SHRM-CP Practice Test with 100%
Correct Answers
An organization's state mandates a $2.00 per hour increase in the minimum wage. As
the company implements the change, new hires will now be started at the same wage
as workers who have been on the job for two years. What type of pay variation does this
exemplify? - ANS-Pay compression, or salary compression
An organization is developing a corporate social responsibility (CSR) strategy. At which
two stages of the CSR strategic process is it likely to find the GRI G4 Guidelines most
useful? - ANS-The G4 Guidelines are useful in at least two steps in the strategic
process. At the initial assessment stage, the G4 Aspects provide a template for
determining the organization's current conditions and needs. At the later measurement
and evaluation stage, the G4 Guidelines provide the metrics needed for meaningful
progress evaluation.
What is a key reason why many diversity initiatives fail to achieve intended workplace
changes? - ANS-You cannot just outlaw bias with classic command-and-control
mandates of management training, hiring tests, ties to performance ratings, and
remedial grievance procedures. An organization must truly embrace diversity and
integrate varied life styles, beliefs, and needs into its business culture.
What is the best reason to use social media channels for corporate communication? -
ANS-They provide instantaneous feedback to leaders about employee responses.
(Although social media make communication more complex and challenging, they also
make it easier to assess reaction to the communication.)
The government of country A charges the employees of a business legally
headquartered in that country with bribing officials in country B. What legal principle
does this illustrate? - ANS-Extraterritoriality
Extraterritorial laws can be applied by a country to businesses owned in that country
and to their employees, even when the actions in question occur in another country.
Rule of law refers to a culture of respect for legal process to all citizens. Conflict of laws
refers to an event in which multiple jurisdictions are involved and there are differences
in their relevant laws. Forum shopping occurs when multiple jurisdictions may be
involved and a plaintiff sues in the jurisdiction that will be most favorable to the claim.
What is the most desired outcome of an HR audit? - ANS-Action plan to address
underperforming areas.
,The most desired outcome of an audit would be a clear sense of where performance
could be improved and an action plan for implementing these improvements. A checklist
of controls does not ensure that the controls are effective in their goals. The audit may
not affect efficiency, although it should affect quality. Measuring oneself against peers is
instructional, but doing it to gain credibility is shortsighted.
What is the most accurate characterization of business value? - ANS-What constitutes
value may be different in different organizations.
Because value is tied to an organization's mission, the definition of value will vary. It
may not be solely financial and may depend on internal assessment rather than external
judges. The need to create the desired value must be communicated to and understood
by the entire organization.
What is the purpose of "sensing meetings" in the organizational effectiveness and
development process?
Cultural assessment
Team building
Strategic alignment
Sustaining change - ANS-Sustaining change.
"Sensing" meetings are opportunities to check in on group reactions to an initiative after
it has been implemented. They can provide early indications that additional steps may
be required.
Which motivational theory emphasizes the importance of autonomy, competency, and
relatedness?
Theory Z
Behavioral reinforcement
Self-determination
Motivation-hygiene theory - ANS-The self-determination theory is based on a belief in
intrinsic motivation—that people are motivated when they have the ability to direct their
actions (autonomy), when they can increase their mastery or competence, and when an
action serves a larger purpose.
What is the basis of civil law?
Regulatory directives
Court decisions
Tort reforms
Legislative acts - ANS-Civil law is based on legislation: written codes (laws, rules, or
regulations) approved by legislative bodies. The law is applied deductively, starting from
the abstract rule as stated in the nation's civil law code.
,A university is beginning its budget planning process. Due to cutbacks in state aid,
every department must cut its budget by 3%. What is this budgeting method called?
Deficit budgeting
Incremental budgeting
Formula budgeting
Zero-based budgeting - ANS-In formula budgeting, a specific cost is applied to calculate
funding. This method applies an average cost to comparable expenses, and general
funding is increased or decreased by a specific amount.
Which statement best describes an HR role in the litigation process?
Assisting legal counsel as requested
Answering the complaint
Filing motions
Obtaining depositions - ANS-HR often assists the employer's legal counsel. The
organization's attorney handles answering the complaint, conducting depositions, and
filing motions.
Nancy Adler identifies four challenges to effective cross-cultural communication. What
term describes the challenge that absolves individual responsibility by ascribing
obstacles to innate cultural resistance?
Cultural determinism
Cultural relativism
Cultural stereotyping
Ethnocentrism - ANS-Cultural determinism is a perspective that basically absolves
individuals of any responsibility for their actions. Global HR professionals will often hear
from managers in other countries that something cannot be done because of the local
culture. This may call for further discussion about the supposed obstacles.
What are the three spheres of sustainability?
