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Quiz Session - Attempts With Random Questions

SHRM-CP Exam Questions

Page 6 of 50

101.

Betsy gave Manny, one of her top performers, a low-performance rating for the year. When you ask her the reason for the rating, she states that Manny did not hit his sales numbers for the last month and missed a weekend assignment. Even though Manny hit his sales quotas and completed his assignments for the majority of the year, Betsy feels like he should receive a low rating. 

What kind of error is Betsy making in her performance appraisal?

  • Recency error

  • Primacy error

  • Strictness error

  • Horn error

Correct answer: Recency error

Recency error happens when the performance evaluator focuses on an employee's recent performance without taking into consideration the entire performance evaluation period.

102.

Why is it essential for HR professionals to have a solid understanding of an organization's business and operational functions?

  • To align HR strategies with business objectives and contribute to overall success

  • To make decisions without considering the broader business context

  • To focus solely on HR-related tasks and initiatives

  • To isolate HR functions from the rest of the organization

Correct answer: To align HR strategies with business objectives and contribute to overall success

Understanding business and operational functions enables HR professionals to align HR strategies, practices, and initiatives with the organization's broader goals, ultimately contributing to its success.

HR professionals need to understand the business context to contribute to organizational success beyond HR tasks effectively. Decisions made without considering the broader business context can lead to disjointed strategies and missed opportunities. Isolating HR functions inhibits collaboration and hampers the organization's ability to leverage HR's potential strategic impact.

103.

What is the ultimate goal of aligning organizational culture with strategy?

  • To foster behaviors and values that support the achievement of organizational goals

  • To reduce the need for managerial oversight

  • To increase individual creativity independent of organizational objectives

  • To make the organization more attractive to investors

Correct Answer: To foster behaviors and values that support the achievement of organizational goals

Aligning organizational culture with strategy is critical for fostering behaviors and values that support the achievement of organizational goals. When culture and strategy are in sync, it makes it easier for employees to understand what they need to do to contribute to organizational success.

While a well-aligned culture and strategy may result in more efficient and focused work, reducing the need for managerial oversight is not the ultimate goal of aligning organizational culture with strategy. The primary aim is to support the achievement of organizational goals. Although a strong organizational culture can encourage creativity, the ultimate goal of aligning culture with strategy is not to promote individual creativity, which is separate from organizational objectives. Instead, it is to direct creativity and innovation toward the achievement of the organizational goals. While a strong organizational culture aligned with strategic goals may indirectly attract investors, this is not the primary or ultimate goal for alignment. The core purpose is to enable the organization to effectively achieve its objectives.

104.

When a group of people works together to examine problems or circumstances, explore and assess various possibilities, and choose from those options, the following is considered:

  • Group decision-making

  • Stakeholder strategy

  • Consensus-building

  • Strategic planning

Correct answer: Group decision-making

Group decision-making is a type of participatory process in which multiple individuals acting collectively analyze problems, consider alternative solutions, and select options from those alternative solutions.

105.

Which three factors should be considered when evaluating capital expenditure in the context of HR, such as implementing a new ATS or HRIS tool?

  • Accounting Rate of Return, Payback, and Discounted Cashflow Techniques

  • Employee Satisfaction, Time-to-Hire, Cost-per-Hire

  • Industry Benchmarking, Job Satisfaction, Employee Turnover

  • Revenue Growth, Market Share, Customer Retention

Correct Answer: Accounting Rate of Return, Payback, and Discounted Cashflow Techniques

In HR, evaluating capital expenditure for projects like implementing a new ATS or HRIS tool is critical. Accounting Rate of Return measures the profitability of the investment. Payback focuses on the timeline to recover the investment, which could relate to savings in time spent on manual tasks. Discounted Cashflow Techniques analyze the impact on cash flow, such as reduced HR spending that can be allocated elsewhere in the organization.

While Employee Satisfaction, Time-to-Hire, and Cost-per-Hire are important metrics in HR, they are not the key factors to consider when evaluating capital expenditure for a significant investment like a new software system. Industry Benchmarking, Job Satisfaction, and Employee Turnover are important for general HR performance metrics but are not directly related to evaluating capital expenditure. Factors such as Revenue Growth, Market Share, and Customer Retention are more aligned with business performance and not specific to evaluating capital expenditure within the HR department.

106.

Which of the following skills is not considered essential for HR professionals to effectively manage a global workplace?

  • Managing company social events

  • Developing a global organizational culture

  • Developing meaningful metrics

  • Adapting HR technology

Correct Answer: Managing company social events

Managing company social events is not considered an essential skill for effectively managing a global workplace. Other skills like developing a global organizational culture, metrics, and adapting HR technology are more critical. 

Developing a global organizational culture is considered an essential skill for HR professionals in managing a global workforce. Developing meaningful metrics is considered a necessary skill for HR professionals to evaluate and improve their global initiatives effectively. Adapting HR technology is a vital skill for HR professionals to manage a global workforce, as it allows for efficient data management and streamlined operations.

107.

