of thumb method
C) The Delphi technique
D) Ratio analysis

Question 16

Jack, an HR Manager at Helium Inc., is starting the HR planning process. Which of the following should be his first step?

A) Reviewing the organization's strategic plans
B) Developing HR staffing plans and actions
C) Compiling HR planning forecasts
D) Assessing the external and the internal workforce

Question 17

Which of the following is a factor of the external environment of an organization?

A) The organization's technological capabilities
B) The organization's objectives
C) The organization's human resources
D) The organization's competitors

Question 18

_____ is a quantitative HR forecasting method that involves making a comparison of past relationships among various factors.

A) Statistical regression analysis
B) The rule of thumb method
C) Ratio analysis
D) The Delphi technique

Question 19

Mark, an HR Manager at Pyramid Inc., is responsible for the HR planning process in his organization. He has reviewed the organization's strategic plans. Which of the following is most likely to be Mark's next step in the planning process?

A) Developing HR staffing plans and actions
B) Compiling HR planning forecasts
C) Implementing HR staffing plans and actions
D) Assessing the external and the internal workforce

Question 20

Which of the following is a quantitative method of HR forecasting?

A) The rule of thumb method
B) The Delphi technique
C) Staffing ratios
D) Nominal groups
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Question 21

Annual wage and salary increases are classified as a _____ of human resources.

A) compensation metric
B) training metric
C) development metric
D) staffing metric

Question 22

Which of the following is true of the Worker Adjustment and Retraining Notification Act?

A) It requires private and commercial organizations that employ 20 or more full-time workers who have worked more than a year with the organization to give an 80-day notice before implementing a layoff or facility closing that involves more than 10 people.
B) It requires private and commercial organizations that employ 50 or more full-time employees who have worked more than three months in the previous year to give a 60-day notice before implementing a layoff or facility closing that involves more than 30 people.
C) It requires private and commercial organizations that employ 100 or more full-time workers who have worked more than six months in the previous year to give a 60-day notice before implementing a layoff or facility closing that involves more than 50 people.
D) It requires private and commercial organizations that employ 50 or more full-time workers who have worked more than a year with the organization to give an 80-day notice before implementing a layoff or facility closing that involves more than 20 people.

Question 23

In the context of mergers and acquisitions, risks must be assessed _____.

A) after the integration process
B) after making the deal
C) before making the deal
D) during the integration process

Question 24

Fish Fleet, a chain of small seafood restaurants, is being acquired by Savoranc Inc. Which of the following activities should Celia, Savoranc's HR Manager, perform during the integration process?

A) She should assess the risks involved with the acquisition.
B) She should retain key talent.
C) She should identify possible conflicts.
D) She should conduct due diligence.

Question 25

When Retronics Inc. began to grow and its business improved, Tasha, a Senior Manager, determined that the company had a talent shortage. Which of the following methods should she use to manage the talent shortage?

A) She should reduce employee work hours.
B) She should encourage attrition.
C) She should implement voluntary separation programs.
D) She should outsource work to a third party.

Question 26

Which of the following best defines the term effectiveness?

A) The degree to which operations are carried out in an economical manner
B) The ability of a program, project, or task to produce a specific desired effect or result that can be measured
C) The degree to which operations are carried out in the least possible time
D) The ability of a program, project, or task to withstand and overcome harsh or unforeseen conditions

Question 27

Which of the following key HR metrics includes positions filled internally?

A) Compensation
B) Training
C) Retention and quality
D) Development

Question 28

Which of the following is true of the Older Workers Benefit Protection Act?

A) It requires employers to disclose the ethnicities of both terminated and retained employees in layoff situations.
B) It requires employers to disclose the ages of both terminated and retained employees in layoff situations.
C) It requires that laid-off employees over age 60 be granted 45 days in which to consider accepting severance benefits.
D) It requires that employers provide an 80-day notice to all employees before implementing a layoff.

Question 29

Benefit costs as a percentage of payroll are classified as a _____ of human resources.

A) training metric
B) development metric
C) staffing metric
D) compensation metric

Question 30

The average tenure of employees is classified as a(n) _____ of human resources.

A) compensation metric
B) HR staff and expenses metric
C) retention and quality metric
D) development metric

Question 31

In the context of mergers and acquisitions, the workforces of two merging companies must be optimized _____.

