SHRM CP Exam Latest Update 2025
With All Correct Answers
Central tendency error - CORRECT ANSWER Error that occurs when an appraiser
rates all employees within a narrow range, regardless of differences in actual
performance.
Chain of command - CORRECT ANSWER Line of authority within an organization.
Cloud computing - CORRECT ANSWER Style of computing in which scalable IT-
enabled capabilities are delivered as a service using Internet technologies.
Codetermination - CORRECT ANSWER Form a corporate governance that requires a
typical management board and supervisory board and that allows management and
employees to participate in strategic decision making.
Bias - CORRECT ANSWER Occurs when an appraiser's values, beliefs, or prejudices
distort performance ratings.
Big data - CORRECT ANSWER High-volume, high-velocity, and high-variety
information assets that require innovative forms of information processing for enhances
insight and decision making.
Blogs - CORRECT ANSWER Broadcast-style communications that enable authors to
publish articles, opinions, product or service reviews, etc., on a web page.
Center of excellence (COE) - CORRECT ANSWER HR structural alternative
established as an independent department that provides services within a focused area
to internal clients.
Affinity diagramming - CORRECT ANSWER Data sorting technique in which a group
categorizes and sub-categorizes data until relationships are clearly drawn.
Alternative dispute resolution (ADR) - CORRECT ANSWER Umbrella term used to
describe a number of problem-solving and grievance resolution approaches.
Arbitration - CORRECT ANSWER Procedure in which disputes are submitted to one or
more impartial persons for final determination.
,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.
Visual learners - CORRECT ANSWER People who learn best by relying on their sense
of sight.
Well-being - CORRECT ANSWER Physical, psychological, and social aspects of
employee health.
Time-based step-rate pay - CORRECT ANSWER System in which pay is based on
longevity in the job and pay increases occur on a predetermines schedule.
Total rewards - CORRECT ANSWER Direct and indirect remuneration approaches that
employers use to attract recognize, and retain workers.
Training - CORRECT ANSWER Process of providing knowledge, skills, or abilities
(KSA) specific to as task or job.
Transfer of learning - CORRECT ANSWER Effective and continuing on-the-job
application of the knowledge and skills gained through a training experience.
Sourcing - CORRECT ANSWER Process of generating a pool of qualified job
applications.
Staffing - CORRECT ANSWER HR function that acts on the organizational human
capital needs identified through workforce planning and attempts to provide an
adequate supply of qualified individuals to complete the body of work necessary for the
organization's financial success.
Stress interview - CORRECT ANSWER Type of interview in which the interviewer
assumes an aggressive posture to see how a candidate responds to stressful situations.
Structured interview - CORRECT ANSWER Type of interview in which the interviewer
asks every applicant the same questions; also called a repetitive interview.
Seniority - CORRECT ANSWER System that shows preference to employees with the
longest service.
Single-rate pay - CORRECT ANSWER Provides each incumbent of a job with the same
rate of pay, regardless of performance or seniority; also knows as flat-rate pay.
Situation judgement tests (SJT's) - CORRECT ANSWER Assessment tools that present
prospective leaders with sample situations and problems they might encounter in a work
environment.
,Social media - CORRECT ANSWER Variety of Internet technology platforms and
communities that people use to communicate and share information and resources.
Multi-criteria decision analysis (MCDA) - CORRECT ANSWER Decision-making tool in
which a team determines critical characteristics of a successful decision; a matrix is
used to score each alternative and compare results.
Nominal group technique - CORRECT ANSWER Group of individuals who meet face-
to-face to forecast ideas and assumptions and prioritize issues.
Organization development - CORRECT ANSWER Process of enhancing the
effectiveness and efficiency of an organization and the well-being of its members
through planned interventions.
Career Planning - CORRECT ANSWER Actions & activities that individuals perform in
order to give direction to their work lives.
Brain drain - CORRECT ANSWER Exit of educated & skilled citizens from emerging &
developing countries for better paying jobs in developed countries.
Auditory learners - CORRECT ANSWER People who learn best by relying on their
sense of hearing.
Andragogy - CORRECT ANSWER Study of how adults learn.
