3/28/25, 7:49 SHRM Practice Test Flashcards |
AM
SHRM PRACTICE TEST EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED GRADED A++
Terms in this set (96)
As part of an organization's strategy to D) Provide an individualized total compensation statement to employees.
highlight the full value of what it offers
to employees, which is the best tactic a * Individualized total compensation statements show the total value of the base pay,
total rewards manager should consider? incentives, and benefits package so employees can clearly see the value they
receive in the total compensation package.
A) For transparency in pay, make all
salary ranges public.
B)Communicate how much
health insurance costs the
employer.
C) Send consistent messages to
employees regarding their wages.
D) Provide an individualized total
compensation statement to employees.
What action should HR take to validate A) Create a value driver tree to determine if there is a sight line to the strategy.
that recruiting goals support the
overall strategy? * A value driver tree is a tool that may be used to map enterprise-level goals to
the functional level. Completing an assessment using a value tree would validate
A) Create a value driver tree to whether or not there is line of sight in recruiting goals.
determine if there is a sight line to
the strategy.
B) Set recruiting goals to target
candidates that fit the culture of the
company.
C) Measure results of recruiting
objectives to make certain all are
being met.
D) Review recruiting metrics with
hiring managers to establish goals.
Which is most likely to occur in a D) Local cultural and legal compensation norms are taken into account in the
company with a geocentric approach to administration of a cohesive global strategy.
globalization?
* In a geocentric organization, an international company is seen as a single global
A) Headquarters compensation business, with management talent coming from any location in the enterprise. The
policies are modified for local strategic plan is global in orientation, while the need to balance global strategy
application only when it is with local cultures and regulations is well understood.
required by local laws.
B) Important cultural differences are
overlooked as headquarters
compensation policies are adjusted for
local application.
C) Individual regions are
given full autonomy in the
development of a
compensation and benefits strategy.
D) Local cultural and legal
compensation norms are taken
into account in the administration
1/39
,3/28/25, 7:49 SHRM Practice Test Flashcards |
AM
of a cohesive global
strategy.
An organization launched its first D) Actual treatment of employees versus perception.
diversity and inclusion initiative five
years ago. Recently, there has been an * To help measure inclusion, HR should collect data reflecting how the departing
increase in younger people resigning. In employees were treated and how they feel they were treated by management.
exit This requires both objective (observable and measurable data ("signs") obtained
interviews, these employees say that through observation, physical examination, and laboratory and diagnostic testing)
they feel they were ignored by and subjective ( information from the employees point of view including feelings,
management. perceptions, and concerns obtained through interviews) data.
Which kind of data should HR collect
to help measure inclusion?
A) Representation of each
demographic group.
B) Customer feedback about
corporate branding.
C) Employees' participation on
work- related committees.
D) Actual treatment of employees
versus perception.
Which is the most significant reason C) Information technology provides a competitive advantage for an employer.
that information technology
departments are seen as strategic * IT departments have become more strategic because organizations increasingly
partners in an view computer systems and applications as a competitive advantage in the
organization? marketplace. For example, airline reservation systems are essential to the effective
operation of the business.
A) Organizations need accurate * Competitive advantage means a condition which enables a company to operate in
reports on which to base decisions. a more efficient or otherwise higher-quality manner than the companies it competes
B)Technology contractors do not with, and which results in benefits accruing to that company.
understand the organization's business.
C) Information technology
provides a competitive advantage
for an employer.
D)The department trains other
employees and contractors on
advanced computer skills.
Which issue identified during an A) A gas station on the next block has expanded to include a new
environmental scan for a small, family- convenience store.
owned grocery store represents a
threat to its competitive strategy? * In the SWOT analysis, threats are an indication of possible danger, harm, or menace.
