1. An organization has moved to larger facilities and doubled its workforce. However, it still experiences problems with back orders, which results in customer dissatisfaction. What phase of the organization/product life cycle is the organization probably in?

A) Introduction
B) Growth
C) Maturity
D) Decline



2. Refer to the following scenario for the next 4 questions. A manufacturing organization is in the decline phase of its life cycle. The organization's largest customer has notified the CEO that it plans to withdraw its business over the next two years. The CEO and his staff must consider options to replace the lost revenue related to this customer account. The company's employees are nervous and uncertain about their future. Two options are quickly identified to replace the expected loss of revenue. Option 1 is to develop a new product that could be manufactured and delivered in one week while the competition delivers product in six weeks. To compete successfully with this approach, the company would also need to design an order entry system so customers could place orders online. This strategy requires engineering to design the product line. It also requires IT staff to design the software and customer portals, marketing and sales to develop sales literature and pricing models, manufacturing to prepare for production, and HR to develop the workforce plan. Option 2 would be to acquire a struggling competitor and quickly turn that company around. The CEO has asked the HR manager to assess possible HR issues for both of these options. The CEO decides on option 1 to develop a new product. In this scenario, the engineering department would be understaffed. Which action should the HR manager recommend as a first step to assist the engineering manager?

A) A. Assist the engineering manager in creating an organizational chart showing the engineering department reporting structure.
B) B. Consult with the engineering manager to assist with prioritizing the work of the drafters.
C) C. Share Information about the employee assistance program (EAP) to assist engineers stressed by increased workloads.
D) D. Assist the engineering manager by researching engineering outsourcing firms and other short-term sourcing opportunities.



3. Which would be the best strategic action for the HR manager to use to demonstrate HR'S value in this new product venture?

A) A. Analyze the process throughput plan with the production manager, determine the staff levels needed, and conduct a job analysis for each position.
B) B. Recommend that a special projects implementation team be created to analyze, design, and manage the development of the new product.
C) C. Use the Delphi technique with the production manager to determine the minimum qualifications and educational requirements for the new job descriptions.
D) D. Compare the projected demand analysis for employees with the employee supply analysis in the company's immediate labor and recruitment area.



4. Six months after deciding to pursue option 1, the CEO also decides to acquire another company. Which is the best first step for the HR manager to take as part of HR's due diligence?

A) A. Bring in outside consultants to audit the new company's financial position to identify fiscal health.
B) B. Conduct an HR audit of the new company's HR department for current and potential employment-related issues.
C) C. Conduct a SWOT analysis of the likely long-term success of the acquisition of another company.
D) D. Review all current employment legal and administrative actions the new company has had filed against it.



5. During this time of change and uncertainty for the organization, what should the HR manager do to encourage retention of key employees?

A) A. Review the organization's current knowledge management retention strategy and communicate it to all managers and leaders.
B) B. Remind employees where to access exit information and review the effectiveness of the exit interview process.
C) C. Develop a long-term succession plan for each key position in the organization and ensure that it is updated.
D) D. Clearly communicate job expectations and ensure that employees have adequate resources to perform their work.