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Quiz Session - Attempts With Random Questions

SHRM-CP Exam Questions

Page 10 of 50

181.

When a company's corporate headquarters has little influence over the strategies or goals of remote subsidiary units or sites, they are practicing which strategy?

  • Multidomestic strategy

  • Global strategy

  • Transnational strategy

  • International strategy

Correct answer: Multidomestic strategy

A multidomestic strategy is a global strategy where headquarters has little to no influence over remote subsidiary units. These units are tasked with setting their own goals and strategies. 

182.

Which of the following is not an approach commonly used in Workforce Planning?

  • Cost-benefit analysis of marketing strategies

  • Supply analysis

  • Trend and ratio analysis projection

  • Turnover analysis

Correct Answer: Cost-benefit analysis of marketing strategies

Cost-benefit analysis of marketing strategies, which evaluates the financial implications of various marketing initiatives, is not part of Workforce Planning.

Supply analysis in Workforce Planning is about understanding workforce and supply chain options, plant and warehouse locations, and sourcing alternatives. Trend and ratio analysis projection is used to forecast future workforce needs based on existing data and trends. Turnover analysis involves assessing employee attrition rates to help in planning future hiring and retention strategies.

183.

Rashid notices that candidates who graduated from a particular university seem to have a higher interview success rate at his company. He recognizes that a large number of the company's hiring managers are alumni of this university and may be unintentionally favoring these candidates. What should Rashid be concerned about in this hiring situation?

  • Bias in the hiring process

  • Insufficient candidate diversity

  • Ineffective interview techniques

  • Lack of qualified candidates

Correct answer: Bias in the hiring process

Rashid's observation suggests there may be an unconscious preference among hiring managers for candidates from their alma mater, indicating a potential bias that could affect the fairness and diversity of the hiring process. 

While diversity is a related concern, the direct issue is the potential for bias in decision-making based on the commonality between hiring managers and candidates from a specific university. Effective interview techniques are a separate concern and do not directly address the potential bias linked to the preferred treatment of certain candidates due to shared university ties. The scenario does not indicate a lack of qualified candidates but rather a concern that the hiring managers' shared background with certain candidates might lead to biased hiring decisions.

184.

Why do HR professionals, particularly at management levels, need to understand Budgeting and Financial Analysis?

  • To participate in creating budgets for their department and other organizational areas with compensation and benefits expenses

  • To develop financial forecasts

  • To analyze historical financial data

  • To manage investment portfolios

Correct answer: To participate in creating budgets for their department and other organizational areas with compensation and benefits expenses

HR professionals at management levels are required to understand Budgeting and Financial Analysis to actively participate in creating budgets not only for their department but also for other areas within the organization that have compensation and benefits expenses. This understanding ensures that HR practices are financially sustainable and aligned with the organization's overall financial goals. 

While financial forecasting is related to financial analysis, the primary emphasis for HR professionals is on budget creation and alignment. Analyzing historical financial data is a component of financial analysis, but an HR professional's primary role is budget creation and alignment with current and future needs. Managing investment portfolios is a financial task unrelated to HR's role in budgeting and financial analysis.

185.

During labor negotiations, the union informs its members that they have been unable to come to an agreement through collective bargaining. All of the members decide to call out sick for a couple of days. When the members return to work, the employer slows down production and sends the employees home after 4 hours of work instead of their regular eight-hour shifts. 

These actions taken by the employer and union members are considered:

  • Industrial actions

  • Unfair labor practices

  • Employment actions

  • Negotiation stoppages

Correct answer: Industrial actions

Industrial actions are actions initiated by the employer or employee that are likely to be caused by a breakdown in the negotiation process. These include work stoppages, slowdowns, and lockouts.

Unfair labor practices violate labor laws and oppress workers' rights to organize or unionize. Employment actions are taken by an employer and affect an employee's work-life, including actions such as hiring, terminating, promoting, and disciplining. Negotiation stoppages refer to halts in the process rather than the actions taken during the stops. 

