SHRM-CP Exam Study Guide Latest Updated with Complete Solutions

Fishbone Diagram - ANSWER Is used to map out a list of factors that affect a problem or desired Outcome Numerical Rating - ANSWER Is a quantifiable measure of desired performance, and it serves as a target for improve ...

Fishbone Diagram - ANSWER Is used to map out a list of factors that affect a problem or desired Outcome Numerical Rating - ANSWER Is a quantifiable measure of desired performance, and it serves as a target for improvement. Organizational Needs Assessment - ANSWER Where is the training needed in the organizational level? It defines the KSAs required as the organization prepares for the future. Organizational Development (OD) - ANSWER Is a complex strategy intended to change the beliefs, attitudes, values, culture and structure of organizations so that they can better adapt to new technologies, markets, and challenges. Organizational Development methods are employed to improve Organizational Effectiveness (OE). Scatter diagram - ANSWER Quality tool that shows possible relationships between two variables. (e.g. Trend and Ratio) (e.g. to determine if there is a relationship between years of experience and income level) Sample return - ANSWER A measureable outcome as a result of a developed initiative. (e.g. An average value of increased production) Designing an OED Intervention - ANSWER Requires determining the target audience's readiness for the upcoming change. (Managers input is a way to diagnose their readiness and obtaining commitment. ) Interpersonal Strategies - ANSWER Deals with the work relationship between employees. Efforts aimed at clarifying work expectations and norms to prevent misunderstandings or conflicts. OD/ OE involves analyzing 3 areas of an organization: - ANSWER Its people, its processes, and its planning Process-related performance problem - ANSWER Impractical or outdated procedure are an example of process-related problem. Goldratt's Theory of constrains - ANSWER The greater constraints faced by organizations come from policies. Six Sigma - ANSWER Its a set of techniques and tools for process improvement. It was introduced by engineer Bill Smith while working at Motorola in 1986 Six Sigma Black Belts - ANSWER Project Leaders Six Sigma Green Belts - ANSWER Employees Organizational Structure - ANSWER The Method by which work flows through an organization. It allows group to work together within their individual functions to manage tasks. An Ombudsperson - ANSWER Is a neutral party with limited powers and cannot therefore negotiate for one party. It can investigate, the dispute, establish facts, and refer the matter, along with the evidence, to management or to other forms of ADR. Open-door policy - ANSWER Form of dispute resolution that opens the lines of communication within a company High involvement employee - ANSWER Employee involvement strategies that allow employees to participate in managing the organization. Corporate Social Responsibilities - ANSWER Is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and national or international norms. How can training evaluations best be presented to management? - ANSWER Presenting a report which shows the effect training and skill development has had on productivity Best way for an organization to determine recruiting effectiveness - ANSWER Analyze Yield Ratios Yield Ratios - ANSWER Reflects the percentage of job candidates at the beginning of a step in the recruiting/selection process who move on to the next step in the process. Matrix Organizational Structure - ANSWER Two organizational Structures exist at the same time. Fair Labor Standards Act (FLSA) - ANSWER Major Federal Law broadly regulates Compensation Trend and Ratio Analysis - ANSWER Use of statistics to determine whether relationships exist between two variables. Construct Validity - ANSWER Shows relationship between an abstract characteristic inferred by research and job performance Selection Rate - ANSWER The number hired divided by the number of applicants Hawthorne Studies - ANSWER Reveals that Environmental factors are less important than social interaction among co-workers and between supervisors and employees. Primary Research Methods examples - ANSWER Attitude Surveys, questionnaires, interviews and experiment. Broadbanding - ANSWER Combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread. It's popular with some companies because it fits their flatter organizational Structure. Competitive advantage - ANSWER A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition. A complete understanding of strategic sources must include an analysis of the strength and weakness of the organization. Expectancy theory - ANSWER The theory that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards. theory x and theory y - ANSWER Douglas McGregor. Theory X: managers believe employees inherently dislike work and therefore must be directed into performing it. Theory Y: managers assume employees can view work as being as natural as play, and therefore average person can learn to accept, and even seek responsibility. Relationship between JOB SATISFACTION/JOB PERFORMANCE - ANSWER Other factors such as rewards, mediate the relationship between satisfaction and performance Behavioral Performance Scale - ANSWER Identifies the actions that should or should not be seen on the job, used mainly for developmental feedback.. The first step towards constructing behavioral performance scales is identifying the most important performance factors in an employee's job description. The use of aptitude test in the selection process best predicts - ANSWER Training Performance Income Statement - ANSWER Financial document lists the revenues, Expenses and profits of an organization for a designated period of time. Data Mining - ANSWER the process of analyzing data to extract information not offered by the raw data alone Which data collection method would provide HR professionals