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Full version: SHRM-SCP Exam Dumps Questions
1.An organization that offshores apparel fabrication has come under fire for using a supplier cited for
child labor and human rights violations in its factories.
To avoid this situation in the future, which certification should the organization seek in their next
supplier?
A. SA8000
B. ISO 26000
C. OECD Guidelines
D. Caux Principles
Answer: A
Explanation:
Note that the only certification listed is the SA8000. SA8000 is an auditable certification standard that
encourages organizations to develop, maintain, and apply socially acceptable practices in the
workplace. SA8000 certification is modeled on ISO standards. Prospective facilities must integrate it
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into their management practices and demonstrate ongoing compliance with the standard.
SA8000 measures the performance of companies in eight areas important to social accountability in
the workplace: child labor, forced labor, health and safety, free association and collective bargaining,
discrimination, disciplinary practices, working hours and compensation. ISO 26000 Guidance on
social responsibility is a voluntary international guidance standard providing guidelines for social
responsibility.
The OECD Guidelines for Multinational Enterprises (Organization for Economic Co-operation and
Development Guidelines) are recommendations from governments to multinational enterprises on
responsible business conduct. The OECD Guidelines set standards for responsible business conduct
across a range of issues such as human rights, labor rights, and the environment.
Caux Principles - Seven core principles underlie the Caux Round Table for Moral Capitalism
approach to responsible business practices.
Principle 1: Respect stakeholders beyond shareholders. A responsible business has responsibilities
beyond its investors and managers.
Principle 2: Contribute to economic and social development.
Principle 3: Build trust by going beyond the letter of the law.
Principle 4: Respect rules and conventions.
Principle 5: Support responsible globalization.
Principle 6: Respect the environment.
Principle 7: Avoid illicit activities.
2.The primary difference between a Health Savings Account (HSA) and a Flexible Savings Account
(FSA);
A. Makes medical payments based on fee-for -service agreements
B. Provides reimbursements only for current year
C. Requires employees to seek medical providers within a network
D. applies specifically to Highly Compensated Employees
Answer: B
Explanation:
Both FSAs and HSAs allow people to save for their medical expenses on a tax-advantaged basis by
using pretax money to pay for qualified medical costs. One difference between a HSA and a FSA is
that the FSA provides reimbursement only for the current year (there are some exceptions -
Employees geta grace period of 2 1/2 months to use funds or Employees can roll over $500 into next
year's FSA.).
3.A municipality enacts certain employee benefit requirements. An organization operates in
municipalities in regions all around the country. The HR director must decide how to address this
situation.
What legal concept does this situation represent?
A. Rule of law
B. Extraterritoriality
C. Conflict of laws
D. Difference between civil and common law
Answer: C
Explanation:
Conflict of laws is created when two or more jurisdictions (in this case, the municipality and any higher
level of government in the country or in other countries) each have different legal requirements for the
entities operating in their borders. The HR director, probably with legal counsel, must clarify which
jurisdiction has control over a particular issue and adjust policies accordingly.
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4.The C-Suite of a company with 600 employees intends to hire 150 employees in the next 12
months. The Chief Operating Officer and the HR Director are both responsible for the expansion
initiative. The company headquarters is located in a small underdeveloped city. The local school
system is slightly above the state average in terms of funding and graduation levels. The local
economy is based on small businesses and manufacturing. The wage base in the city is significantly
lower than that of the nearest
larger city. The HR director is concerned about the ability to attract new candidates. The new
positions will be administrative, business development, technical, and managerial. The HR director
intends to propose that some current employees can be developed for promotion. The HR staff of two
employees is excited about the project.
Which method would best prepare current employees for intended promotion into the specialized
positions?
A. Create job-specific trainings for all employees based on the ADDIE model with features of vertical
and horizontal loading
B. Create a talent recruitment strategy and develop individual development plans for all employees
C. Develop a management training program for succession planning and to create a pool of
prospective replacements.
D. Develop a career management plan which includes identifying high-potential employees and
preparing an individual development plan for them.
