SHRM CP FINAL EXAM ACTUAL QUESTIONS AND
ANSWERS GRADED A+
✔✔Process alignment - ✔✔Extent to which underlying operations such as IT, finance,
or HR integrate across locations.
✔✔Overtime pay - ✔✔Required for nonexempt workers under U.S. Fair Labor
Standards Act at 1.5 time the regular rate of pay for hours worked over 40 in a
workweek.
✔✔Patient Protections and Affordable Care Act (PPACA) - ✔✔2010 U.S. law the
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) - ✔✔Set up by U.S. Employee
Retirement Income Security Act to insure payment of benefits in the even that a private-
sector defined benefit pension plan terminates with insufficient funds to pay the benefits.
✔✔Phillips v. Martin Marietta Corporation - ✔✔1971 U.S. case that stated than an
employer may not, in the absence of business necessity, refuse to hire women with
preschool aged children while hiring men with such children.
✔✔Occupational Safety and Health Act (OSH) - ✔✔U.S. act that established the first
national policy for safety and health and continues to deliver standards that employers
must meet to guarantee the health and safety of their employees.
✔✔Occupational Safety and Health Administration (OSHA) - ✔✔U.S. agency that
administers and enforces the Occupational Safety and Health Act of 1970.
✔✔Offshoring - ✔✔Situation in which a company relocated processes or production to
an international location by means of subsidiaries or 3rd party affiliates.
✔✔Older Workers Benefit Protection Act (OWBPA) - ✔✔U.S. act that amended the Age
Discrimination in Employment Act to included all employee benefits; also provided
standards that an employee's waiver of the right to sue for age discrimination must meet
in order to be upheld by a court.
✔✔NLRB v. Weingarten - ✔✔Landmark 1975 U.S. labor relations case the dealt with
the right of a unionized employee to have another person present during certain
investigatory interviews.
✔✔Nonexempt employees - ✔✔Employees covers under U.S. Fair Labor Standards Act
regulations, including minimum wage and overtime pay requirements.
,✔✔Occupational illness - ✔✔Medical condition or disorder, other than one resulting
from an occupational injury, caused by exposure to environmental factors associated
with employment.
✔✔Occupational injury - ✔✔Injury that results from a work-related accident or exposure
involving a single incident int he work environment.
✔✔National Defense Authorization Acts (NDAA) - ✔✔U.S. acts that expanded FMLA
leave for employees with family members who are covered members of the military.
✔✔National Federation of Independent Business v Sebelius - ✔✔U.S. Supreme Court
ruling that Patient Protections and Affordable Care Act requirement that individuals
purchase health insurance was constitutional but that requirement that states expand
Medicaid was not.
✔✔National Labor Relations Act (NLRA) - ✔✔U.S. act that protects and encourages the
growth of the union movement. The act established workers rights to organize and
bargain collectively with the employers; also known as the Wagner Act.
✔✔National origin - ✔✔Refers to the country (including those that no longer exist) of
one's birth or of one's ancestors' birth.
✔✔Low-context culture - ✔✔Society in which people tend to have many social
connections but of shorter duration and where behavior and beliefs may need to be
described explicitly so that those coming into the cultural environment know how to
behave.
✔✔Merger/acquisition (M&A) - ✔✔Combination of 2 separate firms either by their
joining together as relative equals (merger) or by one acquiring the other (acquisition).
✔✔Moral hazard - ✔✔Situation in which one party engages in risky behavior knowing
that is is protected against the risk because another party will incur any resulting loss.
✔✔Multinational enterprise (MNE) - ✔✔Organization that owns or controls production or
services facilities in one or more countries other than the home country.
✔✔Lechmere, Inc. v NLRB - ✔✔1992 case in which the U.S. Supreme Court rules that
an employer cannot be compelled to allow non-employee organizers onto the business
property.
✔✔Ledbetter v Goodyear Tire & Rubber Co, - ✔✔2007 case in which the U.S. Supreme
Court rules that claims of sex discrimination in pay under Title VII were not timely
because discrimination charges were not filed with the EEOC within the required 180-
day time frame.
