SHRM-CP Post Test/ HR Competencies
What budgeting method is based on how much it costs to perform different enterprise activities and allocates funding according to the strategic significance of the activities?
Activity-based. Activity-based budgeting recognizes the interrelationships among various activities required to create value in an organization. Depending on how much different enterprise activities cost to perform, funding may be allocated based on the activity's strategic significance. For more information, refer to Module Organization, Functional Area 5, Section 2
How would an organization's use of zero-based budgeting affect the human resources budget?
All expenditures must be justified. In an organization using zero-based budgeting, each function, including HR, begins with zero funds and must justify the strategic importance of each item in its budget. Funds are not carried over. Budgets are not necessarily frozen or decreased but could increase, especially if new projects are deemed strategically important. For more information, refer to Module Organization, Functional Area 5, Section 2
What is the most complete definition of the term "duty of care"?
An employer takes all steps reasonably possible to ensure employee health and safety. The most complete answer reflects an employer's responsibility to take all reasonably possible steps to support employee health and safety and prevent harm, whether they are in the workplace or on assignment. This may involve but is not restricted to providing access to health care and complying with regulatory requirements. For more information, refer to Module Workplace, Functional Area 12, Section 2
Which recent technological innovation is essential to HR in maintaining compliance?
Electronic record keeping- With the electronic retention of employee files and other employment-related records, electronic record keeping helps HR comply with legal requirements without having to provide physical storage space for paper records. For more information, refer to Module Organization, Functional Area 9, Section 1
Your organization needs to integrate functions and data for customer relationship management, manufacturing resource planning, finance, supply chain, and human resources. What type of technology would you implement?
Enterprise resource planning (ERP) system- An ERP system is an integrated information system that serves all departments in an organization. Such a system typically includes software for functions such as customer relationship management, manufacturing resource planning, finance, supply chain, and human resources.
What are the three spheres of sustainability?
Environmental, social, economic- The term "sustainability" originally referred to an ecological or environmental goal. Now that focus has expanded to also consider an organization's social and economic impact (sometimes referred to as the 3Ps: people, planet, profits). For more information, refer to Module Workplace, Functional Area 13, Section 3
Extraterritoriality
Extension of the power of a country's laws over its citizens outside that country's sovereign national boundaries.
A university is beginning its budget planning process. Due to cutbacks in state aid, every department must cut its budget by 3%. What is this budgeting method called?
Formula budgeting- In formula budgeting, a specific cost is applied to calculate funding. This method applies an average cost to comparable expenses, and general funding is increased or decreased by a specific amount. For more information, refer to Module Organization, Functional Area 5, Section 2
What is the term for the system of rules and processes an organization puts in place to ensure adherence to laws, rules, ethical norms, and environmental and social codes of conduct?
Governance. Governance is the system of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct. Good governance is the outcome of a thoughtful assessment of an enterprise's legal, ethical, and civic obligations to the communities it serves and the development of systems that support fulfillment of these obligations. For more information, refer to Module Workplace, Functional Area 13, Section 2
What is an example of indirect compensation?
Granting compensatory time off to a salaried employee for extra hours worked at a convention- Compensatory time off is considered indirect compensation. Cash recognition and achievement awards (gift cards), overtime pay, and cash bonuses are all considered direct compensation. For more information, refer to Module People, Functional Area 4, Section 1
A company is experiencing problems with back orders despite the fact that it has moved to larger facilities and doubled its workforce. Customers are dissatisfied with slow shipments and shipping errors. Which phase of its organizational evolution is the company experiencing?
Growth- The growth phase is characterized by change and expansion in terms of facilities, marketing, and people. These resources are needed to keep up with the demand for products or services. This phase is often accompanied by backlogs and scheduling problems while the organization adjusts to increased demands. For more information, refer to Module Competencies, Functional Area 0, Section 4
Which characteristic is representative of an ethnocentric approach to global staffing?
Headquarters-country staffing policies are replicated in each country. An ethnocentric approach is one in which home-country personnel manage all operations and home-country staffing policies are replicated in host countries. In this approach, internally recruited headquarters-country assignees fill key management positions. This approach tends to weaken the long-term strength of the organization, because it does not sufficiently recognize the contributions of local talent and the value of cultural differences.
HR is recruiting for a job that requires a high degree of accuracy. A mistake made by a worker could be dangerous and costly. What feature would be most important in a pre-employment test for this position?