186.

Workers' compensation covers all the costs of which of the following wage replacement benefits?

  • Income, Medical, Death, and Burial benefits

  • Income, Social Security, Medical and Death benefits

  • Income, Taxes, Injury and Burial benefits

  • Injury, Income, Death and Burial benefits

Correct answer: Income, Medical, Death, and Burial benefits

Workers' compensation benefits cover income, medical, death, and burial benefits for all work-related injuries, illnesses, or deaths.

187.

When making business decisions, Zappatos Shoes, Inc. considers first and foremost how the decisions will affect the happiness of its employees. They provide frequent offsite team events, allow for flexible work arrangements, and unlimited family leave. 

This is considered what kind of corporate culture?

  • Team-first corporate culture

  • Elite corporate culture

  • Horizontal corporate culture

  • Conventional corporate culture

Correct answer: Team-first corporate culture

A team-first corporate culture primarily focuses on the happiness of its employees rather than skills or experience. 

188.

Which of the following is not one of the ten key elements typically included in an HR business case?

  • Evaluation of employee preferences for HR programs 

  • Alignment with organizational strategy

  • Analysis of HR department's budget

  • Comparison of HR metrics with industry benchmarks

Correct answer: Evaluation of employee preferences for HR programs

While employee preferences can influence HR decisions, they are not one of the standard ten key elements of an HR business case.

The other options align with the essential components of an HR business case. An HR business case should clearly demonstrate how proposed HR initiatives align with the overall organizational strategy. Understanding the budget implications is crucial to justify the financial feasibility of HR initiatives within the business case. Comparing HR metrics with industry benchmarks helps gauge the effectiveness of HR strategies and initiatives against industry standards.

189.

What type of forecast in demand analysis relies on subjective inputs and is often used when a decision must be made quickly based on limited data?

  • Judgmental forecast

  • Statistical forecast

  • Financial forecast

  • Market analysis

Correct Answer: Judgmental forecast

A judgmental forecast is based on subjective inputs and is useful when quick decisions must be made quickly or when data is outdated or not readily available. 

Statistical forecasts rely on mathematical formulas and historical data, and they are generally not ideal for quick decisions based on limited data. Financial forecasts focus on budgeting and are not the type of forecast used for quick decision-making in demand analysis. Market analysis is not a type of forecast but a method for studying market trends, and it's not typically used for quick decision-making based on limited data.

190.

Which is not considered a best practice for conducting a successful performance evaluation meeting?

  • Discussing the performance of other employees

  • Having a clear agenda

  • Reviewing results against objectives

  • Agreeing on actions going forward

Correct Answer: Discussing the performance of other employees

Discussing the performance of other employees is not considered a best practice for a successful performance evaluation meeting. The focus should be solely on the individual being evaluated to ensure a constructive and focused discussion. 

Having a clear agenda sets the tone for the meeting and ensures that all important topics are covered, making it a best practice for successful performance evaluation meetings. Reviewing how an employee's actual performance aligns with set objectives is a fundamental part of any performance evaluation meeting and considered a best practice. Establishing a clear action plan for future performance is essential to ensuring continuous improvement and is therefore considered a best practice for a successful performance evaluation meeting.

191.

You are an HR manager of two Colorado-based sites. In June, you discovered a law that requires Colorado-based companies to provide one hour of paid sick leave for every 32 hours an employee works. You also discover that you are required to post the salary range on all job postings. The requirements of these two laws were effective the previous January. Last December, you were tasked by the legal department to research any new employment laws going into effect, but you missed these two.

What should you do?

  • Contact the legal team, acknowledge your mistake, and discuss how to adhere to these two laws.

  • Start paying for sick time and posting salary ranges immediately.

  • Sign up for employment law update seminars to avoid further similar instances.

  • Discuss the situations with the employees at both sites and assure them that everything will be resolved.