Cost-of-living adjustment (COLA) - CORRECT ANSWER Pay adjustment given to
eligible employees regardless of performance or organizational profitability; usually
linked to inflation.
Compaq-ratio - CORRECT ANSWER Pay rate divided by the midpoint of the pay range.
Broad banding - CORRECT ANSWER Combining several salary grades or job
classifications with narrow pay ranges unto one brand with a wider salary spread.
Behavioral interview - CORRECT ANSWER Type of interview that focuses on how
applicants previously handled real situations.
Applicant tracking software (ATS) - CORRECT ANSWER Software that provides an
automated way for organizations to manage the recruiting process.
Developmental activities - CORRECT ANSWER Activities that focus on preparing
employees for future responsibilities while increasing their capacity to perform their
current jobs.
Compensation - CORRECT ANSWER All financial returns (beyond any benefits
payments or services), including salary and allowances.
, 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, themes, and tasks.
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.
Apprenticeship - CORRECT ANSWER Related to technical skills training; often a
partnership between employers and unions.
Competency-based interview - CORRECT 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 - CORRECT ANSWER 5 step instructional design process that governs
the development of learning programs.
Assessment centers - CORRECT ANSWER Assessment tools that provide candidates
a wide range of leadership situations and problem-solving exercises.
Blended learning - CORRECT ANSWER Planned approach to learning that included a
combination of instructor-led training, self-directed study, and /or on-the-job training.
Career management - CORRECT ANSWER Preparing, implementing, and monitoring
employees' career paths, with a primary focus on the goals and needs of the
organization.
Competencies - CORRECT ANSWER 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 - CORRECT ANSWER A plan of action for accomplishing an organization's
long-range goals.
SWOT analysis - CORRECT ANSWER Process for assessing an organization's
strategic capabilities in comparison to threats and opportunities identified during
environmental scanning.
Value drivers - CORRECT ANSWER Actions, processes, or results that are needed to
deliver a desired value.
Vision statement - CORRECT ANSWER Vivid, guiding image of an organization's
desired future, the future it hopes to attain through its strategy.
With All Correct Answers
Central tendency error - CORRECT ANSWER Error that occurs when an appraiser
rates all employees within a narrow range, regardless of differences in actual
performance.
Chain of command - CORRECT ANSWER Line of authority within an organization.
Cloud computing - CORRECT ANSWER Style of computing in which scalable IT-
enabled capabilities are delivered as a service using Internet technologies.
Codetermination - CORRECT ANSWER Form a corporate governance that requires a
typical management board and supervisory board and that allows management and
employees to participate in strategic decision making.
Bias - CORRECT ANSWER Occurs when an appraiser's values, beliefs, or prejudices
distort performance ratings.
Big data - CORRECT ANSWER High-volume, high-velocity, and high-variety
information assets that require innovative forms of information processing for enhances
insight and decision making.
Blogs - CORRECT ANSWER Broadcast-style communications that enable authors to
publish articles, opinions, product or service reviews, etc., on a web page.
Center of excellence (COE) - CORRECT ANSWER HR structural alternative
established as an independent department that provides services within a focused area
to internal clients.
Affinity diagramming - CORRECT ANSWER Data sorting technique in which a group
categorizes and sub-categorizes data until relationships are clearly drawn.
Alternative dispute resolution (ADR) - CORRECT ANSWER Umbrella term used to
describe a number of problem-solving and grievance resolution approaches.
Arbitration - CORRECT ANSWER Procedure in which disputes are submitted to one or
more impartial persons for final determination.
,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.
Visual learners - CORRECT ANSWER People who learn best by relying on their sense
of sight.
Well-being - CORRECT ANSWER Physical, psychological, and social aspects of
employee health.
Time-based step-rate pay - CORRECT ANSWER System in which pay is based on
longevity in the job and pay increases occur on a predetermines schedule.
Total rewards - CORRECT ANSWER Direct and indirect remuneration approaches that
employers use to attract recognize, and retain workers.
Training - CORRECT ANSWER Process of providing knowledge, skills, or abilities
(KSA) specific to as task or job.
