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120  COMPETENCY-BASED QUESTIONS AND ANSWERS

    Action: As a result of employee feedback, I substituted the seniority-

based bonus policy with a pay-for-skill program whereby employees received
monetary incentives for learning new activities and/or performing additional
tasks.

    Result: Management and employees raved about the new program.

Employee productivity went through the roof, and revenue growth skyrocketed.

    Question 100. Provide an example of your existing (previous) com-

pany’s weakness and the steps you took to overcome it.

    Situation: Omaha Management wanted to be all things to all cus-

tomers. Unfortunately, this plan was not working; we could not identify and
reach a niche market.

    Action: In order to target specific customers, I implemented a plan that

focused on supply-chain management and on retaining low prices on high-
volume products.

    Result: The efforts successfully brought in the lower- to middle-income

customers whom we targeted. This established a recognizable brand and in-
creased profits.

    Question 101. Describe a time when your opinion on an operational

matter differed from that of management.

    Situation: Recruiting and training new employees takes a toll on a

company’s bottom line. Base Manufacturers wanted to eliminate turnover
completely or at least get the percentage close to zero. Consequently, man-
agement stressed the importance of a low turnover rate, and supervisors
felt compelled to keep low producers on staff. Though I understand the
importance of keeping turnover low, it should not come at a cost of weak
productivity.

    Action: I proposed that management focus their efforts on instituting

exit interviews to identify the reasons employees left or were terminated. Pin-
pointing the root cause, whether it was poor management or recruitment
skills, was a sensible solution to solving the turnover problem.

    Result: For about a year, the turnover rate hit peeks and valleys, until

HR was able to uncover the reason for the high rate. The problem was in poor
candidate screenings. A plan was put into place to better screen applicants
and, as a result, turnover leveled off to a tolerable average.

                                      American Management Association
                                                www.amanet.org
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