MHA 702 exam 3
Weighing the risk of defamation - CORRECT ANSWER-Giver of reference must weigh
risk of defamation lawsuit by ex employee against the risk of a bad hire lawsuit by
requestor or victim
Weighing the risk of negligent hire - CORRECT ANSWER-The requestor of a reference
must weigh the risk of negligent hire by injuries person against the risk of discrimination
lawsuit by potential employee
A Manager's Role in Finding Candidates - CORRECT ANSWER--keep position
descriptions up to date
-groom employee advancement
-give hr advance notice about future needs/ hints special opportunities to connect with
potential hires
Advertise open positions - CORRECT ANSWER--internet and social media
-paper approaches have limited effectiveness now
-Sunday paper most effective for lower order jobs
-periodicals aimed at special groups (professionals)
Networking - CORRECT ANSWER--series on contracts, referrals, subsequent contact
-personal contacts
-job fairs
Employers network - CORRECT ANSWER--recruiters attend professional meetings
conferences and conventions
-job fairs and on recruiting tips
Job seekers - CORRECT ANSWER-Carry supply of business cards and resume
Search firms - CORRECT ANSWER--head hunters
-used to fill upper management position
-highly specialized jobs or professional positions
-organization does not want to publicize vacancy
-lacks bench strength
-Last resort, all other options exhausted
CEO is responsible for - CORRECT ANSWER-Initiating succession planning
,Organizations with succession plans - CORRECT ANSWER-More likely to have
smoother leadership transition
Board of directors is responsible for - CORRECT ANSWER-Appointing a successor
Succession planning should begin - CORRECT ANSWER-4 years prior to CEO leaving
HR responsibility - CORRECT ANSWER-Managing succession planning process
Succession planning saves organizations - CORRECT ANSWER--Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is promoted
Grooming an internal person - CORRECT ANSWER--key element of for-profit
succession planning
Hiring outside of an organization - CORRECT ANSWER--requires 6-12 months before
financial performance regains the level that existed prior to replacement
5 principles to succession planning - CORRECT 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 - CORRECT 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 - CORRECT ANSWER-Are critical in succession planning
Goals and timelines - CORRECT 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 - CORRECT 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 - CORRECT ANSWER--connections to social network and
psychological ties to organization that complicate effort to change
-inappropriate or limited experience
CEO/ Management team damaged - CORRECT 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 - CORRECT ANSWER-Often called
assessing their inside bench strength
If no suitable candidates - CORRECT ANSWER--based on skills and ability
-consider hiring outside person at least 18months and up to 5years in advance
Succession planning can become costly - CORRECT ANSWER--Due to expense of
maintaining 2 individuals with high salaries over time
CEO must be mature - CORRECT 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 - CORRECT ANSWER--require
time and thought
-not a daunting task
-governing boards often lack experience with planning
-Fail to see how it benefits organization
Succession planning - CORRECT ANSWER--useful for managerial positions (CEO,
COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
Career planning - CORRECT ANSWER--succession plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
Senior organization leaders - CORRECT ANSWER-Expected to retire over 5 to 10
years
Organizations without succession plans - CORRECT ANSWER-Uneasiness is
intensified and negatively affect performance
Leaving development of future leaders to chance
, Organizations without plans - CORRECT ANSWER-Complain of being swamped by
more immediate and pressing issues
Leadership is - CORRECT ANSWER-Critical for long term effectiveness of
contemporary organizations
CEO and governing Boards - CORRECT ANSWER-Must understand succession plans
are essential strategic goal important for continuous success of organization
Myths - CORRECT 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 - CORRECT ANSWER--risky and expensive
-excessive reliance on recruiting outside can stifle promising inside candidates
Barriers to succession planning - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER-Fail within first 15
months of the job
These CEOs are not prepared or groomed to succeed
New employees - CORRECT ANSWER-Justified and approved by senior manager coo
cfo etc
Provides approved personnel requisition to hr
After approval, HR will - CORRECT ANSWER-Review position description
Check references
Verify education
Procure candidates (about 5)
Weighing the risk of defamation - CORRECT ANSWER-Giver of reference must weigh
