HRIR 3021 EXAM SET QUESTIONS WITH
COMPLETE ANSWERS
Balanced Scorecard - Answer-A framework organizations use to report on a diverse set
of performance matters
Return on Investment (ROI) - Answer-Calculation showing the value of investments in
human capital (Gains divided by cost of acquisition, implementation, and operation)
Human Capital Value Added (HCVA) - Answer-Calculated by subtracting all operating
expenses except labor expenses from revenue and dividing by the total full-time head
count (revenue/total head count)
Human Capital Return on Investment (HCROI) - Answer-Directly shows the amount of
profit derived from investments in labor (revenue/compensation and benefits)
Human Economic Value Added (HEVA) - Answer-Wealth created per employee (net
profit after taxes minus cost of capital, divided by full-time head count)
HR Audit - Answer-A formal research effort to assess the current state of an
organization's HR practices
Protected Characteristics - Answer-Individual attributers that are protected under EEO
laws and regulations
Equal Employment Opportunity (EEO) - Answer-Employment that is not affected by
illegal descrimination
Status-blind - Answer-Employment decisions that are made without regards to
individuals' personal characteristics
Disparate Treatment - Answer-Occurs when individuals with particular characteristics
that are not job related are treated differently from others
Disparate Impact - Answer-Occurs when an employment practice that does not appear
to be discriminatory adversely affects individuals with a particular characteristic so that
they are substantially underrepresented as a result of employment decisions that work
to their disadvantage
Business Necessity - Answer-A practice necessary for safe and efficient organizational
operations
, Bona Fide Occupational Qualification (BFOQ) - Answer-Characteristic providing a
legitimate reason an employer can exclude persons on otherwise illegal bases of
consideration
Burden of Proof - Answer-What individuals who file suit against employers must prove
to establish that illegal discrimination has occurred
Affirmative Action - Answer-Proactive employment practices to compensate for
historical discrimination against women, minorities, and individuals with disabilities
Areas for Potential Ethical Problems in HR - Answer-Compensation, Development,
Staffing, Performance Management, EEO, Training
Consequences of Ethical Treatment - Answer-Job Satisfaction, Turnover, Absenteeism,
Commitment, Job Performance, Ethical Decisions
Sarbanes-Oxley (SOX) Act - Answer-Passed in 2002 by Congress to make sure publicly
traded companies follow accounting controls to reduce the likelihood of illegal and
unethical behaviors. Requires that companies establish ethics codes, develop employee
complaint systems, and have anti retaliation policies.
Society of Human Resource Management (SHRM) - Answer-Leading professional
association for HR
HR Generalist - Answer-A person who has responsibility for performing a variety of HR
activities
HR Specialist - Answer-A person who has in-depth knowledge and expertise in a
specific area of HR
Strategy - Answer-A plan an organization follows for how to compete successfully,
survive, and grow
Strategic Planning - Answer-The process of defining organizational strategy or direction,
and allocating resources toward its achievement
Organizational Mission - Answer-The core reason for the existence of the organization
and what makes it unique
Strategic HR Management - Answer-The appropriate use of HR management practices
to gain or keep a competitive advantage
Multinational Corporation (MNC) - Answer-An organization that has facilities and other
assets in at least one country other than its home country
COMPLETE ANSWERS
Balanced Scorecard - Answer-A framework organizations use to report on a diverse set
of performance matters
Return on Investment (ROI) - Answer-Calculation showing the value of investments in
human capital (Gains divided by cost of acquisition, implementation, and operation)
Human Capital Value Added (HCVA) - Answer-Calculated by subtracting all operating
expenses except labor expenses from revenue and dividing by the total full-time head
count (revenue/total head count)
Human Capital Return on Investment (HCROI) - Answer-Directly shows the amount of
profit derived from investments in labor (revenue/compensation and benefits)
Human Economic Value Added (HEVA) - Answer-Wealth created per employee (net
profit after taxes minus cost of capital, divided by full-time head count)
HR Audit - Answer-A formal research effort to assess the current state of an
organization's HR practices
Protected Characteristics - Answer-Individual attributers that are protected under EEO
laws and regulations
Equal Employment Opportunity (EEO) - Answer-Employment that is not affected by
illegal descrimination
Status-blind - Answer-Employment decisions that are made without regards to
individuals' personal characteristics
Disparate Treatment - Answer-Occurs when individuals with particular characteristics
that are not job related are treated differently from others
Disparate Impact - Answer-Occurs when an employment practice that does not appear
to be discriminatory adversely affects individuals with a particular characteristic so that
they are substantially underrepresented as a result of employment decisions that work
to their disadvantage
Business Necessity - Answer-A practice necessary for safe and efficient organizational
operations
, Bona Fide Occupational Qualification (BFOQ) - Answer-Characteristic providing a
legitimate reason an employer can exclude persons on otherwise illegal bases of
consideration
Burden of Proof - Answer-What individuals who file suit against employers must prove
to establish that illegal discrimination has occurred
Affirmative Action - Answer-Proactive employment practices to compensate for
historical discrimination against women, minorities, and individuals with disabilities
Areas for Potential Ethical Problems in HR - Answer-Compensation, Development,
Staffing, Performance Management, EEO, Training
Consequences of Ethical Treatment - Answer-Job Satisfaction, Turnover, Absenteeism,
Commitment, Job Performance, Ethical Decisions
Sarbanes-Oxley (SOX) Act - Answer-Passed in 2002 by Congress to make sure publicly
traded companies follow accounting controls to reduce the likelihood of illegal and
unethical behaviors. Requires that companies establish ethics codes, develop employee
complaint systems, and have anti retaliation policies.
Society of Human Resource Management (SHRM) - Answer-Leading professional
association for HR
HR Generalist - Answer-A person who has responsibility for performing a variety of HR
activities
HR Specialist - Answer-A person who has in-depth knowledge and expertise in a
specific area of HR
Strategy - Answer-A plan an organization follows for how to compete successfully,
survive, and grow
Strategic Planning - Answer-The process of defining organizational strategy or direction,
and allocating resources toward its achievement
Organizational Mission - Answer-The core reason for the existence of the organization
and what makes it unique
Strategic HR Management - Answer-The appropriate use of HR management practices
to gain or keep a competitive advantage
Multinational Corporation (MNC) - Answer-An organization that has facilities and other
assets in at least one country other than its home country
