SHRM-CP Exam Questions

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161.

Consensus management is the process where team members work as a group to develop solutions and ultimately agree to support whatever decision is made for the best interest of the whole. What is an effective way to manage this process?

  • Hold a meeting where the staff is empowered to voice their support and concerns

  • Invite people who disagree with the decision to submit their concerns in writing

  • Invite your staff to talk to the Human Resource Department about any concerns they may have

  • Hold a meeting informing the team of what decision has been made and why

Correct answer: Hold a meeting where the staff is empowered to voice their support and concerns

Consensus management involves asking for input from each person on the team, carefully considering the feedback, and making an earnest effort to address concerns. Holding a meeting for this purpose is an effective way to build and reach a consensus with the team. The key is to ensure that all support the decision once made, regardless of how they feel about it.

162.

The principle that law should govern a nation rather than the decisions of individual government officials is called:

  • Rule of law

  • Due process

  • Jurisdiction

  • Common law

Correct answer: Rule of law

Rule of law is the principle that law should govern a nation rather than the decisions of individual government officials.

163.

Voss, a plant manager of a distribution center, conducted an all-employee meeting to discuss last quarter's production reports, budget shortfalls, and safety incidents. He informs his team of what needs to change to meet production standards and avoid safety issues, and he generally expresses his dissatisfaction with the performance of the site. When he ends the meeting, he asks the employees if anyone has questions. All employees remain silent. After the meeting, you meet with Voss to discuss the meeting and offer feedback.

What is your approach?

  • Encourage Voss to solicit feedback and opinions from the employees next time.

  • Encourage Voss to express appreciation to increase employee engagement and production.

  • Encourage Voss to use "hard data" next time to prove how the distribution center is performing.

  • Encourage Voss to express confidence in his employees' ability to improve.

Correct answer: Encourage Voss to solicit feedback and opinions from the employees next time.

Communication in meetings often focuses on conveying information and receiving updates, but it is also a great way to solicit opinions, encourage dialogue and discussion, and coordinate plans and goals. Voss should have solicited feedback and opinions on how to address the concerns he expressed, such as budget shortfalls, safety issues, and low production. By soliciting this information, employees may help in the decision-making process and encourage engagement.

164.

Your CEO is conducting an all-employee meeting presentation about recent company changes, such as department reorganizations and some policy changes. What is the best way for the CEO to solicit feedback at the conclusion of his meeting?

  • Allowing the employees a question-and-answer period after the presentation

  • Providing a frequently-asked-questions (FAQ) document for employees after the presentation

  • Directing the supervisors to follow up with their teams to solicit feedback

  • Allowing the employees to submit questions in advance of the presentation

Correct answer: Allowing the employees a question-and-answer period after the presentation

Allowing an audience a Q & A session after a presentation is the most helpful in soliciting feedback.

165.

How does transparency in HR primarily contribute to fostering trust within an organization?

  • Transparency in HR primarily involves openly sharing information with employees and stakeholders

  • Transparency in HR primarily involves concealing sensitive information from employees to maintain control

  • Transparency in HR primarily involves sharing information exclusively with internal stakeholders

  • Transparency in HR is optional and does not necessarily involve sharing information

Correct answer: Transparency in HR primarily involves openly sharing information with employees and stakeholders

Transparency in HR involves openly sharing relevant information with employees and stakeholders, which helps create a culture of accountability and demonstrates the organization's commitment to ethical practices. This openness fosters trust within the organization. Transparency is about openness and sharing information, not concealing it. Transparency extends to external stakeholders, and sometimes the public, not exclusively to internal stakeholders. Transparency is considered a best practice in HR and involves actively sharing information to promote trust and accountability. It's not optional.

166.

What was the first piece of legislation signed by President Barack Obama that addressed compensation discrimination under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, or the Americans with Disabilities Act of 1990?

  • The Lilly Ledbetter Fair Pay Act

  • The Equal Pay Act

  • The Ledbetter Equal Pay Act

  • The Equal Pay for Equal Work Act

Correct answer: The Lilly Ledbetter Fair Pay Act

The Lilly Ledbetter Fair Pay Act was the first piece of legislation signed by President Barack Obama that addressed compensation discrimination under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, or the Americans with Disabilities Act of 1990.

167.

What do effective leaders do to manage groups of employees?

  • Influence and inspire 

  • Break up large groups

  • Delegate their tasks 

  • Manage every aspect 

Correct answer: Influence and inspire 

An effective leader knows how to influence and inspire others, which promotes employees working toward a common goal as a group. Managers do this by recognizing the talents that their employees have and putting them into the right roles, then leading by showing the best example. By inspiring employees to become their own leaders, they focus on doing their best. 

Breaking up groups of employees does not support effective management. Delegating some tasks when appropriate is for individual employees, not groups. Managing every aspect of an employee's work day is micro-management, which motivates no one.

168.

Why is credibility considered vital for HR professionals in their role?