Answer: D
Explanation:
Creating a career management plan for high-potential employees that includes an individual
development plan for each of them is the best option to prepare current employees for promotions. An
individual development plan (IDP) is a tool to assist employees in career and personal development.
Its primary purpose is to help employees reach short and long-term career goals, as well as improve
current job performance.
5.As VP of HR, you are helping your company's executive committee plan a highly experimental
manufacturing process. It will be employing unusual nontraditional technology and work structure to
produce an innovative product. There is a significant possibility that the venture will fail, however, if it
is successful, the profits will be immense. Your company has manufactured a related product line for
over 50 years using traditional methods.
With your knowledge of organizational culture, you suggest that;
A. it would be best to try this process in an existing plant with senior employees selected to form the
core workforce.
B. since this is a new manufacturing process, the appropriate HR policies and procedures will not be
apparent until the plant is actually up and running
C. although a new location would be best, it is important that HR policies and procedures promote the
organization's traditional and unique culture in the new plant.
D. it would be best to try this process with new employees in a separate location with new HR policies
and procedures.
Answer: D
Explanation:
The best option will be to establish this nontraditional process in a separate location with new HR
policies and procedures that are aligned with the innovation and unique nature of the manufacturing
process.
6. Measurement, Reporting, and Evaluation - ensure that all objectives have corresponding metrics
and that a complete reporting and evaluating infrastructure is in place (The Global Reporting Initiative
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(GRI) G4 Sustainability Reporting Guidelines are the universally accepted standard for reporting of an
organization's sustainability effortsand progress)
7.An organization is struggling to attract and retain top talent. The organization has raised
compensation to levels that are above average compared to the market but has not noticed an
appreciable increase in hiring success.
Which action should the organization take next to address the issue?
A. Increase the signing bonus for positions that require top-level talent.
B. Invest in internal talent development programs to cultivate in-house candidates.
C. Rebrand the organization to cater to younger generations' preferences.
D. Create an employee value proposition to attract top-level candidates.
Answer: D
Explanation:
Creating an employee value proposition is the best course of action. Highly qualified individuals may
have their pick of organizations to move to, so it is important to advertise reasons that candidates
should choose the organization over other options, including reasons unrelated to remuneration.
Catering to younger generations doesn't necessarily address the issue of attracting highly qualified
individuals.
Investing in internal talent development programs may help lessen the need to look outside of the
organization to fill important positions but does not necessarily help attract top talent, especially in the
short term. With the compensation levels being above average already, it is unlikely that an increased
signing bonus will achieve the desired result.
8.Productivity:
A. is purely a function of the quantity of output.
B. is a measure of both quantity and quality
C. measures are possible for jobs with a tangible product, but not for jobs with an intangible output,
such as services.
D. is best measured at the organizational level.
Answer: B
Explanation:
Productivity is the result of the efficient and effective deployment of resources. It measures both
quantity and quality of output.
9.Employees at the Fawn corporation are canvassing for the establishment of the --------- principle in
the disciplinary procedure of the company. The employees state that the principle provides that
employees should be treated fairly, given clear expectations, and provided an opportunity to defend
themselves for a dischargeable offense.
A. Distributive justice
B. Due process
C. Duty of good faith and fair dealing
D. Dual representation
Answer: B
Explanation:
In the employment context, due process involves two basic principles: that employees are entitled to
know the nature of their alleged misconduct or poor performance, and that employees should be
given a reasonable opportunity to respond to those allegations before any decisions are made
regarding imposition of discipline. In the U.S.A., public employees that have a property interest in their
job are entitled to pre-termination due process as a matter of law. This typically comes into play when
there is a disciplinary action taken against a government employee whose employment terms are
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spelled out in a contract, often negotiated by a union.
10.Content validation would be most appropriate for evaluating predictors of future job behaviors for...
A. an executive position
B. a newly created position
C. workers that work in line functions in the organization
D. all positions that have compensable factors
Answer: B
Explanation:
Content validity is best for a newly created position because the main data used to determine validity
will be the job duties in the job description.
