Deck 16: Assessing HRM Effectiveness

Question 1

Failure to consider the bottom line means that the HR function:

A) views line managers as the enemy who frustrate the professional approach to HRM.
B) depends on top management support to overcome line management resistance.
C) gives up or introduces HR programs without line management support.
D) all of the options listed.

Answer 1

all of the options listed.

Question 2

An approach to the HR audit which compares the firm with another firm to uncover areas of poor performance is probably using the:

A) outside authority approach.
B) comparative approach.
C) compliance approach.
D) statistical approach.

Answer 2

comparative approach.

Question 3

When a management by objectives approach is applied in the HR area, the audit can:

A) rely upon supervisors to ensure that objectives are met.
B) identify deviations from laws and company policies or procedures.
C) generate numerical standards against which activities and program can be evaluated.
D) compare actual results with stated objectives.

Answer 3

compare actual results with stated objectives.

Question 4

What information could be used as a database for measurement of HR activities?

A) Industry surveys
B) HR budgets
C) Production records
D) All of the options listed

Question 5

The loss of employees by the organisation for any reason is known as:

A) redundancy.
B) employee turnover.
C) employee departure.
D) employee changeover.

Question 6

'Separation rate', 'resignation rate', and 'avoidable turnover' are measures of:

A) absenteeism.
B) satisfaction.
C) motivation.
D) employee turnover.

Question 7

The number of workforce separations during the month divided by the total number of employees at mid-month, expressed as a percentage, is a measure of the:

A) absenteeism rate.
B) resignation rate.
C) avoidable turnover rate.
D) separation rate.

Question 8

An interview designed to find out the reasons why the employee is leaving or to provide counselling and/or assistance in finding a new job is a(n):

A) employment interview.
B) performance interview.
C) exit interview.
D) departure review.

Question 9

If you were using a survey questionnaire to find out why past employees left the organisation, their feelings about the company, their supervision, and so on you would be using:

A) a post-exit questionnaire.
B) an exit interview.
C) a turnover rate review.
D) a separation rate analysis.

Question 10

The costs of labour turnover are surprisingly high. It is estimated that the cost of replacing executives is:

A) 150% of salary.
B) 100% of salary.
C) 50% of salary.
D) 25% of salary.

Question 11

The types of costs associated with the replacement of staff are:

A) direct and indirect costs.
B) lost expenditure.
C) administrative costs.
D) a and c.

Question 12

The failure of employees to report to work when they are scheduled to do so is:

A) irresponsible.
B) authorised absence.
C) flexitime.
D) absenteeism.

Question 13

A study conducted in the US estimates that for each 1 per cent increase in absenteeism a _____ reduction in productivity occurs.

A) 15%
B) 2.5%
C) 12%
D) 6%

Question 14

'Frequency rate' and 'absence rate' are measures of:

A) absenteeism.
B) turnover.
C) employee satisfaction.
D) lost-time injury incidence rate.

Question 15

Frequency rate is a measure of:

A) the duration of absences.
B) how much working time is lost through absences.
C) how frequently employees take 'sickies'.
D) the number of absences that occur.

Question 16

Absence rate is a measure of:

A) the duration of absences.
B) how much working time is lost through absences during a particular period.
C) how frequently employees take 'sickies'.
D) the number of absences that occur.

Question 17

Australian studies have identified a relationship between absenteeism and all of the following factors EXCEPT:

A) poor interpersonal communication.
B) job boredom.
C) time of the year.
D) poor management-employee relations.

Question 18

A national survey into absence rates shows that the overall absence attributed to sickness and accidents is:

A) 4 per cent.
B) 15 per cent.
C) 25 per cent.
D) 32 per cent.

Question 19

A severe job-related injury that causes an employee to be absent from the job is describes as a(n):

A) legitimate absence.
B) lost-time injury.
C) compensation injury.
D) uncalculated absence.

Question 20

Which of the following is a major component of an employee attitude survey?

A) Pilot test
B) Benchmarking
C) Transformational research
D) Market analysis

Question 21

An information gathering approach designed to help organisations to create an improved employment relationship is:

A) focus groups.
B) benchmarking.
C) transformational research.
D) attitude survey.

Question 22

Transformational research is designed to help organisations develop a new kind of employment relationship by taking all EXCEPT which of the following steps?

A) Involving employees in developing the terms of their new employment relationship
B) Acknowledging that a complex set of work and non-work factors affects employee attitudes
C) Utilising established and well tested benchmarks from other organisations that have introduced a new relationship with employees
D) Changing the focus of employee research such that it centres on ways to encourage employees to deliver the performance needed to achieve the organisation's objectives

Question 23

Groups of employees who are brought together to confidentially discuss specific HR topics such as a company's pay-for-performance program, restructuring, or quality management is a:

A) task force.
B) HR audit.
C) policy review committee.
D) focus group.

Question 24

A focus group is normally made up of how many members?

A) 8 - 12
B) 4 - 7
C) 12 - 15
D) 2 - 4

Question 25

Unlike traditional focus groups, employee focus groups:

A) utilise employees from outside organisations.
B) are confidential and management is not involved.
C) must have equal representation of males and females.
D) publish their results on the organisation's intranet.

Question 26

The identification of best practices among competitors and non-competitors that make them superior performers is:

A) industrial espionage.
B) benchmarking.
C) transformational research.
D) market analysis.

Question 27

Which of the following would NOT be an indicator of the HR outcome of competence?

A) Abilities
B) Knowledge
C) Skills
D) Creativity

Question 28

Which of the following would be an indicator of an HR outcome of job satisfaction?