investigating reasons for job turnover among employees moving from one job or department to another. - ANSWER Performance Appraisal files and personnel records Weakest tool for predicting an applicant's job performance - ANSWER Interview Critical Incidents Examples - ANSWER Keeping a record of all employees and listing significant successes and failures of each Taft-Harley Act - ANSWER passed by congress, gave states the right to pass right-to-work laws. These right-to-work laws prohibit employers from establishing union membership as a condition of employment- (Considered Pro Management) Nontaxable Indirect Compensation - ANSWER Employee discounts on employer goods or services Matrix Structure - ANSWER An organization structure that creates dual lines of authority and combines functional and product departmentalization. (Dual Chain Of Command) Maturity Stage - ANSWER A company is in the process of establishing formal compensation policies and practices. The product life cycle stage in which sales peak and then increase at a slower rate or start to decline Growth Stage - ANSWER The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy Introduction Stage - ANSWER The initial stage of a product life cycle: first appearance in the marketplace when sales start at zero and profits are negative The first step in the job analysis process entails - ANSWER Deciding how the organization will use the information collected Job Analysis - ANSWER an assessment that defines jobs and the behaviors necessary to perform them What personal qualifications necessary for performance of the job. Balanced Scorecard - ANSWER Align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals Rater Pattern Error - ANSWER One supervisor interprets performance standards differently from another supervisor, a rater pattern error is most likely to occur Scanlon Plan - ANSWER employee receive bonus if the ratio of labor costs to the sales value of production is below a set standard. The basic premise underlying this plan is that efficiency depends on teamwork and cooperation. What is the most important requirement for a qualified benefit plan in order to be eligible for favorable tax status? - ANSWER The plan must not discriminate in favor of highly compensated executives. Benchmarking - ANSWER Comparing specific measures of performance gains in "best practice" organizations. Organizational development - ANSWER Approach to organizational change in which the employees themselves formulate the change that is required and implement it, often with the assistance of a trained consultant. Transformational leaders - ANSWER Inspiring people to transcend self-interest to work for a collective vision. The best way to deal with dangerous work situation is to... - ANSWER Focus on wok design and human Nature Stakeholders concept - ANSWER An organization affects and is affected by complex interests. Discretionary effort - ANSWER employee engagement, how committed employees are to their work Gainsharing - ANSWER An incentive plan in which employees or customers receive benefits directly as a result of cost-saving measures that they initiate or participate in Decentralization - ANSWER Best works when need for collaboration within operating units Environmental Scanning - ANSWER collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. -> PEST analysis Trend Analysis - ANSWER Involves collecting information over time, attempting to find a pattern in the data, and using this pattern to make projections of future events. Trend and ratio - ANSWER Use of statistics to determine whether relationships exist between two variables. Compa-Ratio - ANSWER Pay level divided by the midpoint of the pay range. Shows whether organizations are leading or lagging the marketplace Delphi method - ANSWER a group of experts is established, but there is no interaction among them; instead, they respond by repeatedly responding to questionnaires (useful when geographically distant from one another) SWOT analysis - ANSWER Process for assessing an organization's strategic capabilities in comparison to threats and opportunities identified during environmental scanning. Needs assessment - ANSWER an assessment of which employees need training or development and what type of skills or knowledge they need to acquire Salary Compression - ANSWER When new hires are paid nearly the same as more experienced employees HR professionals scientific research - ANSWER Problem Analysis, Hypothesis formulation, data collection, data examination. Recruitment interface - ANSWER Line manager typically determines qualifications and anticipates needs. On the job training - ANSWER training that takes place in the work setting as employees perform their job tasks (Most common type of training) Replacement charts - ANSWER Graphically shows current jobholders possible successors, and each successor's readiness to assume the job affirmative action - ANSWER A policy designed to redress past discrimination against women and minority groups through measures to improve their economic and educational opportunities. It requires applicants to have the basic qualifications for the job Right-To-Work - ANSWER a measure that bans mandatory union membership Job Specification - ANSWER Spells out qualifications necessary for an incumbent to be able to perform a job. Lockout - ANSWER situation that occurs when management prevents workers from returning to work until they agree to a new contract Cross-training - ANSWER The use of a variety of exercise techniques and types to improve overall performance. HR transition strategy. Income statement - ANSWER exactly what happened during a given year what sales and expenses were as well as profits. Sales less expenses - lists profit or loss. Competency- based pay - ANSWER strategic compensation plan fosters acquisition of knowledge and skills and enhances employees' performance, satisfaction, and self-efficacy Pay for Performance P4P - ANSWER Monetary