SHRM CP ACTUAL 2026 TEST PAPER QUESTIONS AND
ANSWERS GRADED A+
✔✔Corporate Social Responsibilities - ✔✔Is a form of corporate self-regulation
integrated into a business model. CSR policy functions as a self-regulatory mechanism
whereby a business monitors and ensures its active compliance with the spirit of the
law, ethical standards and national or international norms.
✔✔How can training evaluations best be presented to management? - ✔✔Presenting a
report which shows the effect training and skill development has had on productivity
✔✔Best way for an organization to determine recruiting effectiveness - ✔✔Analyze
Yield Ratios
✔✔Yield Ratios - ✔✔Reflects the percentage of job candidates at the beginning of a
step in the recruiting/selection process who move on to the next step in the process.
✔✔Matrix Organizational Structure - ✔✔Two organizational Structures exist at the same
time.
✔✔Fair Labor Standards Act (FLSA) - ✔✔Major Federal Law broadly regulates
Compensation
✔✔Trend and Ratio Analysis - ✔✔Use of statistics to determine whether relationships
exist between two variables.
✔✔Construct Validity - ✔✔Shows relationship between an abstract characteristic
inferred by research and job performance
✔✔Selection Rate - ✔✔The number hired divided by the number of applicants
✔✔Hawthorne Studies - ✔✔Reveals that Environmental factors are less important than
social interaction among co-workers and between supervisors and employees.
✔✔Primary Research Methods examples - ✔✔Attitude Surveys, questionnaires,
interviews and experiment.
✔✔Broadbanding - ✔✔Combining several salary grades or job classifications with
narrow pay ranges into one band with a wider salary spread. It's popular with some
companies because it fits their flatter organizational Structure.
✔✔Competitive advantage - ✔✔A set of unique features of a company and its products
that are perceived by the target market as significant and superior to those of the
,competition. A complete understanding of strategic sources must include an analysis of
the strength and weakness of the organization.
✔✔Expectancy theory - ✔✔The theory that people will be motivated to the extent to
which they believe that their efforts will lead to good performance, that good
performance will be rewarded, and that they will be offered attractive rewards.
✔✔theory x and theory y - ✔✔Douglas McGregor. Theory X: managers believe
employees inherently dislike work and therefore must be directed into performing it.
Theory Y: managers assume employees can view work as being as natural as play, and
therefore average person can learn to accept, and even seek responsibility.
✔✔Relationship between JOB SATISFACTION/JOB PERFORMANCE - ✔✔Other
factors such as rewards, mediate the relationship between satisfaction and performance
✔✔Behavioral Performance Scale - ✔✔Identifies the actions that should or should not
be seen on the job, used mainly for developmental feedback..
The first step towards constructing behavioral performance scales is identifying the
most important performance factors in an employee's job description.
✔✔The use of aptitude test in the selection process best predicts - ✔✔Training
Performance
✔✔Income Statement - ✔✔Financial document lists the revenues, Expenses and profits
of an organization for a designated period of time.
✔✔Data Mining - ✔✔the process of analyzing data to extract information not offered by
the raw data alone
✔✔Which data collection method would provide HR professionals investigating reasons
for job turnover among employees moving from one job or department to another. -
✔✔Performance Appraisal files and personnel records
✔✔Weakest tool for predicting an applicant's job performance - ✔✔Interview
✔✔Critical Incidents Examples - ✔✔Keeping a record of all employees and listing
significant successes and failures of each
✔✔Taft-Harley Act - ✔✔passed by congress, gave states the right to pass right-to-work
laws. These right-to-work laws prohibit employers from establishing union membership
as a condition of employment- (Considered Pro Management)
✔✔Nontaxable Indirect Compensation - ✔✔Employee discounts on employer goods or
services
, ✔✔Matrix Structure - ✔✔An organization structure that creates dual lines of authority
and combines functional and product departmentalization. (Dual Chain Of Command)
✔✔Maturity Stage - ✔✔A company is in the process of establishing formal
compensation policies and practices.
The product life cycle stage in which sales peak and then increase at a slower rate or
start to decline
✔✔Growth Stage - ✔✔The second stage of the product life cycle when sales typically
grow at an increasing rate, many competitors enter the market, large companies may
start to acquire small pioneering firms, and profits are healthy
✔✔Introduction Stage - ✔✔The initial stage of a product life cycle: first appearance in
the marketplace when sales start at zero and profits are negative
✔✔The first step in the job analysis process entails - ✔✔Deciding how the organization
will use the information collected
✔✔Job Analysis - ✔✔an assessment that defines jobs and the behaviors necessary to
perform them What personal qualifications necessary for performance of the job.
✔✔Balanced Scorecard - ✔✔Align business activities to the vision and strategy of the
organization, improve internal and external communications, and monitor organization
performance against strategic goals
✔✔Rater Pattern Error - ✔✔One supervisor interprets performance standards differently
from another supervisor, a rater pattern error is most likely to occur
✔✔Scanlon Plan - ✔✔employee receive bonus if the ratio of labor costs to the sales
value of production is below a set standard. The basic premise underlying this plan is
that efficiency depends on teamwork and cooperation.
✔✔What is the most important requirement for a qualified benefit plan in order to be
eligible for favorable tax status? - ✔✔The plan must not discriminate in favor of highly
compensated executives.
✔✔Benchmarking - ✔✔Comparing specific measures of performance gains in "best
practice" organizations.
✔✔Organizational development - ✔✔Approach to organizational change in which the
employees themselves formulate the change that is required and implement it, often
with the assistance of a trained consultant.
