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SHRM CP EXAM STUDY QUESTIONS &
ANSWERS 100% CORRECT
1. Career Planning
ANS Actions & activities that individuals perform in order to give direction to their work lives.
2. Brain drain
ANS Exit of educated & skilled citizens from emerging & developing countries for better paying jobs in developed countries.
3. Auditory learners
ANS People who learn best by relying on their sense of hearing.
4. Andragogy
ANS Study of how adults learn.
5. Cost-of-living adjustment (COLA)
ANS Pay adjustment given to eligible employ- ees regardless of performance or organizational profitability; usually linked to inflation.
6. Compa-ratio
ANS Pay rate divided by the midpoint of the pay range.
7. Broadbanding
ANS Combining several salary grades or job classifications with narrow pay ranges unto one brand with a wider salary spread.
8. Behavioral interview
ANS Type of interview that focuses on how applicants previ- ously handled real situations.
9. Applicant tracking software (ATS)
ANS Software that provides an automated way for organizations to manage the recruiting process.
10. Developmental activities
ANS Activities that focus on preparing employees for future responsibilities while increasing their capacity to perform their current jobs.
11. Compensation
ANS All financial returns (beyond any benefits payments or ser- vices), including salary and allowances.
12. Career development
ANS Process by which employees progress through a series of stages in their careers, each of which is characterized by relatively unique, themes, and tasks.
13. Benefits
ANS Payments or services provided to employees to cover issues such as retirement, health care, sick pay/disability schemes, life insurance, and paid time off.
14. Apprenticeship
ANS Related to technical skills training; often a partnership be- tween employers and unions.
15. Competency-based interview
ANS Type of interview in which the interviewer asks questions related to competencies for the position and asks candidates to provide examples of times
24. Vision statement
ANS Vivid, guiding image of an organization's desired future, the future it hopes to attain through its strategy.
25. Organizational values
ANS Beliefs that are important to an organization and often dictate employee behavior.
26. Strategic fit
ANS A state in which an organization's strategy is consistent with its external opportunities and circumstances and its internal structure, resources, and capabilities.
27. Strategic management
ANS The actions that leaders take to move their organiza- tions toward those goals and create value for all stakeholders.
28. Strategic planning
ANS The process of setting goals and designing a path toward a competitive position.
29. Metrics
ANS Performance parameters based on the relationship between 2 or more measures.
30. Mission statement
ANS Statement that specifies what activities an organization intends to pursue and what course management has carted for the future; a concise statement of its strategy.
31. Net profit margin
ANS Ratio of net income (gross sales minus expenses and taxes) to net sales.
32. Organizational culture
ANS The basic beliefs and customs shared by members of an organization that contribute to an organization's sense of its identity.
33. Income statement
ANS Statement that reports revenues, expenses, and net in- come (profit) for a specified period.
34. Lagging indicator
ANS Type of metric that describes an activity that has already occurred.
35. Leading indicator
ANS Type of metric that describes an activity that can change future performance and indicate higher degree of success in achieving strategic goals.
36. Liabilities
ANS Organization's debts and other financial obligations.
37. Due diligence
ANS Necessary level of care and attention that is taken to investi- gate an action before it is taken.
38. Environmental scanning
ANS Process that involves a systematic survey and interpretation of relevant data to identify external opportunities and threats and to assess how these factors affect the organization currently and how they are likely to affect the organization in the future.
39. Equity
ANS Amount of owners' or shareholders' portion of a business.
48. Balance sheet
ANS Statement that reports the financial position of the organiza- tion at a specific point in time; shows assets, liabilities, and shareholder equity.
49. Vicarious liability
ANS Legal doctrine under which a party can be held liable for the wrongful actions of another party.
50. Weingarten rights
ANS Union employees' right in U.S. to have a union represen- tative or coworker present during an investigatory interview.
51. Worker Adjustment and Retraining Notification (WARN) Act
ANS U.S. act that requires some employers to give a minimum of 60 days' notice if a plant is to close or is mass layoffs will occur.
52. Workweek
ANS Any fixed, recurring period of 168 consecutive hours (7 days time 24 hours = 168 hrs)
53. Uniform Guidelines on Employee Selection Procedures
ANS Procedural docu- ment designed to assist employers in complying with federal regulations prohibiting discrimination.