Carlos, the customer service director, notices a drop in team morale after a challenging quarter. He organizes a meeting to openly discuss the team's struggles, offering support and constructive feedback. In what way is Carlos displaying emotional intelligence as a transformational leader?

  • By recognizing the emotional state of his team and addressing it with support and constructive dialogue

  • By instructing the team to focus on improving next quarter's results without addressing their current concerns

  • By delegating the task of team morale improvement to his assistant manager

  • By only discussing positive aspects of the past quarter to boost morale superficially

Correct answer: By recognizing the emotional state of his team and addressing it with support and constructive dialogue

Carlos showcases emotional intelligence by being attentive to his team's morale, providing a space for open discussion, and offering support, aligning with transformational leadership that cares for the team's emotional well-being. 

Neglecting the team's current emotional state and pushing for better results demonstrates a lack of emotional intelligence, which does not reflect Carlos' transformational leadership style. Delegating the concern of team morale to someone else can imply avoidance of direct emotional engagement with the team, unlike Carlos' direct approach that demonstrates his emotional intelligence as a leader. Discussing only the positives without acknowledging struggles can be seen as ignoring the real issues, which does not match Carlos' emotionally intelligent approach in addressing challenges head-on.

108.

Which of the following is not considered one of the five common measurement areas used for identifying leading indicators of HR performance?

  • Employee Tenure

  • Engagement

  • Retention

  • Recruiting

Correct answer: Employee Tenure

Employee Tenure, while important, is not one of the five common measurement areas (Productivity, Engagement, Recruiting, Retention, and Budget) used for identifying leading indicators of HR performance. These specific areas listed in the SHRM-CP/SHRM-SCP Certification All-In-One Exam Guide are focused on key HR-related metrics that contribute to organizational success. 

Engagement is one of the five common measurement areas used for identifying leading indicators of HR performance. It relates to employees' commitment, satisfaction, and overall well-being, which can impact organizational success. Retention is another one of the five common measurement areas for identifying leading indicators of HR performance. It involves assessing the organization's ability to retain valuable employees over time. Recruiting is another one with regard to tracking recruitment metrics to ensure a steady flow of qualified candidates.

109.

Managers are expressing frustration that the market is very competitive and they are struggling to hire hourly workers. As the HR manager, you are determined to make sure policies and procedures enable rapid response to these demands.

What do you do to support these managers and show them that you understand the industry?

  • Eliminate the requirement for candidates to have a high school diploma.

  • Conduct all the candidate interviews to free up the manager's time.

  • Partner with the marketing team to post creative and interesting job ads.

  • Provide a retention bonus to current employees.

Correct answer: Eliminate the requirement for candidates to have a high school diploma.

This strategy is the most effective since it will be a rapid response to help fill positions for the managers without introducing undue risk to the company. Since the labor market is tight in this scenario, the proper response is to loosen the restrictions to attract candidates, while balancing the need to continue to hire capable talent.

110.

Which error results from a rater focusing on an employee's strengths or weaknesses in one area and letting that impression influence ratings in other areas?

  • Halo

  • Contrast

  • Leniency

  • Bias

Correct Answer: Halo

The halo error occurs when a positive impression in one area influences a manager's evaluation in other areas. 

Contrast errors happen when a rater evaluates an employee not based on their individual merit but relative to their peers, skewing the evaluation. The leniency error is when a manager consistently rates employees too favorably, affecting the objectivity of the evaluation. The bias error is when personal prejudices or stereotypes influence the rater's judgment, making the evaluation less objective and potentially unfair.

111.

Where has the largest impact on the human resource profession come from?

  • State and federal legislative bodies

  • Labor unions 

  • Talent and recruitment channels

  • Diversity and inclusion 

Correct answer: State and federal legislative bodies 

In the last century, the biggest impact on what the HR profession is tasked with has come from state and federal legislative bodies that continually change and introduce employee laws to protect workers. This was once a primary function of labor unions, but in a global market, this has become mainstream.

112.

What is the primary purpose of a balanced scorecard in an organization?

  • A balanced scorecard is used to identify and improve internal functions and outcomes

  • A balanced scorecard is primarily used for external reporting to stakeholders

  • A balanced scorecard focuses solely on financial metrics

  • A balanced scorecard is used exclusively by the HR department for talent management

Correct Answer: A balanced scorecard is used to identify and improve internal functions and outcomes

The balanced scorecard is a performance measurement framework that provides a balanced view of an organization's performance by considering various metrics related to internal functions and outcomes. This helps in identifying areas for improvement and aligning activities with organizational goals.

While some organizations may choose to share balanced scorecard results with external stakeholders, the primary purpose is internal: to identify and improve various functions and outcomes within the organization. The balanced scorecard is not limited to financial metrics; it typically includes a variety of indicators such as customer metrics, internal processes, and learning and growth metrics. The balanced scorecard is a tool used organization-wide to measure and improve performance in various areas, not just by the HR department for talent management.

113.

Which of the following is not an effective role leaders play within their groups?

