SHRM CP EXAM
Career Planning ANS: Actions & activities that individuals perform in order to give direction to their
work lives.
Brain drain ANS: Exit of educated & skilled citizens from emerging & developing countries for better
paying jobs in developed countries.
Auditory learners ANS: People who learn best by relying on their sense of hearing.
Andragogy ANS: Study of how adults learn.
Cost-of-living adjustment (COLA) ANS: Pay adjustment given to eligible employees regardless of
performance or organizational profitability; usually linked to inflation.
Compa-ratio ANS: Pay rate divided by the midpoint of the pay range.
Broadbanding ANS: Combining several salary grades or job classifications with narrow pay ranges unto
one brand with a wider salary spread.
Behavioral interview ANS: Type of interview that focuses on how applicants previously handled real
situations.
Applicant tracking software (ATS) ANS: Software that provides an automated way for organizations to
manage the recruiting process.
Developmental activities ANS: Activities that focus on preparing employees for future responsibilities
while increasing their capacity to perform their current jobs.
,Compensation ANS: All financial returns (beyond any benefits payments or services), including salary
and allowances.
Career development ANS: Process by which employees progress through a series of stages in their
careers, each of which is characterized by relatively unique, themes, and tasks.
Benefits ANS: Payments or services provided to employees to cover issues such as retirement, health
care, sick pay/disability schemes, life insurance, and paid time off.
Apprenticeship ANS: Related to technical skills training; often a partnership between employers and
unions.
Competency-based interview ANS: Type of interview in which the interviewer asks questions related to
competencies for the position and asks candidates to provide examples of times they demonstrated the
competencies.
ADDIE model ANS: 5 step instructional design process that governs the development of learning
programs.
Assessment centers ANS: Assessment tools that provide candidates a wide range of leadership
situations and problem-solving exercises.
Blended learning ANS: Planned approach to learning that included a combination of instructor-led
training, self-directed study, and /or on-the-job training.
Career management ANS: Preparing, implementing, and monitoring employees' career paths, with a
primary focus on the goals and needs of the organization.
Competencies ANS: Clusters of highly interrelated attributes, including knowledge, skills, or abilities
(KSA) that give rise to the behaviors needed to perform a given job effectively.
,Strategy ANS: A plan of action for accomplishing an organization's long-range goals.
SWOT analysis ANS: Process for assessing an organization's strategic capabilities in comparison to
threats and opportunities identified during environmental scanning.
Value drivers ANS: Actions, processes, or results that are needed to deliver a desired value.
Vision statement ANS: Vivid, guiding image of an organization's desired future, the future it hopes to
attain through its strategy.
Organizational values ANS: Beliefs that are important to an organization and often dictate employee
behavior.
Strategic fit ANS: A state in which an organization's strategy is consistent with its external opportunities
and circumstances and its internal structure, resources, and capabilities.
Strategic management ANS: The actions that leaders take to move their organizations toward those
goals and create value for all stakeholders.
Strategic planning ANS: The process of setting goals and designing a path toward a competitive position.
Metrics ANS: Performance parameters based on the relationship between 2 or more measures.
Mission statement ANS: Statement that specifies what activities an organization intends to pursue and
what course management has carted for the future; a concise statement of its strategy.
Net profit margin ANS: Ratio of net income (gross sales minus expenses and taxes) to net sales.
, Organizational culture ANS: The basic beliefs and customs shared by members of an organization that
contribute to an organization's sense of its identity.
Income statement ANS: Statement that reports revenues, expenses, and net income (profit) for a
specified period.
Lagging indicator ANS: Type of metric that describes an activity that has already occurred.
Leading indicator ANS: Type of metric that describes an activity that can change future performance
and indicate higher degree of success in achieving strategic goals.
Liabilities ANS: Organization's debts and other financial obligations.
Due diligence ANS: Necessary level of care and attention that is taken to investigate an action before it
is taken.
Environmental scanning ANS: Process that involves a systematic survey and interpretation of relevant
data to identify external opportunities and threats and to assess how these factors affect the
organization currently and how they are likely to affect the organization in the future.
Equity ANS: Amount of owners' or shareholders' portion of a business.
Gross profit margin ANS: Ratio of gross profit to net sales.
Benchmarking ANS: Process that compares performance levels and/or processes of one entity with
those of another to identify performance gaps and set goals aimed at improving performance.
