Free SHRM SHRM-SCP Exam Questions

A successful global energy company attracts entrepreneurial candidates with the desire to be highly compensated through an aggressive and competitive rewards program. Incentive pay is determined through a forced ranking system managed at each business unit through open group discussions about individual employee performance and contribution. The organization's structure is relatively flat; therefore, business units are empowered to adjust the unit strategy and approach as needed.

A highly analytical executive vice president (EVP) of the most productive business unit consistently states that managers are unnecessary as only leaders will advance and be rewarded. In this unit, employees are challenged to lead and to demonstrate innovation in all facets of the work. Employees who receive poor performance reviews often leave the organization, as they are ignored by leadership. As a result, turnover is high in this unit, but there is always a steady flow of candidates ready to fill vacancies due to its success.

During the performance review period, a new VP in this unit becomes fearful of being categorized as a manager versus a leader and decides to speak with the HR director to obtain guidance. The HR director recognizes that similar concerns have been captured in exit interviews and the annual survey.

How best should the HR director acknowledge the new VP's concern?