1. What criteria should the HR director propose to use in order to determine how to reduce personnel costs?

A) A. Require the head of each department to reduce their head count by a percentage.
B) B. Use the performance reviews of employees and eliminate the weakest.
C) C. Use a combination of performance evaluations, current skill sets needed, and salary information.
D) D. Eliminate the middle manager positions throughout the entire organization, regardless of the skill sets those managers may have.



2. If HR wants to minimize resistance to change among the employee population when implementing a new health insurance plan, which is a critical first step in the process?

A) Involve employees in plan review and selection early in the evaluation process.
B) Isolate senior decision makers from the decision and any resulting animosity.
C) Delegate presentation of plan details to an insurance company representative.
D) Choose the most popular and well-known insurance company in the market.



3. Which likely workforce reactions should the vice president of HR include in a presentation to executive leadership regarding an upcoming company reorganization?

A) Significant drop in productivity and then a slow return to standard productivity levels
B) Short-term decline in performance and then rapid growth to a new level of performance
C) Increase in the use of paid time off and then a slight turnover of the workforce
D) Initial increase in workforce turnover and then a revitalization with additional new hires



4. Refer to the following scenario for the next 4 questions. A growing consumer electronics company that primarily operates at a regional level acquires a major global competitor, allowing the company to establish a global footprint and significantly increase market share. The acquisition deal is scheduled to close in four months and will double the company in size to 20,000 employees globally and increase revenues to $10 billion. The CEO and the executive leadership team are committed to achieving a strategic goal of being one of the top three consumer electronics companies in the world within three years; however, they also recognize that there are significant challenges that must be overcome. The chief human resources officer (CHRO) is asked to partner with the business line leaders on the talent integration agenda. The CHRO believes that it is essential to redefine and energize the organization's culture. A more global mindset will place culture as the forefront issue for the merged entities. Many business line leaders have expressed concern that very rapid growth has put the company at risk of losing its original culture. However, part of the acquired company's success was driven by its culture, and that culture should be considered for adoption. The CHRO is convinced that this is actually an opportunity for the company to create a new culture that would include components of both the legacy and acquired company cultures. But introducing a completely redefined culture is a risky proposition at a time when the company is already vulnerable due to the high rate of extensive change. Which is the first step the CHRO should take to facilitate consensus and gain support for initiating culture change in the merged company?

A) A. Implement the culture change that is needed regardless of conflicting views.
B) B. Develop a strategic plan and outline on how the new culture will be defined.
C) C. Create a cross-organizational task force for redefining the company culture.
D) D. Meet with resistant executive committee members to gain understanding.



5. Which proactive step should the CHRO take first in order to initiate a smooth cultural integration once the decision is made?

A) A. Conduct a cultural assessment of the legacy and acquired companies.
B) B. Independently define the values for culture in the combined organization.
C) C. Analyze gaps that exist between the legacy and acquired companies.
D) D. Interview key leaders to determine the desired combined cultural traits.