SHRM CP 20- EVERYTHING
Comprehensive Questions with
Verified Answers Graded A+
Career Planning - Answer: Actions & activities that individuals perform in order to give direction
to their work lives.
Brain drain - Answer: Exit of educated & skilled citizens from emerging & developing countries
for better paying jobs in developed countries.
Cost-of-living adjustment (COLA) - Answer: Pay adjustment given to eligible employees
regardless of performance or organizational profitability; usually linked to inflation.
Broadbanding - Answer: Combining several salary grades or job classifications with narrow pay
ranges unto one brand with a wider salary spread.
Behavioral interview - Answer: Type of interview that focuses on how applicants previously
handled real situations.
Competency-based interview - Answer: 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 - Answer: 5 step instructional design process that governs the development of
learning programs.
,Analyze, Design, Develop, Implement, and Evaluate.
Blended learning - Answer: Planned approach to learning that included a combination of
instructor-led training, self-directed study, and /or on-the-job training.
Strategy - Answer: A plan of action for accomplishing an organization's long-range goals.
SWOT analysis - Answer: Process for assessing an organization's strategic capabilities in
comparison to threats and opportunities identified during environmental scanning.
Vision statement - Answer: Vivid, guiding image of an organization's desired future, the future it
hopes to attain through its strategy.
Organizational values - Answer: Beliefs that are important to an organization and often dictate
employee behavior.
Strategic management - Answer: The actions that leaders take to move their organizations
toward those goals and create value for all stakeholders.
Strategic planning - Answer: The process of setting goals and designing a path toward a
competitive position.
Net profit margin - Answer: Ratio of net income (gross sales minus expenses and taxes) to net
sales.
Leading indicator - Answer: Type of metric that describes an activity that can change future
performance and indicate higher degree of success in achieving strategic goals.
,Environmental scanning - Answer: 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.
Benchmarking - Answer: 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.
Blue ocean strategies - Answer: Strategies that generate competitive advantage by creating a
new marketplace arena in which there are no other competitors.
Weingarten rights - Answer: Union employees' right in U.S. to have a union representative or
coworker present during an investigatory interview.
Worker Adjustment and Retraining Notification (WARN) Act - Answer: U.S. act that requires
some employers to give a minimum of 60 days' notice if a plant is to close or is mass layoffs will
occur.
Uniformed Services Employment and Reemployment Rights Act (USERRA) - Answer: U.S. act
that protects the employment reemployment, and retention rights of persons who serve or
have served in the uniformed services.
Vesting - Answer: Process by which a retirement benefit becomes nonforfeitable.
Stakeholders - Answer: All those affected by an organization's social, environmental, and
economic impact shareholders, employees, customers, suppliers, regulators, and local
communities.
Triple bottom line - Answer: Economic, social, and environmental impact metrics used to
determine an organization's success.
, Risk scorecard - Answer: Tool used to gather individual assessments of various characteristics of
risk (e.g. frequency of occurrence, degree of impact/loss/gain for the organization, degree of
efficacy of current controls).
Protected class - Answer: People who are covered under a particular federal or state anti-
discrimination law.
Prudent person rule - Answer: States that an Employee Retirement Income Security Act plan
fiduciary has legal and financial obligations not to take more risks when investing employee
benefit program funds than a reasonable knowledgeable, prudent investor would under similar
circumstances.
Quid pro quo harassment - Answer: Type of sexual harassment that occurs when an employee is
forces to choose between giving in to a superior's sexual demands and forfeiting an economic
benefit such as a pay increase, a promotion, or continues employment.
Portal-to-Portal Act - Answer: U.S. act that defines what is included as hours worked and is
therefore compensable and a factor in calculating overtime.
Patient Protections and Affordable Care Act (PPACA) - Answer: 2010 U.S. law aimed at reducing
the number of uninsured individuals and decreasing health care costs. The law requires virtually
all citizens and legal residents to have minimum health coverage and requires employers with
more than 50 full-time employees to provide health coverage that meets minimum benefit
specifications or pay a penalty.
Pension Benefit Guaranty Corporation (PBGC) - Answer: Set up by U.S. Employee Retirement
Income Security Act (ERISA) to insure payment of benefits in the even that a private-sector
defined benefit pension plan terminates with insufficient funds to pay the benefits.
