In General, HR Departments Should Be Able to Improve Their

question 18

Multiple Choice

In general, HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness. In this context, greater effectiveness means that

• A) the rate of employee turnover is considerably high.
• B) the HR personnel use fewer and less-costly resources to perform its functions.
• C) the average employee compensation in the organization is well above the prevailing market rate.
• D) what the HR department does has a more beneficial effect on employees' and the organization's performance.
• E) there is a relatively narrow gap between the highest and the lowest salaries paid in the organization.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends not paid in full accumulate and must be paid out before any dividends can be distributed to common stockholders.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.

Diluted Earnings Per Share

A measure of a company's profitability that shows the potential decrease in earnings per share if all convertible securities were exercised or converted into shares.

Stock Dividend

A dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash.