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SHRM-CP Competencies Questions - Part 19
1. Refer to the following scenario for the next 2 questions. During the yearly performance and sales review at an organization, an HR manager realizes that the sales goal and bonus structure could potentially incentivize individuals to move closings from one quarter to the next as needed to meet quarterly sales goals. Leadership, mid-level management, and the salespeople have different bonus structures—annually for leadership, quarterly for mid-level managers, and monthly for salespeople. This has created a disconnect between the different groups and created different motivations. The HR manager presents an analysis of the data to the CEO. The CEO determines that, while this bonus structure may have worked in the past, it needs to be changed and the bonus structure of the different groups needs to be aligned. She tasks the HR manager with crafting a new bonus structure and implementing it after she has approved it. What should the HR manager do first to create a bonus structure that is compatible with organizational goals and drives employee performance?
A) A. Determine if salaries lead, lag, or match the market in order to determine if a bonus plan is still needed.
B) B. Conduct interviews with employees to determine what changes they would like to see.
C) C. Determine the average time required to close a sale, and use that to create a new plan.
D) D. Hire an outside organization to conduct a remuneration survey of competitors and their bonus structure.
2. Which would be the most effective way to communicate the new plan?
A) A. Decide on a date that the new plan will go into effect and announce it by e-mail.
B) B. Meet first with managers and then with individual teams to discuss the new plan and its benefits.
C) C. Hold a company-wide town hall and announce the changes.
D) D. Host small gatherings of employees in which the plan is reviewed
3. Refer to the following scenario for the next 4 questions. The HR director of a 6,000-employee hospital is meeting with the hospital's CEO about potentially conducting an employee engagement survey. The hospital has never conducted an engagement survey. The hospital's turnover is low, and it pays competitive wages and benefits. It is nonunion except for about 200 employees in its food service department. There is a sense that a baseline assessment of employee work environment perceptions and the employees' commitment to serving patients is needed. While there is anecdotal evidence that employees are relatively satisfied with the work environment and committed to serving patients, employees have complained through the organizational hotline about lack of management support in some areas. Since other hospitals in the market have experienced union organizing activity, there is concern about possible unionization. While the CEO is interested in the survey, there is fear that it will raise employee expectations that the organization cannot meet, increasing employee dissatisfaction. The HR director is planning a follow-up meeting with the administrator and an external consultant. The goal is to share with the CEO best employer practices in conducting engagement surveys, the positive benefits of using surveys to improve morale, and appropriate engagement strategies and practices to support managers in improving performance and productivity. In developing the business case for the CEO in collaboration with the external consultant, which is the best action for the HR director to take?
A) A. Execute a formal contract specifying the consultant's relationship and expectations of engagement during the entire assignment.
B) B. Support the consultant in designing the engagement survey, providing appropriate guidance and feedback throughout the process.
C) C. Lead the engagement survey design, seeking coaching, support, and feedback from the consultant in managing obstacles.
D) D. Develop and present the business case, with the consultant's collaborative input during the development and presentation processes.
4. What risks should the HR director share when recommending an employee engagement survey to the hospital's CEO?
A) A. Low senior leadership commitment poses significant risks when there is no credible action plan to address identified employee concerns.
B) B. The survey could raise unmanageable employee expectations that senior leadership neither can nor wants to fully meet in the future.
C) C. Inherent risks associated with an engagement survey, such as obtaining potential negative repeated feedback, cannot be fully mitigated.
D) D. Employees can challenge the validity of the survey through either individual or group legal actions
5. The CEO moves forward with the engagement survey. What is the first step the HR director should take with the food service workers' union?
A) A. Form a union and non-union employee participation committee to discuss conducting the engagement survey and seek their input in managing the project.
B) B. Initiate formal discussions with the labor union representatives about including food service workers in the survey and then seek labor council input.
C) C. Do not engage the union in the engagement survey discussion because to do so could be in violation of applicable labor laws.
D) D. Engage the union, with hospital's labor counsel, in an exploratory discussion to discuss the possible participation of bargaining unit employees in the survey.
A) A. Determine if salaries lead, lag, or match the market in order to determine if a bonus plan is still needed.
