1. Right Answer: C
Explanation: C is the best answer. An assessment should be completed, and the system must be compared to the organizational strategy. The system must also be equitable. A is incorrect. Organizations may need to change compensation structures to match the organizational strategy. B is incorrect. It may be only a part of the assessment process. D is incorrect. The primary goal should be to assess whether the compensation system fits the organizational strategy.
2. Right Answer: A
Explanation: A is the best answer. It uses external information along with the organizational strategy, and it is transparent to the employees, so they will understand how their performance will affect their compensation. B is incorrect, because it focuses on only external equity, not internal equity. Additionally, the wage information received may not be valid. C is incorrect, because it focuses on only external wage information. D is incorrect. The structure should be aligned with the organization's goals, not the industry's standards.
3. Right Answer: B
Explanation: B is the best answer. The HR director should evaluate the jobs, develop a comparison, and show how each system aligns to the organizational strategy. A is incorrect. This would only pass the responsibility on to a consultant and would not demonstrate the HR director's value. C is incorrect. The HR director should be prepared to provide information about other structures as well. D is incorrect. This is one reference that the HR director may use, but it is something that an assistant could arrange. There are better strategic ways to add value.
4. Right Answer: D
Explanation: D is the best response, because it demonstrates the HR director's ability to use objective information in consulting with management. A is incorrect. Ignoring a recommendation from management does not demonstrate the HR director's ability to provide consultation. B is incorrect. HR would be missing an opportunity to consult with management. C is incorrect. Changing only one employee's compensation structure and not changing the structure for other employees in the same job category could be discriminatory and demonstrates inequity.
5. Right Answer: A
Explanation: The first step in EBDM is to ask the question that will guide the subsequent search for relevant data. What problem are we trying to solve?
6. Right Answer: B
Explanation: Focus groups provide valuable data and elicit opinions that may be verified by surveying the larger employee population. They may also be used to elicit qualitative information that can help explain quantitative survey results. It is important to select members who are representative of the employee population at large and to appoint a moderator who is unrelated to the participants. Objectives should be specific so the organization gets the information it needs.
7. Right Answer: D
Explanation: The nominal group technique uses a variety of individuals associated with the industry to forecast ideas and assumptions. This technique requires that the individuals meet face to face. The Delphi technique is performed individually but anonymously and is therefore not performed face to face.
8. Right Answer: B
Explanation: In the Delphi technique, members work as a group without ever meeting. Managerial estimates and trend analysis are generally completed by individuals and presented to management. The nominal group technique requires face-to-face meetings.
9. Right Answer: A
Explanation: A is the best response, as it identifies the specific reasons for on-the-job injuries that occur as a result of employees who cannot read at the national level for adults. The HR manager can use real data to show that employees who can read are able to avoid such dangerous situations or conditions. B is incorrect. Analyzing the cost-per-accident rate for each employee group will reveal only the cost of accidents occurring and will provide no significant information on trends or the causes of these accidents. C is incorrect. This information would not help justify a reading improvement program, as it provides no relevance to the situation. D is incorrect. Reviewing annual performance data does not provide any relevant information as to the causes or impacts of accidents. An annual performance rating is a review of an employee's performance and not an accurate measure of the impact of multiple repeated minor accidents upon the company's annual accident and medical insurance premiums.
10. Right Answer: A
Explanation: A is the best response. An enhanced employee brand can benefit the company greatly, both in the marketplace and by attracting and retaining high-potential employees. B is incorrect. Although this may be a side benefit, the scenario does not indicate that communication is an issue. Only the reading of instructions is an issue. C is incorrect, as initially it benefits the employees, not the company as a whole. D is incorrect. The scenario does not indicate that the output per employee is an issue, nor is there any data that suggests that this would result in higher output per employee.
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