SHRM-CP Exam Questions

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121.

What is the core objective of applying "Analytical Aptitude" in making sound decisions within HR?

  • Utilizing data-driven insights to evaluate options, assess risks, and make informed choices that align with organizational goals

  • Relying solely on intuition and gut feelings to guide decision-making

  • Making quick decisions without thoroughly evaluating available options and their implications

  • Prioritizing individual preferences and biases over objective data analysis

Correct answer: Utilizing data-driven insights to evaluate options, assess risks, and make informed choices that align with organizational goals

"Analytical Aptitude" in HR involves using data-driven insights to assess various options, evaluate risks, and make informed decisions that are aligned with the organization's goals and objectives. This competency emphasizes the use of evidence and critical thinking to enhance decision-making quality.

While intuition can contribute, "Analytical Aptitude" focuses on the strategic use of data-driven insights to inform decision-making, rather than relying solely on intuition."Analytical Aptitude" promotes thoughtful decision-making, which includes evaluating options and considering potential risks before making a choice. The emphasis is on using objective data analysis over personal biases, ensuring decisions are based on evidence rather than individual preferences.

122.

Calculating the percentage of the total cost of benefits compared to the total payroll costs of the organization involves which of the following formulas?

  • Total benefits costs / Total payroll costs

  • Total payroll costs / Total benefits costs

  • Total payroll costs - Total benefits costs

  • Total benefits costs - Total payroll costs

Correct answer: Total benefits costs / Total payroll costs

This formula provides the benefits costs as a percentage of total payroll costs.

123.

A team of leaders have gone through the process to design their company's strategy. It is now time to implement the strategy they have created. What is the driving force behind implementing a company's strategy?

  • The people of the organization

  • The cost of the strategy

  • The strategy's return on investment

  • The mission, vision, and values of the strategy

Correct answer: The people of the organization

People in the organization are always going to be the ones that drive the strategy of a company. Employers and workers are the ones completing work pushing strategy forward. 

The cost of the strategy and the ROI may be components that leadership will use to evaluate the effectiveness of the strategy, but are not the main drivers. The leadership team will likely use the mission, vision, and values of the company to design their strategy, but these are inanimate concepts that cannot drive strategy the way people can.

124.

The overall standard which says employers shall furnish each employee with a place of employment free from recognized hazards that are likely to cause death or serious injury is known as what clause?

  • General Duty Clause

  • Specific Safety Clause

  • General Safety Standard

  • Generic Duty Clause

Correct answer: General Duty Clause

The "General Duty Clause" in OSHA's regulations dictates that employers furnish each employee with a place of employment free from recognized hazards that are likely to cause death or serious injury.

125.

Maggie is putting together a training program for managers and realizes there are many adult learning styles. After assessing her team, she feels that she should use an approach that uses charts, pictures, and diagrams to simplify complex training concepts. 

This is an example of which style of adult learning?

  • Visual

  • Auditory

  • Kinetic

  • Audiovisual

Correct answer: Visual

Visual learning appeals to adults who learn better with pictures, diagrams, charts, videos, and written directions.

126.

You served on a panel interview to select a lab technician at a chemical manufacturer. After the completion of the day's interviews, you feel like the majority of the panel members have identified a strong candidate named Steve. James, a member of the panel, says that Steve is not his preferred candidate. When you ask his reasoning, James mentions that Steve seemed unprofessional, since he has a tattoo on his arm and wore earrings. James offers no other reason not to hire Steve. 

James is likely showing which kind of interview bias?

  • Negative emphasis

  • Similiar-to-me error

  • Culture noise

  • Non-verbal bias

Correct answer: Negative emphasis

Negative emphasis bias occurs when someone rejects a candidate for a small or unrelated negative reason. In this case, James is emphasizing the candidate's tattoos and earrings, rather than making a determination based on Steve's qualifications.

127.

Why is it important to test and implement emergency plans like fire drills in an organization?

  • To assess the effectiveness of the plans and ensure that employees know how to respond in real emergencies

  • To fulfill a legal requirement

  • To create a break from the usual work routine

  • To test employee compliance with policies

Correct Answer: To assess the effectiveness of the plans and ensure that employees know how to respond in real emergencies

Testing and implementing emergency plans through exercises like fire drills are crucial for assessing the plans' effectiveness and ensuring that employees are adequately prepared to respond in real emergency situations.

While there may be legal requirements to conduct such tests, the primary purpose is to ensure the safety and preparedness of employees, not merely to fulfill legal obligations. Although a drill may provide a temporary break from work, the primary objective is to prepare employees for emergencies and assess the effectiveness of emergency response plans. While compliance may be an aspect, the overarching reason for implementing and testing emergency plans is to ensure that employees are capable of responding appropriately in real emergency situations.

128.