  • Tell others how to model desired values in all of their actions

  • Challenge the status quo and use the company's talent to solve problems

  • Inspire and influence people toward common goals

  • Foster growth and develop others to reach their full potential

Correct answer: Tell others how to model desired values in all of their actions

A leader's role does not include telling others how to model desired values, but leaders model those values in all their actions.

114.

You have joined a company as their HR manager. As you review the HR budget, you notice that the unemployment insurance charges to your company are higher than you have ever seen. When you discuss this with the company owner, they are aware that the company's unemployment claim costs are high but are skeptical that the company could do anything to reduce the charges.

Which of the following is the best first step to identify why the company pays so much to unemployment?

  • Analyze the cost of employees terminated "for cause"

  • Compare the cost of unemployment claims to those within the same industry and state

  • Review the company's progressive discipline practices

  • Start challenging all unemployment claims

Correct Answer: Analyze the cost of employees terminated "for cause"

Unemployment insurance claims are typically charged to the employer if the unemployment office finds that an employee was not terminated for cause. By reviewing this data with the company owner and showing where the company went wrong, you can provide solutions to mitigate future charges through sound documentation and management training and challenging relevant unemployment claims. HR professionals can establish credibility and build relationships with new employers by providing accurate information and solutions that speak to the needs of the business, such as reducing costs.

115.

Which act modified the Internal Revenue Code in 2001, resulting in adjusted pension vesting schedules, increased retirement plan limits, and permitted pre-tax catch-up contributions for people over 50 years of age in certain plans?

  • The Economic Growth and Tax Relief Reconciliation Act (2001)

  • The Economic Growth and Tax Relief Act (2001)

  • The Tax Relief Reconciliation Act (2001)

  • The Economic Growth and Reconciliation Act (2001)

Correct answer: The Economic Growth and Tax Relief Reconciliation Act (2001)

The Economic Growth and Tax Relief Reconciliation Act (2001) modified the Internal Revenue Code in 2001, resulting in adjusted pension vesting schedules, increased retirement plan limits, and permitted pre-tax catch-up contributions for people over 50 years of age in certain plans.

116.

Which act prohibits a federal contractor from inducing an employee to give up any part of his or her wages to the employer for the benefit of having a job?

  • The Copeland "Anti-Kickback" Act (1934)

  • The Dodd-Frank Act (2010)

  • The Davis-Bacon Act (1931)

  • The Equal Pay Act (1988)

Correct answer: The Copeland "Anti-Kickback" Act (1934)

The Copeland "Anti-Kickback" Act (1934) prohibits a federal contractor from inducing an employee to give up any part of his or her wages to the employer for the benefit of having a job.

117.

Which U.S. law is designed to protect the privacy and security of individuals' health information?

  • HIPAA

  • The Fair Credit Reporting Act

  • The Civil Rights Act of 1964

  • The Davis-Bacon Act of 1931

Correct Answer: HIPAA

HIPAA, or the Health Insurance Portability and Accountability Act, is designed to safeguard the privacy and security of individuals' health information. 

The Fair Credit Reporting Act is designed to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies, but it doesn't protect health information specifically. The Civil Rights Act of 1964 addresses various forms of discrimination but does not specifically protect the privacy and security of individuals' health information. The Davis-Bacon Act of 1931 focused on wage levels for workers on federal construction projects and has nothing to do with health information privacy.

118.

What is a primary benefit of partnering with a Professional Employer Organization (PEO) in terms of alternative staffing?

  • Outsourcing HR tasks such as payroll and benefits administration

  • Reducing the company's tax liability

  • Replacing the need for in-house recruitment

  • Taking over all strategic planning activities

Correct Answer: Outsourcing HR tasks such as payroll and benefits administration

Professional Employer Organizations (PEOs) specialize in managing various HR-related tasks like payroll, benefits administration, and compliance, allowing companies to focus on their core operations. 

While a PEO can help manage payroll and tax-related activities, they do not directly reduce a company's tax liability. PEOs primarily handle HR administration and compliance, but they do not usually replace the need for in-house recruitment and talent management. PEOs provide administrative and operational support but do not engage in the strategic planning processes of a company.

119.

The second step in the creative problem-solving process involves generating a list of possible solutions. This can be accomplished by:

  • Brainstorming with your group to get as many solutions listed as possible

  • Identifying the problem as a team

  • Creating a list of criteria for acceptable solutions

  • Coordinating implementation of the solution across the company

Correct answer: Brainstorming with your group to get as many solutions listed as possible

Generating a list of possible solutions can be accomplished by brainstorming with a group of people to get as many solutions listed as possible. At this step, you do not evaluate the solutions but are simply generating a list of ideas. 

The third step in the process is to evaluate and create a list of acceptable solutions.

120.

A cluster of interrelated attributes that include knowledge, skills, and abilities that are likely to lead to needed behaviors to perform a job effectively is called?

  • Competency

  • Job description

  • Job attributes

  • Acumen

Correct answer: Competency

A competency is a cluster of interrelated attributes that include knowledge, skills, and abilities that are likely to lead to needed behaviors to perform a job effectively.

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