SHRM-SCP Exam Questions

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181.

What are the six elements of a total rewards strategy?

  • Compensation, benefits, work-life effectiveness, recognition, performance management, talent development

  • Compensation, benefits, job development, strategy, market evaluation, data analytics

  • Data analytics, compensation, recognition, pay increases, benefits, paid leave

  • Award ceremonies, benefits,  paid leave, flexible schedules, medical insurance, pay

Correct answer: Compensation, benefits, work-life effectiveness, recognition, performance management, talent development

These six elements create a total rewards package. Job development is a piece of talent development, while data analytics is an evaluation tool of the effectiveness of the total rewards strategy.

Flexible schedules and medical insurance are benefits that are a piece of a total rewards strategy.

182.

Which of the following is not an example of a reward?

  • Demotion

  • Plaques

  • Raises

  • Flex time off

Correct answer: Demotion

Demotions are moving an employee from a higher-ranking position to a lower one. Rewards can be financial or non-financial.

183.

A large multinational corporation recently appointed a new HR director to oversee one of its major country operations, marking the first time someone from outside the company and from a different industry was chosen for this role. Shortly after starting, the new HR director began making critical remarks about the company's talent, culture, and policies, which quickly spread among employees and led to a decline in morale. Over the past three months, 60% of the HR director’s direct reports have resigned. Concerned about the situation, the corporate leadership for the country’s operation has tasked the chief human resources officer (CHRO) with resolving the issue. After attempting to investigate, the HR director accuses the CHRO of unfair management and bias in restricting the HR director’s autonomy. 

How should the CHRO address the director’s frustration?

  • Clarify the expectations and boundaries of their role and collaboratively develop a plan to realign their approach with the organization's goals and values

  • Give the HR director a performance improvement plan

  • Hire an executive coach to help guide and support the HR director

  • Find the HR director another role within the organization

Correct answer: Clarify the expectations and boundaries of their role and collaboratively develop a plan to realign their approach with the organization's goals and values

Directly addressing the HR director’s frustration through open and honest communication helps resolve their concerns. By clarifying expectations and collaboratively developing a realignment plan, the CHRO ensures that the HR director's role is understood and integrated with the organization’s goals and values. 

This approach fosters a constructive dialogue, addresses the causes of dissatisfaction, and helps rebuild trust and morale within the team.

184.

How should HR professionals effectively analyze large amounts of data to make informed decisions and drive strategic initiatives within the organization?

  • Use advanced data analysis tools and techniques, including data visualization and statistical methods, to sort and extract appropriate data 

  • Rely on basic data summaries and avoid deeper analysis to maintain simplicity and avoid overwhelming details

  • Focus primarily on historical data trends without considering current market conditions or future projections

  • Analyze data in isolation without integrating insights from different departments or aligning findings with overall business objectives

Correct answer: Use advanced data analysis tools and techniques, including data visualization and statistical methods, to sort and extract appropriate data 

Advanced data analysis tools and techniques enable HR professionals to interpret large datasets effectively and derive actionable insights. Utilizing data visualization and statistical methods helps identify patterns, trends, and correlations, which are crucial for making informed decisions and driving strategic initiatives.

185.

A senior executive at a company has been observed engaging in practices that could potentially create conflicts of interest, such as awarding contracts to companies owned by friends and family. Several employees have expressed concerns about these practices and their impact on fairness and transparency within the organization. 

What are your next steps?

  • Conduct a confidential investigation to assess the extent of the conflicts of interest and their impact on the organization, and then develop a plan to address the findings and reinforce ethical practices

  • Publicly reprimand the senior executive for their actions to demonstrate the organization's commitment to ethics, regardless of the investigation's outcome

  • Reassign the senior executive to a different role within the company to avoid further conflicts of interest without conducting a full investigation or addressing the broader implications

  • Ignore the concerns raised by employees as they may be exaggerated and focus on improving other areas of the organization instead

Correct answer: Conduct a confidential investigation to assess the extent of the conflicts of interest and their impact on the organization, and then develop a plan to address the findings and reinforce ethical practices   

Conducting a confidential investigation ensures a thorough and objective evaluation of the issue, maintains confidentiality and fairness, and allows for a strategic response to reinforce ethical standards and address any identified conflicts of interest. It demonstrates a commitment to ethical practices and organizational integrity, ensuring that any necessary corrective actions are based on evidence and aligned with the organization's values.

