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? - Correct Answer-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? - Correct Answer-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? - Correct Answer-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? - Correct Answer-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? - Correct Answer-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? - Correct Answer-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? - Correct Answer-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 - Correct Answer-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 - Correct Answer-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 - Correct Answer-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 - Correct Answer-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