High validity- Validity indicates that there is linkage between test performance and job performance. A selection tool that offers high validity is important, because hiring an unqualified worker for this position would present a risk and the potential for a costly situation.
Which definition best describes the concept of a stakeholder?
A stakeholder is anyone who shares in the value of an organization and its activities. A stakeholder has an interest in the operation, value, and activities of an organization, although this interest may or may not be financial or contractual. A stakeholder is a participant in receiving value directly or indirectly. For more information, refer to Module Competencies, Functional Area 0, Section 4
Validity
Ability of an instrument to measure what it is intended to measure.
Reliability
Ability of an instrument to provide results that are consistent.
Business Intelligence
Ability to gather and analyze data from inside and outside the organization so that information is available for decision makers.
Global Mindset
Ability to take an international, multidimensional perspective that is inclusive of other cultures, perspectives, and views.
Ethical Universalism
Concept that argues that there are fundamental ethical principles that apply across cultures.
Due Process
Concept that laws are enforced only through accepted, codified procedures.
Rule of Law
Concept that stipulates that no individual is beyond the reach of the law and that authority is exercised only in accordance with written and publicly disclosed laws.
What is a traditional measure of recruiting costs?
Cost of hire- Cost of hire or cost per hire is a traditional measure of recruiting costs. It is determined by taking the total cost associated with recruiting and dividing it by the number of new employees. It is used to provide recruiting cost projections for budget planning.
What is the basis of common law?
Court decisions- Common law is based on court decisions and customs. It dictates that custom and usage have the force of law, even if not specifically found in legislatively enacted, codified written laws.
An organization uses information provided by experts to predict future industry trends. What is the name for the form of judgmental forecasting in which experts take turns presenting their assumptions and refining a composite but never meet?
Delphi technique- The Delphi technique is the only technique in which members work as a group without ever meeting. Managerial estimates and trend analysis are generally completed by individuals and presented to management. The nominal group technique requires face-to-face meetings. For more information, refer to Module Organization, Functional Area 7, Section 1
During workforce planning, HR determines that 20 new employees will be needed to achieve organizational plans for growth in global markets. This determination is part of which area in a workforce analysis process?
Demand analysis- Demand analysis forecasts an organization's future workforce composition and considers the number of employees and the skills required to meet organizational goals. For more information, refer to Module Organization, Functional Area 7, Section 1
The Center for Creative Leadership, after 30 years of research, designed a model of learning called the 70-20-10 rule. The rule proposes that to develop managers it is important to engage them in three clusters of experience, using a 70-20-10 ratio. What type of experience does the "70" in the ratio stand for?
Developmental relationships- Assignments that are challenging and sequenced to provide learning advance the development of high-potential employees as well as adults in general. To develop managers, it is important to engage them in three clusters of experience, using a 70-20-10 ratio: challenging assignments (70%), developmental relationships (20%), and coursework and training (10%). For more information, refer to Module People, Functional Area 3, Section 5
A nonselected job candidate challenges the outcome of a selection test. What is the best piece of evidence the organization can present in a legal defense of the selection decision?
Documentation of the test's validity- For a test to be used in a selection process, it must be reliable and valid. For more information, refer to Module Competencies, Functional Area 0, Section 4
An organization is expanding operations into a new country. What acronym best describes the factors to consider during environmental scanning and strategic planning
PEST analysis- PEST is an acronym for political, economic, social, and technological factors organizations may consider when expanding operations, particularly into a new country or region.
An organization's state mandates a $2.00 per hour increase in the minimum wage. As the company implements the change, new hires will now be started at the same wage as workers who have been on the job for two years. What type of pay variation does this exemplify?
Pay compression- Pay compression, or salary compression, describes situations where there is only a small difference in pay between employees regardless of their experience, skills, level, or seniority. Pay compression can occur if the labor market, inflation, or some other reason causes market pay increases to rise faster than the employer's pay adjustments.
A manager and an employee are working together to develop objectives and goals for the employee to attain. Which phase of the employee life cycle does this represent?
Performance management- HR and management typically work collaboratively with the employee to develop performance objectives and goals in conjunction with performance evaluation.
An organization treats each of its subsidiaries as its own entity. Local personnel manage the operation, and there is little cross-border movement of talent. In terms of its staffing, this is an example of what type of organization?