186.

You are focusing on enhancing the consultative and coaching skills of your HR team to better support managers and employees. You need to develop a strategy to effectively improve these skills among the HR team. 

What approach should you take to develop and enhance the consultative and coaching skills of HR professionals?

  • Implement a development program that includes hands-on training, real-world case studies, role-playing scenarios, and ongoing feedback to build and refine consultative and coaching skills

  • Focus on increasing theoretical knowledge about consultative and coaching techniques through reading materials and seminars

  • Encourage HR professionals to observe senior HR leaders in action

  • Provide HR professionals with access to online courses and certifications in consultative and coaching techniques

Correct answer: Implement a development program that includes hands-on training, real-world case studies, role-playing scenarios, and ongoing feedback to build and refine consultative and coaching skills

Hands-on training, case studies, and role-playing provide HR professionals with the opportunity to practice and apply their consultative and coaching skills in realistic scenarios. Ongoing feedback ensures continuous improvement and adaptation, allowing HR professionals to refine their skills effectively. 

This comprehensive strategy supports both the development of knowledge and the practical implementation of consultative and coaching techniques, leading to better outcomes in their professional roles.

187.

RES corporation just hired its 60th employee. In the next two fiscal years, the company is expecting to hire an additional 40 staff members. The Human Resources department consists of you (the Human Resources Director) and a recruiting specialist. In addition to regular HR duties, the recruiting specialist is responsible for issuing new-hire laptops, troubleshooting, creating emails, and dealing with server issues. 

Which of the following intervention strategies would be most effective? 

  • Research and engage a third-party IT vendor

  • Hire an IT specialist

  • Offshore IT tasks

  • Hire another recruiting specialist

Correct answer:  Research and engage a third-party IT vendor

The HR department does not need to be expanded because the ratio has not exceeded 1.7 per 100 employees. Information technology should be removed as a responsibility of the HR department, as the function is hindering their efficiency and prime operational tasks. 

For small businesses, the expense of hiring a full-time IT specialist may not result in enough return on investment. Hiring a third-party vendor benefits small businesses that are tasked with technology management.

188.

In a midsize organization, an employee reports to both an internal manager within their department and an external manager from a different department. During a recent performance evaluation, the internal manager rated the employee as underperforming, while the external manager rated their performance as satisfactory. The external manager observed that the employee had faced personal challenges, such as family deaths and illness, which impacted their ability to meet deadlines and deliverables. 

The employee has filed a grievance against the internal manager’s negative review, arguing that their performance was adequate and that no issues were communicated throughout the year. Each year, employees are eligible to receive a merit increase based on their performance review ratings. 

How should the HR director determine the rating for this employee?

  • Review the input from and meet with the managers together to resolve the differences in their performance ratings

  • Ask for a 360 review from peers and other managers

  • Facilitate a meeting with managers and the employee to discuss the rating

  • Use the performance review with the highest rating

Correct answer: Review the input from both managers and meet with the managers together to resolve the differences in their performance ratings

Receiving 360 reviews for additional feedback but does not directly address the discrepancies between the internal and external managers' ratings, or the specific context of the employee's personal challenges. It might help clarify the situation but does not ensure a fair evaluation considering all aspects of the employee's performance and personal circumstances. 

Relying solely on the highest rating disregards the need to resolve the conflict between the ratings and does not consider the full context of the employee’s performance and challenges. This method can lead to an unfair evaluation by ignoring valid feedback from both managers.

189.

What is the definition of knowledge management?

