Question 1

Mergers and acquisitions involve meshing decision-making styles, levels of teamwork, information sharing philosophies, and the formality of the two organizations. What have failures to mesh revealed to be critically important?

Accepted Answer

Failures to mesh have revealed that cultural compatibility is critically important when it comes to mergers and acquisitions. This includes factors such as shared values, beliefs, communication styles, and management strategies. Without a strong cultural fit, integration efforts may be hindered and the merged entity may struggle to function effectively.

Question 2

According to provincial and territorial employment standards acts, as well as the Canada Labour Code, which of these requirements must employers fulfill?

Accepted Answer

Provincial and territorial employment standards acts, as well as the Canada Labour Code, require employers to provide sufficient notice before implementing a layoff or facility closing that affects more than 50 people. Choice A and D are not mandatory requirements, and B is incorrect as all employees, regardless of their type of work, are entitled to a specified notification period.

Question 3

Which of the following is NOT a recommendation for making downsizing more effective?

Accepted Answer

All of the other options are recommended for making downsizing more effective. However, allowing "survivors" to become psychologically toughened is not a recommended strategy, as it can lead to employee burnout, decreased job satisfaction, and increased turnover. Instead, it is recommended to provide support and resources for employees who remain with the organization after downsizing.

Question 4

A volunteer separation program is subject to both up-front costs and another drawback. Which statement best captures the second key drawback?

Accepted Answer

Some people who take advantage of the program are employees the company would like to retain, which can lead to a loss of valuable talent and skills that the company would prefer to keep.

Question 5

Which of the following statements about exit interviews is a misconception?

Accepted Answer

Departing employees may not always be eager to voice their grievances during exit interviews, as they might fear burning bridges or damaging future references.

Question 6

Backroads Merchandise, a manufacturer of outdoors and sports products, is facing a pronounced downturn in business due to lower priced goods from foreign competitors. Top management believes that this problem will be permanent or long-term, and it has decided to reduce the number of employees. The CEO has conferred with the director of HR to learn which method of reducing the workforce both the employees leaving and the employees remaining behind will receive better. The CEO also wishes to minimize the cost of the reduction process. Which of these methods has the director of HR probably suggested?

Accepted Answer

Attrition and a hiring freeze allow for a natural reduction in workforce without the immediate negative impacts of layoffs, severance costs, or the expense of early retirement packages. This method is often viewed more favorably by remaining employees as it does not involve forced departures and can be less costly for the company.

Question 7

When employees are unhappy with their severance pay, they have the option of suing their employers. Which of the following factors will the courts NOT take into account when determining the severance amount?

Accepted Answer

The courts will consider the precedent from similar situations in the past, the employee's length of service, and the way the employee was treated during his/her tenure when determining the severance amount. However, they will not take the employee's performance record into account as it is not relevant to the severance pay.

Question 8

Which is the most accurate way for HR managers to view absenteeism and turnover?

Accepted Answer

Absenteeism and turnover are often indicators of underlying issues within an organization, such as poor job satisfaction, inadequate working conditions, or ineffective management practices. Viewing them as symptoms helps in identifying and addressing the root causes.

Question 9

There are eight employees in the accounts receivable department. Four work 40 hours a week, and four work 20 hours a week. How many FTEs are in this department?

Accepted Answer

FTE stands for full-time equivalent, which is a measure of an employee's workload. A full-time employee typically works 40 hours per week, so to calculate the FTEs of the employees in the accounts receivable department, we need to convert the part-time employees' hours into full-time equivalents. The total number of hours worked by all employees in the department is:

4 x 40 (full-time employees) + 4 x 20 (part-time employees) = 240

To convert the part-time employees' hours to full-time equivalents, we divide their total hours by the number of hours worked by a full-time employee:

4 x 20 / 40 (hours worked by a full-time employee) = 2

So the total FTEs in the accounts receivable department are:

4 (full-time employees) + 2 (part-time employees converted to FTEs) = 6.

Question 10

Which of the following is NOT a strategy that can be used to deal with labour shortages?

Accepted Answer

Attrition refers to the natural reduction in workforce due to resignations or retirement, and cannot be used as a deliberate strategy to deal with labor shortages. The other options, overtime, external recruitment, and subcontracting work, are all strategies that can be used to address labor shortages.

