Scenario 1.1 A-OK Company, an Insurance Company of 200 Employees, Provides Life

question 37

Multiple Choice

Scenario 1.1
A-OK Company, an insurance company of 200 employees, provides life and automobile insurance to clients throughout the southwestern United States. The company's owner, Paul E. See, believes that happy employees are productive employees, so Mr. See provides employees services such as career planning and an on-site fitness center. Due to recent legislation making the insurance business more complex, A-OK is in the process of redesigning its training program for its sales agents. Mr. See also realizes that A-OK needs to examine its selection criteria for new agents joining the company and may need to increase salaries to attract needed talent. Mr. See is worried about this, because he knows that none of his managers has a human resource management degree. In fact, they were operating employees who were moved into the human resource function.
-Refer to Scenario 1.1. Should Mr. See be worried about the ability of his human resource staff to effectively cope with the changes that are needed in that function?

• A) Yes. Without a specialized degree, HR staffs are sure to violate legal requirements of human resource management.
• B) Yes. No staff could cope with all of the changes that Mr. See envisions in the immediate future for his HR function.
• C) Yes. Without many years of experience in HR exclusively, Mr. See's staff will be out of touch with the needs of his workers.
• D) No. These changes will be made quite easily and simply, and do not need much attention to planning or expert knowledge.
• E) No. Job experience is a good preparation for much HR work.

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Definitions:

Size-Related

Refers to attributes or decisions that are affected by the scale or volume, such as adjustments in operational capacity or costs that vary with company size.

Order-Related

Refers to activities, processes, or information specifically associated with the placing, processing, or tracking of orders in a business context.

Raw Ingredients

Basic materials used in the production process, especially in food manufacturing or processing industries.

Time-Driven Activity-Based Costing

A cost accounting method that assigns costs based on the time resources are consumed by activities.