Scenario 4-1 You Have Recently Been Hired as the HRM

question 24

Multiple Choice

Scenario 4-1 You have recently been hired as the HRM for Scribe Engineering, a Canadian software development company.Scribe's product is information systems.The company's environment is competitive and constantly changing.There continues to be an increased demand for customized computer systems that improve the flow of information in a wide range of small Canadian businesses.Due to Scribe's growth in sales, the company is anticipating the need for an increase from 150 to 200 employees.The company requires highly skilled software designers, computer programmers, sales professionals, and support staff.The majority of employees, from younger technical support staff to senior management, stated that work-life balance is important to them and that they want more flexibility in how and when their work gets done.Job demands are changing constantly because of the dynamic environment.There are concerns of sex, age, and family status discrimination with the office administration employees.The CEO has stated that Scribe has a few outdated job advertisements, but that the company never had time to write job descriptions.Managers have expressed concerns that job descriptions are of limited value because positions need to adapt to the high speed of change and that they limit their flexibility in supervising employees' tasks.
-Refer to Scenario 4-1.Why would it be important for Scribe Engineering to conduct a job analysis

• A)It is the first line of defence when selection procedures are legally challenged.
• B)It emphasizes selection skills and responsibilities, and de-emphasizes effort and working conditions.
• C)It provides subjective and objective evidence of the skills and abilities required for effective job performance.
• D)It establishes the worth of a job and defines it in measurable terms.

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Definitions:

Market Risk Premium

The additional return an investor expects to receive from holding a risky market portfolio instead of risk-free assets.

SML

Stands for Security Market Line, a graphical representation of the expected return of investments at different levels of systematic, or market, risk.

Beta

An indicator of how much a stock's price is expected to fluctuate, compared to fluctuations in the overall stock market.

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.