When considering competitive strategy, a similar business nearby that offers
A) A gas station on the next block has additional and differentiated value to customers is a direct threat that must
expanded to include a new considered in strategic planning. Even though it is close, the ethnic foods grocery
convenience store. store is appealing to different customers or customer needs. The fee and rate
B) the local government recently increases apply to all similar competitors.
imposed a %0.05 fee for plastic
merchant bags.
C) The cost of bulk-rate direct mail
2/39
,3/28/25, 7:49 SHRM Practice Test Flashcards |
AM
has risen 15% in the last six
months.
D) An ethnic foods grocery has
opened in a shopping center a mile
away.
A new director has arrived to manage C) Talk to members of the department separately to try to understand what the
an HR department that became department needs now.
dysfunctional under the previous director.
What should the new director do first? * Since the HR director is new to the department, she needs to take time and
learn more about the staff's needs, individually and as a group. She can then
A) Meet individually with all provide the type of leadership the group needs.
employees and clarify her
expectations for their performance
and interactions.
B)Assemble the entire department
and describe the new culture that
she wants to create.
C) Talk to members of the department
separately to try to understand what
the department needs now.
D) At the first meeting, create a
competition based on customer
service to motivate the separate
teams.
Which is the best course of action to B) Holding ongoing discussions with works council leaders.
incorporate concerns raised by works
councils about a proposed staffing plan * Devising a plan to gain the support of the works council, while still meeting
for multiple countries across Europe? organizational goals, is a way to head off future labor issues. Contacting works
council leaders in advance can help clarify these issues and begin the dialogue.
A) Involving local managers in the
creating of the tactical plan.
B) Holding ongoing discussions with
works council leaders.
C) Addressing issues as they are
raised by union representatives.
D) Reviewing the plan with experts
in local labor law.
3/39
, 3/28/25, 7:49 SHRM Practice Test Flashcards |
AM
In a medium-sized organization, HR is D) Conduct pilot programs, so that feedback can be gathered and presentations
responsible for the creation of training can be refined before officially launching the program.
for all new hires. Surveys indicate that
employees that have gone through * The best option is to conduct pilot programs prior to launch. Conducting a pilot
recently developed training programs will allow HR to verify whether the content and design of the class are adequately
felt as though the training was not meeting objectives, as well as identify if there are better ways for the instructor to
impactful and did not help them prepare present the information. Hiring new facilitators may not be necessary; and previous
for their experience teaching highly skilled, experienced individuals may not be indicative
new position. They felt that the training of the ability to train new hires, who may be relatively unskilled and
was unfocused and poorly presented inexperienced.
by the instructor. Which best describes Scrapping current programs and beginning again may be required, but without
how HR should attempt to ensure that proper evaluation and resource committment, immediately selecting that option
new could result in unnecessary work and lengthy delays delivering crucial training.
training is useful to new hires? Training should be designed to overcome obstacles such as bad previous
experiences, and hiring decisions should not be made with that in mind.
A) Avoid hiring candidates who
have bad experiences and
previous learning
programs, so no one has any bias
against the current programs.
B) Hire new facilitators with
experience presenting programs
to large groups of highly skilled,
experienced individuals.
C) Scrap the current programs and
begin with an entirely new set of
training,
developed by the ADDIE process.
D) Conduct pilot programs, so
that feedback can be
gathered and
presentations can be refined
before officially launching the
program.
An organization that has decided to sell A) Employee census for the subsidiary that includes current roles and total
a long-held subsidiary is considering current compensation
potential buyers. What information should
the HR leader provide to leadership in * The value of the workforce that has been selected for divestiture is useful
this phase? information that HR can provide as the organization is considering target buyers.
A total head count along with the current cost of each employee will be needed.
