SHRM CP 2025 Exam Questions and
Answers
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.
Cost-of-living adjustment (COLA) - correct Answer-Pay adjustment given to eligible
employees regardless of performance or organizational profitability; usually linked to
inflation.
Broadbanding - 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.
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.
Analyze, Design, Develop, Implement, and Evaluate.
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.
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.
Vision statement - correct Answer-Vivid, guiding image of an organization's desired
future, the future it hopes to attain through its strategy.
,Organizational values - correct Answer-Beliefs that are important to an organization and
often dictate employee behavior.
Strategic management - correct Answer-The actions that leaders take to move their
organizations toward those goals and create value for all stakeholders.
Strategic planning - correct Answer-The process of setting goals and designing a path
toward a competitive position.
Net profit margin - correct Answer-Ratio of net income (gross sales minus expenses
and taxes) to net sales.
Leading indicator - correct 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 - correct 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 - 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.
Blue ocean strategies - correct Answer-Strategies that generate competitive advantage
by creating a new marketplace arena in which there are no other competitors.
Weingarten rights - correct 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 - correct 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) - correct
Answer-U.S. act that protects the employment reemployment, and retention rights of
persons who serve or have served in the uniformed services.
Vesting - correct Answer-Process by which a retirement benefit becomes nonforfeitable.
Stakeholders - correct Answer-All those affected by an organization's social,
environmental, and economic impact shareholders, employees, customers, suppliers,
regulators, and local communities.
,Triple bottom line - correct Answer-Economic, social, and environmental impact metrics
used to determine an organization's success.
Risk scorecard - correct 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 - correct Answer-People who are covered under a particular federal or
state anti-discrimination law.
Prudent person rule - correct 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 - correct 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 - correct 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) - correct 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) - correct 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.
Phillips v. Martin Marietta Corporation - correct Answer-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 Administration (OSHA) - correct Answer-U.S. agency
that administers and enforces the Occupational Safety and Health Act of 1970.
Offshoring - correct Answer-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) - correct Answer-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.
make it illegal for an
employer to:
Use an employee's age as a basis for discrimination in benefits
Target older workers for staff-cutting programs,
NLRB v. Weingarten - correct Answer-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 - correct Answer-Employees covers under U.S. Fair Labor
Standards Act regulations, including minimum wage and overtime pay requirements.
National Defense Authorization Acts (NDAA) - correct Answer-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 - correct Answer-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. Considers 2 keys of ACA 1) Medicade Expansion: it is illegal
to tie federal funds on the condition of complying with the expansion 2) Individual
Mandate: requires you to buy private health coverage if you are non-exempt and not
covered through your employer or government
Low-context culture - correct Answer-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.
Moral hazard - correct Answer-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 Company - correct Answer-Has locations/facilities in multiple countries, but
each location functions in its
own way, essentially its own entity. Multinationals adapt operations and products to fit
within individual
markets. E.g: McDonalds, Coke
Ledbetter v Goodyear Tire & Rubber Co, - correct Answer-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.
Answers
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.
Cost-of-living adjustment (COLA) - correct Answer-Pay adjustment given to eligible
employees regardless of performance or organizational profitability; usually linked to
inflation.
Broadbanding - 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.
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.
Analyze, Design, Develop, Implement, and Evaluate.
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.
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.
Vision statement - correct Answer-Vivid, guiding image of an organization's desired
future, the future it hopes to attain through its strategy.
,Organizational values - correct Answer-Beliefs that are important to an organization and
often dictate employee behavior.
Strategic management - correct Answer-The actions that leaders take to move their
organizations toward those goals and create value for all stakeholders.
Strategic planning - correct Answer-The process of setting goals and designing a path
toward a competitive position.
Net profit margin - correct Answer-Ratio of net income (gross sales minus expenses
and taxes) to net sales.
Leading indicator - correct 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 - correct 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 - 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.
Blue ocean strategies - correct Answer-Strategies that generate competitive advantage
by creating a new marketplace arena in which there are no other competitors.
Weingarten rights - correct 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 - correct 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) - correct
Answer-U.S. act that protects the employment reemployment, and retention rights of
persons who serve or have served in the uniformed services.
Vesting - correct Answer-Process by which a retirement benefit becomes nonforfeitable.
Stakeholders - correct Answer-All those affected by an organization's social,
environmental, and economic impact shareholders, employees, customers, suppliers,
regulators, and local communities.
,Triple bottom line - correct Answer-Economic, social, and environmental impact metrics
used to determine an organization's success.
Risk scorecard - correct 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 - correct Answer-People who are covered under a particular federal or
state anti-discrimination law.
Prudent person rule - correct 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 - correct 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 - correct 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) - correct 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) - correct 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.
Phillips v. Martin Marietta Corporation - correct Answer-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 Administration (OSHA) - correct Answer-U.S. agency
that administers and enforces the Occupational Safety and Health Act of 1970.
Offshoring - correct Answer-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) - correct Answer-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.
make it illegal for an
employer to:
Use an employee's age as a basis for discrimination in benefits
Target older workers for staff-cutting programs,
NLRB v. Weingarten - correct Answer-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 - correct Answer-Employees covers under U.S. Fair Labor
Standards Act regulations, including minimum wage and overtime pay requirements.
National Defense Authorization Acts (NDAA) - correct Answer-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 - correct Answer-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. Considers 2 keys of ACA 1) Medicade Expansion: it is illegal
to tie federal funds on the condition of complying with the expansion 2) Individual
Mandate: requires you to buy private health coverage if you are non-exempt and not
covered through your employer or government
Low-context culture - correct Answer-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.
Moral hazard - correct Answer-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 Company - correct Answer-Has locations/facilities in multiple countries, but
each location functions in its
own way, essentially its own entity. Multinationals adapt operations and products to fit
within individual
markets. E.g: McDonalds, Coke
Ledbetter v Goodyear Tire & Rubber Co, - correct Answer-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.