incentives tied to one's results or accomplishments. focuses attention on incentivized behavior. Employers must be able to defend performance appraisal methods and differences in salary increases Competitive Pay - ANSWER Attracts qualified job candidates Equitable exchange - ANSWER motivates willingness to contribute prescribed and voluntary performance. HR's strategic responsibilities - ANSWER 1- Participating in creating the organization's business strategy 2- aligning the HR strategy with the organization's strategy 3- Supporting other functions in their strategic roles The Fifth Discipline on Learning Organizations - ANSWER Organizations that can deliberately and strategically create their markets through self-development HR Audit - ANSWER Audits that provide information to determine the effectiveness of HR programs. With this information, successful programs can be enhanced while ineffective ones can be eliminated. The importance of the audit is that while it yields information specific to the functioning of HR programs, these programs have an organization-wide effect. Therefore, the results of the audit impact more employees than only those in the HR department. State engagement - ANSWER Facet of employee engagement that is influenced by workplace conditions or practices (e.g., task variety, opportunities to participate in work decisions) that can be improved through organizational interventions directly under management's control. Behavioral engagement - ANSWER Facet of employee engagement evident in the effort employees put into their jobs, which leads to greater value, creating higher performance than from their less-engaged counterparts. It can occur when both trait and stage engagement are present. Transactional engagement - ANSWER 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. Trait engagement - ANSWER The inherent personality-based elements that make an individual predisposed to being engaged—a natural curiosity, a desire to be involved, an interest in problem solving. Cultural determinism - ANSWER is a perspective that basically absolves individuals of any responsibility for their actions. Global HR professionals will often hear from managers in other countries that something cannot be done because of the local culture. This may call for further discussion about the supposed obstacles. Cross-cultural communication - ANSWER compares the communication styles and patterns of people from very different cultural/social structures, such as nation-states Cultural relativism - ANSWER The practice of trying to understand a culture on its own terms and to judge a culture by its own standards. the view that no culture is superior to any other culture when comparing systems of morality, law, politics, etc. It's the philosophical notion that all cultural beliefs are equally valid and that truth itself is relative, depending on the cultural environment. Those who hold to cultural relativism hold that all religious, ethical, aesthetic, and political beliefs are completely relative to the individual within a cultural identity Ethnocentrism - ANSWER The belief that one's group is of central importance, tendency to judge the practices of other groups by one's own cultural standards. Governance - ANSWER 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. Risk appetite - ANSWER The amount of risk a company is willing to accept in order to achieve its goals and objectives. This task must be accomplished before identifying and analyzing risks Maslow - ANSWER Maslow wanted to understand what motivates people. He believed that people possess a set of motivation systems unrelated to rewards or unconscious desires. 1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep. 2. Safety needs - protection from elements, security, order, law, stability, freedom from fear. 3. Love and belongingness needs - friendship, intimacy, affection and love, - from work group, family, friends, romantic relationships. 4. Esteem needs - achievement, mastery, independence, status, dominance, prestige, self-respect, respect from others. 5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences. Activity based budgeting - ANSWER budgeting approach that focuses on the budgeted cost of the activities necessary to produce & sell products & services Incremental Budgeting - ANSWER allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed Zero-based budgeting - ANSWER a budgeting approach in which each department starts from zero every year and must justify every item in the budget, rather than simply adjusting the previous year's budget amounts The three spheres of sustainability - ANSWER Environmental, social, economic Perquisites - ANSWER 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. Organizational Learning occurs at 3 different levels - ANSWER Organizational, Individual and Group risk assessment - ANSWER to give organizations the information they need to develop an efficient and effective program that manages strategic and operational risk across the organization Needs assessment - ANSWER The process of identifying and prioritizing the learning needs of employees HR Engagement Strategy - ANSWER HR creates strategies to achieve goals aligned with the organization's strategy. e.g. Total rewards, talent acquisition, CSR, diversity and inclusion, and employee engagement. pivotal - ANSWER crucial; key; vital Pivotal talent pool - ANSWER Service specialists are given a lot of discretion when dealing with customers, and those interactions have a big effect on the organization's sales. The difference in revenue generation and customer satisfaction between high performers and low performers is significant. What BEST describes the high performers? Job competencies - ANSWER Degree, training, and certifications required for a position. Knowledge, skills, and abilities (KSAs) and other personal characteristics that work together to produce outstanding performance in a given area of responsibility.