A) Employee census for the subsidiary This occurs as the second step of the divestiture process, after the candidate for
that includes current roles and total divestiture is identified.
current
compensation
B) Revised leadership structure
for the subsidiary based upon
analysis of the succession
planning data
C) Total head count data along
with turnover statistics for the
subsidiary as compared to the
organization
D) Recommendations for potential
buyers based upon HR's knowledge
of the local recruiting market
4/39
AM
SHRM PRACTICE TEST EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED GRADED A++
Terms in this set (96)
As part of an organization's strategy to D) Provide an individualized total compensation statement to employees.
highlight the full value of what it offers
to employees, which is the best tactic a * Individualized total compensation statements show the total value of the base pay,
total rewards manager should consider? incentives, and benefits package so employees can clearly see the value they
receive in the total compensation package.
A) For transparency in pay, make all
salary ranges public.
B)Communicate how much
health insurance costs the
employer.
C) Send consistent messages to
employees regarding their wages.
D) Provide an individualized total
compensation statement to employees.
What action should HR take to validate A) Create a value driver tree to determine if there is a sight line to the strategy.
that recruiting goals support the
overall strategy? * A value driver tree is a tool that may be used to map enterprise-level goals to
the functional level. Completing an assessment using a value tree would validate
A) Create a value driver tree to whether or not there is line of sight in recruiting goals.
determine if there is a sight line to
the strategy.
B) Set recruiting goals to target
candidates that fit the culture of the
company.
C) Measure results of recruiting
objectives to make certain all are
being met.
D) Review recruiting metrics with
hiring managers to establish goals.
Which is most likely to occur in a D) Local cultural and legal compensation norms are taken into account in the
company with a geocentric approach to administration of a cohesive global strategy.
globalization?
* In a geocentric organization, an international company is seen as a single global
A) Headquarters compensation business, with management talent coming from any location in the enterprise. The
policies are modified for local strategic plan is global in orientation, while the need to balance global strategy
application only when it is with local cultures and regulations is well understood.
required by local laws.
B) Important cultural differences are
overlooked as headquarters
compensation policies are adjusted for
local application.
C) Individual regions are
given full autonomy in the
development of a
compensation and benefits strategy.
D) Local cultural and legal
compensation norms are taken
into account in the administration
1/39
,3/28/25, 7:49 SHRM Practice Test Flashcards |
AM
of a cohesive global
strategy.
An organization launched its first D) Actual treatment of employees versus perception.
diversity and inclusion initiative five
years ago. Recently, there has been an * To help measure inclusion, HR should collect data reflecting how the departing
increase in younger people resigning. In employees were treated and how they feel they were treated by management.
exit This requires both objective (observable and measurable data ("signs") obtained
interviews, these employees say that through observation, physical examination, and laboratory and diagnostic testing)
they feel they were ignored by and subjective ( information from the employees point of view including feelings,
management. perceptions, and concerns obtained through interviews) data.
Which kind of data should HR collect
to help measure inclusion?
A) Representation of each
demographic group.
B) Customer feedback about
corporate branding.
C) Employees' participation on
work- related committees.
D) Actual treatment of employees
versus perception.
Which is the most significant reason C) Information technology provides a competitive advantage for an employer.
that information technology
departments are seen as strategic * IT departments have become more strategic because organizations increasingly
partners in an view computer systems and applications as a competitive advantage in the
organization? marketplace. For example, airline reservation systems are essential to the effective
operation of the business.
A) Organizations need accurate * Competitive advantage means a condition which enables a company to operate in
reports on which to base decisions. a more efficient or otherwise higher-quality manner than the companies it competes
B)Technology contractors do not with, and which results in benefits accruing to that company.
understand the organization's business.
C) Information technology
provides a competitive advantage
for an employer.
D)The department trains other
employees and contractors on
advanced computer skills.
Which issue identified during an A) A gas station on the next block has expanded to include a new
environmental scan for a small, family- convenience store.
owned grocery store represents a
threat to its competitive strategy? * In the SWOT analysis, threats are an indication of possible danger, harm, or menace.
When considering competitive strategy, a similar business nearby that offers
A) A gas station on the next block has additional and differentiated value to customers is a direct threat that must
expanded to include a new considered in strategic planning. Even though it is close, the ethnic foods grocery
convenience store. store is appealing to different customers or customer needs. The fee and rate
B) the local government recently increases apply to all similar competitors.
imposed a %0.05 fee for plastic
merchant bags.
