SHRM-CP Vocabulary Study Guide
Practice Exam.
1. Accounts payable - CORRECT ANSWER Money an organization owes its vendors and suppliers.
2. Accounts receivable - CORRECT ANSWER Money an organization's customers owe the organization.
3. ADA Amendments Act (ADAAA) - CORRECT ANSWER Amendments to U.S. Americans with Disabilities
Act covering the definition of individuals regarded as having a disability, mitigating measures, and other
rules of construction to guide the analysis of what constitutes a disability.
4. ADDIE model - CORRECT ANSWER Five-step instructional design process that governs the
development of learning programs.
5. Adverse impact - CORRECT ANSWER Type of discrimination that results when a neutral policy has a
discriminatory effect; also known as disparate impact.
6. Affinity diagramming - CORRECT ANSWER Data sorting technique in which a group categorizes and
subcategorizes data until relationships are clearly drawn.
7. Age Discrimination in Employment Act (ADEA) - CORRECT ANSWER U.S. act that prohibits
discrimination in the workplace on the basis of age.
8. Alternative dispute resolution (ADR) - CORRECT ANSWER Umbrella term used to describe a number of
problem-solving and grievance resolution approaches.
9. Amendment - CORRECT ANSWER Modification of the U.S. Constitution or a U.S. law.
10. Americans with Disabilities Act (ADA) - CORRECT ANSWER U.S. act that prohibits discrimination
against a qualified individual with a disability because of his/her disability.
,11. Andragogy - CORRECT ANSWER Study of how adults learn.
12. Applicant tracking software (ATS) - CORRECT ANSWER Software that provides an automated way for
organizations to manage the recruiting process.
13. Apprenticeship - CORRECT ANSWER Related to technical skills training; often a partnership between
employers and unions.
14. Arbitration - CORRECT ANSWER Procedure in which disputes are submitted to one or more impartial
persons for final determination.
15. Assessment centers - CORRECT ANSWER Assessment tools that provide candidates a wide range of
leadership situations and problem-solving exercises.
16. Assets - CORRECT ANSWER Financial, physical, and sometimes intangible properties an organization
owns.
17. Assignees - CORRECT ANSWER Employees who work outside their home countries.
18. Auditory learners - CORRECT ANSWER People who learn best by relying on their sense of hearing.
19. Authentic leadership - CORRECT ANSWER Leadership grounded in an individual's values and
principles and focused on empowering others to act.
20. Balanced scorecard - CORRECT ANSWER Measurement approach that provides an overall picture of
an organization's performance as measured against goals in finance, customers, internal business
processes, and learning and growth.
21. Balance sheet - CORRECT ANSWER Statement that reports the financial position of the organization
at a specific point in time; shows assets, liabilities, and shareholder equity.
,22. Behavioral interview - CORRECT ANSWER Type of interview that focuses on how applicants
previously handled real situations.
23. Benchmarking - CORRECT 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.
24. Benefits - CORRECT ANSWER Payments or services provided to employees to cover issues such as
retirement, health care, sick pay/disability schemes, life insurance, and paid time off.
25. Bias - CORRECT ANSWER Occurs when an appraiser's values, beliefs, or prejudices distort
performance ratings.
26. Big data - CORRECT ANSWER High-volume, high-velocity, and high-variety information assets that
require innovative forms of information processing for enhanced insight and decision making.
27. Bill - CORRECT ANSWER A proposal presented to a legislative body for possible enactment as a
statute.
28. Blended learning - CORRECT ANSWER Planned approach to learning that includes a combination of
instructor-led training, self-directed study, and/or on-the-job training.
29. Blogs - CORRECT ANSWER Broadcast-style communications that enable authors to publish articles,
opinions, product or service reviews, etc., on a web page.
30. Blue ocean strategies - CORRECT ANSWER Strategies that generate competitive advantage by
creating a new marketplace arena in which there are no other competitors.
31. Bona fide occupational qualification (BFOQ) - CORRECT ANSWER Situation in which religion, sex, or
national origin is reasonably necessary to carrying out a particular job function in the normal operations
of an organization.
, 32. Brain drain - CORRECT ANSWER Exit of educated and skilled citizens from emerging and developing
countries for better-paying jobs in developed countries.
33. Broadbanding - CORRECT ANSWER Combining several salary grades or job classifications with narrow
pay ranges into one band with a wider salary spread.
34. Burlington Industries, Inc. v. Ellerth - CORRECT ANSWER U.S. court ruling that distinguished between
supervisor harassment that results in tangible employment action and supervisor harassment that does
not.
35. Business Acumen competency - CORRECT ANSWER The ability to understand and apply information
with which to contribute to the organization's strategic plan.
36. Business case - CORRECT ANSWER 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.
37. Business intelligence - CORRECT ANSWER Ability to gather and analyze data from inside and outside
the organization so that information is available for decision makers.
38. Career development - CORRECT ANSWER Process by which employees progress through a series of
stages in their careers, each of which is characterized by relatively unique issues, themes, and tasks.
39. Career management - CORRECT ANSWER Preparing, implementing, and monitoring employees'
career paths, with a primary focus on the goals and needs of the organization.
40. Career planning - CORRECT ANSWER Actions and activities that individuals perform in order to give
direction to their work lives.
41. Cash flow statement - CORRECT ANSWER Statement that 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.
Practice Exam.