ANSWERS GRADED A+
✔✔Corporate Social Responsibilities - ✔✔Is a form of corporate self-regulation
integrated into a business model. CSR policy functions as a self-regulatory mechanism
whereby a business monitors and ensures its active compliance with the spirit of the
law, ethical standards and national or international norms.
✔✔How can training evaluations best be presented to management? - ✔✔Presenting a
report which shows the effect training and skill development has had on productivity
✔✔Best way for an organization to determine recruiting effectiveness - ✔✔Analyze
Yield Ratios
✔✔Yield Ratios - ✔✔Reflects the percentage of job candidates at the beginning of a
step in the recruiting/selection process who move on to the next step in the process.
✔✔Matrix Organizational Structure - ✔✔Two organizational Structures exist at the same
time.
✔✔Fair Labor Standards Act (FLSA) - ✔✔Major Federal Law broadly regulates
Compensation
✔✔Trend and Ratio Analysis - ✔✔Use of statistics to determine whether relationships
exist between two variables.
✔✔Construct Validity - ✔✔Shows relationship between an abstract characteristic
inferred by research and job performance
✔✔Selection Rate - ✔✔The number hired divided by the number of applicants
✔✔Hawthorne Studies - ✔✔Reveals that Environmental factors are less important than
social interaction among co-workers and between supervisors and employees.
✔✔Primary Research Methods examples - ✔✔Attitude Surveys, questionnaires,
interviews and experiment.
✔✔Broadbanding - ✔✔Combining several salary grades or job classifications with
narrow pay ranges into one band with a wider salary spread. It's popular with some
companies because it fits their flatter organizational Structure.
✔✔Competitive advantage - ✔✔A set of unique features of a company and its products
that are perceived by the target market as significant and superior to those of the
,competition. A complete understanding of strategic sources must include an analysis of
the strength and weakness of the organization.
✔✔Expectancy theory - ✔✔The theory that people will be motivated to the extent to
which they believe that their efforts will lead to good performance, that good
performance will be rewarded, and that they will be offered attractive rewards.
✔✔theory x and theory y - ✔✔Douglas McGregor. Theory X: managers believe
employees inherently dislike work and therefore must be directed into performing it.
Theory Y: managers assume employees can view work as being as natural as play, and
therefore average person can learn to accept, and even seek responsibility.
✔✔Relationship between JOB SATISFACTION/JOB PERFORMANCE - ✔✔Other
factors such as rewards, mediate the relationship between satisfaction and performance
✔✔Behavioral Performance Scale - ✔✔Identifies the actions that should or should not
be seen on the job, used mainly for developmental feedback..
The first step towards constructing behavioral performance scales is identifying the
most important performance factors in an employee's job description.
✔✔The use of aptitude test in the selection process best predicts - ✔✔Training
Performance
✔✔Income Statement - ✔✔Financial document lists the revenues, Expenses and profits
of an organization for a designated period of time.
✔✔Data Mining - ✔✔the process of analyzing data to extract information not offered by
the raw data alone
✔✔Which data collection method would provide HR professionals investigating reasons
for job turnover among employees moving from one job or department to another. -
✔✔Performance Appraisal files and personnel records
✔✔Weakest tool for predicting an applicant's job performance - ✔✔Interview
✔✔Critical Incidents Examples - ✔✔Keeping a record of all employees and listing
significant successes and failures of each
✔✔Taft-Harley Act - ✔✔passed by congress, gave states the right to pass right-to-work
laws. These right-to-work laws prohibit employers from establishing union membership
as a condition of employment- (Considered Pro Management)
✔✔Nontaxable Indirect Compensation - ✔✔Employee discounts on employer goods or
services
, ✔✔Matrix Structure - ✔✔An organization structure that creates dual lines of authority
and combines functional and product departmentalization. (Dual Chain Of Command)
✔✔Maturity Stage - ✔✔A company is in the process of establishing formal
compensation policies and practices.
The product life cycle stage in which sales peak and then increase at a slower rate or
start to decline
✔✔Growth Stage - ✔✔The second stage of the product life cycle when sales typically
grow at an increasing rate, many competitors enter the market, large companies may
start to acquire small pioneering firms, and profits are healthy
✔✔Introduction Stage - ✔✔The initial stage of a product life cycle: first appearance in
the marketplace when sales start at zero and profits are negative
✔✔The first step in the job analysis process entails - ✔✔Deciding how the organization
will use the information collected
✔✔Job Analysis - ✔✔an assessment that defines jobs and the behaviors necessary to
perform them What personal qualifications necessary for performance of the job.
✔✔Balanced Scorecard - ✔✔Align business activities to the vision and strategy of the
organization, improve internal and external communications, and monitor organization
performance against strategic goals
✔✔Rater Pattern Error - ✔✔One supervisor interprets performance standards differently
from another supervisor, a rater pattern error is most likely to occur
✔✔Scanlon Plan - ✔✔employee receive bonus if the ratio of labor costs to the sales
value of production is below a set standard. The basic premise underlying this plan is
that efficiency depends on teamwork and cooperation.
✔✔What is the most important requirement for a qualified benefit plan in order to be
eligible for favorable tax status? - ✔✔The plan must not discriminate in favor of highly
compensated executives.
✔✔Benchmarking - ✔✔Comparing specific measures of performance gains in "best
practice" organizations.
✔✔Organizational development - ✔✔Approach to organizational change in which the
employees themselves formulate the change that is required and implement it, often
with the assistance of a trained consultant.