Criterion-related validity - a statistically significant relationship is to be demonstrated between the
assessment and some measure of work behavior or performance. Examples of performance
measures are production rates, error rates, tardiness, absences, length of service, and supervisor's
ratings. Criterion validity is often divided into concurrent and predictive validity based on the timing of
measurement for the assessment and outcome. Construct validity - seeks to measure the degree to
which an applicant possesses psychological or behavioral traits called constructs. Constructs include
intelligence, leadership ability, verbal ability, mechanical ability, manual dexterity, etc.
Content validity - it representatively samples significant parts of a job, such as a filing test for a file
clerk or a test of cash register operation for a grocery checker.
11.Adult development theorists believe that;
A. lives and careers are predictably linear
B. from early childhood, people have preordained careers.
C. lives and careers must be viewed as cycles of structure and transition
D. a person's career is the manifestation of the inner values affecting that person's life
Answer: A
Explanation:
The only thing constant in life is change. Adult development encompasses the changes that occur in
biological and psychological domains of human life from the end of adolescence until the end of one's
life. These changes may be gradual or rapid and can reflect positive, negative, or no change from
previous levels of functioning.
12.Which statement about corporate social responsibility (CSR) policies and programs is correct?
A. CSR policies may make it more difficult to hire qualified workers.
B. More host countries are mandating that enterprises include local CSR programs.
C. CSR policy is most effective when it is developed and managed at the local level.
D. CSR policy results are being included in annual financial performance reports.
Answer: D
Explanation:
CSR policy results are being included in annual financial performance reports.
13.When an audit firm desires to test its applicants for "numerical aptitude", this is an example of?
A. Predictive validity
B. Content validity
C. Concurrent validity
D. Construct validity
Answer: D
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Explanation:
Construct validity measures candidate characteristics.
It involves a demonstration that a selection procedure measures a human trait or characteristic, such
as , numerical aptitude, integrity, and that the trait is important for successful job performance.
14.Which of the following is not a requirement by the Employee Retirement Income Security Act of
1974 (ERISA)?
A. Sets maximum standards for most voluntarily established retirement and health plans in private
industry.
B. Employers are to provide participants with information about health & pension plans called the
Summary Plan Description (SPD).
C. Fiduciaries must act prudently and must diversify the plan's investments in order to minimize the
risk of large losses.
D. Participants have the right to sue for benefits.
Answer: A
Explanation:
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum
standards (not maximum standards) for most voluntarily established retirement and health plans in
private industry to provide protection for individuals in these plans.
15.What is the term for a cultural vision that holds that there are no absolutes and everything is based
on the situation?
A. Cultural imperialism
B. Cultural determinism
C. Cultural relativism
D. Cultural universalism
Answer: C
Explanation:
Cultural relativism states that because cultures vary so greatly, there are no absolutes. Everything
varies based on the situation. Cultural determinism is the belief that the culture in which we are raised
determines who we are at emotional and behavioral levels.
Cultural imperialism is the imposition by one politically or economically dominant community of
various aspects of its own culture onto another non-dominant community.
Cultural universalism implies that it is possible to apply generalized norms, values, or concepts to all
people and cultures, regardless of the contexts in which they are located. It is the view that the
values, concepts, and behaviors characteristic of diverse cultures can be viewed, understood, and
judged according to universal standards C it rejects cultural relativism.
16. Reviewing systems and procedures within one's own organization to determine their current state
of sustainability.
17.Which ofthe following situations violates the ERISA standards for pension funds?
A. Employees are required to have a minimum of 15 months of service before they can participate in
their employer's defined benefit plan
B. Employees are allowed to transfer their accrued pension funds to another employer's plan.
C. An employer's plan excludes employees under age 21, regardless of how long they have worked
for the organization
D. Employees become fully vested after five years of service.
Answer: A
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Explanation:
Federal law (Employee Retirement Income Security Act of 1974 (ERISA) sets minimum requirements
for voluntary pension plans, but a plan may be more generous. Generally, a plan may require an
employee to be at least 21 years old and to have a year of service with the company before the
employee can participate in a plan. However, plans may allow employees to begin participation
before reaching age 21 or completing one year of service.