1. Accounts payable - CORRECT ANSWER Money an organization owes its vendors and suppliers.
2. Accounts receivable - CORRECT ANSWER Money an organization's customers owe the organization.
3. ADA Amendments Act (ADAAA) - CORRECT ANSWER Amendments to U.S. Americans with Disabilities
Act covering the definition of individuals regarded as having a disability, mitigating measures, and other
rules of construction to guide the analysis of what constitutes a disability.
4. ADDIE model - CORRECT ANSWER Five-step instructional design process that governs the
development of learning programs.
5. Adverse impact - CORRECT ANSWER Type of discrimination that results when a neutral policy has a
discriminatory effect; also known as disparate impact.
6. Affinity diagramming - CORRECT ANSWER Data sorting technique in which a group categorizes and
subcategorizes data until relationships are clearly drawn.
7. Age Discrimination in Employment Act (ADEA) - CORRECT ANSWER U.S. act that prohibits
discrimination in the workplace on the basis of age.
8. Alternative dispute resolution (ADR) - CORRECT ANSWER Umbrella term used to describe a number of
problem-solving and grievance resolution approaches.
9. Amendment - CORRECT ANSWER Modification of the U.S. Constitution or a U.S. law.
10. Americans with Disabilities Act (ADA) - CORRECT ANSWER U.S. act that prohibits discrimination
against a qualified individual with a disability because of his/her disability.
,11. Andragogy - CORRECT ANSWER Study of how adults learn.
12. Applicant tracking software (ATS) - CORRECT ANSWER Software that provides an automated way for
organizations to manage the recruiting process.
13. Apprenticeship - CORRECT ANSWER Related to technical skills training; often a partnership between
employers and unions.
14. Arbitration - CORRECT ANSWER Procedure in which disputes are submitted to one or more impartial
persons for final determination.
15. Assessment centers - CORRECT ANSWER Assessment tools that provide candidates a wide range of
leadership situations and problem-solving exercises.
16. Assets - CORRECT ANSWER Financial, physical, and sometimes intangible properties an organization
owns.
17. Assignees - CORRECT ANSWER Employees who work outside their home countries.
18. Auditory learners - CORRECT ANSWER People who learn best by relying on their sense of hearing.
19. Authentic leadership - CORRECT ANSWER Leadership grounded in an individual's values and
principles and focused on empowering others to act.
20. Balanced scorecard - CORRECT ANSWER Measurement approach that provides an overall picture of
an organization's performance as measured against goals in finance, customers, internal business
processes, and learning and growth.
21. Balance sheet - CORRECT ANSWER Statement that reports the financial position of the organization
at a specific point in time; shows assets, liabilities, and shareholder equity.
,22. Behavioral interview - CORRECT ANSWER Type of interview that focuses on how applicants
previously handled real situations.
23. Benchmarking - CORRECT 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.
24. Benefits - CORRECT ANSWER Payments or services provided to employees to cover issues such as
retirement, health care, sick pay/disability schemes, life insurance, and paid time off.
25. Bias - CORRECT ANSWER Occurs when an appraiser's values, beliefs, or prejudices distort
performance ratings.
26. Big data - CORRECT ANSWER High-volume, high-velocity, and high-variety information assets that
require innovative forms of information processing for enhanced insight and decision making.
27. Bill - CORRECT ANSWER A proposal presented to a legislative body for possible enactment as a
statute.
28. Blended learning - CORRECT ANSWER Planned approach to learning that includes a combination of
instructor-led training, self-directed study, and/or on-the-job training.
29. Blogs - CORRECT ANSWER Broadcast-style communications that enable authors to publish articles,
opinions, product or service reviews, etc., on a web page.
30. Blue ocean strategies - CORRECT ANSWER Strategies that generate competitive advantage by
creating a new marketplace arena in which there are no other competitors.
31. Bona fide occupational qualification (BFOQ) - CORRECT ANSWER Situation in which religion, sex, or
national origin is reasonably necessary to carrying out a particular job function in the normal operations
of an organization.
, 32. Brain drain - CORRECT ANSWER Exit of educated and skilled citizens from emerging and developing
countries for better-paying jobs in developed countries.
33. Broadbanding - CORRECT ANSWER Combining several salary grades or job classifications with narrow
pay ranges into one band with a wider salary spread.
34. Burlington Industries, Inc. v. Ellerth - CORRECT ANSWER U.S. court ruling that distinguished between
supervisor harassment that results in tangible employment action and supervisor harassment that does
not.
35. Business Acumen competency - CORRECT ANSWER The ability to understand and apply information
with which to contribute to the organization's strategic plan.
36. Business case - CORRECT ANSWER 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.
37. Business intelligence - CORRECT ANSWER Ability to gather and analyze data from inside and outside
the organization so that information is available for decision makers.
38. Career development - CORRECT ANSWER Process by which employees progress through a series of
stages in their careers, each of which is characterized by relatively unique issues, themes, and tasks.
39. Career management - CORRECT ANSWER Preparing, implementing, and monitoring employees'
career paths, with a primary focus on the goals and needs of the organization.
40. Career planning - CORRECT ANSWER Actions and activities that individuals perform in order to give
direction to their work lives.
41. Cash flow statement - CORRECT ANSWER Statement that 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.
