Practice Quiz

SPHR Human Resources

Category - Strategy

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Your organization has decided to outsource its payroll function, and you’re involved in the process of researching vendors. Which of the following actions would be least valuable to you?
  1. Find out what each vendor’s track record is over a long period of time by speaking with clients from several years ago.
  2. Find out about each vendor’s most recent performance by speaking with recent and/or current clients.
  3. Find out whether each vendor has related experience, and ascertain how recently the vendor gained that experience. In addition, evaluate how closely that experience resembles the current project in terms of scope, complexity and so forth.
  4. Find out about each vendor’s commitment to quality. Determine how it manifests itself and how can it be measured. Also, determine the average length of time that it takes each vendor to resolve concerns that originate from customers and/or clients.
Explanation
Answer - A - Less value can be gleaned from speaking with former clients from several years ago than from the choices offered through the other responses.

Key Takeaway: Ascertaining a potential vendor’s recent performance is more valuable than historical performance because performance can change or erode over time. Information of significant value can be gleaned from comparing each vendor’s experience to what is required by the project. Information of significant value can be gleaned from exploring each vendor’s commitment to quality.
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