B) B. Conduct interviews with employees to determine what changes they would like to see.
C) C. Determine the average time required to close a sale, and use that to create a new plan.
D) D. Hire an outside organization to conduct a remuneration survey of competitors and their bonus structure.
2. Which would be the most effective way to communicate the new plan?
A) A. Decide on a date that the new plan will go into effect and announce it by e-mail.
B) B. Meet first with managers and then with individual teams to discuss the new plan and its benefits.
C) C. Hold a company-wide town hall and announce the changes.
D) D. Host small gatherings of employees in which the plan is reviewed
3. Refer to the following scenario for the next 4 questions. The HR director of a 6,000-employee hospital is meeting with the hospital's CEO about potentially conducting an employee engagement survey. The hospital has never conducted an engagement survey. The hospital's turnover is low, and it pays competitive wages and benefits. It is nonunion except for about 200 employees in its food service department. There is a sense that a baseline assessment of employee work environment perceptions and the employees' commitment to serving patients is needed. While there is anecdotal evidence that employees are relatively satisfied with the work environment and committed to serving patients, employees have complained through the organizational hotline about lack of management support in some areas. Since other hospitals in the market have experienced union organizing activity, there is concern about possible unionization. While the CEO is interested in the survey, there is fear that it will raise employee expectations that the organization cannot meet, increasing employee dissatisfaction. The HR director is planning a follow-up meeting with the administrator and an external consultant. The goal is to share with the CEO best employer practices in conducting engagement surveys, the positive benefits of using surveys to improve morale, and appropriate engagement strategies and practices to support managers in improving performance and productivity. In developing the business case for the CEO in collaboration with the external consultant, which is the best action for the HR director to take?
A) A. Execute a formal contract specifying the consultant's relationship and expectations of engagement during the entire assignment.
B) B. Support the consultant in designing the engagement survey, providing appropriate guidance and feedback throughout the process.
C) C. Lead the engagement survey design, seeking coaching, support, and feedback from the consultant in managing obstacles.
D) D. Develop and present the business case, with the consultant's collaborative input during the development and presentation processes.
4. What risks should the HR director share when recommending an employee engagement survey to the hospital's CEO?
A) A. Low senior leadership commitment poses significant risks when there is no credible action plan to address identified employee concerns.
B) B. The survey could raise unmanageable employee expectations that senior leadership neither can nor wants to fully meet in the future.
C) C. Inherent risks associated with an engagement survey, such as obtaining potential negative repeated feedback, cannot be fully mitigated.
D) D. Employees can challenge the validity of the survey through either individual or group legal actions
5. The CEO moves forward with the engagement survey. What is the first step the HR director should take with the food service workers' union?
A) A. Form a union and non-union employee participation committee to discuss conducting the engagement survey and seek their input in managing the project.
B) B. Initiate formal discussions with the labor union representatives about including food service workers in the survey and then seek labor council input.
C) C. Do not engage the union in the engagement survey discussion because to do so could be in violation of applicable labor laws.
D) D. Engage the union, with hospital's labor counsel, in an exploratory discussion to discuss the possible participation of bargaining unit employees in the survey.
1. Right Answer: D
Explanation: D is the best answer, because it is based on identifying best practices in the industry. An experienced consultant is probably the best way to identify this data. A is not correct. It may, however, result from the consultant’s work; the consultant may report that incentives are not effective in this industry. B is not correct. The employees do not have the perspective and expertise to make this decision. C is not correct. It is likely to damage the motivation of employees and possibly incentivize them to avoid complex but valuable sales.
2. Right Answer: B
Explanation: B is the best response, because it recognizes the role the managers play as important stakeholders in the sales process. They can provide advice on communicating the new policy to salespeople and can provide support once the policy is communicated. A is incorrect. This issue is too important to the individuals affected; they will want to ask questions and react. C is incorrect. It could lead to an open rebellion that damages the organization. D is plausible but misses the opportunity of enlisting manager support. The ripple effect of communicating the policy one team at a time may also be problematic.