Career Planning ANS: Actions & activities that individuals perform in order to give direction to their
work lives.
Brain drain ANS: Exit of educated & skilled citizens from emerging & developing countries for better
paying jobs in developed countries.
Auditory learners ANS: People who learn best by relying on their sense of hearing.
Andragogy ANS: Study of how adults learn.
Cost-of-living adjustment (COLA) ANS: Pay adjustment given to eligible employees regardless of
performance or organizational profitability; usually linked to inflation.
Compa-ratio ANS: Pay rate divided by the midpoint of the pay range.
Broadbanding ANS: Combining several salary grades or job classifications with narrow pay ranges unto
one brand with a wider salary spread.
Behavioral interview ANS: Type of interview that focuses on how applicants previously handled real
situations.
Applicant tracking software (ATS) ANS: Software that provides an automated way for organizations to
manage the recruiting process.
Developmental activities ANS: Activities that focus on preparing employees for future responsibilities
while increasing their capacity to perform their current jobs.
,Compensation ANS: All financial returns (beyond any benefits payments or services), including salary
and allowances.
Career development ANS: Process by which employees progress through a series of stages in their
careers, each of which is characterized by relatively unique, themes, and tasks.
Benefits ANS: Payments or services provided to employees to cover issues such as retirement, health
care, sick pay/disability schemes, life insurance, and paid time off.
Apprenticeship ANS: Related to technical skills training; often a partnership between employers and
unions.
Competency-based interview ANS: Type of interview in which the interviewer asks questions related to
competencies for the position and asks candidates to provide examples of times they demonstrated the
competencies.
ADDIE model ANS: 5 step instructional design process that governs the development of learning
programs.
Assessment centers ANS: Assessment tools that provide candidates a wide range of leadership
situations and problem-solving exercises.
Blended learning ANS: Planned approach to learning that included a combination of instructor-led
training, self-directed study, and /or on-the-job training.
Career management ANS: Preparing, implementing, and monitoring employees' career paths, with a
primary focus on the goals and needs of the organization.
Competencies ANS: Clusters of highly interrelated attributes, including knowledge, skills, or abilities
(KSA) that give rise to the behaviors needed to perform a given job effectively.
,Strategy ANS: A plan of action for accomplishing an organization's long-range goals.
SWOT analysis ANS: Process for assessing an organization's strategic capabilities in comparison to
threats and opportunities identified during environmental scanning.
Value drivers ANS: Actions, processes, or results that are needed to deliver a desired value.
Vision statement ANS: Vivid, guiding image of an organization's desired future, the future it hopes to
attain through its strategy.
Organizational values ANS: Beliefs that are important to an organization and often dictate employee
behavior.
Strategic fit ANS: A state in which an organization's strategy is consistent with its external opportunities
and circumstances and its internal structure, resources, and capabilities.
Strategic management ANS: The actions that leaders take to move their organizations toward those
goals and create value for all stakeholders.
Strategic planning ANS: The process of setting goals and designing a path toward a competitive position.
Metrics ANS: Performance parameters based on the relationship between 2 or more measures.
Mission statement ANS: Statement that specifies what activities an organization intends to pursue and
what course management has carted for the future; a concise statement of its strategy.
Net profit margin ANS: Ratio of net income (gross sales minus expenses and taxes) to net sales.
, Organizational culture ANS: The basic beliefs and customs shared by members of an organization that
contribute to an organization's sense of its identity.
Income statement ANS: Statement that reports revenues, expenses, and net income (profit) for a
specified period.
Lagging indicator ANS: Type of metric that describes an activity that has already occurred.
Leading indicator ANS: Type of metric that describes an activity that can change future performance
and indicate higher degree of success in achieving strategic goals.
Liabilities ANS: Organization's debts and other financial obligations.
Due diligence ANS: Necessary level of care and attention that is taken to investigate an action before it
is taken.
Environmental scanning ANS: Process that involves a systematic survey and interpretation of relevant
data to identify external opportunities and threats and to assess how these factors affect the
organization currently and how they are likely to affect the organization in the future.
Equity ANS: Amount of owners' or shareholders' portion of a business.
Gross profit margin ANS: Ratio of gross profit to net sales.
Benchmarking ANS: Process that compares performance levels and/or processes of one entity with
those of another to identify performance gaps and set goals aimed at improving performance.