Correct answer: Contact the legal team, acknowledge your mistake, and discuss how to adhere to these two laws.

If an HR professional has made an error, he or she should always admit to the mistake and extend an offer to correct it. Building confidence and trust in the HR department depends on people admitting and correcting mistakes as soon as they happen. The other options are likely solutions that can be implemented to comply with the state law, but the legal (or the equivalent people) department should be involved to address any unintended consequences, fines for non-compliance, and further communication to the employees who may be involved.

192.

Anyone with custody of personal health records must send a notification to affected individuals if their personal health records are disclosed, particularly in the case of a data breach. Which law governs this action?

  • The Health Information Technology for Economic and Clinical Health Act (2009)

  • The Health Insurance Portability and Accountability Act (1996)

  • The Health Insurance Protection and Access Act (1996)

  • The Anti-Information Technology and Clinical Health Act (2009)

Correct answer: The Health Information Technology for Economic and Clinical Health Act (2009)

The Health Information Technology for Economic and Clinical Health Act (HITECH) (2009) establishes the right of patients to be informed if their medical information was disclosed without their permission, particularly in the case of a data breach where their information was potentially accessed and/or stolen. This law was designed to strengthen protections for patient information, and to address the use of information technology to house sensitive medical information. 

The Health Insurance Portability and Accountability Act of 1996 established standards of privacy for individual's health information, and provided the foundational framework for health information security. 

The remaining answers are fabricated laws.

193.

A company with a global supply chain has made the decision to form general equity partnerships with significant foreign suppliers. The company plans to hire and establish joint management teams at each plant. Which should an HR team first consider in this partnership?

  • Conduct a close analysis of key talent and their competencies within the management teams.

  • Adapt HR and company policies to align with local laws.

  • Ensure training is conducted for those making decisions in non-centralized divisions.

  • Develop global compensation packages and payroll functions.

Correct answer: Conduct a close analysis of key talents and their competencies within the management teams.

All HR functions, including compliance, are needed in order for a company to lawfully operate in other global regions. But ensuring that you have competent members of management will strategically assist the organization with its goals. Managing talent is a strategic contribution to the company's interest in maintaining a work force needed to produce the end results needed for financial success.

194.

When implementing and managing an HR information system, it is important to protect employee data, including:

  • Personally identifiable information

  • Safety performance records

  • Investor and company earnings data

  • The company's organization charts and reporting structure

Correct answer: Personally identifiable information

Personally identifiable information (PII) includes any personnel data including payroll data, Social Security numbers, medical information, and other highly sensitive information.

195.

What is HR's primary role in defining and creating value within an organization?

  • Knowing the workforce, their core competencies, sourcing talent, and understanding the legal environment

  • Focusing on employee benefits and compensation

  • Executing top-down directives without considering workforce needs

  • Ignoring organizational goals and focusing only on employee satisfaction

Correct Answer: Knowing the workforce, their core competencies, sourcing talent, and understanding the legal environment

HR plays a pivotal role in defining and creating value in an organization by having a deep understanding of the workforce, their skills, and core competencies. This understanding is crucial for talent sourcing and managing the workforce effectively. Additionally, HR needs to be well-versed in the legal environment to ensure compliance, thereby adding another layer of value to the organization. 

While employee benefits and compensation are important, HR's role in creating value is more comprehensive and includes understanding the workforce, talent sourcing, and legal compliance. HR needs to balance executing organizational strategy with understanding and meeting the needs of the workforce to truly create value. Employee satisfaction is important but not the sole focus for HR. To create value, HR should align its efforts with organizational goals while considering workforce needs and legal factors.

196.

Mandy supports the HR function of a unionized facility in Hollister, CA. The plant manager would like to provide different annual increases, depending on the performance of each individual employee. In reviewing the collective bargaining agreement, Mandy sees that the company and the union have agreed to pay increases based on an employee's years of service. 