18.According to the Genetic Information Nondiscrimination Act-----?
A. an employer is legally culpable if genetic information is obtained inadvertently
B. employers who self-insure coverage can use genetic information to screen out employees for
health benefits under the safe harbor rule
C. an employer may use genetic information to make an employment decision if it is relevant to an
individual's current ability to work
D. it is not illegal if an employer obtains genetic information accidentally or pursuant to the FMLA
Answer: D
Explanation:
Genetic Information Nondiscrimination Act of 2008 (GINA) prohibits the use of genetic information in
making employment decisions. An employer may not use genetic information to make an employment
decision because genetic information is not relevant to an individual's current ability to work. It is also
unlawful for employers to request, require, or purchase an applicant's or employee's genetic
information. There are a few exceptions to this rule, such as: when an employer gets genetic
information inadvertently or pursuant to the FMLA; when an employee receives voluntary health or
genetic services that an employer offers; or when an employer acquires genetic information from
sources that are "commercially and publicly available," like newspapers, books, and public websites.
An employer must keep any genetic information it does acquire about an applicant or employee
confidential.
19.A contractor invites employees and applicants to self-identify their gender, race, and ethnicity. The
contractor indicates to individuals that supplying such information is voluntary.
What happens if an employee refuses to provide ethnic information and the employer must complete
an Employer Information Report (EEO-1)?
A. A best guess or assumption may be made.
B. The narrative AAP component should describe the incident.
C. Statistical AAP components should be footnoted.
D. Visual observation may be used.
Answer: D
Explanation:
OFCCP regulations indicate that for any personnel or employment record a contractor maintains, it
must be able to identify the gender, race, and ethnicity of each employee and, where possible, the
gender, race, and ethnicity of each applicant. OFCCP does not mandate a particular method of
collecting the information. If self-identification is not feasible, employment records or visual
observation may be used to obtain this information.
20.A company is consistently having trouble hiring designers in its creative department, a key unit
within marketing that produces all the graphic and pictorial art deliverables for clients. After a couple
of months, the recruiting team finds a strong candidate. The candidate requests working first as an
independent contractor and then transitioning to permanent employment. After two weeks, work is
going smoothly, and the creative unit manager is working with the HR manager to extend an
employment offer. Company policy requires all new candidates must successfully pass a drug screen
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as a condition of employment, but when the candidate is tested, the candidate tests positive for
marijuana. The HR manager questions the candidate, who states that the drug was used while he
was on a consultancy job in a state where recreational use of marijuana is legal.
The creative unit manager requests that the HR manager make an exception to the company policy
and allow the hiring process to continue.
How should the HR manager address the request?
A. Clarify that passing the drug test is an established employment requirement
B. Acquiesce to the creative manager's request
C. Compare the law of the state with the company's drug use policy
D. Advice the candidate that the contract will have to be terminated.
Answer: A
Explanation:
The HR manager must explain to the creative manager that passing the drug test is an established
employment requirement and exceptions cannot be made for the candidate as that will indicate
discriminatory employment practices and endanger the productivity and safety of employees and the
company.
21.As director of HR, you are designing an ethics program for your organization. You plan to develop
a written code of ethics, training for all organizational members, and means for organizational
members to obtain advice on ethical situations.
What critical element is missing from your plan?
A. Ensuring that the organization's code of ethics is not more restrictive than the relevant laws
B. Systems for confidential reporting of misconduct
C. Discipline system for offenders against the code of ethics.
D. Means for employees to blow the whistle on organizational wrongdoing to governmental agencies.
Answer: B
Explanation:
An effective ethics program must include a whistleblower procedure for anonymous reporting
procedures. An organization will encourage employees to utilize the in-house confidential reporting
before exercising the option of whistleblowing to governmental agencies
22.Which HR structure is appropriate for a global conglomerate where the Board of Directors have
decided that the HR structure should be one where the HR of each branch controls its localized
processes while strategic and policy-based decisions are controlled exclusively by the Headquarters
HR?