Comprehensive Questions with
Verified Answers Graded A+
Career Planning - Answer: Actions & activities that individuals perform in order to give direction
to their work lives.
Brain drain - Answer: Exit of educated & skilled citizens from emerging & developing countries
for better paying jobs in developed countries.
Cost-of-living adjustment (COLA) - Answer: Pay adjustment given to eligible employees
regardless of performance or organizational profitability; usually linked to inflation.
Broadbanding - Answer: Combining several salary grades or job classifications with narrow pay
ranges unto one brand with a wider salary spread.
Behavioral interview - Answer: Type of interview that focuses on how applicants previously
handled real situations.
Competency-based interview - Answer: 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 - Answer: 5 step instructional design process that governs the development of
learning programs.
,Analyze, Design, Develop, Implement, and Evaluate.
Blended learning - Answer: Planned approach to learning that included a combination of
instructor-led training, self-directed study, and /or on-the-job training.
Strategy - Answer: A plan of action for accomplishing an organization's long-range goals.
SWOT analysis - Answer: Process for assessing an organization's strategic capabilities in
comparison to threats and opportunities identified during environmental scanning.
Vision statement - Answer: Vivid, guiding image of an organization's desired future, the future it
hopes to attain through its strategy.
Organizational values - Answer: Beliefs that are important to an organization and often dictate
employee behavior.
Strategic management - Answer: The actions that leaders take to move their organizations
toward those goals and create value for all stakeholders.
Strategic planning - Answer: The process of setting goals and designing a path toward a
competitive position.
Net profit margin - Answer: Ratio of net income (gross sales minus expenses and taxes) to net
sales.
Leading indicator - Answer: Type of metric that describes an activity that can change future
performance and indicate higher degree of success in achieving strategic goals.
,Environmental scanning - Answer: 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.
Benchmarking - Answer: 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.
Blue ocean strategies - Answer: Strategies that generate competitive advantage by creating a
new marketplace arena in which there are no other competitors.
Weingarten rights - Answer: Union employees' right in U.S. to have a union representative or
coworker present during an investigatory interview.
Worker Adjustment and Retraining Notification (WARN) Act - Answer: U.S. act that requires
some employers to give a minimum of 60 days' notice if a plant is to close or is mass layoffs will
occur.
Uniformed Services Employment and Reemployment Rights Act (USERRA) - Answer: U.S. act
that protects the employment reemployment, and retention rights of persons who serve or
have served in the uniformed services.
Vesting - Answer: Process by which a retirement benefit becomes nonforfeitable.
Stakeholders - Answer: All those affected by an organization's social, environmental, and
economic impact shareholders, employees, customers, suppliers, regulators, and local
communities.
Triple bottom line - Answer: Economic, social, and environmental impact metrics used to
determine an organization's success.
, Risk scorecard - Answer: Tool used to gather individual assessments of various characteristics of
risk (e.g. frequency of occurrence, degree of impact/loss/gain for the organization, degree of
efficacy of current controls).
Protected class - Answer: People who are covered under a particular federal or state anti-
discrimination law.
Prudent person rule - Answer: States that an Employee Retirement Income Security Act plan
fiduciary has legal and financial obligations not to take more risks when investing employee
benefit program funds than a reasonable knowledgeable, prudent investor would under similar
circumstances.
Quid pro quo harassment - Answer: Type of sexual harassment that occurs when an employee is
forces to choose between giving in to a superior's sexual demands and forfeiting an economic
benefit such as a pay increase, a promotion, or continues employment.
Portal-to-Portal Act - Answer: U.S. act that defines what is included as hours worked and is
therefore compensable and a factor in calculating overtime.
Patient Protections and Affordable Care Act (PPACA) - Answer: 2010 U.S. law aimed at reducing
the number of uninsured individuals and decreasing health care costs. The law requires virtually
all citizens and legal residents to have minimum health coverage and requires employers with
more than 50 full-time employees to provide health coverage that meets minimum benefit
specifications or pay a penalty.
Pension Benefit Guaranty Corporation (PBGC) - Answer: Set up by U.S. Employee Retirement
Income Security Act (ERISA) to insure payment of benefits in the even that a private-sector
defined benefit pension plan terminates with insufficient funds to pay the benefits.