What is this type of increase commonly referred to as?

  • Seniority pay increase

  • Time-based increase

  • Years of service recognition

  • Union-based increase

Correct answer: Seniority pay increase

These types of increases are solely based on seniority within the company or seniority within a certain position, regardless of performance. This type of pay increase is common in facilities that are represented by a union.

197.

A financial services company has made the decision to grow into new areas over the next five years and is looking to purchase a small chain of offices in the Pacific Northwest. The parent business will change its name and extend its rules to these new locations. You have been called upon as the HR director to do due diligence in the investigation phase prior to finalizing the acquisition. You find out several things during your investigation.

Which should take the highest priority?

  • The company has some current EEOC claims over the last 12 months.

  • The new offices are part of a union agreement.

  • Sick leave and paid-time off policies are less generous than those of the parent company.

  • The salary and pay grades are higher than those in the parent company.

Correct answer: The company has some current EEOC claims over the last 12 months.

An HR professional's role in mergers and acquisitions is to ensure management of both organizations considers all the implications of a proposed acquisition before agreeing to one. Since the chain of offices has had "some" current EEOC claims, which usually deal with discrimination, harassment, and retaliation, this may be an indicator that the current company structure or culture is not conducive to a good (and compliant) work environment. This should be considered before any decision is made as the parent company will have to handle these problematic claims. The other topics are common considerations in acquisitions and are usually more manageable than EEOC complaints.

198.

Modular, Inc. has a staffing strategy to hire 40% more employees over the next 12 months. The talent manager, Tracy, consults with the company's HR manager, recruiters, operations managers, and the payroll department.

The people or departments that Tracy consults with are considered:

  • Stakeholders

  • Shareholders

  • Onboarding team

  • Talent committee

Correct answer: Stakeholders

Stakeholders are individuals or groups that will be affected or that have a "stake" in the outcome of the staffing strategy. The departments named will have a direct role or be impacted by the strategy to hire 40% more employees over the next 12 months.

199.

David, a production worker for over seven years, has consistently received high marks in his performance reviews. His boss sees him as a valuable trainer to new employees and one that carries the entire production team. One day, David reported to his manager that he needed to leave early but failed to clock out when he did. David returns the next day and turns in a time clock correction form to his lead, stating that he forgot to clock out at the end of his shift. David did not report to the lead that he had left earlier in the day rather than work an entire shift. When the lead asks David whether he worked his entire shift, David responds, "Yes." 

What, if any, are the ethical issues for you as the HR manager of the site?

  • David's deliberate cover-up or deception that led to being paid more hours is a serious ethical issue.

  • Due to David's benefit to the company, he should be provided notice and instructed never to do it again.

  • There is no ethical issue since David only violated company policy.

  • The HR manager should get the HR director involved due to the severity of the issue.

Correct answer: David's deliberate cover-up or deception that led to being paid more hours is a serious ethical issue.

HR professionals must ensure accountability amongst all levels of the organization and that employees are treated equally for similar conduct. A review of a company policy related to falsifying time cards (or any company record) should be undertaken. To avoid any ethical issues, HR should assure that treatment is the same for David as it has been for others, regardless of David's excellent performance.

200.

Dwight is responsible for hiring an assistant regional manager for a small office supply company. Dwight would like to conduct a stress interview to identify the right candidate. As the onsite HR representative, you advise Dwight to use another approach because stress interviews are known for:

  • Being used in high-stress situations and occupations, not the role for which Dwight is hiring

  • Being underutilized and require interviewer training more than any other method

  • Establishing dominance in a supervisor and subordinate relationship

  • Being predictable and allowing candidates to make up the answers the interviewers want to hear

Correct answer: Being used in high-stress situations and occupations, not the role for which Dwight is hiring

Stress Interviews are rarely used in regular, professional positions outside of occupations known for high stress, such as law enforcement, air traffic control, military, and other occupations.

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