A. decentralized
B. dedicated
C. centralized
D. functional
Answer: A
Explanation:
In a Decentralized HR structure, HR administration, processes and practices are determined at the
business unit or local level while Headquarters HR is responsible for the overall HR strategy and
policy. Note that in a dedicated structure, each business unit has its own strategy and policy.
23.An HR manager attempting to determine if the cost of a new HRIS system will equal the return
within ten months is using which of the following types of measures?
A. Cost-benefit analysis
B. Training investment factor
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C. Break-even analysis
D. Return On Investment
Answer: C
24.For diversity training to succeed, the most crucial component is:
A. an organization-wide commitment beginning with top management.
B. bringing in a consultant with experience in the particular industry
C. providing diversity training to the senior management of the organization.
D. a ground-up commitment from hourly and line employees who deal with the diversity of co-workers
daily
Answer: A
Explanation:
As previously stated, any HR initiative must have executive management approval, support and
commitment, to succeed. This principle applies to diversity training as well. HR must align its
initiatives with the overall organizational strategic goals.
25.An HR director is examining the results of an employee survey to determine how to increase
employee engagement. The survey results indicate that employees do not see the organization as a
long-term stop during their career. Newly hired employees feel that they have a good understanding
of the company's culture and are able to rapidly integrate withinthe organization, but that seems to
have a limited effect on employees' desire to stick with the organization.
Which action should the HR director take to make the organization a long-term destination for newly
hired employees?
A. Discuss career path options during the interview process to show employees how they can grow in
their career.
B. Create a new online application page with testimonials to the company's strong culture and
benefits.
C. Create a structured onboarding experience to ensure that engagement levels don't drop in the first
90 days.
D. Partner new employees with employees who have been with the company for more than five
years.
Answer: A
Explanation:
Discussing a career path during the interview process may help potential employees see growth
options with the company and change their outlook on staying with the organization long-term.
Partnering new employees with veteran employees and creating an online application page with
information on company culture might assist with navigating the organization and the new employees'
understanding of the organizational culture, but these issues were not identified in the employee
survey. A structured onboarding experience may help sustain new employee engagement but may
not change employees' view of the organization as a long-term career stop.
26.If HR is rolling out a major change initiative, what might HR do instead of relying on possibly
inconsistent communications by the managers to employees?
A. Carry out a pilot program of managers to test homogeneity of their positions concerning the
change initiatives
B. Create a presentation to be utilized uniformly across the organization
C. Allow managers to participate in the strategic decision-making process of the change initiatives
D. Executive coaching measures to develop managers on leadership traits of consistency
Answer: B
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Explanation:
A change initiative is a series of actions taken to implement a transformation process which involves
planning, communication, implementation, solving problems, evaluating situations and making
decisions. For consistent communication, creating a presentation that can be used uniformly across
the organization is the best option.
27.Design and implement solution - step two of the OED model - where objectives are defined and
appropriate tactics for development is chosen.
28.An organization requires a high school diploma for a technician role. During a validity test of this
employment requirement, it was decided that the job can be done proficiently by employees who do
not have a diploma.
The requirement will most likely result in;
A. Disparate treatment
B. Disparate Impact
C. Poor reliability outcomes
D. Failure of selection guidelines
Answer: B
Explanation:
Disparate impact occurs when employment processes seem neutral but result in adverse impact on
members of protected classes. It is unintentional discrimination against members of a protected class.
29.Three employees are hired to assemble lawnmowers. Each employee is assigned to assemble a
different but equally difficult component. Every few weeks the employees are asked to assemble a
new component in addition to the original one to which they were assigned. After six months each
employee
can assemble a complete lawnmower by him/herself.
This situation is an example of which of the following job design approaches?
