Published - Fri, 03 Mar 2023

SPHR Questions - Part 98

1. A company that wants to reduce the cost of its unemployment insurance should do which of the following?Each correct answer represents a complete solution. Choose all that apply.(Select 3answers)

A) Terminate employees who violate company policy
B) Establish an effective performance-management program
C) Aggressively fight unjustified claims for unemployment
D) Enhance national productivity and competitive ability

2. For which of the following is 'the highest standards of care and professionals in a legal context' a key component?

A) Breach of contract
B) Code of conduct
C) Fiduciary responsibility
D) Conflict of interest

3. Molly is the Director of HR at a large multinational corporation. She extended the open enrollment period for benefits in order to accommodate her spouse, who needed a different plan. This is an example of what?

A) Unethical conduct
B) Breach of fiduciary responsibility
C) Exercising a choice-of-law clause
D) Breaking the law

4. A Total Rewards philosophy can help achieve an organization's strategic goals by doing which of the following?

A) Attracting and retaining employees with the necessary KSAs
B) Maintaining an entitlement culture
C) Positioning the company to lead the competition for employees
D) Establishing a pecking order for jobs in the organization

5. ESOPs, ESPPs, and profit-sharing are all examples of which of the following?

A) Deferred compensation
B) Sales bonus options
C) Group incentives
D) Gainsharing strategies

1. Right Answer: A
Explanation: Answer options C, B, and A are correct.C and B are both obviously correct. Although A may seem counterintuitive to some because many employers are hesitant to terminate employees for policy violations, those terminated for cause generally aren't eligible for unemployment insurance. Because retaining an employee who is not contributing to the organization is a poor business decision, maintaining adequate records to demonstrate the reasons for termination provides the tools to fight claims that are unjustified.Chapter: Compensation and BenefitsObjective: Review Questions

2. Right Answer: C
Explanation: Answer option C is correct.Fiduciary responsibility implies a greater legal obligation to act with great care and responsibility on behalf of a company. Acting in one's own self-interest, conflicting duties, and profiting from a role are all examples of how HR could breach this obligation. Code of conduct, breach of contract and conflict of interest are certainly components of HR standards, but in terms of ranking, they fall below the concept of fiduciary responsibility.Chapter: Compensation and BenefitsObjective: Review Questions

3. Right Answer: B
Explanation: Answer option B is correct.As the Director of HR, Molly is in a position of control over the administration of HR policies, procedures, and rules. As such, she is held to a high standard of responsibility that goes beyond unethical conduct (A). Fiduciary responsibility requires that the HR professional act without regard for their own self interests. A choice of law clause (C) applies in the administration of expatriate agreement, and extending pen enrollment is not necessarily illegal (D).Chapter: Compensation and BenefitsObjective: Review Questions

4. Right Answer: A
Explanation: Answer option A is correct.A Total Rewards philosophy helps determine what kind of employees will be attracted to the organization. Developing a philosophy to target employees with theKSAs needed by the organization can help advance the organization's mission. The pecking order for jobs (D) is based on the value of those jobs to the organization. The philosophy defines leading the competition as a strategy; positioning the company to do so (C) is a result of creating the compensation structure.An entitlement culture is maintained (B) by continuing to pay employees for time on the job instead of for performance.Chapter: Compensation and BenefitsObjective: Review Questions

5. Right Answer: C
Explanation: Answer option C is correct.Group incentives share common elements including the reward of individuals based on their collective efforts. Employee Stock Ownership Plans, Employee StockPurchase Plans, profit-sharing, and gainsharing (D) are all examples of group incentives. Deferred compensation (A) refers to tax-deferred retirement plans, and a sales bonus (B) is a type of commission paid to workers.Chapter: Compensation and BenefitsObjective: Review Questions

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