1.The HR director at Clearwater Electronics has been asked to advise the board on a proposal to implement a variable compensation plan for top executives in each department. The CFO wants the HR director to explain how the plan will encourage productivity in top management positions. Which statement best explains why a variable compensation plan would help increase performance?

a.The incentives will recognize employees who focus on well-chosen goals.

b.The incentives will allow for the interests of management to be aligned with the interests of shareholders.

c.The incentives will encourage a healthy competition among the top executives.

2.The HR department at Clearwater Electronics received a report of a work-related injury on the production line that resulted in the employee missing several days of work. Supposedly, the employee hurt his back while lifting a box of components. However, another employee reported that the employee was not really hurt and just wanted some days off. It is the responsibility of the HR department to process workers' compensation claims and make sure the claim is not fraudulent. Which statement gives the best reason for HR to ensure that the claim is legitimate?

a.Fraudulent workers' compensation claims can lead companies to lie about injuries and illnesses in order to avoid paying higher insurance premiums.

b.Fraudulent workers' compensation claims lead to companies misclassifying employees in order to avoid paying premiums for them.

c.Fraudulent workers' compensation claims can lead to higher insurance premiums and penalties, so it is important for HR to protect the company and avoid costly mistakes.

3.The managers at Clearwater Electronics sometimes focus so much on day-to-day operations that they can lose sight of the goals of the company and how it plans to achieve those goalsits strategy. The HR department has been given the responsibility to remind the managers of the strategy, vision, purpose, and values that drive Clearwater's business. Why is HR the right department to carry out this assignment?

A.The HR department is best able to evaluate employee productivity and knows the best time to reinforce the company's strategy with the manager.

B.The HR department is responsible for managing the company workforce and ensuring all employees understand the part they play in the company.

C.The HR department contributes significantly to organizational success since it is mainly responsible for aligning the workforce with company strategy.

D.The HR department understands the needs of the managers and knows when they will be available to learn about the company strategy.

4.At the last board meeting of Clearwater Electronics, the HR director discussed the threat of a new entrant in the computer chip market, Silicon Unlimited. The HR director is concerned that Silicon Unlimited will try to poach some of Clearwater's top talent and wants the board's approval to make counteroffers to employees should this happen. Why is reducing the availability of top talent a good strategy to combat the threat of this new competitor?

a.It will create barrier to entry for Silicon Unlimited and make it more difficult for the company to begin operations.

b.It will cause Silicon Unlimited to look elsewhere for employees.

c.It will ensure that Silicon Unlimited does not obtain the resources it needs to be successful.

1.The HR department at Clearwater Electronics received notice that a grievance procedure was filed by an employee. A member of the HR department has met with the employee, a union representative, and the employee's immediate supervisor to resolve the issue of concern. A resolution was reached, and the employee returned to work. Why is it important to have a grievance procedure?

A.The grievance procedure provides a method to handle employee complaints before they become serious issues.

B.The grievance procedure notifies the company that litigation is forthcoming.

C.The grievance procedure allows an employee to be protected from any retaliation from others who might not agree with their complaint.

D.The grievance procedure provides a way for an employee who misinterprets an agreement to dispute what was previously agreed between the company and the union.

5Over the past 40 years, the HR department at Clearwater Electronics has changed and evolved in its contribution to the organization, becoming a strategic partner that helps implement significant changes for the company's success. Which statement best explains why the company has been successful in improving human resource management?

a.Aligning human resources with the strategic goals and objectives of the firm has enabled new ideas and techniques to drive effective organizational change.

b.Including human resources in organizational change efforts has made it possible to identify the employees who do not fit into the culture and let them go.

c.Technology has allowed human resources to better analyze trends in employment and respond more quickly and efficiently to the needs of the company.

d.Focusing on employee engagement instead of customer service has allowed human resources to implement the right framework for improvement.