54. Uniformed Services Employment and Reemployment Rights Act (USER-
RA)
ANS U.S. act that protects the employment reemployment, and retention rights of persons who serve or have served in the uniformed services.
55. Vesting
ANS Process by which a retirement benefit becomes nonforfeitable.
56. Veto
ANS Action of rejecting a bill or statute.
57. Stakeholders
ANS All those affected by an organization's social, environmental, and economic impact shareholders, employees, customers, suppliers, regulators, and local communities.
58. Sustainability
ANS Practices that balance economic, social, and environmental interests to secure the interests of present and future generations.
59. Totaization agreements
ANS Bilateral agreements entered into by many countries to eliminate double taxation for individuals on international assignments.
60. Triple bottom line
ANS Economic, social, and environmental impact metrics used to determine an organization's success.
61. Risk management
ANS Identification, evaluation, and control of risk that may affect an organization, typically incorporating the use of insurance and other strategies.
62. Risk position
ANS An organization's desired gain or acceptable loss in value.
ANS A rule or order issues by an administrative agency; often has the force of law.
71. Repatriation
ANS Process of reintegrating employees back into the home country after an assignment; includes adjustment to the new job and readjustment to the home culture and conditions.
72. Residual risk
ANS Amount of uncertainty that remains after all risk management efforts have been exhausted.
73. Protected class
ANS People who are covered under a particular federal or state anti- discrimination law.
74. Prudent person rule
ANS States that an Employee Retirement Income Security Act plan fiduciary has legal and financial obligations not to take more risks when investing employee benefit program funds than a reasonable knowledgeable, prudent investor would under similar circumstances.
75. Public comment period
ANS Time allowed for the public to express its views and concerns regarding an action of an administrative agency.
76. Quid pro quo harassment
ANS Type of sexual harassment that occurs when an employee is forces to choose between giving in to a superior's sexual demands and forfeiting an economic benefit such as a pay increase, a promotion, or continues employment.
77. Portal-to-Portal Act
ANS U.S. act that defines what is included as hours worked and is therefore compensable and a factor in calculating overtime.
78. Pregnancy Discrimination Act
ANS U.S. act that prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions.
79. Principal-agent problem
ANS Situation in which and agent (e.g. an employee) make decisions for a principal (e.g. an employer) potentially on the basis of personal incentives that may not be aligned with the agent's incentives.
80. Process alignment
ANS Extent to which underlying operations such as IT, finance, or HR integrate across locations.
81. Overtime pay
ANS Required for nonexempt workers under U.S. Fair Labor Stan- dards Act at 1. time the regular rate of pay for hours worked over 40 in a workweek.
82. Patient Protections and Affordable Care Act (PPACA)
ANS 2010 U.S. law the requires virtually all citizens and legal residents to have minimum health coverage and requires employers with more than 50 full-time employees to provide health coverage that meets minimum benefit specifications or pay a penalty.
83. Pension Benefit Guaranty Corporation (PBGC)
ANS Set up by U.S. Employee Retirement Income Security Act to insure payment of
89. NLRB v. Weingarten
ANS Landmark 1975 U.S. labor relations case the dealt with the right of a unionized employee to have another person present during certain investigatory interviews.
90. Nonexempt employees
ANS Employees covers under U.S. Fair Labor Standards Act regulations, including minimum wage and overtime pay requirements.
91. Occupational illness
ANS Medical condition or disorder, other than one resulting from an occupational injury, caused by exposure to environmental factors associ- ated with employment.
92. Occupational injury
ANS Injury that results from a work-related accident or expo- sure involving a single incident int he work environment.
93. National Defense Authorization Acts (NDAA)
ANS U.S. acts that expanded FMLA leave for employees with family members who are covered members of the military.
94. National Federation of Independent Business v Sebelius
ANS U.S. Supreme Court ruling that Patient Protections and Affordable Care Act requirement that individuals purchase health insurance was constitutional but that requirement that states expand Medicaid was not.
95. National Labor Relations Act (NLRA)
ANS U.S. act that protects and encourages the growth of the union movement. The act established workers rights to organize and bargain collectively with the
employers; also known as the Wagner Act.