A. Job enlargement
B. Horizontal loading
C. Group tasking
D. Job enrichment
Answer: A
30.The C-Suite of a company with 600 employees intends to hire 150 employees in the next 12
months. The Chief Operating Officer and the HR Director are both responsible for the expansion
initiative. The company headquarters is located in a small underdeveloped city. The local school
system is slightly above the state average in terms of funding and graduation levels. The local
economy is based on small businesses and manufacturing. The wage base in the city is significantly
lower than that of the nearest larger city. The HR director is concerned about the ability to attract new
candidates. The new positions will be administrative, business development, technical, and
managerial. The HR director intends to propose that some current employees can be developed for
promotion. The HR staff of two employees is excited about the project.
Which tactic should the HR director take to effectively recruit outside the local market upon realizing
that the company will not be able to find qualified candidates locally, particularly for specialized
positions?
A. Hire a staffing agency to find suitable candidates for the specialized positions.
B. Engage in a job analysis and job evaluation for the specialized positions to ensure competitiveness
C. Explore the options of near-shoring and co-sourcing to fill the positions
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D. Revert to the C-suite for an executive decision specific to the specialized positions.
Answer: A
Explanation:
The best option is to hire a staffing agency to find suitable candidates for the specialized positions.
The other alternatives do not provide a solution to the need to recruit for the specialized positions.
Near-shoring happens when an organization decides to transfer work to companies that are less
expensive and geographically closer. Co-sourcing is a partnership between a customer and an
outside vendor, a professional service provider. A company chooses the vendor, which works with
and often alongside?but doesn't replace?the existing staff.
31. Infrastructure Creation - This step involves creating the infrastructure that will be responsible for
guiding, overseeing, administering, reviewing, and championing the CSR strategy.
32.An organization has typically allowed individual unit managers to handle all interviews, granting the
managers a large degree of autonomy to select candidates. However, the new HR director has
identified that this policy has caused a large variance in the actual quality of candidates that are hired,
impacting the organization's overall performance. The HR director wants to bring all interviews under
the direction of HR, but she receives significant pushback from managers, who fear losing control
over who they hire.
Which is the best option the HR director can select to increase the quality of new hires while
respecting the desires of managers to have a final say over who they hire?
A. Continue to allow unit managers to conduct interviews but require that they employ structured
interviews for consistency.
B. Direct HR to pre-screen applicants but allow unit managers to decide who to interview and to hire
independent of pre-screen interview results.
C. Implement a multi-step interview process where unit managers are allowed to sit in on final
interviews and provide input.
D. Continue to allow unit managers to conduct interviews but require that they employ stress
interviews
to ensure that selected applicants can perform adequately.
Answer: A
Explanation:
The best option is to allow unit managers to conduct interviews but to require them to employ
structured interviews. This will help ensure that all unit managers are consistently assessing
candidates, and HR will be able to guide the interview process with better questions designed to elicit
valuable responses. Creating a new interview process and minimizing the participation of unit
managers will still likely face significant pushback. Pre-screening applicants can help, but, if the unit
managers are not required to use
the results of the pre-screening interviews, they may not result in the selection of better candidates.
Stress interviews may not be applicable to many organizational positions and unit managers may not
be able to correctly employ them, resulting in less success with candidate selection.
33. sustain improvement: team monitors activity and provides guidance.
34.A multinational company is assessing its corporate social responsibility (CSR) goals and
expectations for the comingyear.
How can HR best help with this initiative?
A. By setting the objectives
B. By setting priorities
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C. By gaining executive commitment
D. By gathering information from stakeholder focus groups
Answer: D
Explanation:
In the assessment stage of the CSR strategic process, stakeholders are consulted to help the
organization see how its efforts are viewed.
35.A small organization does not have the time or resources to administer benefits, payroll, or
personnel records programs.
Which flexible staffing alternative is an option for them?