Transfer of learning - CORRECT ANSWER Effective and continuing on-the-job
application of the knowledge and skills gained through a training experience.
Sourcing - CORRECT ANSWER Process of generating a pool of qualified job
applications.
Staffing - CORRECT ANSWER HR function that acts on the organizational human
capital needs identified through workforce planning and attempts to provide an
adequate supply of qualified individuals to complete the body of work necessary for the
organization's financial success.
Stress interview - CORRECT ANSWER Type of interview in which the interviewer
assumes an aggressive posture to see how a candidate responds to stressful situations.
Structured interview - CORRECT ANSWER Type of interview in which the interviewer
asks every applicant the same questions; also called a repetitive interview.
Seniority - CORRECT ANSWER System that shows preference to employees with the
longest service.
Single-rate pay - CORRECT ANSWER Provides each incumbent of a job with the same
rate of pay, regardless of performance or seniority; also knows as flat-rate pay.
Situation judgement tests (SJT's) - CORRECT ANSWER Assessment tools that present
prospective leaders with sample situations and problems they might encounter in a work
environment.
,Social media - CORRECT ANSWER Variety of Internet technology platforms and
communities that people use to communicate and share information and resources.
Multi-criteria decision analysis (MCDA) - CORRECT ANSWER Decision-making tool in
which a team determines critical characteristics of a successful decision; a matrix is
used to score each alternative and compare results.
Nominal group technique - CORRECT ANSWER Group of individuals who meet face-
to-face to forecast ideas and assumptions and prioritize issues.
Organization development - CORRECT ANSWER Process of enhancing the
effectiveness and efficiency of an organization and the well-being of its members
through planned interventions.
Career Planning - CORRECT ANSWER Actions & activities that individuals perform in
order to give direction to their work lives.
Brain drain - CORRECT ANSWER Exit of educated & skilled citizens from emerging &
developing countries for better paying jobs in developed countries.
Auditory learners - CORRECT ANSWER People who learn best by relying on their
sense of hearing.
Andragogy - CORRECT ANSWER Study of how adults learn.
Cost-of-living adjustment (COLA) - CORRECT ANSWER Pay adjustment given to
eligible employees regardless of performance or organizational profitability; usually
linked to inflation.
Compaq-ratio - CORRECT ANSWER Pay rate divided by the midpoint of the pay range.
Broad banding - CORRECT ANSWER Combining several salary grades or job
classifications with narrow pay ranges unto one brand with a wider salary spread.
Behavioral interview - CORRECT ANSWER Type of interview that focuses on how
applicants previously handled real situations.
Applicant tracking software (ATS) - CORRECT ANSWER Software that provides an
automated way for organizations to manage the recruiting process.
Developmental activities - CORRECT ANSWER Activities that focus on preparing
employees for future responsibilities while increasing their capacity to perform their
current jobs.
Compensation - CORRECT ANSWER All financial returns (beyond any benefits
payments or services), including salary and allowances.
, 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, themes, and tasks.
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.
Apprenticeship - CORRECT ANSWER Related to technical skills training; often a
partnership between employers and unions.
Competency-based interview - CORRECT 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 - CORRECT ANSWER 5 step instructional design process that governs
the development of learning programs.
Assessment centers - CORRECT ANSWER Assessment tools that provide candidates
a wide range of leadership situations and problem-solving exercises.
Blended learning - CORRECT ANSWER Planned approach to learning that included a
combination of instructor-led training, self-directed study, and /or on-the-job training.
Career management - CORRECT ANSWER Preparing, implementing, and monitoring
employees' career paths, with a primary focus on the goals and needs of the
organization.
Competencies - CORRECT ANSWER 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 - CORRECT ANSWER A plan of action for accomplishing an organization's
long-range goals.
SWOT analysis - CORRECT ANSWER Process for assessing an organization's
strategic capabilities in comparison to threats and opportunities identified during
environmental scanning.
Value drivers - CORRECT ANSWER Actions, processes, or results that are needed to
deliver a desired value.
Vision statement - CORRECT ANSWER Vivid, guiding image of an organization's
desired future, the future it hopes to attain through its strategy.