Which of the following is considered a pull factor that may make expanding into foreign markets attractive for a company?

  • Declining trade and investment barriers

  • Employee turnover rates

  • Local taxation policies

  • Market saturation in a foreign country

Correct Answer: Declining trade and investment barriers

Declining trade and investment barriers can serve as a pull factor because they reduce the complexities and costs associated with international business, making foreign markets more attractive. 

Employee turnover rates are generally internal issues and do not serve as a pull factor for expanding into foreign markets. Local taxation policies typically apply only to domestic operations. Market saturation in a foreign country would likely make that market less attractive for expansion rather than serve as a pull factor.

129.

Many female executives are speaking with you about promoting greater gender equality at work. How can you best support them?

  • Research payroll data regarding employees' pay in the same job. 

  • Give priority to harassment claims filed by women.

  • Hire more women at your company.

  • Post job openings for underrepresented groups. 

Correct Answer: Research payroll data regarding employees' pay in the same job. 

HR professionals can do many things to ensure greater gender equality and embrace inclusion in the workplace, such as investigating every harassment claim, hiring more women in leadership positions, and ensuring that equal pay is received for equal work. Recruiting or hiring more women doesn't automatically mean gender equality increases. 

By researching payroll data, which shows compensation and earnings, HR professionals may be able to identify and address any discrepancies between female and male pay. 

130.

To be effective, HR strategy must compliment the:

  • Overall employer strategy

  • Needs of the employees

  • Strategy of certain departments

  • Vision and values of the employer

Correct answer: Overall employer strategy

For an HR strategy to be effective, it must be directly tied to and compliment the overall employer strategy.

131.

Jenny and her HR team have been tasked by the CEO to define the company's mission, vision, and values. Jenny decides that her team should first focus on the company's mission and mission statement. What is the first approach her team should make in identifying the company's mission? 

  • Begin with identifying what the organization's purpose is and why it exists 

  • Begin with identifying the organization's values and what is unique to the organization

  • Begin with seeing what other similar companies' mission statements are

  • Begin articulating the HR mission statement and make it similar to the company's mission

Correct answer: Begin with identifying what the organization's purpose is and why it exists 

A mission statement is a succinct statement that explains why a company exists. It expresses the mission and goals of the organization. The mission statement supports the vision and value of the organization.

132.

What are some factors that influence the shift of economic power from established developed countries to emerging markets?

  • Diaspora, demographic dichotomy, and reverse innovation

  • Global warming, trade tariffs, and remote work culture

  • Outsourcing, cultural homogenization, and industrial automation

  • Blockchain technology, artificial intelligence, and virtual reality

Correct Answer: Diaspora, demographic dichotomy, and reverse innovation

The shift of economic power to emerging markets is influenced by factors like diaspora, which involves the spread of talent and ideas; demographic dichotomy, indicating a younger workforce in emerging economies as compared to older workforces in developed economies; and reverse innovation, where solutions are created in emerging markets and then applied globally. 

While global warming, trade tariffs, and a remote work culture may impact economies, they are not the primary reasons for the economic power shift from established developed countries to emerging markets. Outsourcing, cultural homogenization, and industrial automation could have an economic impact but do not specifically contribute to the shift of economic power from developed to emerging markets. Although blockchain technology, artificial intelligence, and virtual reality are influential, they are not among the primary factors leading to the shift of economic power from developed countries to emerging markets.

133.

What is the primary objective of downsizing or reducing the workforce?

  • To improve operational efficiency by reducing labor costs

  • To eliminate underperforming departments entirely

  • To increase the workload for remaining employees

  • To make room for future new hires

Correct Answer: To improve operational efficiency by reducing labor costs

The main objective of downsizing or workforce reduction is to enhance operational efficiency, primarily by decreasing labor costs. This is often done to achieve better financial performance or adapt to market conditions.

While underperforming departments may be targeted, the primary goal of downsizing is not necessarily to eliminate any department but to improve overall operational efficiency. The remaining employees might experience an increased workload, but this is not the primary objective of downsizing. The main aim is to improve operational efficiency. Downsizing is generally aimed at reducing labor costs to improve efficiency, not to create vacancies for future hiring.

134.

Which challenge to employee engagement can result from fluctuating market dynamics and can directly affect employees' job security and performance?

  • Economic conditions

  • Global competition

  • New technologies

  • Workplace diversity

Correct answer: Economic conditions

Economic conditions, such as recessions or economic downturns, can significantly impact employee engagement by creating uncertainty around job security and future prospects. This may lead to decreased motivation and productivity, making it a critical area for HR to address in engagement programs. 

While global competition is a challenge that can drive the need for higher productivity and innovation, it is not directly related to the fluctuations in the market that affect job security. The introduction of new technologies can demand upskilling and change management but does not directly impact employee engagement through economic shifts. Workplace diversity, while important for fostering a more inclusive and innovative work environment, is not a factor that relates to the economic conditions impacting employee engagement. It can, however, influence engagement through other channels such as inclusion and team dynamics.