3. Right Answer: D
Explanation: D is correct. It recognizes the importance of the HR director's role as the account manager for the organization, bringing in specialists to assist when needed. As the in-house partner to the business leaders, the HR director should not have the consultant manage the relationship with organizational leaders. This would mean that the HR director has given up a pivotal role. A is incorrect. Having a formal contract in place is important, but it does not address the need to develop a business case. B is incorrect. Such an approach would be counterproductive and detrimental to the interests and goals of the organization in executing the survey. C is incorrect. It does not recognize the importance of the two parties maintaining a collaborative and synergistic relationship to maximize each other's expertise in contributing to the success of the project.
4. Right Answer: A
Explanation: A is the best response. It represents a fundamental principle in conducting employee surveys: that the organization should not undertake such projects unless senior leadership is seriously committed to acting on the results. B is incorrect. While it is true that surveys tend to raise expectations, responsible communications on the organization's capacity to meet these expectations within the limits of its resources can help set more realistic employee expectations of results. C is incorrect. Carefully managing expectations and setting clear but realistic goals could mitigate the risk. D is incorrect. It is unlikely that such an individual or group legal action would be successful, providing the survey is validated to minimize the risk of adverse impact against any particular group.
5. Right Answer: D
Explanation: D is the correct. It provides an opportunity to engage the union in discussion about possible labor-management collaboration on the project without obligating the organization to negotiate something that should be an inherent part of their management rights prerogative. A is incorrect. It fails to incorporate legal counsel on this issue. B is incorrect. No formal discussion should take place without the hospital's labor counsel. C is incorrect. This option fails to recognize the importance of maintaining positive labor-management relations with the organization's union.
Explanation: D is the best answer, because it is based on identifying best practices in the industry. An experienced consultant is probably the best way to identify this data. A is not correct. It may, however, result from the consultant’s work; the consultant may report that incentives are not effective in this industry. B is not correct. The employees do not have the perspective and expertise to make this decision. C is not correct. It is likely to damage the motivation of employees and possibly incentivize them to avoid complex but valuable sales.
2. Right Answer: B
Explanation: B is the best response, because it recognizes the role the managers play as important stakeholders in the sales process. They can provide advice on communicating the new policy to salespeople and can provide support once the policy is communicated. A is incorrect. This issue is too important to the individuals affected; they will want to ask questions and react. C is incorrect. It could lead to an open rebellion that damages the organization. D is plausible but misses the opportunity of enlisting manager support. The ripple effect of communicating the policy one team at a time may also be problematic.
3. Right Answer: D
Explanation: D is correct. It recognizes the importance of the HR director's role as the account manager for the organization, bringing in specialists to assist when needed. As the in-house partner to the business leaders, the HR director should not have the consultant manage the relationship with organizational leaders. This would mean that the HR director has given up a pivotal role. A is incorrect. Having a formal contract in place is important, but it does not address the need to develop a business case. B is incorrect. Such an approach would be counterproductive and detrimental to the interests and goals of the organization in executing the survey. C is incorrect. It does not recognize the importance of the two parties maintaining a collaborative and synergistic relationship to maximize each other's expertise in contributing to the success of the project.
4. Right Answer: A
Explanation: A is the best response. It represents a fundamental principle in conducting employee surveys: that the organization should not undertake such projects unless senior leadership is seriously committed to acting on the results. B is incorrect. While it is true that surveys tend to raise expectations, responsible communications on the organization's capacity to meet these expectations within the limits of its resources can help set more realistic employee expectations of results. C is incorrect. Carefully managing expectations and setting clear but realistic goals could mitigate the risk. D is incorrect. It is unlikely that such an individual or group legal action would be successful, providing the survey is validated to minimize the risk of adverse impact against any particular group.
5. Right Answer: D
Explanation: D is the correct. It provides an opportunity to engage the union in discussion about possible labor-management collaboration on the project without obligating the organization to negotiate something that should be an inherent part of their management rights prerogative. A is incorrect. It fails to incorporate legal counsel on this issue. B is incorrect. No formal discussion should take place without the hospital's labor counsel. C is incorrect. This option fails to recognize the importance of maintaining positive labor-management relations with the organization's union.
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