-Local, regional, global
-Earth, air, water
-Community, corporate, ecological
-Environmental, social, economic - ANS-The term "sustainability" originally referred to
an ecological or environmental goal. Now that focus has expanded to also consider an
organization's social and economic impact (sometimes referred to as the 3Ps: people,
planet, profits).
A software company makes applications for small businesses and start-ups. As part of
its corporate social responsibility (CSR) program, it has set up a community center
where its employees are given paid time off to volunteer time and expertise to run a
, course designed by the company's HR function to help low-income people build their
own small businesses. What term best describes this type of employee volunteer effort?
-Employer-planned volunteering
-Employer-sponsored volunteering
-Supported employee volunteering
-Private volunteering - ANS-In employer-planned volunteering, employees volunteer
within a framework of projects developed by the employer that contribute to the
organization's reputation or business objectives.
An organization erroneously withheld deductions from several exempt employees'
paychecks. Under the safe-harbor provision of the Fair Labor Standards Act, what must
the organization do?
-Reimburse employees for any improper deductions plus interest.
-Create a written policy to prevent future improper pay deductions.
-Make a good-faith effort to comply in the future.
-Forfeit the overtime exception for the class of employees for 12 months as a penalty -
ANS-A safe-harbor provision prevents an employer from losing the overtime exemption
for improper pay deductions, regardless of the reason, if the employer has "a clearly
communicated" policy (not necessarily in writing) and makes a good-faith effort to
comply in the future. While the organization must reimburse employees for any
improper deductions, there is no requirement to pay any amount beyond the improperly
deducted amount.
What is the term for the system of rules and processes an organization puts in place to
ensure adherence to laws, rules, ethical norms, and environmental and social codes of
conduct?
Governance
Compliance
Rule of law
Ethics - ANS-Governance is the system of rules and processes an organization puts in
place to ensure its compliance with local and international laws, accounting rules,
ethical norms, and environmental and social codes of conduct. Good governance is the
outcome of a thoughtful assessment of an enterprise's legal, ethical, and civic
obligations to the communities it serves and the development of systems that support
fulfillment of these obligations.
The retention threshold for new hires indicates that 35% of the employees tend to quit
during the first 90 days. What HR practice could improve the organization's onboarding
program and reduce voluntary turnover?
-Conduct in-depth exit interviews to determine the cause.
-Provide the opportunity for job sharing after 60 days.
-Offer bonuses to new hires if they exceed 90 days.
Correct Answers
An organization's state mandates a $2.00 per hour increase in the minimum wage. As
the company implements the change, new hires will now be started at the same wage
as workers who have been on the job for two years. What type of pay variation does this
exemplify? - ANS-Pay compression, or salary compression
An organization is developing a corporate social responsibility (CSR) strategy. At which
two stages of the CSR strategic process is it likely to find the GRI G4 Guidelines most
useful? - ANS-The G4 Guidelines are useful in at least two steps in the strategic
process. At the initial assessment stage, the G4 Aspects provide a template for
determining the organization's current conditions and needs. At the later measurement
and evaluation stage, the G4 Guidelines provide the metrics needed for meaningful
progress evaluation.
What is a key reason why many diversity initiatives fail to achieve intended workplace
changes? - ANS-You cannot just outlaw bias with classic command-and-control
mandates of management training, hiring tests, ties to performance ratings, and
remedial grievance procedures. An organization must truly embrace diversity and
integrate varied life styles, beliefs, and needs into its business culture.
What is the best reason to use social media channels for corporate communication? -
ANS-They provide instantaneous feedback to leaders about employee responses.
(Although social media make communication more complex and challenging, they also
make it easier to assess reaction to the communication.)
The government of country A charges the employees of a business legally
headquartered in that country with bribing officials in country B. What legal principle
does this illustrate? - ANS-Extraterritoriality
Extraterritorial laws can be applied by a country to businesses owned in that country
and to their employees, even when the actions in question occur in another country.
Rule of law refers to a culture of respect for legal process to all citizens. Conflict of laws
refers to an event in which multiple jurisdictions are involved and there are differences
in their relevant laws. Forum shopping occurs when multiple jurisdictions may be
involved and a plaintiff sues in the jurisdiction that will be most favorable to the claim.
What is the most desired outcome of an HR audit? - ANS-Action plan to address
underperforming areas.
,The most desired outcome of an audit would be a clear sense of where performance
could be improved and an action plan for implementing these improvements. A checklist
of controls does not ensure that the controls are effective in their goals. The audit may
not affect efficiency, although it should affect quality. Measuring oneself against peers is
instructional, but doing it to gain credibility is shortsighted.
What is the most accurate characterization of business value? - ANS-What constitutes
value may be different in different organizations.