  • The retention and distribution of organizational knowledge

  • The learning management system's available courses

  • The process of documenting an employee’s learning and development

  • The process of tracking employees' completed training courses

Correct answer: The retention and distribution of organizational knowledge 

SHRM defines knowledge management as the retention and distribution of organizational knowledge. It is a process that captures, develops, and shares informational resources within a business. 

Learning management systems are used to track training and development. The processes of documenting an employee’s learning and development and tracking completed courses are associated with employee training and development.

190.

As an HR manager in a state where marijuana will be decriminalized in three months, you are hearing concerns from managers about potential impacts on productivity and the workplace. 

What is the most strategic approach to address these concerns while ensuring compliance with the new law?

  • Create and communicate a new substance use policy that aligns with the decriminalization law, addressing productivity and workplace concerns. Provide training for managers and employees on the updated policy.

  • Wait until the law is enacted before making any changes to existing policies.

  • Allow managers to enforce their own rules regarding marijuana use in the workplace, even if they conflict with the new legal guidelines.

  • Reassure managers that productivity will not be affected, without providing any additional support or policy updates.

Correct answer: Create and communicate a new substance use policy that aligns with the decriminalization law, addressing productivity and workplace concerns. Provide training for managers and employees on the updated policy. 

Creating and communicating a new policy addresses the strategic impact of a legal change on the organization. It requires planning and implementing a revised substance-use policy to align with the decriminalization of marijuana, ensuring the company remains compliant with new laws. By developing this policy and communicating it effectively, you address potential concerns about productivity and the workplace environment proactively. 

Offering training for managers and employees further supports a smooth transition and proper understanding of the new guidelines. This approach demonstrates the ability to manage legal changes and align HR practices with broader business objectives.

191.

Which law requires a separate medical file to keep medical information protected? 

 

  • HIPAA

  • FMLA

  • COBRA

  • FLSA

Correct answer: HIPAA

The US Health Insurance Portability and Accountability Act  (HIPAA) requires employers to keep medical information in separate files from business records. 

COBRA addresses continuing healthcare for a qualifying event, and FLSA oversees pay and labor laws. FMLA is a medical leave act. 

192.

Title VII of the 1964 Civil Rights Act defines which of the following as a protected class?

  • Sex

  • Location

  • Performance

  • National origin

Correct answer: Sex

Location and performance are not listed as protected classes under Title VII of the 1964 Civil Rights Act National origin is not covered under the Civil Rights Act; however, certain states list national origin as a protected class.

193.

Policy development on topics from employee benefits to disciplinary processes is assessed by strategic impact. 

Which role best describes this HR function? 

  • Strategic Operational Role

  • Strategic Administrative Role

  • Employee Services

  • Chief Human Resources Officer

Correct answer: Strategic Operational Role

The Strategic Operational Role is the operational focus on process and policy development, union contracts, and communication with employees on policies. 

The Strategic Administrative Role focuses on assessing employee benefits, record management, assessment and selection of support programs, and analysis of recruiting. A strategic operational role is an HR service model.

194.

Internal risks that are controllable and should be eliminated or avoided describe what type of risk?

  • Preventable

  • Strategic

  • External

  • Enterprise

Correct answer: Preventable

Preventable risks focus on internal risks that are controllable and should be eliminated, such as illegal, unethical, or inappropriate actions and breakdowns in operational processes. These are usually managed through a compliance approach.

195.

JFK Paving has a strong quality of customer service reputation. The paving crew is a mix of long-tenure employees and newly hired employees. An incident occurred where a foreman and an employee were having a heated discussion involving yelling and threats of violence on a job site. A customer witnessed the exchange and called the office expressing their frustration and disappointment. The operations manager comes to you, the HR director, for help. 

What steps can the HR director take to prevent similar incidents in the future?

