EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
SHRM Exam Study Guide with Complete
Solutions
Adverse Impact - Answer✔✔-Occurs when the selection rate for a protected class is less than
80% of the rate for the class with the highest selection rate; also known as disparate impact.
Eg: High% / Low% X 100 = Adverse Impact Rate
Affirmative Action Plan (AAP) - Answer✔✔-A plan that establishes guidelines for recruiting,
hiring, and promoting women, qualified minorities, persons with disabilities, and covered
veterans to eliminate the present effects of past employment discrimination.
Office of Federal Contract Compliance Programs (OFCCP) - Answer✔✔-Ensures that employers
doing business with the federal government comply with the nondiscrimination and affirmative
action laws.
Worker Adjustment and Retraining Notification (WARN) Act - Answer✔✔-A federal law enacted
in 1989 to protect employees by requiring most employers with full time 100 or more
employees to provide at least 60-day written notification of facility closings and mass layoffs of
employees.
Extinction - Answer✔✔-the diminishing of a conditioned response; occurs in classical
conditioning when an unconditioned stimulus (US) does not follow a conditioned stimulus (CS);
occurs in operant conditioning when a response is no longer reinforced.
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,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
Ishikawa Diagrams - Answer✔✔-Also called fishbone diagrams, herringbone diagrams, cause-
and-effect diagrams, or Fishikawa, are causal diagrams that show the causes of a specific event
The Bell Curve - Answer✔✔-on a graph of the frequency of some variable, a curve that first rises
and then falls and thus forms a symmetric bell-shaped curve
Pareto Chart - Answer✔✔-A bar graph for qualitative data, with the bars arranged in descending
order according to frequencies
Green-Circled Employees - Answer✔✔-incumbent who is paid below the range set for a job
Red-Circled Employees - Answer✔✔-An incumbent (current jobholder) who is paid above the
range set for the job.
Pay Compression - Answer✔✔-Occurs when there is only a small difference in pay between
employees regardless of their skills, experience, or seniority; also known as salary compression.
Severance Packages - Answer✔✔-Packages are most typically offered for employees who are
laid off or retire.
Unemployment Insurance - Answer✔✔-A joint state-federal program under which state-
administered funds pay a weekly benefit for a limited time to eligible workers when they are
involuntarily unemployed.
Outplacement - Answer✔✔-Systematic process by which a laid-off or terminated employee is
counseled in the techniques of career self-appraisal and in securing a new job that is
appropriate to his or her talents and needs.
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,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
Contingent Workforce - Answer✔✔-Those who work in positions that are temporary or
freelance or who work as independent contractors
Trade Adjustment Assistance Program (TAA) - Answer✔✔-Federal assistance program for
workers who become unemployed as a result of increased imports of foreign goods.
National Institute for Occupational Safety and Health (NIOSH) - Answer✔✔-Federal agency
responsible for conducting research and making recommendations for the prevention of work-
related injury and illness
Golden Life Jacket - Answer✔✔-Offered to Executives of a company being acquired to ensure
they remain with the new firm.
Golden Handshake - Answer✔✔-large sum of money paid as compensation to someone who is
obliged to leave a job or retire early
Golden Parachute - Answer✔✔-a large payment or other financial compensation guaranteed to
a company executive should the executive be dismissed as a result of a merger or takeover.
Golden Handcuffs - Answer✔✔-used to refer to benefits, typically deferred payments, provided
by an employer to discourage an employee from taking employment elsewhere.
Zipper Clause - Answer✔✔-Also known as totality of agreement. Agreement between the
parties to a collective-bargaining agreement (CBA) that the contract is the entire agreement
between them and that anything not in it is not part of the agreement. The purpose of this
clause is to prevent reopening of negotiations during the term of the contract.
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, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
Line of Sight - Answer✔✔-Concept that states that employees must be able to influence the
attainment of a goal and see a direct result of their efforts in order for incentive pay plans to be
effective.
Total Reward - Answer✔✔-encompass not only compensation and benefits, but also personal
and professional growth opportunities and a motivating work environment that includes
recognition, job design, and work-life balance
Affirmative Action - Answer✔✔-A policy in educational admissions or job hiring that gives
special attention or compensatory treatment to traditionally disadvantaged groups in an effort
to overcome present effects of past discrimination.
Point Method - Answer✔✔-A method of job evaluation that places weight (points) on each of
the compensable factors in a job whereby the total points associated with a job establish its
relative worth and jobs that fall within a specific range of points fall into a pay grade with an
associated wage
Classification Method - Answer✔✔-Method of job evaluation that identifies benchmark
positions, places them in salary grades, and then matches positions with similar knowledge,
skills, and abilities (KSAs) and slots them into the same grade.
Ranking Method - Answer✔✔-In the performance-appraisal process, comparison appraisal
method in which a manager lists employees from the highest to the lowest performer. In the
job-evaluation process, comparison of the value of jobs in an organization to each other.