  • Credibility builds trust with employees, enhances HR's influence and effectiveness, and fosters a positive organizational culture

  • Credibility is essential solely for managing HR processes

  • Credibility is primarily about compliance with HR laws

  • Credibility is essential only when dealing with upper management

Correct answer: Credibility builds trust with employees, enhances HR's influence and effectiveness, and fosters a positive organizational culture

Credibility is crucial for HR professionals because it helps build trust with employees, making them more likely to seek HR's assistance and guidance. It also enhances HR's influence within the organization, allowing HR to advocate effectively for employee-related initiatives. Additionally, credibility contributes to fostering a positive organizational culture where employees believe in the fairness and integrity of HR practices. 

While credibility plays a significant role in managing HR processes, its importance extends beyond this to encompass building trust, influencing, and shaping organizational culture. While compliance with HR laws is vital, credibility encompasses a broader range of factors, including trust-building, influence, and cultural impact. Credibility is important across all levels of an organization, not solely in interactions with upper management.

169.

A financial technology company is set to hire 15 more IT professionals in the next 12 months. The IT hiring manager has come up with a coding test that they would like to give to all new candidates that takes approximately 20 minutes. The IT hiring manager tells you to provide the talent acquisition team with the test. 

What do you do?

  • Work with the IT manager to test the validity of the coding test. 

  • Have the IT manager first take the test.

  • Have the IT manager instruct five employees to take the test.

  • Provide the test to the talent acquisition team to administer the test.

Correct Answer: Work with the IT manager to test the validity of the coding test. 

Regulations were established by the Equal Employment Opportunity Commission with a specific expectation for employers to offer validation of employment selection devices or practices. It is crucial to test the method's validity, including construct and content validity. This will ensure that the test is properly administered, actually measures what it claims to measure, and measures all facets of the job. Simply implementing a test created by one person without any reliability or validity testing is risky for an organization.

170.

Multinational organizations can reap some benefits from identity and process alignment. What is the best example of identity alignment?

  • Identifying the diversity of people and differences among locations

  • Identifying how performance reviews are administered at different locations

  • Identifying what computer systems are used for accounting practices in different locations

  • Identifying how people are hired and onboarded at different locations

Correct answer: Identifying the diversity of people and differences among locations.

Identity alignment includes identifying the diversity of people, products, and services; branding, differences among locations; and adjustments to brands based on local culture. 

All the other answer choices are examples of process alignments, not identity alignments.

171.

Which law introduced an employee education incentive that allows small business owners to exclude up to $5,250 from an employee's taxable income for educational assistance provided by an employer?

  • The Small Business Job Protection Act

  • The Vocational Training Protection Act

  • The Workforce Training Act

  • The Small Business Incentives Act

Correct answer: The Small Business Job Protection Act

The Small Business Job Protection Act (1996) was designed to provide benefits and tax relief to small businesses to promote job creation and economic growth. This act introduced an employee education incentive that allows small business owners to exclude up to $5,250 from an employee's taxable income for educational assistance provided by an employer.

The incorrect answers are fabricated law titles.

172.

What law protects executive-level employees from retaliation for reporting significant agency wrongdoing?

  • The Whistleblower Protection Act of 1989

  • Inspector General Act of 1978

  • Occupational Safety and Health Act of 1970

  • The Equal Pay Act of 1963

Correct answer: The Whistleblower Protection Act of 1989

The Whistleblower Protection Act of 1989 was put into place to protect executives from retaliation when reporting unethical business practices to the proper authorities. The law also protects them from retaliation for participating in protected activity, such as an audit or investigation.

Inspector General Act of 1978 grants legal access to the Office of the Inspector General to conduct investigations of complaints. 

Occupational Safety and Health Act of 1970 protects employees from employer retaliation for reporting job hazards. 

The Equal Pay Act of 1963 addresses wage disparity based on gender, and protects employees who report unfair pay practices. 

173.

Which of the following criteria is not commonly considered important for selecting and evaluating employee selection methods?

  • Ease of administration for HR personnel

  • Validity

  • Adverse impact

  • Applicant reaction

Correct Answer: Ease of administration for HR personnel

While ease of administration may be considered, it is not one of the primary criteria outlined for selecting and evaluating employee selection methods. The main factors to consider are validity, adverse impact, cost, and applicant reaction. 

Validity is crucial for any selection method, as it gauges how well the method predicts or correlates with job performance. A valid selection method is more likely to yield employees who can effectively perform the tasks required by the job. Adverse impact refers to a significant difference in selection rates between different demographic groups. This criterion is important for maintaining a diverse workforce and avoiding potential legal challenges. Applicant reaction is an important consideration because a selection process that is perceived as fair and reasonable is likely to attract and retain high-quality candidates. Poor applicant reaction could discourage talented individuals from considering the organization as an employer.

174.

SHRM identifies what HR professionals need to do in the future to ensure the effectiveness of organizational development (OD). Which of the following most accurately indicates what HR must do to prepare for these future OD trends?