, ✔✔Lilly Ledbetter Fair Pay Act - ✔✔U.S. act the creates a rolling time frame for filing
wage discrimination claims and expands plaintiff field beyond employee who was
discriminated against.
✔✔Local responsiveness (LR) strategy - ✔✔Globalization strategy that emphasizes
adapting to the needs of local markets and allows subsidiaries to develop unique
products, structures, and systems.
✔✔Insourcing - ✔✔Transferring a previously outsourced function back in-house.
✔✔Key risk indicators (KRIs) - ✔✔Metrics that provide an early signal of increasing risk
exposures in the various areas of an enterprise.
✔✔Labor-Management Relations Act (LMRA) - ✔✔U.S. act that provides balance of
power between union and management by designating certain union activities as unfair
labor practices; also knows as Taft-Hartley Act.
✔✔Labor-Management Reporting and Disclosure Act (LMRDA) - ✔✔U.S. act that
protects the rights of union members from corrupt or discriminatory labor unions; also
known as Landrum-Griffin Act.
✔✔Hostile environment harassment - ✔✔Occurs when sexual or other discriminatory
conduct is so severe and pervasive that it interferes with an individual's performance;
creates an intimidating, threatening, or humiliating work environment; or perpetuates a
situation that affects the employee's psychological well-being.
✔✔Identity alignment - ✔✔Extent to which diversity is is embraced in management of
people, products/services, and branding.
✔✔Immigration Reform and Control Act (IRCA) - ✔✔U.S. act that prohibits
discrimination against jobs applicant on the basis of national origin or citizenship;
establishes penalties for hiring illegal aliens and requires employers to establish each
employee's identity and eligibility to work.
✔✔Inclusion - ✔✔Extent to which each person in an organization feels welcomed,
respected, supported, and valued as a team member.
✔✔Governance - ✔✔System of rules and processes an organization puts in place to
ensure its compliance with local and international laws, accounting rules, ethical norms,
and its own codes of conduct.
✔✔Griggs v Duke Power - ✔✔U.S. case that recognized adverse impact discrimination.
ANSWERS GRADED A+
✔✔Process alignment - ✔✔Extent to which underlying operations such as IT, finance,
or HR integrate across locations.
✔✔Overtime pay - ✔✔Required for nonexempt workers under U.S. Fair Labor
Standards Act at 1.5 time the regular rate of pay for hours worked over 40 in a
workweek.
✔✔Patient Protections and Affordable Care Act (PPACA) - ✔✔2010 U.S. law the
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) - ✔✔Set up by U.S. Employee
Retirement Income Security Act to insure payment of benefits in the even that a private-
sector defined benefit pension plan terminates with insufficient funds to pay the benefits.
✔✔Phillips v. Martin Marietta Corporation - ✔✔1971 U.S. case that stated than an
employer may not, in the absence of business necessity, refuse to hire women with
preschool aged children while hiring men with such children.
✔✔Occupational Safety and Health Act (OSH) - ✔✔U.S. act that established the first
national policy for safety and health and continues to deliver standards that employers
must meet to guarantee the health and safety of their employees.
✔✔Occupational Safety and Health Administration (OSHA) - ✔✔U.S. agency that
administers and enforces the Occupational Safety and Health Act of 1970.
✔✔Offshoring - ✔✔Situation in which a company relocated processes or production to
an international location by means of subsidiaries or 3rd party affiliates.
✔✔Older Workers Benefit Protection Act (OWBPA) - ✔✔U.S. act that amended the Age
Discrimination in Employment Act to included all employee benefits; also provided
standards that an employee's waiver of the right to sue for age discrimination must meet
in order to be upheld by a court.
✔✔NLRB v. Weingarten - ✔✔Landmark 1975 U.S. labor relations case the dealt with
the right of a unionized employee to have another person present during certain
investigatory interviews.
✔✔Nonexempt employees - ✔✔Employees covers under U.S. Fair Labor Standards Act
regulations, including minimum wage and overtime pay requirements.
