SHRM CP EXAM QUESTIONS AND ANSWERS 2023, Graded A+

SHRM CP EXAM QUESTIONS AND ANSWERS 2023, Graded A+ Career Planning Actions & activities that individuals perform in order to give direction to their work lives. Brain drain Exit of educated & skilled citizens from emerging & developing countries for better paying jobs in developed countries. Auditory learners People who learn best by relying on their sense of hearing. Andragogy Study of how adults learn. Cost-of-living adjustment (COLA) Pay adjustment given to eligible employees regardless of performance or organizational profitability; usually linked to inflation. Compa-ratio Pay rate divided by the midpoint of the pay range. Broadbanding Combining several salary grades or job classifications with narrow pay ranges unto one brand with a wider salary spread. Behavioral interview Type of interview that focuses on how applicants previously handled real situations. Applicant tracking software (ATS) Software that provides an automated way for organizations to manage the recruiting process. Developmental activities Activities that focus on preparing employees for future responsibilities while increasing their capacity to perform their current jobs. Compensation All financial returns (beyond any benefits payments or services), including salary and allowances. Career development 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 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 Related to technical skills training; often a partnership between employers and unions. Competency-based interview 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 5 step instructional design process that governs the development of learning programs. Assessment centers Assessment tools that provide candidates a wide range of leadership situations and problem-solving exercises. Blended learning Planned approach to learning that included a combination of instructor-led training, self-directed study, and /or on-the-job training. Career management Preparing, implementing, and monitoring employees' career paths, with a primary focus on the goals and needs of the organization. Competencies 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 A plan of action for accomplishing an organization's long-range goals. SWOT analysis Process for assessing an organization's strategic capabilities in comparison to threats and opportunities identified during environmental scanning. Value drivers Actions, processes, or results that are needed to deliver a desired value. Vision statement Vivid, guiding image of an organization's desired future, the future it hopes to attain through its strategy. Organizational values Beliefs that are important to an organization and often dictate employee behavior. Strategic fit 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 The actions that leaders take to move their organizations toward those goals and create value for all stakeholders. Strategic planning The process of setting goals and designing a path toward a competitive position. Metrics Performance parameters based on the relationship between 2 or more measures. Mission statement 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 Ratio of net income (gross sales minus expenses and taxes) to net sales. Organizational culture The basic beliefs and customs shared by members of an organization that contribute to an organization's sense of its identity. Income statement Statement that reports revenues, expenses, and net income (profit) for a specified period. Lagging indicator Type of metric that describes an activity that has already occurred. Leading indicator Type of metric that describes an activity that can change future performance and indicate higher degree of success in achieving strategic goals. Liabilities Organization's debts and other financial obligations. Due diligence Necessary level of care and attention that is taken to investigate an action before it is taken. Environmental scanning 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 Amount of owners' or shareholders' portion of a business. Gross profit margin Ratio of gross profit to net sales. Benchmarking 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 Strategies that generate competitive advantage by creating a new marketplace arena in which there are no other competitors. Business case Presentation to management that establishes that a specific problem exists and argues that the proposed solution is the best way to solve the problem in terms of time, cost efficiency, and probability of success. Cash flow statement Statement the shows incoming and outgoing cash in the areas of operations, investments, and financing and remaining cash reserves; reflects an organization's ability to meet its current and short-term obligations. Accounts payable Money an organization owed its vendors and suppliers. Accounts receivable Money an organization's customers owe the organization. Assets Financial, physical, and sometimes intangible properties an organization owns. Balance sheet Statement that reports the financial position of the organization at a specific point in time; shows assets, liabilities, and shareholder equity. Vicarious liability Legal doctrine under which a party can be held liable for the wrongful actions of another party. Weingarten rights 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 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. Workweek Any fixed, recurring period of 168 consecutive hours (7 days time 24 hours = 168 hrs) Uniform Guidelines on Employee Selection Procedures Procedural document designed to assist employers in complying with federal regulations prohibiting discrimination. Uniformed Services Employment and Reemployment Rights Act (USERRA) U.S. act that protects the employment reemployment, and retention rights of persons who serve or have served in the uniformed services. Vesting Process by which a retirement benefit becomes nonforfeitable. Veto Action of rejecting a bill or statute. Stakeholders All those affected by an organization's social, environmental, and economic impact shareholders, employees, customers, suppliers, regulators, and local communities. Sustainability Practices that balance economic, social, and environmental interests to secure the interests of present and future generations. Totaization agreements Bilateral agreements entered into by many countries to eliminate double taxation for individuals on international assignments. Triple bottom line Economic, social, and environmental impact metrics used to determine an organization's success. Risk management Identification, evaluation, and control of risk that may affect an organization, typically incorporating the use of insurance and other strategies. Risk position An organization's desired gain or acceptable loss in value. Risk scorecard 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). Risk tolerance Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management. Reverse innovation Innovations created for or by emerging-economy markets and then imported to developed-economy markets. Risk The effect of uncertainty or objectives; outcomes may include opportunities or threats. Risk appetite Amount of risk the organization or function is willing to pursue or accept to attain its goals. Risk control An action taken to manage a risk. Redeployment Process by which an organization moves an employee out of an international assignment; can involve moving back to the home country, moving to a different global location, or moving to a new location or position in the current host country. Regulation A rule or order issues by an administrative agency; often has the force of law. Repatriation Process of reintegrating employees back into the home country after an assignment; includes adjustment to the new job and readjustment to the home culture and conditions. Residual risk Amount of uncertainty that remains after all risk management efforts have been exhausted. Protected class People who are covered under a particular federal or state anti-discrimination law. Prudent person rule 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. Public comment period Time allowed for the public to express its views and concerns regarding an action of an administrative agency. Quid pro quo harassment 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 U.S. act that defines what is included as hours worked and is therefore compensable and a factor in calculating overtime. Pregnancy Discrimination Act U.S. act that prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions. Principal-agent problem Situation in which and agent (e.g. an employee) make decisions for a principal (e.g. an employer) potentially on the basis of personal incentives that may not be aligned with the agent's incentives. 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.