135.

The Sarbanes-Oxley Act (SOX) brought strict oversight to corporate governance and financial reporting for:

  • Publicly-held companies, with some requirements, also applying to privately-held companies

  • Privately-held companies only

  • Publicly-held companies only

  • Non-profit organizations only

Correct answer: Publicly-held companies, with some requirements, also applying to privately-held companies.

The Sarbanes-Oxley Act (SOX) brought strict oversight to corporate governance and financial reporting for publicly-held companies and holds corporate officers accountable for proper recordkeeping and reporting of financial information. While SOX does not specifically cover privately held companies, certain provisions about securities fraud and related criminal activities apply to any "person," whether the person works for a privately- or publicly-held company. Private companies that may look to be acquired by a public company in the future or may wish to go public on their own must comply with SOX best practices.

136.

You are a newly hired HR manager and oversee a distribution center with 120 employees and two HR representatives. You would like to perform an HR audit since the site was newly acquired. You are tasked with assembling an HR compliance team to review the site's HR functions, compliance, and overall performance. 

Who would be a good representative for your team?

  • A headquarters HR representative

  • The distribution center manager

  • A select group of employees working at the distribution center

  • Hiring managers and recruiters

Correct answer: A headquarters HR representative

A headquarters or corporate HR representative would be the best choice to select for a compliance and HR audit. Members of a compliance audit team should include people with relevant knowledge of HR practices, including HR representatives, in-house legal counsel, and compliance officers. 

137.

According to the counseling approach in the progressive discipline model, what is the sole purpose of disciplinary action?

  • To solve problems by discussing the root cause of the issue with the employee

  • To administer different levels of discipline according to the circumstances

  • To document the employee's issue and build a case for termination

  • To remind the employee of the consequences of future issues

Correct answer: To solve problems by discussing the root cause of the issue with the employee

Solving problems is the goal of the counseling approach in the progressive discipline model. This is in contrast to the traditional discipline system, in which the goal is administering discipline without regard to improving performance or behavior.

138.

An employee has shared information with a direct supervisor about not being able to perform certain aspects of their job due to a change in health status. What are the next steps that should happen?

  • There is not enough information to take action; get more details from the supervisor

  • Review the medical documentation, then make reasonable accommodations

  • Require the employee to be seen by your occupational medicine provider, then clear them for regular work

  • Hire someone to replace the employee, then offer a generous severance package

Correct answer: There is not enough information to take action; get more details from the supervisor

In this case, HR needs to obtain more information from the supervisor and employee as to the history and status of the employee's health change. Gather more information, as it will dictate the next steps. 

In this scenario, no employee health or medical information has been presented; therefore, it cannot be reviewed to make any determinations. There are many variables you need to know, such as the nature of the health status change, is it related to an injury caused by work activities, does the employee have a history of illness or injuries, and has the employee been seen by an actual physician and given a specific diagnosis?  

You cannot require the employee to be seen by your occupational medicine provider, clear them for regular work; review the medical documentation, make reasonable accommodations; or hire someone to replace the employee, then offer a generous severance package. 

139.

You want to hold a site-wide town hall meeting with the employees to speak about employee engagement. You consult with the executive team, and they are uncertain whether the meeting is worth shutting down production. What should you do?

  • Discuss the goal of the meeting and provide them with an agenda.

  • Tell them the site is required to hold the town hall meeting.

  • Discuss the cost-benefit of holding the town hall meeting.

  • Solicit feedback from the employees on whether the meeting should be held. 

Correct Answer: Discuss the goal of the meeting and provide them with an agenda.

All meeting facilitators, including HR professionals, should plan meetings with the purpose and goal of the meeting in mind and explain to the people who may attend why they are attending. 

140.

Bao, an HR manager, is evaluating the potential risks associated with implementing a new payroll system. What process is Bao engaged in to ensure the project aligns with the company's risk tolerance and policies?

  • Risk assessment

  • Risk mitigation

  • Risk transfer

  • Compliance audit

Correct Answer: Risk assessment

Bao is engaged in risk assessment, which involves evaluating the level of risk against predetermined standards or target risk levels to ensure the project aligns with the company's policies and risk tolerance. 

While risk mitigation is an important part of managing risk, it comes after the risk assessment phase, where the risks are first identified and evaluated. Risk transfer is the process of transferring the financial consequences of certain risks to another party, usually through insurance or contractual arrangements. It is not the same as evaluating the level of risk, which is what risk assessment is for. Although a compliance audit may include aspects of risk, it is a formal review to determine whether an organization is following external laws and internal guidelines, not a process for evaluating the level of risk.