Question 11

Which of the following is an example of HR metrics?

Accepted Answer

HR metrics are measurements of the efficiency and effectiveness of HR processes and practices. The retention rate of legal secretaries is a metric that tracks the rate at which the company is able to retain its legal secretaries, which is a key factor in determining the quality of employment in the company. The number of new clients secured by a sales agent is not an HR metric, while the average time to fill out furniture requisition forms is a process-oriented metric that is not typically used in HR. Finally, unemployment levels in the metropolitan area are a larger, macroeconomic metric that is not typically used in HR.

Question 12

Paula is the vice president of HR for Prairie Foods, which has just acquired Mountain Mills. Paula will oversee many layoffs as the company lays off redundant employees. Which of the following trends will Paula know to prepare for when she considers HR planning for the next year?

Accepted Answer

Layoffs often lead to an increase in resignations as remaining employees may feel insecure about their job stability, leading them to seek employment elsewhere.

Question 13

In which of the following are employees put on unpaid leaves of absence from which they may be called back if business improves?

Accepted Answer

Layoffs typically involve employees being put on unpaid leaves of absence due to a temporary downturn in business or economic conditions. They may be called back if business improves, making this the best choice. Attrition refers to reducing the workforce through natural means, such as retirement or resignation, and does not involve leaves of absence. Buyouts involve offering financial incentives for employees to voluntarily leave their jobs. Terminations for cause involve firing employees for misconduct or poor performance, which does not involve leaves of absence.

Question 14

Employees who have been involuntarily removed from the organization because of performance problems or elimination of jobs are eligible for certain services. What are these services for former employees called?

Accepted Answer

The services for former employees who have been involuntarily removed from the organization because of performance problems or elimination of jobs are called outplacement services. These services typically include job search assistance, resume writing, interview coaching, and networking opportunities. They are designed to help employees transition to new jobs and careers after leaving their previous employer. Option A (career repositioning) and option D (transition support) are not commonly used terms for these services. Option C (severance) refers to the financial compensation or benefits provided to employees who are laid off or terminated. While severance may be offered in conjunction with outplacement services, it is not the same thing.

Question 15

Sometimes individuals who quit, die, or retire are not replaced. Which approach to dealing with a human resources surplus is this?

Accepted Answer

Attrition is the process of reducing the workforce by not replacing employees who leave the organization due to natural attrition such as retirement, resignation or death. This approach is less disruptive than other methods such as downsizing or layoffs and allows for a more natural reduction in the workforce. It is often a preferred method for organizations that want to reduce their human resources surplus more gradually without creating a negative impact on morale or productivity.

Question 16

Which of the following groups are NOT among the main customers for HR services?

Accepted Answer

Organizational clients are not considered as the main customers for HR services. The main customers are managers, employees, and other departments within the organization. Organizational clients are external entities that the organization provides services to, such as customers or clients.

Question 17

Which of these apparent characteristics of useful HR metrics does NOT belong?

Accepted Answer

Useful HR metrics should provide objective data, not subjective data. This helps ensure the metrics are reliable and trustworthy for decision-making.

Question 18

One thing that the return on investment calculation shows is the value of expenditures for HR activities. What else does it show?

Accepted Answer

Return on investment (ROI) calculations can help determine how long it will take for HR activities to pay for themselves by comparing the costs of the activities to the financial benefits they generate.

Question 19

Which of these options represents the ideal circumstances for implementing interventions to improve retention?

Accepted Answer

Pilot-testing before implementing in the entire organization allows for identifying potential problems or unforeseen consequences before fully implementing the intervention. This approach provides an opportunity to adjust and fine-tune the intervention before it is implemented more widely.

Question 20

Henry is an internal auditor for Mountain Home Mills. A credible rumour is circulating that Mountain Home is about to be acquired by its main competitor, Prairie Foods. Mountain Home and Prairie Foods make almost identical products, and their headquarters will be combined at the Prairie Foods' Calgary location. Which of these possible decisions would Henry be wise to make?

Accepted Answer

As an internal auditor, Henry may be at risk of losing his job during the acquisition process or the new company may already have their own internal audit team. Therefore, it would be wise for him to prepare for the possibility of job loss by updating his resume and exploring job opportunities.

Quiz 2: Strategic HR Management and Planning