SHRM Exam 1 UPDATED Questions and
CORRECT Answers
is a company's ability to maintain and gain market share, related to its effectiveness, which is
determined by whether the company satisfies the needs of the stakeholders - CORRECT
ANSWER - competitiveness
refers to the policies, practices, and systems that influence employees' behavior, attitudes, and
performance. - CORRECT ANSWER - human resource management
Giving employees online access to information about HR issues such as training, benefits, and
compensation is called - CORRECT ANSWER - self-service
McRonald's burger joint has decided that they spend too much time and effort on recruiting and
hiring. Therefore, they decide to hire another company to do this for them. This is an example of
- CORRECT ANSWER - outsourcing
On Canvas and in the class lecture video, there is a video about a company using evidence-based
HR by going into a bank and analyzing their workforce and the effectiveness of various
employees. In this particular example, they studied many data points and found that part-time
employees with more years of experience were actually more effective workers for this bank.
This is an example of a company performing _____________ for this bank. - CORRECT
ANSWER - workforce analytics
Which of the following is NOT a primary stakeholder when looking at the sustainability
challenge facing an organization? - CORRECT ANSWER - politicians
An engaged employee is one that is passionate about their work, is committed to the company
and its mission, and is motivated to work hard to contribute to the company. Understandably,
management would like to have as many engaged employees as possible. Unfortunately, there is
an "engagement gap" where only ____________ of workers are actively engaged in their work. -
CORRECT ANSWER - 30%
,Which of the following statements is true about the composition of the U.S. labor force in the
next decade? - CORRECT ANSWER - The median age of the labor force will increase to
the highest number ever.
Which of the following, if true, would support reshoring as a strategy for a U.S. firm? -
CORRECT ANSWER - Rising labor costs overseas
A company in which employees feel like management is trying to cut corners on the quality of
their products - at the expense of customer safety - and they are not being upfront about the new
risks in their products, is likely low on _______________ - CORRECT ANSWER -
ethical culture
During _____, the strategic planning groups decide on a strategic direction by defining the
company's mission and goals, its external opportunities and threats, and its internal strengths and
weaknesses. - CORRECT ANSWER - strategy formulation
____ costs are incurred regardless of the number of units produced. - CORRECT
ANSWER - fixed
Which of the following statements is true of variable costs incurred by firms? - CORRECT
ANSWER - These costs change directly with the units produced.
___ _ is what is left after a firm pays its variable costs and fixed costs. - CORRECT
ANSWER - profit
Jupiter Inc. is a large manufacturer of footwear and accessories. It has always lagged behind its
closest competitor, Polygon Inc. It plans to overtake Polygon by leveraging its strength in
women's footwear and entering markets in the Southwest that it had traditionally ignored. Jupiter
Inc. is in the _____ phase. - CORRECT ANSWER - strategy implementation
, An organization's _____ is what it hopes to achieve in the medium- to long-term future, and it
reflects how an organization's reason for being is operationalized. - CORRECT
ANSWER - goal
The Cincinnati Reds perform a SWOT analysis for the upcoming season. They see that the St.
Louis Cardinals' HR department has already signed new players. This is an example of which
component in the SWOT analysis? - CORRECT ANSWER - threats
Pay is very important for many reasons in an organization. With high pay, a company can attract
high-quality employees that can produce high-quality products and provide high-quality services.
Knowing this, what is the most likely reason that a business, that wants to make high-quality
products, doesn't simply pay their employees more than their competitors? - CORRECT
ANSWER - High pay results in high payroll cost, leaving organizations struggling to make
a profit
Which of the following is true regarding the differentiation strategy? - CORRECT
ANSWER - Companies achieve above-average returns if they succeed in their
differentiation strategy.