Page 4/36
SHRM Exam Study Guide with Complete
Solutions
Adverse Impact - Answer✔✔-Occurs when the selection rate for a protected class is less than
80% of the rate for the class with the highest selection rate; also known as disparate impact.
Eg: High% / Low% X 100 = Adverse Impact Rate
Affirmative Action Plan (AAP) - Answer✔✔-A plan that establishes guidelines for recruiting,
hiring, and promoting women, qualified minorities, persons with disabilities, and covered
veterans to eliminate the present effects of past employment discrimination.
Office of Federal Contract Compliance Programs (OFCCP) - Answer✔✔-Ensures that employers
doing business with the federal government comply with the nondiscrimination and affirmative
action laws.
Worker Adjustment and Retraining Notification (WARN) Act - Answer✔✔-A federal law enacted
in 1989 to protect employees by requiring most employers with full time 100 or more
employees to provide at least 60-day written notification of facility closings and mass layoffs of
employees.
Extinction - Answer✔✔-the diminishing of a conditioned response; occurs in classical
conditioning when an unconditioned stimulus (US) does not follow a conditioned stimulus (CS);
occurs in operant conditioning when a response is no longer reinforced.
Page 1/36
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
Ishikawa Diagrams - Answer✔✔-Also called fishbone diagrams, herringbone diagrams, cause-
and-effect diagrams, or Fishikawa, are causal diagrams that show the causes of a specific event
The Bell Curve - Answer✔✔-on a graph of the frequency of some variable, a curve that first rises
and then falls and thus forms a symmetric bell-shaped curve
Pareto Chart - Answer✔✔-A bar graph for qualitative data, with the bars arranged in descending
order according to frequencies
Green-Circled Employees - Answer✔✔-incumbent who is paid below the range set for a job
Red-Circled Employees - Answer✔✔-An incumbent (current jobholder) who is paid above the
range set for the job.
Pay Compression - Answer✔✔-Occurs when there is only a small difference in pay between
employees regardless of their skills, experience, or seniority; also known as salary compression.
Severance Packages - Answer✔✔-Packages are most typically offered for employees who are
laid off or retire.
Unemployment Insurance - Answer✔✔-A joint state-federal program under which state-
administered funds pay a weekly benefit for a limited time to eligible workers when they are
involuntarily unemployed.
Outplacement - Answer✔✔-Systematic process by which a laid-off or terminated employee is
counseled in the techniques of career self-appraisal and in securing a new job that is
appropriate to his or her talents and needs.
Page 2/36
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
Contingent Workforce - Answer✔✔-Those who work in positions that are temporary or
freelance or who work as independent contractors
Trade Adjustment Assistance Program (TAA) - Answer✔✔-Federal assistance program for
workers who become unemployed as a result of increased imports of foreign goods.
National Institute for Occupational Safety and Health (NIOSH) - Answer✔✔-Federal agency
responsible for conducting research and making recommendations for the prevention of work-
related injury and illness
Golden Life Jacket - Answer✔✔-Offered to Executives of a company being acquired to ensure
they remain with the new firm.
Golden Handshake - Answer✔✔-large sum of money paid as compensation to someone who is
obliged to leave a job or retire early
Golden Parachute - Answer✔✔-a large payment or other financial compensation guaranteed to
a company executive should the executive be dismissed as a result of a merger or takeover.
Golden Handcuffs - Answer✔✔-used to refer to benefits, typically deferred payments, provided
by an employer to discourage an employee from taking employment elsewhere.
Zipper Clause - Answer✔✔-Also known as totality of agreement. Agreement between the
parties to a collective-bargaining agreement (CBA) that the contract is the entire agreement
between them and that anything not in it is not part of the agreement. The purpose of this
clause is to prevent reopening of negotiations during the term of the contract.
Page 3/36
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
Line of Sight - Answer✔✔-Concept that states that employees must be able to influence the
attainment of a goal and see a direct result of their efforts in order for incentive pay plans to be
effective.
Total Reward - Answer✔✔-encompass not only compensation and benefits, but also personal
and professional growth opportunities and a motivating work environment that includes
recognition, job design, and work-life balance
Affirmative Action - Answer✔✔-A policy in educational admissions or job hiring that gives
special attention or compensatory treatment to traditionally disadvantaged groups in an effort
to overcome present effects of past discrimination.
Point Method - Answer✔✔-A method of job evaluation that places weight (points) on each of
the compensable factors in a job whereby the total points associated with a job establish its
relative worth and jobs that fall within a specific range of points fall into a pay grade with an
associated wage
Classification Method - Answer✔✔-Method of job evaluation that identifies benchmark
positions, places them in salary grades, and then matches positions with similar knowledge,
skills, and abilities (KSAs) and slots them into the same grade.
Ranking Method - Answer✔✔-In the performance-appraisal process, comparison appraisal
method in which a manager lists employees from the highest to the lowest performer. In the
job-evaluation process, comparison of the value of jobs in an organization to each other.
Page 4/36