A) Honesty
B) Attitudes
C) Job performance
D) Absenteeism

Question 29

A measurement system designed to show HR's impact on the achievement of the organisation's strategic objectives and financial performance is:

A) benchmarking.
B) the balanced scorecard.
C) the HR scorecard.
D) auditing.

Question 30

The HR scorecard is based on the premises that people are the basis of value creation and that:

A) financial measures are the key to determining the worth of HR's contribution.
B) if something cannot be measured it cannot be managed.
C) investment in training and development is critical.
D) employee attitude surveys are the best measure of HR's contribution.

Question 31

Predictive measures that drive the implementation of the firm's strategic business objectives are:

A) lagging indicators.
B) strategic indicators.
C) leading indicators.
D) technical indicators.

Question 32

Measures that focus on historical performance are:

A) lagging indicators.
B) strategic indicators.
C) leading indicators.
D) technical indicators.

Question 33

In today's business environment HR managers must demonstrate:

A) a knowledge of international management skills.
B) the costs and benefits of the HR function.
C) good communication skills.
D) an understanding of international relations.

Question 34

The HRM audit helps to facilitate:

A) the introduction of HR programs without line management support.
B) improvement in the HR function's image with management by demonstrating its impact on turnover.
C) assessment of the contribution by the HR function to the organisation's strategic objectives.
D) programs to identify and alleviate staffing shortages.

Question 35

Generating a meaningful set of measures that can be tracked over time indicates:

A) how the HRIS can be used to full advantage.
B) how well the HR function is performing in terms of relative productivity and cost-effectiveness.
C) the HR manager's ability to generate and analyse objective results.
D) a reduced dependence on qualitative results to demonstrate perceived effectiveness.

Question 36

Which of the following would NOT be a measure of the HR climate?

A) Employee turnover
B) Expenditure on training and development
C) Health and safety records
D) Employee attitude surveys

Question 37

Which turnover measure gives an excellent indication of the HR climate?

A) Employee turnover
B) Resignation rate
C) Avoidable turnover rate
D) Separation rate

Question 38

Cascio has identified three main sources of the costs of employee absenteeism. Which of the following is NOT one of these sources?

A) Costs associated with absentees themselves
B) Costs associated with managing problems of absenteeism
C) Costs associated with the attitude of remaining employees to absentees
D) Additional costs such as machine down-time, overtime for replacement workers

Question 39

A well-conducted employee attitude survey can have substantial benefits for the organisation. These include all of the following EXCEPT:

A) clarifying for the employee just how dissatisfied they are.
B) the generation of a large number of development suggestions.
C) discovery of unknown grievances.
D) evidence for changes in policy and practice.

Question 40

An employee attitude survey should only be conducted if:

A) top management is thoroughly committed to implementing changes indicated by the survey results.
B) employees show a significant level of dissatisfaction.
C) the overall results of the survey remain classified and only known by the HR department.
D) employees request that such a survey be conducted.

Question 41

When conducting an attitude survey, which of the following is recommended?

A) Develop plans without the involvement of line managers or employees
B) Use repeat surveys to permit the measuring of trends and changes in direction
C) Always use outside norms as comparisons
D) Do not attempt to relate attitude scores to specific HRM policies and practices

Question 42

Which of the following is NOT a major step in conducting an attitude survey?

A) Questionnaire development
B) Validation
C) Data analysis
D) Retesting to check validity

Question 43

If a company asked employees why they thought the company was planning to introduce flexitime, a new medical program, or a new incentive plan they would be making use of which of the following?

A) A climate survey
B) Transformational research
C) An attitude survey
D) staff review process

Question 44

For focus groups to be successful it is essential that:

A) only truly committed members are asked to join the group.
B) the group must meet on a daily basis.
C) employees must know that their identities will be protected.
D) employees who are not members of the focus group are able to submit their concerns, ideas and suggestions to a member of the group for the group's consideration.

Question 45

Benchmarking HR practices serves a number of purposes including:

A) identification of HR areas where performance can be improved.
B) it can be used to create a need for change.
C) it enables an organisation to learn from those that excel in an HR practice.
D) all of the options listed.

Question 46

To demonstrate HR's strategic contribution, the HR scorecard highlights:

A) cost control and value creation.
B) cost control and attitude surveys.
C) productivity improvements and labour turnover.
D) quality and productivity measures.

Question 47

The HR scorecard has been criticised for:

A) not being easy or economical to implement.
B) not being linked to corporate strategy.
C) it overemphasises costs to the employee over costs to the organisation.
D) all of the options listed.

Question 48

Which is NOT a key ingredient in benchmarking?

A) Go on a fishing expedition.
B) Send out people who will have to make the changes.
C) Be prepared to exchange information.
D) Avoid legal problems.

Question 49

What are the benefits of the HR scorecard?

A) It reinforces the distinction between technical HR and strategic HR.
B) It focuses attention on leading indicators.
C) It assesses HR's contribution to strategic implementation and the bottom line.
D) All of the options listed.

Question 50

Which tool can provide the HR manager with a more rigorous method of assessment of HR performance, help deliver improved HR performance, and integrate HR activities with organisational strategy?

A) The HR scorecard.
B) Benchmarking.
C) Transformational research.
D) Focus groups.

Question 51

Discuss the reasons for conducting regular HR audits.

Question 52

Explain the relationship between the HR function and the organisation's business strategy, and why it is essential to see how HR contributes to the achievement of that strategy.

Question 53

Identify and explain the steps involved in conducting an employee attitude survey.

Question 54

Why do organisations carry out exit interviews? How can the information gathered be used to improve the performance of the HR function?

Question 55

Why is it important to keep records of employee turnover and how can this be done?

Question 56

What is the HR scorecard? What are the main benefits and criticisms of this technique?