  • Implement comprehensive conflict-resolution training for all employees, establish clear workplace behavior policies, and provide regular refresher courses to ensure adherence to customer service standards

  • Only address the specific incident with the foreman and employee involved, without implementing broader preventive measures

  • Focus on improving customer service feedback mechanisms without addressing the internal conflict resolution and behavior issues

  • Ignore the incident as an isolated case and rely on employees to handle conflicts

Correct answer: Implement comprehensive conflict-resolution training for all employees, establish clear workplace behavior policies, and provide regular refresher courses to ensure adherence to customer service standards

Implementing comprehensive conflict resolution training equips employees with the skills to manage disputes professionally, while clear workplace behavior policies set expectations for conduct. Regular refresher courses reinforce these standards, helping to maintain a positive work environment. This approach focuses on improving how employees interact with each other and manage conflicts, which is essential for maintaining respectful and effective workplace relationships. 

By addressing these issues comprehensively, the company can prevent future incidents and uphold its strong customer service reputation.

196.

FRT law firm’s front desk receptionist had an accident where she will be out of the office for 12 weeks. She plays a pivotal part in the front desk operations. The HR director partners with an employment agency to provide temporary staffing. 

All the following statements are true except:

  • The company's payroll and benefits will increase

  • Temporary staffing answers quick hiring needs

  • Temporary staffing allows the company to minimize operational disruption

  • Temporary staffing allows the company to determine whether the replacement is a good fit for a potentially permanent position

Correct answer: The company's payroll taxes and benefits will increase

When organizations partner with employment agencies, the employee agency takes care of the payroll withholding and tax preparation, and it charges the organization a rate for contracting the help.  

197.

JFK Paving has a strong customer service and centric reputation. The paving crew is a mix of long-tenure employees and newly hired employees. An incident occurred where a white foreman and a Black employee were having a heated discussion involving yelling and threats of violence on a job site. A customer witnessed the exchange and called the office expressing their frustration and disappointment. The operations manager comes to you, the HR director, for help. 

How should the HR director address this situation using diversity and inclusion principles to prevent similar issues?

  • Implement diversity and inclusion training that addresses cultural sensitivity, promotes respect among all employees, and launches strategies that create a more inclusive work environment

  • Focus only on disciplinary action for the individuals involved without addressing broader diversity and inclusion training

  • Increase customer service efforts while ignoring the underlying diversity and inclusion issues within the team

  • Allow the individuals involved to handle their own conflicts without additional diversity and inclusion support

Correct answer: Implement diversity and inclusion training that addresses cultural sensitivity, promotes respect among all employees, and launches strategies that create a more inclusive work environment

Effective leadership involves guiding and managing teams through challenges while fostering a positive and inclusive work environment. By implementing diversity and inclusion training, the HR director is demonstrating leadership in addressing and promoting respect and creating a harmonious workplace. This approach shows leadership in proactively preventing future issues and reinforcing company values.

198.

What is the formula for a new hire’s break-even point?

  • Monthly value of new hire on the job/cost of recruiting and hiring

  • Costs of recruiting/new hire value

  • Costs of recruiting/number of new hires

  • Value of new hire on the job/turnover costs

Correct answer: Monthly value of new hire on the job/cost of recruiting and hiring

The break-even point for new hire retention is how long it takes to cover the cost of recruiting and hiring for a position in the organization’s structure. It can help measure retention after the employee's hire date. This formula helps keep employees long enough to earn a return on investment

199.

What is recruiting?

  • Actively seeking talent and encouraging such talent to apply for open positions

  • Hiring people 

  • Posting job descriptions 

  • Providing an offer 

Correct answer: Actively seeking talent and encouraging such talent to apply for open positions

Recruiting seeks out talent and encourages them to apply. Hiring is not part of the recruitment process. 

Posting job descriptions and providing an offer are only parts of the recruiting process. 

200.

What is the definition of risk tolerance?

  • The trade-off between positive and negative outcomes  

  • The maximum financial investment a company can make in new projects

  • Specific legal requirements a company must follow to remain compliant with industry regulations

  • The average number of hours employees are willing to work overtime each week.

Correct answer: The trade-off between positive and negative outcomes  

Risk tolerance is defined as the trade-off between positive and negative outcomes. The other options do not meet this definition.