Polycentric- In polycentric organizations, headquarters-country personnel have little impact on other countries. Talent acquisition policies are unique to each country, and there is little cross-border movement of talent and skills. For more information, refer to Module People, Functional Area 1, Section 1
What is the best way for an HR professional to persuade a function to embrace changes in work processes that are part of an organizational effectiveness intervention?
Present the changes as necessary to maintaining competitiveness. Change is difficult, so if organizational effectiveness and development initiatives are presented as a way to increase the competitiveness of the company or advance strategic goals, HR may gain better workforce support of the initiative.
Scenario/ What -if Analysis
Statistical method used to test the possible effects of altering the details of a strategy to see if the likely outcome can be improved.
What is the purpose of "sensing meetings" in the organizational effectiveness and development process?
Sustaining change- "Sensing" meetings are opportunities to check in on group reactions to an initiative after it has been implemented. They can provide early indications that additional steps may be required. For more information, refer to Module Organization, Functional Area 6, Section 4
What term is used to describe traditionally higher-level leadership responsibilities being transferred to leaders at lower levels?
Task migration- Task migration occurs when traditionally higher-level leadership responsibilities are transferred to leaders at lower levels. This is partly a function of the trend toward flatter organizations, but it is also due to the greater speed and complexities of challenges. What was typically handled by senior leaders in the past has been handed down to junior leaders so the former can focus on even more complex issues. For more information, refer to Module People, Functional Area 3, Section 5
When comparing wages within a group, the most frequently occurring wage is called the
mode- The mode is the most frequently occurring wage, the median is the middle number in the range, and the mean is the average score (weighted or unweighted). For more information, refer to Module Competencies, Functional Area 0, Section 4
Cultural Relativism
Concept that argues that ethical behavior is determined by local culture, laws, and business practices.
Regression Analysis
Statistical method used to determine whether a relationship exists between variables and the strength of the relationship.
What is the weighted average of the following salaries? $20,000 (2 incumbents) $30,000 (1 incumbent) $35,000 (2 incumbents) $40,000 (1 incumbent)
$25,000- The weighted average takes into consideration the number of incumbents who receive each salary: ($20,000 x 2) + ($30,000 x 1) + ($35,000 x 2) + ($40,000 x 1) = $180,000; $180,000 / 6 = $30,000
An employee files a grievance with the immediate supervisor claiming that a contract violation has occurred. The union steward agrees. What is the next step in the process?
A department head and higher-level union official discuss the grievance.- The grievance is written and reviewed by an intermediate manager or department head and a higher-level union official. At this stage, the grieving employee is not present and is represented by the union. The grievance must be settled within the time frame established by the contract, or it is elevated to the next level. For more information, refer to Module Organization, Functional Area 8, Section 3
Intercultural wisdom
Capacity to recognize, interpret, and behaviorally adapt to multicultural situations and contexts; also called cultural intelligence
What would be examples of perquisites?
Company cars and club memberships- Perquisites are compensation provided on an individual basis in the form of goods or services. Included in this category are company automobiles, club memberships, and the like. For more information, refer to Module People, Functional Area 4, Section 4
What is the relationship between diversity and inclusion?
Inclusion enables an organization to leverage the strategic value of diversity. Diversity provides the potential for greater innovation and creativity. Inclusion is what enables organizations to realize the business benefits of this potential. Diversity and inclusion, then, are two halves of the whole.
17. What does the final stage of both Kurt Lewin's and John Kotter's models of change management involve?
Making the change part of the organization- The final stage in these models of change management is to institutionalize the change, or "refreeze" the organization.
An organization is developing a corporate social responsibility (CSR) strategy. At which two stages of the CSR strategic process is it likely to find the GRI G4 Guidelines most useful?
Initial assessment; measurement, reporting, and evaluation- The G4 Guidelines are useful in at least two steps in the strategic process. At the initial assessment stage, the G4 Aspects provide a template for determining the organization's current conditions and needs. At the later measurement and evaluation stage, the G4 Guidelines provide the metrics needed for meaningful progress evaluation. For more information, refer to Module Workplace, Functional Area 13, Section 5
What is the correct positioning of an HR strategy?
It cascades from the organization's corporate strategy. The HR strategy is a macro element of the organization's vision. It is a core element of all parts of the organization.
In global staffing, why is it important to use a common approach for analyzing and describing jobs?
It facilitates communication and decision making about jobs.- Defining jobs consistently and clearly, in a common language, is important in a global environment because it establishes a common understanding of the jobs that need to be filled and the skills and experience necessary for those jobs. It also facilitates communication and decision making about jobs across different cultures.