,✔✔Occupational illness - ✔✔Medical condition or disorder, other than one resulting
from an occupational injury, caused by exposure to environmental factors associated
with employment.
✔✔Occupational injury - ✔✔Injury that results from a work-related accident or exposure
involving a single incident int he work environment.
✔✔National Defense Authorization Acts (NDAA) - ✔✔U.S. acts that expanded FMLA
leave for employees with family members who are covered members of the military.
✔✔National Federation of Independent Business v Sebelius - ✔✔U.S. Supreme Court
ruling that Patient Protections and Affordable Care Act requirement that individuals
purchase health insurance was constitutional but that requirement that states expand
Medicaid was not.
✔✔National Labor Relations Act (NLRA) - ✔✔U.S. act that protects and encourages the
growth of the union movement. The act established workers rights to organize and
bargain collectively with the employers; also known as the Wagner Act.
✔✔National origin - ✔✔Refers to the country (including those that no longer exist) of
one's birth or of one's ancestors' birth.
✔✔Low-context culture - ✔✔Society in which people tend to have many social
connections but of shorter duration and where behavior and beliefs may need to be
described explicitly so that those coming into the cultural environment know how to
behave.
✔✔Merger/acquisition (M&A) - ✔✔Combination of 2 separate firms either by their
joining together as relative equals (merger) or by one acquiring the other (acquisition).
✔✔Moral hazard - ✔✔Situation in which one party engages in risky behavior knowing
that is is protected against the risk because another party will incur any resulting loss.
✔✔Multinational enterprise (MNE) - ✔✔Organization that owns or controls production or
services facilities in one or more countries other than the home country.
✔✔Lechmere, Inc. v NLRB - ✔✔1992 case in which the U.S. Supreme Court rules that
an employer cannot be compelled to allow non-employee organizers onto the business
property.
✔✔Ledbetter v Goodyear Tire & Rubber Co, - ✔✔2007 case in which the U.S. Supreme
Court rules that claims of sex discrimination in pay under Title VII were not timely
because discrimination charges were not filed with the EEOC within the required 180-
day time frame.
, ✔✔Lilly Ledbetter Fair Pay Act - ✔✔U.S. act the creates a rolling time frame for filing
wage discrimination claims and expands plaintiff field beyond employee who was
discriminated against.
✔✔Local responsiveness (LR) strategy - ✔✔Globalization strategy that emphasizes
adapting to the needs of local markets and allows subsidiaries to develop unique
products, structures, and systems.
✔✔Insourcing - ✔✔Transferring a previously outsourced function back in-house.
✔✔Key risk indicators (KRIs) - ✔✔Metrics that provide an early signal of increasing risk
exposures in the various areas of an enterprise.
✔✔Labor-Management Relations Act (LMRA) - ✔✔U.S. act that provides balance of
power between union and management by designating certain union activities as unfair
labor practices; also knows as Taft-Hartley Act.
✔✔Labor-Management Reporting and Disclosure Act (LMRDA) - ✔✔U.S. act that
protects the rights of union members from corrupt or discriminatory labor unions; also
known as Landrum-Griffin Act.
✔✔Hostile environment harassment - ✔✔Occurs when sexual or other discriminatory
conduct is so severe and pervasive that it interferes with an individual's performance;
creates an intimidating, threatening, or humiliating work environment; or perpetuates a
situation that affects the employee's psychological well-being.
✔✔Identity alignment - ✔✔Extent to which diversity is is embraced in management of
people, products/services, and branding.
✔✔Immigration Reform and Control Act (IRCA) - ✔✔U.S. act that prohibits
discrimination against jobs applicant on the basis of national origin or citizenship;
establishes penalties for hiring illegal aliens and requires employers to establish each
employee's identity and eligibility to work.
✔✔Inclusion - ✔✔Extent to which each person in an organization feels welcomed,
respected, supported, and valued as a team member.
✔✔Governance - ✔✔System of rules and processes an organization puts in place to
ensure its compliance with local and international laws, accounting rules, ethical norms,
and its own codes of conduct.
✔✔Griggs v Duke Power - ✔✔U.S. case that recognized adverse impact discrimination.
