Question 1

The main reason that HR metrics are difficult to compare across organizations is due to

Accepted Answer

There is often a lack of consistency in how HR data is reported across different organizations, making it difficult to compare metrics directly. Even if two organizations report the same metric, the way they calculate and report that data could be very different, making it challenging to draw meaningful comparisons.

Question 2

Which of the following HR functions is NOT included in a typical balanced scorecard analysis?

Accepted Answer

Employee benefit programs are typically not included in a balanced scorecard analysis. The balanced scorecard focuses on translating an organization's mission and vision into operational objectives across four perspectives: financial, customer, internal business processes, and learning and growth. Employee benefit programs, while important for HR, do not directly fit into these categories as they are more related to employee compensation and welfare rather than performance metrics or strategic objectives.

Question 3

Typically,the largest controllable expense in the organization involves

Accepted Answer

The employees are typically the largest controllable expense in an organization, as they make up a significant portion of the operational costs. This includes salaries, benefits, and training expenses. While executive salaries and bonuses can also be significant expenses, they are typically a smaller percentage of the overall budget. Technology software and hardware costs can also be significant, but these expenses are often necessary for efficient operations and may not be as controllable as employee costs. Raw material input costs may also be significant, but these are often subject to market prices and may be less controllable than employee costs.

Question 4

As director of HR for a large regional car dealership with 10 locations,Ed must calculate the potential return on investment (ROI)of implementing a new training program to improve car salespersons' effectiveness in convincing new car buyers to finance the car through the dealership.In order to calculate the ROI of the new training program,he needs to collect all of the following data EXCEPT

Accepted Answer

The cost of outsourcing training programs for car salespersons is not necessary for calculating the ROI of the new training program implemented within the company. The other options listed are necessary to calculate the ROI.

Question 5

When using benchmarking

Accepted Answer

The answer of When using benchmarking
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Question 6

Which of the following statements is FALSE about electronic human resource management systems (e-HRM)?

Accepted Answer

E-HRM systems are usually integrated into the organization's overall enterprise software and IT plan, rather than being separate systems. This integration allows for better data flow and communication between different departments and functions.

Question 7

A(n)____ is a formal research effort that evaluates the current state of HR management in an organization.

Accepted Answer

An HR audit is a formal research effort that evaluates the current state of HR management in an organization. It assesses areas such as recruitment, training and development, compensation, benefits, and compliance with legal requirements. The results of the audit help organizations identify areas for improvement and develop strategies to enhance their HR management practices.

Question 8

ROI is the organization's

Accepted Answer

ROI stands for return on investment, which is an important metric used to measure the profitability of an investment or project. It measures the amount of return generated on the invested capital. Therefore, option C is the correct choice. Option A is incorrect because it does not make sense to talk about return on interest. Option B is incorrect because while innovation can impact ROI, it is not the same as ROI. Option D is incorrect because intangible assets may or may not have an impact on ROI but ROI itself is not related to intangible assets.

Question 9

One approach to assessing HR effectiveness is ____,which compares specific measures of performance against data on those measures in other organizations.

Accepted Answer

Benchmarking involves comparing specific measures of performance against data on those measures in other organizations. This approach can help to identify areas for improvement and evaluate the effectiveness of HR strategies and practices.

Question 10

In order to calculate the wealth created per employee,one must divide ___________ by the organization's full time headcount.

Accepted Answer

Wealth created per employee is calculated by dividing the net profit after taxes minus the cost of capital by the organization's full-time headcount. This formula measures the value generated by each employee after covering the cost of capital.

Question 11

The collective value of the competencies,knowledge and skill of the employees in the organization is known as the organization's

Accepted Answer

Human capital is the collective value of the competencies, knowledge and skills of the employees in the organization. It represents the investment the organization has made in its workforce and is an important asset for achieving organizational objectives. Choice A, investment in people, is similar to human capital but does not capture the full value of the knowledge and skills of employees. Choice B, talent pool, refers specifically to the group of employees with high potential for leadership or specialized roles, but does not encompass all employees. Choice C, intellectual assets, is a broader term that includes the organization's intellectual property, such as patents and trademarks, as well as its human capital, but does not represent human capital exclusively.

Question 12

Useful metrics have all the following characteristics EXCEPT

Accepted Answer

The inclusion of subjective judgments by experts would not be considered a characteristic of useful metrics as it can introduce bias and lack objectivity. Useful metrics should be objective and data-driven. Therefore, the best choice is D.

Question 13

Which of the following statements is TRUE about the balanced scorecard approach to measurement of HR performance?

Accepted Answer

The balanced scorecard approach helps an organization understand the cost/benefit payoffs of its HR activities, which involves measuring both tangible and financial contributions of HR. Option A is incorrect because the balanced scorecard approach includes both qualitative and quantitative measures, not just qualitative measures. Option C is incorrect because subjectivity cannot be completely eliminated in any performance measurement approach. Option D is incorrect because the balanced scorecard approach requires significant planning and development before it can be implemented.

Question 14

Beth,the employee development manager at Orcho Dynamics,wants to generate metrics that will help her analyze the efficiency and effectiveness of the company's development programs.Which of the following metrics would be most useful for Beth?

Accepted Answer

D  Metrics B and D directly relate to the effectiveness of development programs by showing internal promotion rates and the performance of newly trained employees.

Question 15

Revenue divided by full time employee equivalents is

Accepted Answer

Revenue divided by full-time employee equivalents is a measure of employee productivity as it shows how effectively the employees are contributing to the organization's revenue generation.

Question 16

Accounting practices treat expenditures on human capital as

Accepted Answer

Expenditures on human capital, such as training and education, are typically treated as expenses in accounting practices. This is because they are costs incurred in the operation of a business that do not result in the acquisition of a tangible asset.

Question 17

The new CEO of the firm has told the vice president of HR that all HR activities must use the cost of capital as the benchmark against which their the returns from the activities are measured.The new CEO is implementing

Accepted Answer

The use of cost of capital as the benchmark for measuring returns from HR activities is a characteristic of the Human Economic Value Added (HEVA) approach, which is a form of measuring ROI in HR. The balanced scorecard is a broader performance management framework that includes financial and non-financial measures. Return on Investment (ROI) and Return on Assets (ROA) both involve measuring financial returns against the costs incurred, but they do not specifically use cost of capital as the benchmark.

Question 18

A strategic approach to HR requires that organizational HR leaders be included in the decision-making process immediately after the executive team has made major strategic changes.

Accepted Answer

A strategic approach to HR involves including organizational HR leaders in the decision-making process from the beginning, ensuring that HR strategies are aligned with the overall business strategy from the outset, not after major decisions have already been made.

Question 19

The return on investment calculation shows the value of expenditures for HR activities.It also shows

Accepted Answer

The answer of The return on investment calculation shows the...

Question 20

Under the balanced scorecard approach,an organization's performance is measured using all of the following categories EXCEPT the ____ perspective.

Accepted Answer

The balanced scorecard approach measures an organization's performance using four categories: financial, customer, internal business processes, and learning and growth. Therefore, marketing is not a perspective in the balanced scorecard approach.

Quiz 2: Strategic HR Management and Planning