What can be said about a customer service sales associate selection test that successfully measures essential job-related skills and abilities?
It is valid. A valid test accurately reflects the content of the job. The skills and aptitudes required for successful exam performance are aligned with the skills and aptitudes required for successful job performance.
An applicant scored in the 95th percentile on a job knowledge test. Because the interviewer questioned the results, the applicant was asked to retake the test. Again, the result was a very high score, and the applicant was hired. Three months later, it was determined that this new hire could not perform the job effectively. What can you conclude about the job knowledge test?
It was only reliable, not valid. It is imperative that HR management carefully evaluate the organization's selection process to make certain that it is reliable, valid, equitable, and cost-effective. For an instrument to provide reliability, it must have a high degree of consistency. Validity measures the degree to which inferences made from an interview or a test are correct and accurate. In other words, did the interview measure only job-related issues that predict performance on the job? Does a test measure what it was intended to measure? For more information, refer to Module Competencies, Functional Area 0, Section 4
What type of job design strategy increases the variety of responsibilities but requires the same skill level?
Job enlargement- Job enlargement attempts to alleviate the boredom and low morale associated with excessive job simplification. It increases the number of tasks to be performed, expanding the scope of the job and allowing for more variety, but all of the tasks require the same skill level. Job enrichment, which is sometimes confused with job enlargement, increases the depth of a job by adding increased responsibility for planning, organizing, controlling, and evaluation. It may improve morale but may not necessarily improve productivity. Job simplification and specialization generally reduce the number of tasks required of an employee
What part of job documentation provides a written statement of the necessary qualifications of the job incumbent?
Job specification- A job specification is a written statement of the necessary qualifications of the job incumbent. A job description is a written description of the job and its requirements. For more information, refer to Module People, Functional Area 1, Section 2
What is an example of implicit culture?
Language- Implicit culture deals with attitudes and beliefs, not tangible things like language, dress, and food. The view toward power is an example of implicit culture.
Training activities that require participants to debate employment practices may be difficult for employees from what type of culture?
Large power distance culture- In large power distance organizations, less-powerful employees accept autocratic and paternalistic structures and may be unwilling to debate or question decisions of leadership. For more information, refer to Module People, Functional Area 3, Section 3
Transformational Leadership
Leadership based on vision and strategy and focused on challenging and developing organizational members in order to attain long-range results.
Authentic Leadership
Leadership grounded in an individual's values and principles and focused on empowering others to act.
Civil Law
Legal system based on written codes (laws, rules, or regulations).
Common Law
Legal system in which each case is considered in terms of how it relates to legal decisions that have already been made; evolves through judicial decisions over time.
What is the basis of religious law?
Legislative acts Religious law is based on religious beliefs and conventions: a mixture of written codes and interpretations by religious scholars. Sharia law, the body of Islamic religious law, for example, draws from the Qur'an, traditions derived from the actions or sayings of the prophet Mohammed, and scholarly interpretations of these sources.
What is the basis of civil law?
Legislative acts. Civil law is based on legislation: written codes (laws, rules, or regulations) approved by legislative bodies. The law is applied deductively, starting from the abstract rule as stated in the nation's civil law code. For more information, refer to Module Competencies, Functional Area 0, Section 4
When designing a training program, what must a global HR professional first consider?
Local differentiation and stakeholder support- Local differentiation and stakeholder support have implications for all aspects of the training analysis, design, development, and evaluation process. It precedes the other issues mentioned. For more information, refer to Module People, Functional Area 3, Section 3
An organization erroneously withheld deductions from several exempt employees' paychecks. Under the safe-harbor provision of the Fair Labor Standards Act, what must the organization do?
Make a good-faith effort to comply in the future- A safe-harbor provision prevents an employer from losing the overtime exemption for improper pay deductions, regardless of the reason, if the employer has "a clearly communicated" policy (not necessarily in writing) and makes a good-faith effort to comply in the future.
An organization has chartered three cross-functional teams with representation from senior management, middle management, and employees. Each team has distinct goals that focus on different aspects of the customer experience. Every six weeks, the teams share their accomplishments. What approach to planning and implementing the change has the organization adopted?
Progressive- The organic approach to planning and implementing change relies on independent centers and multiple origins of the change within the organization. Points of origin can be at any level. Organic change radiates unevenly but accelerates when top leadership supports local change and leaders.