Which of the following companies most closely follows an overall cost leadership strategy
_____? - CORRECT ANSWER - Walmart
The Age Discrimination in Employment Act of 1967 prohibits discrimination against employees
over the age of _____. - CORRECT ANSWER - 40
There are two agencies that are responsible for the enforcement of equal employment
opportunity (EEO) laws and executive orders, the Equal Employment Opportunity Commission
(EEOC) and the Office of Federal Contract Compliance Programs (OFCCP). While it is illegal to
force quotas in hiring, if there is a protected group that potentially may have been underutilized
in a company's workforce, the OFCCP can require "action steps" to encourage a more active role
in recruiting the potentially underutilized protected group. Which of these is NOT a potential
action step? - CORRECT ANSWER - Demanding that the company hire six asian women
to balance out the office representation
CORRECT Answers
is a company's ability to maintain and gain market share, related to its effectiveness, which is
determined by whether the company satisfies the needs of the stakeholders - CORRECT
ANSWER - competitiveness
refers to the policies, practices, and systems that influence employees' behavior, attitudes, and
performance. - CORRECT ANSWER - human resource management
Giving employees online access to information about HR issues such as training, benefits, and
compensation is called - CORRECT ANSWER - self-service
McRonald's burger joint has decided that they spend too much time and effort on recruiting and
hiring. Therefore, they decide to hire another company to do this for them. This is an example of
- CORRECT ANSWER - outsourcing
On Canvas and in the class lecture video, there is a video about a company using evidence-based
HR by going into a bank and analyzing their workforce and the effectiveness of various
employees. In this particular example, they studied many data points and found that part-time
employees with more years of experience were actually more effective workers for this bank.
This is an example of a company performing _____________ for this bank. - CORRECT
ANSWER - workforce analytics
Which of the following is NOT a primary stakeholder when looking at the sustainability
challenge facing an organization? - CORRECT ANSWER - politicians
An engaged employee is one that is passionate about their work, is committed to the company
and its mission, and is motivated to work hard to contribute to the company. Understandably,
management would like to have as many engaged employees as possible. Unfortunately, there is
an "engagement gap" where only ____________ of workers are actively engaged in their work. -
CORRECT ANSWER - 30%
,Which of the following statements is true about the composition of the U.S. labor force in the
next decade? - CORRECT ANSWER - The median age of the labor force will increase to
the highest number ever.
Which of the following, if true, would support reshoring as a strategy for a U.S. firm? -
CORRECT ANSWER - Rising labor costs overseas
A company in which employees feel like management is trying to cut corners on the quality of
their products - at the expense of customer safety - and they are not being upfront about the new
risks in their products, is likely low on _______________ - CORRECT ANSWER -
ethical culture
During _____, the strategic planning groups decide on a strategic direction by defining the
company's mission and goals, its external opportunities and threats, and its internal strengths and
weaknesses. - CORRECT ANSWER - strategy formulation
____ costs are incurred regardless of the number of units produced. - CORRECT
ANSWER - fixed
Which of the following statements is true of variable costs incurred by firms? - CORRECT
ANSWER - These costs change directly with the units produced.
___ _ is what is left after a firm pays its variable costs and fixed costs. - CORRECT
ANSWER - profit
Jupiter Inc. is a large manufacturer of footwear and accessories. It has always lagged behind its
closest competitor, Polygon Inc. It plans to overtake Polygon by leveraging its strength in
women's footwear and entering markets in the Southwest that it had traditionally ignored. Jupiter
Inc. is in the _____ phase. - CORRECT ANSWER - strategy implementation
, An organization's _____ is what it hopes to achieve in the medium- to long-term future, and it
reflects how an organization's reason for being is operationalized. - CORRECT
ANSWER - goal
The Cincinnati Reds perform a SWOT analysis for the upcoming season. They see that the St.
Louis Cardinals' HR department has already signed new players. This is an example of which
component in the SWOT analysis? - CORRECT ANSWER - threats
Pay is very important for many reasons in an organization. With high pay, a company can attract
high-quality employees that can produce high-quality products and provide high-quality services.
Knowing this, what is the most likely reason that a business, that wants to make high-quality
products, doesn't simply pay their employees more than their competitors? - CORRECT
ANSWER - High pay results in high payroll cost, leaving organizations struggling to make
a profit
Which of the following is true regarding the differentiation strategy? - CORRECT
ANSWER - Companies achieve above-average returns if they succeed in their
differentiation strategy.
Which of the following companies most closely follows an overall cost leadership strategy
_____? - CORRECT ANSWER - Walmart
The Age Discrimination in Employment Act of 1967 prohibits discrimination against employees
over the age of _____. - CORRECT ANSWER - 40
There are two agencies that are responsible for the enforcement of equal employment
opportunity (EEO) laws and executive orders, the Equal Employment Opportunity Commission
(EEOC) and the Office of Federal Contract Compliance Programs (OFCCP). While it is illegal to
force quotas in hiring, if there is a protected group that potentially may have been underutilized
in a company's workforce, the OFCCP can require "action steps" to encourage a more active role
in recruiting the potentially underutilized protected group. Which of these is NOT a potential
action step? - CORRECT ANSWER - Demanding that the company hire six asian women
to balance out the office representation