Because value is tied to an organization's mission, the definition of value will vary. It
may not be solely financial and may depend on internal assessment rather than external
judges. The need to create the desired value must be communicated to and understood
by the entire organization.
What is the purpose of "sensing meetings" in the organizational effectiveness and
development process?
Cultural assessment
Team building
Strategic alignment
Sustaining change - ANS-Sustaining change.
"Sensing" meetings are opportunities to check in on group reactions to an initiative after
it has been implemented. They can provide early indications that additional steps may
be required.
Which motivational theory emphasizes the importance of autonomy, competency, and
relatedness?
Theory Z
Behavioral reinforcement
Self-determination
Motivation-hygiene theory - ANS-The self-determination theory is based on a belief in
intrinsic motivation—that people are motivated when they have the ability to direct their
actions (autonomy), when they can increase their mastery or competence, and when an
action serves a larger purpose.
What is the basis of civil law?
Regulatory directives
Court decisions
Tort reforms
Legislative acts - ANS-Civil law is based on legislation: written codes (laws, rules, or
regulations) approved by legislative bodies. The law is applied deductively, starting from
the abstract rule as stated in the nation's civil law code.
,A university is beginning its budget planning process. Due to cutbacks in state aid,
every department must cut its budget by 3%. What is this budgeting method called?
Deficit budgeting
Incremental budgeting
Formula budgeting
Zero-based budgeting - ANS-In formula budgeting, a specific cost is applied to calculate
funding. This method applies an average cost to comparable expenses, and general
funding is increased or decreased by a specific amount.
Which statement best describes an HR role in the litigation process?
Assisting legal counsel as requested
Answering the complaint
Filing motions
Obtaining depositions - ANS-HR often assists the employer's legal counsel. The
organization's attorney handles answering the complaint, conducting depositions, and
filing motions.
Nancy Adler identifies four challenges to effective cross-cultural communication. What
term describes the challenge that absolves individual responsibility by ascribing
obstacles to innate cultural resistance?
Cultural determinism
Cultural relativism
Cultural stereotyping
Ethnocentrism - ANS-Cultural determinism is a perspective that basically absolves
individuals of any responsibility for their actions. Global HR professionals will often hear
from managers in other countries that something cannot be done because of the local
culture. This may call for further discussion about the supposed obstacles.
What are the three spheres of sustainability?
-Local, regional, global
-Earth, air, water
-Community, corporate, ecological
-Environmental, social, economic - ANS-The term "sustainability" originally referred to
an ecological or environmental goal. Now that focus has expanded to also consider an
organization's social and economic impact (sometimes referred to as the 3Ps: people,
planet, profits).
A software company makes applications for small businesses and start-ups. As part of
its corporate social responsibility (CSR) program, it has set up a community center
where its employees are given paid time off to volunteer time and expertise to run a
, course designed by the company's HR function to help low-income people build their
own small businesses. What term best describes this type of employee volunteer effort?
-Employer-planned volunteering
-Employer-sponsored volunteering
-Supported employee volunteering
-Private volunteering - ANS-In employer-planned volunteering, employees volunteer
within a framework of projects developed by the employer that contribute to the
organization's reputation or business objectives.
An organization erroneously withheld deductions from several exempt employees'
paychecks. Under the safe-harbor provision of the Fair Labor Standards Act, what must
the organization do?
-Reimburse employees for any improper deductions plus interest.
-Create a written policy to prevent future improper pay deductions.
-Make a good-faith effort to comply in the future.
-Forfeit the overtime exception for the class of employees for 12 months as a penalty -
ANS-A safe-harbor provision prevents an employer from losing the overtime exemption
for improper pay deductions, regardless of the reason, if the employer has "a clearly
communicated" policy (not necessarily in writing) and makes a good-faith effort to
comply in the future. While the organization must reimburse employees for any
improper deductions, there is no requirement to pay any amount beyond the improperly
deducted amount.
What is the term for the system of rules and processes an organization puts in place to
ensure adherence to laws, rules, ethical norms, and environmental and social codes of
conduct?
Governance
Compliance
Rule of law
Ethics - ANS-Governance is the system of rules and processes an organization puts in
place to ensure its compliance with local and international laws, accounting rules,
ethical norms, and environmental and social codes of conduct. Good governance is the
outcome of a thoughtful assessment of an enterprise's legal, ethical, and civic
obligations to the communities it serves and the development of systems that support
fulfillment of these obligations.
The retention threshold for new hires indicates that 35% of the employees tend to quit
during the first 90 days. What HR practice could improve the organization's onboarding
program and reduce voluntary turnover?
-Conduct in-depth exit interviews to determine the cause.
-Provide the opportunity for job sharing after 60 days.
-Offer bonuses to new hires if they exceed 90 days.