What is the term for briefer, more frequent surveys that address specific issues or are given to specific segments of the workforce?
Pulse surveys- Pulse surveys can be conducted between annual surveys and usually focus on specific issues or specific populations of employees. For more information, refer to Module People, Functional Area 2, Section 2
Key Performance Indicators (KPI's)
Quantifiable measures of performance used to gauge progress toward strategic objectives or agreed standards of performance.
Unweighted Average
Raw average of data that gives equal weight to all values, with no regard for other factors.
An organization has experienced rapid growth, outpacing its ability to respond quickly to competitive threats. Which form of restructuring will offer the best opportunity to minimize response times?
Redistribution of decision-making authority- Redistribution of decision-making authority, in this case, shifting authority downward toward line managers or outward from headquarters to field, will shorten response time. For more information, refer to Module Organization, Functional Area 6, Section 3
What practice would be recommended when measuring performance?
Reexamine occasionally what you're measuring and change it as needed. Since new or evolving strategies may require new types or levels of performance, targets for measurement should be reviewed regularly and revised as needed. Only strategically significant aspects of performance should be measured to avoid being overwhelmed with data. Measures should be mindful of both past and future performance, and data should be shared to stimulate performance improvement.
What is the term for a cultural vision that holds that there are no absolutes and everything is based on the situation?
Relativism- Relativism states that because cultures vary so greatly, there are no absolutes. Everything varies based on the situation.
If you were trying to show the relationship between employees' formal education and job performance ratings, what data analysis tool would you use?
Scatter diagram- Scatter diagrams are used to show relationships between two variables: in this case, education level and performance rating.
What graphic data analysis tool shows possible relationships between two variables?
Scatter diagram- The scatter diagram depicts possible relationships between two variables. For example, an HR professional might want to determine if there is a relationship between years of experience and income level.
What two qualities are required to achieve a global mindset?
Self-control and leadership- Having a global mindset requires imagination: being able to see the view from inside another person's multidimensional background and using that awareness to create solutions and bridges. It also requires self-awareness: recognizing the ways in which one's own background shapes one's perspective and seeing that perspective as just one among many.
Culture
Set of beliefs, attitudes, values, and behaviors shared by members of a group and passed down from one generation to the next.
Variance Analysis
Statistical method that identifies the degree of difference between planned and actual performance.
Trend Analysis
Statistical method that studies the way in which a variable may change over time.
Why is an organization using PEST analysis data much more likely to have successful talent acquisition and retention?
The PEST data helps to adapt to environmental realities. Organizations that use PEST analysis data are much more likely to be successful because the information facilitates the ability to adapt to environmental realities.
Why is it important to have well-written, accurate, and current job descriptions?
They can provide a basis for job-related performance standards. Job descriptions provide written definitions of jobs for employees. They establish standards that help to assess employee performance. For more information, refer to Module People, Functional Area 1, Section 2
What is the primary purpose of strategic planning?
To integrate organizational units and employees with a focus on business success- Strategic planning integrates the goals and activities of the major business units of an organization (finance/accounting, marketing/sales, operations, information technology, and human resources) and employees in order to achieve organizational success. Strategic planning is a process, not just a written project plan, that helps management focus on how to succeed.
Why would an HR professional use trend analysis?
To plan possible responses to changes in labor supply- As you conduct trend analysis, you seek a better understanding of how circumstances throughout the world may influence your organization. Analyzing the fit of HR-related policies to a specific country's cultural environment, creating strategic alignment, and assessing HR performance do not produce information about what will happen in the future. For more information, refer to Module Competencies, Functional Area 0, Section 4
How is Porter's "Five Forces" framework used in developing strategies?
To understand competitive industry factors that can shape strategy. Porter's "Five Forces" framework helps strategists understand the competitive forces at work in their industries so that they can assess the strengths and weaknesses of their own competitive position.
In what type of undesirable engagement do employees appear engaged, for example, by working longer hours and even responding as such in engagement surveys, but do not actually feel or think in an engaged way?
Transactional engagement. Transactional engagement can be seen as undesirable because it is associated with negative well-being outcomes. By contrast, employees not only behaving in an engaged way but also thinking and feeling engaged is associated with positive well-being outcomes. For more information, refer to Module People, Functional Area 2, Section 1
Root Cause Analysis
Type of analysis that starts with a result and then works backward to identify fundamental cause.
