MHA 702 EXAM NEWEST ACTUAL
EXAM ALL QUESTIONS AND
CORRECT ANSWERS|ALREADY
GRADED A+
Succession planning - Answer- -useful for managerial positions (CEO, COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
Career planning - Answer- -succession plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
Senior organization leaders - Answer- Expected to retire over 5 to 10 years
Organizations without succession plans - Answer- Uneasiness is intensified and
negatively affect performance
Leaving development of future leaders to chance
CEO is responsible for - Answer- Initiating succession planning
Organizations with succession plans - Answer- More likely to have smoother leadership
transition
Board of directors is responsible for - Answer- Appointing a successor
Succession planning should begin - Answer- 4 years prior to CEO leaving
HR responsibility - Answer- Managing succession planning process
Succession planning saves organizations - Answer- -Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is promoted
Grooming an internal person - Answer- -key element of for-profit succession planning
Hiring outside of an organization - Answer- -requires 6-12 months before financial
performance regains the level that existed prior to replacement
5 principles to succession planning - Answer- -board driven, collaborative process
-governing boards 2 or 3 most important task*
-communicate openly between board and ceo
,-agreements made must be communicated to succeeding board leadership and must be
honored
-governing board has final say
A continuous process - Answer- -succession planning must be continuous
-successor should always be available
-significant development assignments can be arranged to ensure appropriate
experiences are encountered
Feedback loops - Answer- Are critical in succession planning
Goals and timelines - Answer- -created and monitored
-important for transition
-a clear exit strategy prepared for outgoing CEO
-post succession assessment to evaluate process
-HR should review effectiveness to improve process
Succession planning should begin early - Answer- -for developmental assessments
-provide insight and allow skills to be acquired
-developmental tasks should be diverse to expose to departments/operations
-institutional memory preserved
-CEO personally experienced being groomed support process
Potential pitfalls - Answer- -connections to social network and psychological ties to
organization that complicate effort to change
-inappropriate or limited experience
CEO/ Management team damaged - Answer- -only bringing in an entire new regime can
sweep organization clean
-organization will be taking a fall anyway
-comes out of scandal, mismanagement, failed takeover
Organizations May inventory potential employees - Answer- Often called assessing their
inside bench strength
If no suitable candidates - Answer- -based on skills and ability
-consider hiring outside person at least 18months and up to 5years in advance
Succession planning can become costly - Answer- -Due to expense of maintaining 2
individuals with high salaries over time
CEO must be mature - Answer- -May feel threatened by trained successor standing in
wings, poised to takeover at a misstep at the whim of board of directors
Why organizations have not created succession plans - Answer- -require time and
thought
,-not a daunting task
-governing boards often lack experience with planning
-Fail to see how it benefits organization
Organizations without plans - Answer- Complain of being swamped by more immediate
and pressing issues
Leadership is - Answer- Critical for long term effectiveness of contemporary
organizations
CEO and governing Boards - Answer- Must understand succession plans are essential
strategic goal important for continuous success of organization
Myths - Answer- -boards believe succession planning hastens CEO departure.
-CEOs fear they will lose power and become lameduck leaders.
-perception could be strengthened if succession plan names next leader.
-CEOs fear if they talk about leadership change, the board will think they are planning to
leave.
-boards don't want to talk about planning to imply they lost confidence in CEO
Outside hiring if CEO - Answer- -risky and expensive
-excessive reliance on recruiting outside can stifle promising inside candidates
Barriers to succession planning - Answer- -Composed of self imposed fears and
concerns
-HR can mitigate fears by providing more knowledge about the practice of succession
planning
Survey of 2,500 largest public companies - Answer- Those that found themselves
scrambling to find replacement for departing CEO lost on average 1.8 billion in share
holder value during the year following CEO departure
Statistics show 15% of large companies - Answer- Will be in search of a ceo this year
and only half have designated successors/succession plans
Statistics show 30% to 50% of new CEOs - Answer- Fail within first 15 months of the job
These CEOs are not prepared or groomed to succeed
New employees - Answer- Justified and approved by senior manager coo cfo etc
Provides approved personnel requisition to hr
After approval, HR will - Answer- Review position description
Check references
Verify education
Procure candidates (about 5)
, Managers interview candidates - Answer- -Use standardized list of questions
-Discussion of position organization and benefits
-Avoid discussing compensation(range is okay)
-Create list of acceptable candidates
HR is familiar with - Answer- All applicable laws
Responding to references - Answer- -by hr
-should not contain any subjective statements
-answered impersonally and directly from records
Information that is not in an employee file - Answer- Does not exist. Nothing is off
employee record
Legal policies - Answer- Responding to references many do not respond at all or limited
answers to verify titles and dates of employment
Organizations fear - Answer- Legal repercussions resulting from reference requests
Possible undesirable outcomes (a conundrum) - Answer- -if an employee causes harm
while working, the organization that failed to do a reference check, organization at risk
of being charged negligent hiring
-If past employer has relevant documented knowledge, but does not reveal information
upon request, former employer at risk for legal action brought by new organization or
injured party
Charges of defamation - Answer- Relatively common
Against hr
Responding to references requests - Answer- -Must be factual from personal record
-should not attempt to interpret record
Negligent hiring cases - Answer- Less common but more serious/expensive
Frequently is defined as - Answer- 3 times a month or more
No formal HR Department - Answer- -reference requests centrally addressed uniformity
-person responsible for maintaining personnel files responds
Reference requests should be documented - Answer- -added to personnel record
-date, info provided, name of organization requesting, contact info, person spoken to,
and person giving out info.