A) after integration
B) before integration
C) before making the deal
D) during integration

Question 32

Which of the following equations represents how internal supply can be calculated for a specific employer?

A) Internal Supply for Next Year = Current Staffing Level + Projected Outflows This Year + Projected Inflows This Year
B) Internal Supply for Next Year = Current Staffing Level - Projected Outflows This Year - Projected Inflows This Year
C) Internal Supply for Next Year = Current Staffing Level + Projected Outflows This Year - Projected Inflows This Year
D) Internal Supply for Next Year = Current Staffing Level - Projected Outflows This Year + Projected Inflows This Year

Question 33

In the context of estimating the internal labor supply for a given unit, which of the following is a source of outflows?

A) External hires
B) Layoffs
C) Recalls
D) Internal transfers

Question 34

Under the Consolidated Omnibus Budget Reconciliation Act, _____.

A) displaced workers can retain their group medical coverage for up to 18 months for themselves and for up to 36 months for their dependents, if they pay the premiums themselves
B) displaced workers can use the Medicare program sponsored by the government for up to 18 months after the termination of their employment
C) displaced workers can use the Medicare program sponsored by the federal government for up to 36 months after the termination of their employment
D) displaced workers can retain their group medical coverage for up to 12 months for themselves and for up to 24 months for their dependents, if they pay the premiums themselves

Question 35

Yum Foods recently merged with Clean Plates. Which of the following activities should HR perform after the integration process?

A) It should assess the risks involved with the merger.
B) It should retain key talent.
C) It should identify and establish a new culture.
D) It should conduct due diligence.

Question 36

In the context of estimating the internal labor supply for a given unit, which of the following is a source of inflows?

A) Demotions
B) Layoffs
C) Terminations
D) Retirements

Question 37

Cost per hire is classified as a _____ of human resources.

A) development metric
B) training metric
C) compensation metric
D) staffing metric

Question 38

Herald Inc. is planning to acquire Pyramid Inc. Before the acquisition, the HR manager of Herald Inc. should:

A) conduct due diligence.
B) retain key talent.
C) optimize the workforce of Pyramid Inc.
D) recognize the cultural differences between the two companies.

Question 39

Olive Inc. failed to give adequate notice to its employees before closing one of its facilities. In this scenario, Olive Inc. has most likely _____.

A) violated the Consolidated Omnibus Budget Reconciliation Act and will be delisted from the stock exchange
B) violated the Worker Adjustment and Retraining Notification Act and will have its trade licenses revoked
C) violated the Consolidated Omnibus Budget Reconciliation Act and will have to face a trade embargo
D) violated the Worker Adjustment and Retraining Notification Act and will have to pay heavy fines

Question 40

Jefferson, a Senior Manager at Gold Storage Vaults Inc., has determined that the company has a talent surplus. Which of the following methods should he use to manage the talent surplus?

A) He should outsource work to a third party.
B) He should use contingent workers.
C) He should reduce employee work hours.
D) He should reduce employee turnover.

Question 41

Voluntary separation programs can significantly increase payroll costs over time.

Question 42

A SWOT analysis helps the managers of an organization formulate a strategic plan that considers the organization's ability to deal with the situation at hand.

Question 43

Which of the following is a function of a compliance audit?

A) To review regulatory compliance, benefits administration, and reporting
B) To check recordkeeping on state and federal documentation requirements
C) To check specific HR subareas such as compensation, equal employment opportunity, or training
D) To review compliance with immigration regulations and the I-9 form requirement

Question 44

Which of the following is a function of an I-9 audit?

A) To review regulatory compliance, benefits administration, and reporting
B) To check recordkeeping on state and federal documentation requirements
C) To review specific HR subareas such as compensation and training
D) To review compliance with immigration regulations

Question 45

Across-the-board pay cuts can reduce labor costs while retaining some skilled employees.

Question 46

Which of the following best defines the term HR analytics?

A) An evidence-based approach to making HR decisions on the basis of quantitative tools and models
B) An assumption-based approach to making HR decisions on the basis of quantitative tools and models
C) An evidence-based approach to making HR decisions on the basis of qualitative tools and models
D) An assumption-based approach to making HR decisions on the basis of qualitative tools and models

Question 47

The strategic planning process begins with establishing an organization's goals and objectives.