  • Increase the ability to recognize and reconcile cultural differences

  • Increase employee buy-in and satisfaction

  • Increase trust between management and non-managerial employees

  • Increase leadership cohesiveness

Correct answer: Increase the ability to recognize and reconcile cultural differences

HR professionals must have the ability to recognize and respect cultural differences and reconcile the issues that cultural diversity creates. This includes developing superior communication and situational leadership skills, motivation, energy, and overall learning agility. 

The other options are already a part of HR professionals' responsibilities and are not specific to this future-focused organizational development. 

175.

HR is most likely to closely partner with which department for an effective HRIS implementation?

  • The IT department

  • The marketing department

  • The purchasing department

  • The legal department

Correct answer: The IT department

Since a human resource information system (HRIS) implementation is IT-based, it is most likely that HR will partner with the IT department. The IT department, whether supported internally or externally, can assist in implementing an HRIS to provide a systematic framework over a set time period.

176.

You and your team have compiled a staffing plan for review by your company's executive team for the following year. At the beginning of the document, you simplify the entire project into one simple statement, "To support the business in providing the right people with the right skills at the right times." 

This statement is known as which of the following in a staffing plan or strategy?

  • Statement of purpose

  • Scope of work 

  • Mission, vision, and values statement 

  • Goals and objectives outline

Correct answer: Statement of purpose

A statement of purpose is a simplified written reason for your staffing plan or strategy. Staffing plans involve many activities and timelines, so adding a statement of purpose shows the primary reason and objective for the staffing plan.

177.

An employee comes to your office and states, "I need to tell you something, but I don't want you to do anything about it." She continues to explain that her manager has made explicit sexual advances toward her and two other coworkers, which included inappropriate touching. The employee says that she doesn't want anyone to get in trouble, but just wants it stopped. 

What is the next thing you should do as the employee's HR manager?

  • Thank the employee for bringing the concern forward and guide her to understand that you are obligated to do something about it

  • Express concern about the employee's complaint and direct her on how to address it with her manager

  • Assure the employee that this information is confidential and direct her on how to address it with her manager's boss

  • Thank the employee for bringing up the concern and tell her that you will get back to her

Correct answer: Thank the employee for bringing the concern forward and guide her to understand that you are obligated to do something about it 

A key responsibility for HR professionals to take is guiding employees on policies, guidelines, and decisions that are made. Regarding this example, you should thank the employee for bringing this serious concern to your attention and explain that you have an obligation to keep employees and the company safe from inappropriate behavior and risk. 

Not addressing the issue would likely lead to more risk exposure and contribute to a hostile work environment.

178.

Why is risk tolerance an essential variable to consider, as per the DHS paper on risk management published in 2011?

  • It helps define the organization's acceptable level of risk

  • It is solely for complying with industry regulations

  • It focuses only on short-term gains

  • It determines the market competitiveness of the organization

Correct Answer: It helps define the organization's acceptable level of risk

Risk tolerance helps to define the organization's acceptable level of risk, thereby guiding decision-making and resource allocation. Understanding risk tolerance enables the organization to align its risk management efforts with its broader objectives and culture. 

While compliance with regulations is important, risk tolerance is primarily about defining the organization's own comfort level with risk, which guides internal decision-making. Risk tolerance is not exclusively concerned with short-term gains; it has a broader role in defining the acceptable level of risk in both short-term and long-term contexts. Although market competitiveness might be influenced by an organization's risk tolerance, the main role of this variable is to guide the organization's internal decision-making and resource allocation concerning risk.

179.

How can HR professionals contribute to building strategic relationships within an organization?

  • Collaborating across functions to align HR goals with overall business objectives

  • Focusing on HR-specific initiatives

  • Preventing interactions between departments

  • Minimizing communication with external stakeholders

Correct answer: Collaborating across functions to align HR goals with overall business objectives

Building strategic relationships involves HR professionals working cross-functionally, aligning HR strategies with overall business goals to promote a collaborative and cohesive organizational culture.

Focusing exclusively on HR-specific initiatives doesn't contribute to building holistic strategic relationships across the organization. Strategic relationships involve facilitating interactions, not preventing them. HR should encourage communication and collaboration. Strategic relationships often involve effective communication with both internal and external stakeholders for alignment and growth.

180.

What is one leadership method of inspiring employees?

  • Setting the vision

  • Creating competition

  • Focusing on revenues

  • Using their power

Correct answer: Setting the vision 

Effective leaders inspire and empower employees by setting a vision of what could be. The vision must be clear, visible, and attainable. Managers set a vision so that all employees are moving in the same direction and have a common interest in meeting this goal. 

Creating competition is not to inspire, but to bring out the competitive employees. It eventually creates negative employee relationships. Focusing on revenues alone does not inspire employees. Leaders who use their power to get things done may become abusive in this process, or simply create fear.