A. Using in-house temporary employees
B. Leasing employees from a professional employer organization
C. Establishing a temp-to-hire program
D. Hiring independent contractors instead of employees
Answer: B
Explanation:
In this staffing alternative, an organization transfers all or substantially all employees to the payroll of
an employee leasing firm. The PEO leases the employees back to the organization while handling
most of the HR administrative functions.
36.Several work groups have expressed "panic" about an initiative because they fear it means their
groups will be eliminated.
How could this situation have been avoided or mitigated?
A. Have the CEO announce the reason for the change in an organization-wide video
B. Control information about the plan more rigorously during implementation
C. Meet with work groups earlier in the implementation process to answer questions
D. Share all information gathered during the planning phase with the work groups.
Answer: C
Explanation:
Inadequate and reactive communication to all stakeholders is one of the key reasons for the failure or
resistance to HR initiatives. The situation would have been mitigated if communication was
proactively initiated with the work groups.
37.A HR structure where headquarters HR is staffed with specialists who craft policies, and the
policies are implemented by generalists at all locations/divisions;
A. center of excellence
B. functional HR
C. shared services
D. best of breed model
Answer: B
Explanation:
The functional HR organizational model refers to a model where headquarters HR is staffed with
specialists who craft policies, and the policies are implemented by generalists at all
locations/divisions. The advantage of the functional HR model is it is effective in organizations with
single strategies, and creates consistency between Headquarter policy and Business Units practices.
The disadvantage of the functional HR model is an isolation of headquarters HR from realities in the
business units/locations/divisions.
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38.The grapevine in an organization should be;
A. managed by adding accurate information.
B. eliminated as much as possible.
C. prevented from spreading information across established lines of communication.
D. used to warn employees of impending disciplinary actions.
Answer: A
Explanation:
There is no way to eliminate grapevine communication in the workplace. However, there are ways to
better understand it, control it, and eliminate the negative sides grapevine can bring to your company
by ensuring proper employee communications
39.Corporate governance is the system by which companies are directed and controlled.
How does the Organization for Economic Co-operation and Development (OECD) Guidelines
enhance corporate governance?
A. They set standards, monitor, and report on the corporate citizenship of member countries.
B. They create mandatory ethical guidelines for globalized corporations.
C. They establish national laws to align with responsible global shared value initiatives.
D. They enable countries address concerns on the integration of markets, trade, and investments
among nations.
Answer: D
Explanation:
The OECD Guidelines for Multinational Enterprises are recommendations addressed by governments
to multinational enterprises operating in or from adhering countries.
They provide non-binding principles and standards for responsible business conduct in a global
context consistent with applicable laws and internationally recognized standards. The OECD
Guidelines enables countries address concerns on globalization.
The OECD guidelines are not intended to override local laws or expose Multi-National Enterprises
(MNEs) to conflicting expectations.
40.Which of the following is an example of disparate treatment?
A. All production workers are subject to stricter attendance requirements.
B. Asians are subject to stricter disciplinary procedures.
C. A skill-based test with cultural nuances results in lower pass rates amongst minorities.
D. Height requirements are set for all firefighters.
Answer: B
Explanation:
Disparate treatment occurs when employees who are members of a protected class (in this case,
Asians) are treated differently from other employees.
Option C and D are examples of disparate impact. Disparate impact occurs when people of a
protected class are being disproportionately excluded from employment as a result of using
seemingly neutral practices.
41.The Verified international agency is considering implementing a shared services model.
Which potential downside should management be aware of?
A. business units may require value-creating activities and not transactional activities
B. the possibility of an under-utilization of the service centers
C. implementation of shared services model often leads to higher turnover rates in the HR function
D. neglect of due diligence in legal issues that trail structural changes
Answer: B
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Explanation:
A possible downside of the shared services model is an under-utilization of the centers when their
presence and purpose is not widely known.
42.------- is the HR structure that allows businesses with different strategies in multiple units to apply
HR expertise to each unit's specific strategic needs;
A. Dedicated HR.
B. Functional HR.
C. Shared services.
D. Best of breed model.
Answer: A
Explanation:
Dedicated HR service model is the HR structure that allows businesses with different strategies in
multiple units to apply HR expertise to each unit's specific strategic needs.
