Question

Roberta Whitman has recently been hired by Jackson Pharmaceuticals as the senior vicepresident of human resources. Jackson Pharmaceuticals has a history of problems within its HRdepartment including difficulties recruiting and retaining qualified employees, EEO violations,inadequate employee training programs, and confusion regarding health benefit enrollment andcoverage. With years of experience transforming HR departments in other firms, Whitmanbelieves she can correct the problems at Jackson Pharmaceuticals.Which of the following best supports Whitman's idea to develop a shared services arrangementto handle benefits administration?A) An embedded HR unit would assist top management with big picture issues as well asbenefits administration.B) Extensive training has been provided to line managers so that they fully understand thedifferent insurance options available to employees.C) Outside vendors specializing in all aspects of benefits administration would provide improvedsupport to the firm's employees.D) Lower insurance premiums would eliminate the need for outsourcing services and improveemployee health coverage.

Answer 1

Answer:

Outside vendors specializing in all aspects of benefits administration would provide improved support to the firm's employees.

Explanation:

Shared services HR teams provide specialized support of day-to-day transactional HR activities to the company's employees by focusing on using centralized call centers and outsourcing arrangements with vendors (like benefits providers). By utilizing HR shared services, Whitman and the other managers can now devote more time to other HR matters while improving benefits enrollment and coverage by deferring those questions to benefits specialists.