-can resolve legal claims
Supervisors should observe the rule - Answer- Offer no negative judgments and convey
nothing that cannot be verified in personnel file
EXAM ALL QUESTIONS AND
CORRECT ANSWERS|ALREADY
GRADED A+
Succession planning - Answer- -useful for managerial positions (CEO, COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
Career planning - Answer- -succession plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
Senior organization leaders - Answer- Expected to retire over 5 to 10 years
Organizations without succession plans - Answer- Uneasiness is intensified and
negatively affect performance
Leaving development of future leaders to chance
CEO is responsible for - Answer- Initiating succession planning
Organizations with succession plans - Answer- More likely to have smoother leadership
transition
Board of directors is responsible for - Answer- Appointing a successor
Succession planning should begin - Answer- 4 years prior to CEO leaving
HR responsibility - Answer- Managing succession planning process
Succession planning saves organizations - Answer- -Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is promoted
Grooming an internal person - Answer- -key element of for-profit succession planning
Hiring outside of an organization - Answer- -requires 6-12 months before financial
performance regains the level that existed prior to replacement
5 principles to succession planning - Answer- -board driven, collaborative process
-governing boards 2 or 3 most important task*
-communicate openly between board and ceo
,-agreements made must be communicated to succeeding board leadership and must be
honored
-governing board has final say
A continuous process - Answer- -succession planning must be continuous
-successor should always be available
-significant development assignments can be arranged to ensure appropriate
experiences are encountered
Feedback loops - Answer- Are critical in succession planning
Goals and timelines - Answer- -created and monitored
-important for transition
-a clear exit strategy prepared for outgoing CEO
-post succession assessment to evaluate process
-HR should review effectiveness to improve process
Succession planning should begin early - Answer- -for developmental assessments
-provide insight and allow skills to be acquired
-developmental tasks should be diverse to expose to departments/operations
-institutional memory preserved
-CEO personally experienced being groomed support process
Potential pitfalls - Answer- -connections to social network and psychological ties to
organization that complicate effort to change
-inappropriate or limited experience
CEO/ Management team damaged - Answer- -only bringing in an entire new regime can
sweep organization clean
-organization will be taking a fall anyway
-comes out of scandal, mismanagement, failed takeover
Organizations May inventory potential employees - Answer- Often called assessing their
inside bench strength
If no suitable candidates - Answer- -based on skills and ability
-consider hiring outside person at least 18months and up to 5years in advance
Succession planning can become costly - Answer- -Due to expense of maintaining 2
individuals with high salaries over time
CEO must be mature - Answer- -May feel threatened by trained successor standing in
wings, poised to takeover at a misstep at the whim of board of directors
Why organizations have not created succession plans - Answer- -require time and
thought
,-not a daunting task
-governing boards often lack experience with planning
-Fail to see how it benefits organization
Organizations without plans - Answer- Complain of being swamped by more immediate
and pressing issues
Leadership is - Answer- Critical for long term effectiveness of contemporary
organizations
CEO and governing Boards - Answer- Must understand succession plans are essential
strategic goal important for continuous success of organization
Myths - Answer- -boards believe succession planning hastens CEO departure.
-CEOs fear they will lose power and become lameduck leaders.
-perception could be strengthened if succession plan names next leader.
-CEOs fear if they talk about leadership change, the board will think they are planning to
leave.
-boards don't want to talk about planning to imply they lost confidence in CEO
Outside hiring if CEO - Answer- -risky and expensive
-excessive reliance on recruiting outside can stifle promising inside candidates
Barriers to succession planning - Answer- -Composed of self imposed fears and
concerns
-HR can mitigate fears by providing more knowledge about the practice of succession
planning
Survey of 2,500 largest public companies - Answer- Those that found themselves
scrambling to find replacement for departing CEO lost on average 1.8 billion in share
holder value during the year following CEO departure
Statistics show 15% of large companies - Answer- Will be in search of a ceo this year
and only half have designated successors/succession plans
Statistics show 30% to 50% of new CEOs - Answer- Fail within first 15 months of the job
These CEOs are not prepared or groomed to succeed
New employees - Answer- Justified and approved by senior manager coo cfo etc
Provides approved personnel requisition to hr
After approval, HR will - Answer- Review position description
Check references
Verify education
Procure candidates (about 5)
, Managers interview candidates - Answer- -Use standardized list of questions
-Discussion of position organization and benefits
-Avoid discussing compensation(range is okay)
-Create list of acceptable candidates
HR is familiar with - Answer- All applicable laws
Responding to references - Answer- -by hr
-should not contain any subjective statements
-answered impersonally and directly from records
Information that is not in an employee file - Answer- Does not exist. Nothing is off
employee record
Legal policies - Answer- Responding to references many do not respond at all or limited
answers to verify titles and dates of employment
Organizations fear - Answer- Legal repercussions resulting from reference requests
Possible undesirable outcomes (a conundrum) - Answer- -if an employee causes harm
while working, the organization that failed to do a reference check, organization at risk
of being charged negligent hiring
-If past employer has relevant documented knowledge, but does not reveal information
upon request, former employer at risk for legal action brought by new organization or
injured party
Charges of defamation - Answer- Relatively common
Against hr
Responding to references requests - Answer- -Must be factual from personal record
-should not attempt to interpret record
Negligent hiring cases - Answer- Less common but more serious/expensive
Frequently is defined as - Answer- 3 times a month or more
No formal HR Department - Answer- -reference requests centrally addressed uniformity
-person responsible for maintaining personnel files responds
Reference requests should be documented - Answer- -added to personnel record
-date, info provided, name of organization requesting, contact info, person spoken to,
and person giving out info.
-can resolve legal claims
Supervisors should observe the rule - Answer- Offer no negative judgments and convey
nothing that cannot be verified in personnel file