C) The cost of bulk-rate direct mail
2/39
,3/28/25, 7:49 SHRM Practice Test Flashcards |
AM
has risen 15% in the last six
months.
D) An ethnic foods grocery has
opened in a shopping center a mile
away.
A new director has arrived to manage C) Talk to members of the department separately to try to understand what the
an HR department that became department needs now.
dysfunctional under the previous director.
What should the new director do first? * Since the HR director is new to the department, she needs to take time and
learn more about the staff's needs, individually and as a group. She can then
A) Meet individually with all provide the type of leadership the group needs.
employees and clarify her
expectations for their performance
and interactions.
B)Assemble the entire department
and describe the new culture that
she wants to create.
C) Talk to members of the department
separately to try to understand what
the department needs now.
D) At the first meeting, create a
competition based on customer
service to motivate the separate
teams.
Which is the best course of action to B) Holding ongoing discussions with works council leaders.
incorporate concerns raised by works
councils about a proposed staffing plan * Devising a plan to gain the support of the works council, while still meeting
for multiple countries across Europe? organizational goals, is a way to head off future labor issues. Contacting works
council leaders in advance can help clarify these issues and begin the dialogue.
A) Involving local managers in the
creating of the tactical plan.
B) Holding ongoing discussions with
works council leaders.
C) Addressing issues as they are
raised by union representatives.
D) Reviewing the plan with experts
in local labor law.
3/39
, 3/28/25, 7:49 SHRM Practice Test Flashcards |
AM
In a medium-sized organization, HR is D) Conduct pilot programs, so that feedback can be gathered and presentations
responsible for the creation of training can be refined before officially launching the program.
for all new hires. Surveys indicate that
employees that have gone through * The best option is to conduct pilot programs prior to launch. Conducting a pilot
recently developed training programs will allow HR to verify whether the content and design of the class are adequately
felt as though the training was not meeting objectives, as well as identify if there are better ways for the instructor to
impactful and did not help them prepare present the information. Hiring new facilitators may not be necessary; and previous
for their experience teaching highly skilled, experienced individuals may not be indicative
new position. They felt that the training of the ability to train new hires, who may be relatively unskilled and
was unfocused and poorly presented inexperienced.
by the instructor. Which best describes Scrapping current programs and beginning again may be required, but without
how HR should attempt to ensure that proper evaluation and resource committment, immediately selecting that option
new could result in unnecessary work and lengthy delays delivering crucial training.
training is useful to new hires? Training should be designed to overcome obstacles such as bad previous
experiences, and hiring decisions should not be made with that in mind.
A) Avoid hiring candidates who
have bad experiences and
previous learning
programs, so no one has any bias
against the current programs.
B) Hire new facilitators with
experience presenting programs
to large groups of highly skilled,
experienced individuals.
C) Scrap the current programs and
begin with an entirely new set of
training,
developed by the ADDIE process.
D) Conduct pilot programs, so
that feedback can be
gathered and
presentations can be refined
before officially launching the
program.
An organization that has decided to sell A) Employee census for the subsidiary that includes current roles and total
a long-held subsidiary is considering current compensation
potential buyers. What information should
the HR leader provide to leadership in * The value of the workforce that has been selected for divestiture is useful
this phase? information that HR can provide as the organization is considering target buyers.
A total head count along with the current cost of each employee will be needed.
A) Employee census for the subsidiary This occurs as the second step of the divestiture process, after the candidate for
that includes current roles and total divestiture is identified.
current
compensation
B) Revised leadership structure
for the subsidiary based upon
analysis of the succession
planning data
C) Total head count data along
with turnover statistics for the
subsidiary as compared to the
organization
D) Recommendations for potential
buyers based upon HR's knowledge
of the local recruiting market
4/39
