Questions And Answers
While analyzing the attrition rate, an organization found it to be higher than the industry average.
Which tool should the organization use to analyze the reasons for the high attrition rate? ANS Exit
surveys - Exit surveys are used to gather data on why employees are leaving and can be used to determine
reasons for a high attrition rate.
A training session was conducted by a company to train its sales force on a new version of its customer
relationship management (CRM). The total expense incurred by the company was $20,000. The training
resulted in a net benefit of $30,000 due to improved customer retention.
What is the return on investment (ROI) in training? ANS 50%
($30,000-$20,000) / ($20,000) = 0.5 = 50% is the ROI on training.
A small company would like to analyze the average tenure of employees across departments. The chief
executive officer (CEO) asks human resources (HR) what data they need to collect to calculate average
tenure.
Which data is required to meet the needs of the company? ANS The number of employees and
months of employment - The average tenure is the number of employees divided by the number of
months of employment.
A company manager is analyzing turnover in their team. The turnover matrix looks as follows:
High Potential: Involuntary Turnover is 0% Voluntary Turnover is 20%
Low Potential: Involuntary Turnover is 10% Voluntary Turnover is 10%
The manager asks HR for advice if the average turnover for the industry is 15%.What is the potential
concern for the manager? ANS Too many high-potential employees are resigning. - According to the
data, the number of high-potential employees resigning is above the industry average.
A company's training team evaluates the effectiveness of training. Each training module has an expected
completion time of two hours. The learning management system reports the following average time spent
in each module:
Module 1: 2 hours
, Module 2: 0.2 hours
Module 3: 5 hours
Module 4: 10 Hours
An HR analyst reviews the data to draft a recommendation.
What should their top recommendation be? ANS Combine this information with other data points. -
Time spent in the system alone is insufficient as an engagement metric. This information should be
combined with other data points to make the training effective.
A company is planning to evaluate the response of managers to a leadership program. The company wants
to conduct the evaluation on managers who had been in their roles for more than two years.
Which element of the sampling plan does this focus on? ANS Target population - In this case, the
company focuses on a specific set as the assessment will be performed on managers with more than two
years' experience.
An IT company considers its recruitment process like its manufacturing process. It considers the
candidates as inputs, the recruitment process as the throughput, and the quality of employees as an output.
What is the company able to do by reframing the recruitment process this way? ANS The company
can yield higher quality hires. - With this process, the company can apply analytics to identify which
group of employee characteristics can provide a higher probability of quality hire.
What is Cluster sampling ANS Cluster sampling is used where the researcher creates multiple clusters
of people from a population where they are indicative of homogenous characteristics and have an equal
chance of being a part of the sample.
An organization takes a sample of 100 employees with 10 years of work experience. The mean age of the
sample is 30 years, and the standard deviation is 15 years.
What is the standard deviation of the sample means? ANS 1.5
The standard deviation of the sample means is determined by dividing the standard deviation by the
square root of the sample, that is, 15/√100 = 1.5.
The human resources (HR) department of an organization analyzes staffing changes that have occurred in
the organization and their impact on the required talent needed to fill vacant positions.
Which stage of analyzing talent is HR performing? ANS Insight - The HR department is in the insight
stage of analyzing talent as they are identifying the changes in the organization and their impact on the
talent, business, operational risk, and other factors.