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SHRM CERTIFICATION EXAM REVIEW
QUESTIONS & ANSWERS 100% CORRECT
1. What kind of culture includes intangibles like beliefs, attitudes, and val-
ues? ANS Implicit
2. What should be considered prior to terminating a long-term employee who
has been previously successful? ANS Transfer
3. What is the primary reason to develop workforce diversity programs?
ANS In- crease productivity
4. What are the five compensable factors?
ANS SEWRS (supervision, effort, work- ing conditions, responsibility, skills)
5. What financial benefit does an employer reap in providing incentive pay
rather than an increase in base pay? ANS Does not add to the salary burden
6. What are work stoppages that are neither sanctioned nor stimulated by a
union? ANS Wildcat
7. What concept holds that an organization operates within a complex envi-
ronment affected by and affecting different interests? ANS Stakeholder theory
8. What principle provides that employees should be treated fairly, given
clear expectations, and provided an opportunity to defend themselves for a dischargeable offense? ANS Due process
9. The evaluation level of learning marks changes in what?
ANS Knowledge
10. What time period(s)' needs are addressed in an organizational needs
assessment? ANS Present and future
11. What strategy primarily emphasizes the organization's needs when con-
sidering an employee's career path? ANS Career management
12. What budgeting method categorizes according to enterprise activities as
opposed to standard departments? ANS Activity-based
13. What is the role of HR when conducting an investigatory interview?
ANS Risk manager for the organization
14. What branding proposition answers the question why a talented person
would want to work here? ANS EVP (Employee Value Proposition)
15. What should be HR's relationship with the corporate attorney?
ANS Proactive and reactive
16. This good type of conflict means team members argue about how work
should be done and how to best measure success. ANS Task
18. What is the best way to increase confidence in stakeholders regarding
business continuity and disaster recovery? ANS Training (drilling)
19. Why would you want to perform benefits needs assessment?
ANS It is key to attracting and retaining talent
20. What key determination must be made prior to outsourcing a function?
ANS If it is a core competency.
21. What is the capacity to recognize, interpret, and behaviorally adapt to
different global mindsets and customs? ANS Cultural Intelligence
22. What might you do prior to initiating a major, sweeping, controversial
change initiative? ANS Pilot program or focus group
23. When considering a RIF (reduction in force), what offer might be made?-
ANS To volunteer
24. These provide leader with high-level, real-time metrics often configurable
to make correlations with strategic goals clear. ANS Dashboards
25. What is revealed when leaders see a danger but decide not to address it?
ANS Risk Tolerance
26. What leadership theory suggests that group performance depends on the
situation favorableness which in turn is based on leader-member relations, task structure, and position power? ANS Contingency (Fiedler)
27. What must be shown to upper management in order to make a good
business case? ANS Impact on strategic goals
28. What is the best argument in favor of any efforts to increase employee
retention? ANS Turnover and talent shortages affect performance
29. What kind of global industrial relationship allows labor relationship to be
managed entirely by the local subsidiary? ANS Hands off
30. What legal doctrine says employers are responsible for the discriminato-
ry acts of their employees? ANS Vicarious liability
31. What tool would help HR identify its own effectiveness in mitigating risks
from employment-related legal actions? ANS HR audit
32. According to the Immigration Reform and Control Act, what two things
must an employer check for when hiring? ANS Identify and right to work
33. What law defines a "mass layoff" as a non-plant closing during which 500
ftes (full time employees) or 33% of an active workforce of 50 or more
ANS Fulfillment
42. This legal system, the most prevalent in the world, applies abstract rules
to specific situations. ANS Civil law
43. Of what geographical risks should an expatriate be apprised?
ANS Coun- try-specific
44. Heterogenous produce more creative ideas over time but only if what?
ANS -
They are managed well
45. What can be expected if an employee gets job satisfaction from a function
that is suddenly outsourced? ANS Decline in morale and motivation
46. What kind of organization knows how to manage change and adapts to its
environment? ANS Learning organization
47. This workforce planning strategy takes a long-range, global view of how to
create a sustainable source of new leaders. ANS Succession planning
48. This metric allows organizations to assess intangibles such as internal
processes, customers, and learning and growth as well as finances. ANS Bal- anced scorecard
49. This document is a formal statement of principles and business prac-
tices. ANS Code of conduct
50. What is the first thing an organization should do if they fear their employ-
ees are being lured away by more money elsewhere? ANS Conduct a compensa- tion analysis
51. If HR is rolling out a major change initiative, what might HR do instead of
relying on possibly inconsistent communications by the managers? ANS Create a presentation to be used
52. What is the principle way of addressing internal equity of compensation?-
ANS Job evaluation
53. How can technology best improve communications with employees?
ANS -
Accessability and ability to personalize
54. What kind of employees are appropriate where workforce needs are tied to
annually recurring periods and employees need to be hired quickly. ANS Sea- sonal
55. These programs focus on expertise sharing and reducing organizational
understanding loss due to attrition. ANS Knowledge management
56. A global company concerned with consistency among locations will
likely use this approach to goal-setting. ANS Global integration/upstream
57. Why is it more important to understand turnover FIRST in terms of the
specific organization's history rather than general industry trends?