96. National origin
ANS Refers to the country (including those that no longer exist) of one's birth or of one's ancestors' birth.
97. Low-context culture
ANS Society in which people tend to have many social con- nections but of shorter duration and where behavior and beliefs may need to be described explicitly so that those coming into the cultural environment know how to behave.
98. Merger/acquisition (M&A)
ANS Combination of 2 separate firms either by their joining together as relative equals (merger) or by one acquiring the other (acquisi- tion).
99. Moral hazard
ANS Situation in which one party engages in risky behavior knowing that is is protected against the risk because another party will incur any resulting loss.
100. Multinational enterprise (MNE)
ANS Organization that owns or controls produc- tion or services facilities in one or more countries other than the home country.
108. Labor-Management Reporting and Disclosure Act (LMRDA)
ANS U.S. act that protects the rights of union members from corrupt or discriminatory labor unions; also known as Landrum-Griffin Act.
109. Hostile environment harassment
ANS Occurs when sexual or other discrimina- tory conduct is so severe and pervasive that it interferes with an individual's per- formance; creates an intimidating, threatening, or humiliating work environment; or perpetuates a situation that affects the employee's psychological well-being.
110. Identity alignment
ANS Extent to which diversity is is embraced in management of people, products/services, and branding.
111. Immigration Reform and Control Act (IRCA)
ANS U.S. act that prohibits dis- crimination against jobs applicant on the basis of national origin or citizenship; establishes penalties for hiring illegal aliens and requires employers to establish each employee's identity and eligibility to work.
112. Inclusion
ANS Extent to which each person in an organization feels welcomed, respected, supported, and valued as a team member.
113. Governance
ANS System of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and its own codes of conduct.
114. Griggs v Duke Power
ANS U.S. case that recognized adverse impact discrimina- tion.
115. Hazard
ANS Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness.
116. High-context culture
ANS Society or group where people have close connec- tions over a long period of time and where many aspects of behavior are not made explicit, because most members know what to do and thing from years of interaction.
117. Global integration (GI) strategy
ANS Globalization strategy that emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations.
118. Global remittances
ANS Monies sent back home by migrants working in foreign countries.
119. Globalization
ANS Growing interconnectedness and interdependency of coun- tries, people, and companies.
120. Glocalization
and part-time workers in the private sector and in federal, state, and local govern- ments.
127. Family and Medical Leave Act (FMLA)
ANS U.S. act that provides employees with up to 12 weeks of unpaid leave to care for family members or because of a serious health condition of the employee.
128. Faragher v. City of Boca Raton
ANS U.S. court ruling that distinguished between supervisor harassment that results in tangible employment action and supervisor harassment that does not.
129. Equal Pay Act (EPA)
ANS U.S. act that prohibits wage discrimination by requiring equal pay for equal or "substantially equal" work.
130. Ethics
ANS Set of behavioral guidelines by which all directors, managers, and employees of an organization are expected to behave to ensure appropriate moral and ethical business standards, typically beyond the letter of the law.
131. Exempt employees
ANS Employees who are excluded from U.S. Fair Labor Standards Act minimum wage and overtime pay requirements.
132. Fair and Accurate Credit Transactions Act (FACT Act)
ANS U.S. act that pro- vides some relief to employers using third parties to conduct workplace investiga- tions.
133. Employee Retirement Income Security Act (ERISA)
ANS U.S. act that estab- lished uniform minimum standards for employer-
sponsored retirement and health and welfare benefit programs.
134. Employees
ANS Individuals who exchange work for wages or salary; in the U.S. workers who are covered by Fair Labor Standards Act regulations as determined by the IRS.
135. Employment practices liability insurance (EPLI)
ANS Type of liability insurance covering an organization against claims by employees, former employees, and em- ployment candidates alleging that their legal rights in the employment relationship have been violated.
136. Equal Employment Opportunity Act
ANS U.S. act that amended Title VII and gave the Equal Opportunity Commission authority to implement its administrative findings and conduct its own enforcement litigation.
137. Drug-Free Workplace Act
ANS U.S. law that requires federal contractors with contracts of $100,000 or more as well as recipients of grants from federal gov- ernment to certify they are maintaining a drug-free workplace.