risk of defamation lawsuit by ex employee against the risk of a bad hire lawsuit by
requestor or victim
Weighing the risk of negligent hire - CORRECT ANSWER-The requestor of a reference
must weigh the risk of negligent hire by injuries person against the risk of discrimination
lawsuit by potential employee
A Manager's Role in Finding Candidates - CORRECT ANSWER--keep position
descriptions up to date
-groom employee advancement
-give hr advance notice about future needs/ hints special opportunities to connect with
potential hires
Advertise open positions - CORRECT ANSWER--internet and social media
-paper approaches have limited effectiveness now
-Sunday paper most effective for lower order jobs
-periodicals aimed at special groups (professionals)
Networking - CORRECT ANSWER--series on contracts, referrals, subsequent contact
-personal contacts
-job fairs
Employers network - CORRECT ANSWER--recruiters attend professional meetings
conferences and conventions
-job fairs and on recruiting tips
Job seekers - CORRECT ANSWER-Carry supply of business cards and resume
Search firms - CORRECT ANSWER--head hunters
-used to fill upper management position
-highly specialized jobs or professional positions
-organization does not want to publicize vacancy
-lacks bench strength
-Last resort, all other options exhausted
CEO is responsible for - CORRECT ANSWER-Initiating succession planning
,Organizations with succession plans - CORRECT ANSWER-More likely to have
smoother leadership transition
Board of directors is responsible for - CORRECT ANSWER-Appointing a successor
Succession planning should begin - CORRECT ANSWER-4 years prior to CEO leaving
HR responsibility - CORRECT ANSWER-Managing succession planning process
Succession planning saves organizations - CORRECT ANSWER--Money
-Executive search fees eliminated
-Maintains leadership continuity when inside person is promoted
Grooming an internal person - CORRECT ANSWER--key element of for-profit
succession planning
Hiring outside of an organization - CORRECT ANSWER--requires 6-12 months before
financial performance regains the level that existed prior to replacement
5 principles to succession planning - CORRECT 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 - CORRECT 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 - CORRECT ANSWER-Are critical in succession planning
Goals and timelines - CORRECT 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 - CORRECT 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 - CORRECT ANSWER--connections to social network and
psychological ties to organization that complicate effort to change
-inappropriate or limited experience
CEO/ Management team damaged - CORRECT 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 - CORRECT ANSWER-Often called
assessing their inside bench strength
If no suitable candidates - CORRECT ANSWER--based on skills and ability
-consider hiring outside person at least 18months and up to 5years in advance
Succession planning can become costly - CORRECT ANSWER--Due to expense of
maintaining 2 individuals with high salaries over time
CEO must be mature - CORRECT 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 - CORRECT ANSWER--require
time and thought
-not a daunting task
-governing boards often lack experience with planning
-Fail to see how it benefits organization
Succession planning - CORRECT ANSWER--useful for managerial positions (CEO,
COO etc)
-prepares single designated successor
-proactive approach to ensuring continuity of leadership
Career planning - CORRECT ANSWER--succession plans for middle managers
-focuses on many particular individuals
-prepares several candidates for a position
Senior organization leaders - CORRECT ANSWER-Expected to retire over 5 to 10
years
Organizations without succession plans - CORRECT ANSWER-Uneasiness is
intensified and negatively affect performance
Leaving development of future leaders to chance
, Organizations without plans - CORRECT ANSWER-Complain of being swamped by
more immediate and pressing issues
Leadership is - CORRECT ANSWER-Critical for long term effectiveness of
contemporary organizations
CEO and governing Boards - CORRECT ANSWER-Must understand succession plans
are essential strategic goal important for continuous success of organization
Myths - CORRECT 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 - CORRECT ANSWER--risky and expensive
-excessive reliance on recruiting outside can stifle promising inside candidates
Barriers to succession planning - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER-Fail within first 15
months of the job
These CEOs are not prepared or groomed to succeed
New employees - CORRECT ANSWER-Justified and approved by senior manager coo
cfo etc
Provides approved personnel requisition to hr
After approval, HR will - CORRECT ANSWER-Review position description
Check references
Verify education
Procure candidates (about 5)