66. Top management commitment is required in order for effective results
from this EI strategy of encouraging proactive dialogue by employees with their managers. ANS Open door
67. This recruitment method allows employers to pinpoint qualified internal
candidates with a current interest for open jobs. ANS Job posting
68. What document gives a permission to take a job in a country?
ANS Work permit
69. This type of needs analysis would identify departments with high
turnover or skill deficiencies. ANS Organizational
70. What would be a good first thing to do to research whether there was
justification for differences among compensation rates in different global locations? ANS Market analysis (salary survey)
71. For maximum effectiveness, what type of employees should be exten-
sively coached? ANS High-potential
72. What risk does SHRM think is increased by unreasonable pressure for
productivity, rigid management style, and layoffs? ANS Workplace violence
73. Generally, how should mixed feedback be given?
ANS Privately and first good then bad
74. What are the treaties that eliminate the requirement that an international
assignee and the employer participate in two separate social security pro- grams? ANS Totalization agreements
75. What is generally the best way to protect sensitive corporate data when
electronically transmitted? ANS Encryption
76. Why is it important to assess an employee's allegiance to his home
culture prior to expatriation? ANS To assess whether he will engage in shared experiences, thereby enhancing CI (cultural intelligence).
77. How can HR BEST help (for the long-term) two departments that are in
conflict? ANS Work with them to develop strategic goals and plans
78. Why would a company have nonqualified deferred compensation plans?-
ANS As incentives to key executives
79. This kind of OD initiative focuses on job design, work-flow analysis,
technology implementation, and system change. ANS Work process
intangibles like good will, flexibility & resilience, in addition to money (tangible)
88. Succession planning
ANS Long term
89. Replacement planning
ANS Short term
90. Job evaluation
ANS Worth of a job
91. What makes chance of workplace violence worse?
ANS Unreasonable de- mands
92. What is a learning organization
ANS One that is able to manage change
93. If you outsource something an employee likes, what will happen?
ANS Morale & motivation will go down
94. Career management
ANS Career management involves preparing, implementing, and monitoring employees' career paths, with a primary focus on the goals of the organization.
95. Career planning
ANS employee
96. Career development
ANS 2 way dialogue looking for the sweet spot between career management (organization) & career planning (employee)
97. What is a bigger bang for your buck in terms of succession planning
ANS -
Coach high potential employees
98. If you have to tell an employee that there are things they do well and
things they don't do well... ANS Tell them privately, and tell them the good first
99. Value Chain
ANS The things you do to achieve success. The Big O.
100. Common Law
ANS Based on precedents; previous cases
101. Civil Law
ANS Based on statutes, rules, regulations & can change quickly
102. Risk Tolerance
ANS If management knows there is a potential problem and is not willing to address it
103. The type of budget SHRM likes where you budget for the project
ANS Activity Based
104. The type of budget that must justify to the big O (SHRM's favorite)
ANS -
Zero-based
105. What do you talk about to an expatriate?
ANS Specific risks, culture
117. Vicarious Liability
ANS Employers held accountable for what employees do
118. Business Case
ANS If you are trying to sell a proposal; Show tied to strategic goals and ROI
119. Why is turnover such a bad thing?
ANS Cost & Morale
120. What should you do when you will have a reduction in force (RIF)
ANS Ask for volunteers
121. What is the most important reason to complete a risk assessment?
ANS To develop management tactics for strategic and operational risks. The primary out- come of a risk assessment is to give organizations the information they need to develop an efficient and effective program that manages strategic and operational risk across the organization.
122. What type of engagement is evident in the effort an employee puts into
his or her job? ANS Behavioral engagement is evident in the effort employees put into their jobs, which leads to greater value, creating higher performance than from less-engaged employees.
123. What is most critical to the effectiveness of performance management
systems? ANS Clarity of performance standards. Clear communication of perfor- mance standards is the basis of an effective process. Behavior that is expected and evaluated must be communicated clearly.
124. What is the correct term for the right of an individual worker to unite
with other workers to promote desired employment conditions as a group?