Question 48

Like financial reporting, there is a standard for the implementation and reporting of HR measures.

Question 49

When assessing the external environment of an organization, managers should evaluate the quantity and quality of employees, HR practices, and the organizational culture.

Question 50

HR can foster a triple bottom approach through incentive plans that focus on achieving comprehensive results rather than solely on profit incentives.

Question 51

Implementing a strategy is typically the last step in the strategic planning process.

Question 52

Which of the following is a function of a specific program audit?

A) To review regulatory compliance, benefits administration, and reporting
B) To check recordkeeping on state and federal documentation requirements
C) To review particular HR subareas such as compensation, equal employment opportunity, or training
D) To review compliance with immigration regulations and the I-9 form requirement

Question 53

In the context of the balanced scorecard framework, which of the following would most likely be used by an organization to ensure that its operations run smoothly and efficiently?

A) Profit and loss
B) Product and service quality
C) Customer satisfaction
D) Utilization of capital

Question 54

An organization can manage a talent surplus by having its existing employees work overtime.

Question 55

In the balanced scorecard framework, utilization of capital is classified under _____.

A) financial measures
B) internal business processes
C) customer relations
D) learning and growth activities

Question 56

In the balanced scorecard framework, operational effectiveness is classified under _____.

A) financial measures
B) internal business processes
C) customer relations
D) learning and growth activities

Question 57

Which of the following is a function of a benefit programs audit?

A) To review regulatory compliance and reporting
B) To check recordkeeping on state and federal documentation requirements
C) To review specific HR subareas such as compensation and training
D) To review compliance with immigration regulations and the I-9 form requirement

Question 58

The focus of HR planning is to ensure that an organization has the right number of people with the right capabilities at the right times and in the right places.

Question 59

In the balanced scorecard framework, employee capabilities are classified under _____.

A) financial measures
B) internal business processes
C) customer relations
D) learning and growth activities

Question 60

In the balanced scorecard framework, conformance to standards is classified under financial measures.

Question 61

Benchmarking is the process of comparing an organization's business results to industry standards or best practices.

Question 62

Return on investment (ROI) is a calculation that shows the value of investments in human capital, but it cannot be used to show how long it will take for different activities to show results.

Question 63

The external environment of an organization includes the quality and quantity of talent, the organizational culture, and the talent pipeline and leadership bench strength.

Question 64

The formula for calculating human capital value added is as follows: {revenue - (operating expenses [compensation + benefit costs])} / full-time head count.

Question 65

The percentage of employees in an organization with a career plan is classified as a development metric of human resources.

Question 66

HR should conduct due diligence after the integration process.

Question 67

The Worker Adjustment and Retraining Notification Act (WARN) requires private and commercial organizations that employ 50 or more full-time workers who have worked more than three months in the previous year to give an 80-day notice before implementing a layoff or facility closing that involves more than 30 people.

Question 68

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers to disclose the ages and ethnicities of both terminated and retained employees in layoff situations, and a waiver of rights to sue for age discrimination must meet certain requirements.

Question 69

Intermediate-range plans usually project three to five years into the future.

Question 70

In the final step of the HR planning process, HR plans are developed to provide specific direction for managing HR activities related to recruiting, selecting, and retaining employees.

Question 71

Under the federal Consolidated Omnibus Budget Reconciliation Act, displaced workers can retain their group medical coverage for up to 24 months for themselves and for up to 18 months for their dependents, if they pay the premiums themselves.

Question 72

Define strategic planning.

Question 73

The balanced scorecard is a framework that organizations use to report on a diverse set of performance measures.

Question 74

The formula for calculating human capital return on investment is as follows: {revenue (operating expenses + [compensation - benefit costs])} / (compensation - benefit costs).

Question 75

The formula for calculating human economic value added is as follows: (net profit before taxes + cost of capital) / full-time head count.

Question 76

People-related costs are typically the smallest controllable expense in organizations.

Question 77

The internal environment of an organization includes economic, political, and competitive forces that shape the organization's future.

Question 78

Revenue per employee is a basic measure of human capital effectiveness.

Question 79

The financial impact of HR practices cannot be measured.

Question 80

Short-range forecasts focus on the immediate HR needs of an organization.