43.What characteristic distinguishes effective OED interventions?
A. Extensive involvement of stakeholders in defining problems and developing solutions
B. Delivery of immediate, short-range results
C. Cultural transformation
D. Identification and isolation of performance issues from their organizational context
Answer: A
Explanation:
Effective OED intervention ensures the extensive involvement of stakeholders from start to finish of
the intervention. Stakeholders are more likely to accept change that they have been involved in
creating.
44.A 170-employee manufacturing company has won a $3 million government contract and must
produce 60,000 aircraft parts over the next three months. Presently, the production department runs
two shifts and utilizes 60 skilled workers per shift. Normal production for the company is 50,000 parts
per month. The company must maintain current production and fulfill the new order. Currently, it has
10,000 parts in inventory.
A. Because the company is a government contractor, it is required to;
B. abide EEOC requirements in all its selection procedures
C. allow employees to view the information in their personnel files
D. have a formal affirmative action plan
E. establish a quota system for hiring minority employees
Answer: D
Explanation:
OFCCP administers and enforces the three equal employment opportunity mandates C EO 11246,
Section 503 of the Rehabilitation Act and Vietnam Era Veterans' Readjustment Assistance Act
(VEVRAA). Generally, these mandates protect workers from discrimination and require companies
doing business with the federal government to take certain affirmative steps to ensure equal
employment opportunity. However, these mandates only apply to companies that have entered into
federal contracts or subcontracts that meet specificdollar thresholds.
45.Which of the following illustrates business operations that threaten the sustainability of the
environment and society?
A. A compressed workweek is implemented to allow employees to commute only four days a week.
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B. An organization in an arid climate stores rainfall on site so that it can irrigate its lawns.
C. Functions are required to use Web meeting and phone conferencing when possible rather than
travel.
D. After loss of a major client, a firm issues termination notices for 25% of its workforce.
Answer: B
Explanation:
Sustainable business operations use resources in a responsible manner. Diverting rainwater for
irrigation of facility landscaping is not sustainable or responsible to the community. Minimizing travel
saves finite carbon-based fuels.
46.Two team members continually disagree about project decisions impacting work duties and tasks.
The team leader meets with the employee relations director to seek advice on the best course of
action to resolve this situation.
Which is the best conflict management approach for the ER director to recommend?
A. Schedule the employees to meet with the ER director, who will arbitrate a resolution for them.
B. Have each employee document all disagreements in writing and submit them to the team leader
for resolution.
C. Advise the employees that these disagreements are disruptive to productivity and they must stop
immediately.
D. Suggest that the team leader meet with both employees and mediate a mutually acceptable
solution.
Answer: D
Explanation:
It's important to reach a lasting resolution to this conflict since it may damage team productivity. The
ER director will recommend collaboration, a conflict resolution technique that encourages both sides
to share their objectives and find a solution that satisfies both sides' objectives.
47.A change readiness assessment shows that a unit has thoroughly planned responsibilities and
roles in implementing a well-described change in processes.
What other important information does an OED specialist need to assess change readiness here?
A. Competency analysis
B. Strategic alignment of the change
C. Possible sources of resistance within the unit
D. Unit's previous success with managing changes
Answer: C
Explanation:
An organizational change readiness assessment is the set of tasks that you complete to identify how
prepared an organization is for a particular change. The level of change readiness that is assessed
will be based on the scale of the change itself, as well as the severity of the impacts. Note that the
question focuses on "change readiness" and one crucial factor to determine is possible resistance to
the change C this points out the level of acceptance of the unit personnel of the change.
48.What type of global strategy primarily benefits a company because it creates strong customer ties
and responsiveness?
A. localization
B. integration
C. centralization
D. standardization
Answer: A
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Explanation:
Localization strategy is geared toward understanding local consumer preferences and other host
country-specific requirements and then adapting the business strategies to best satisfy local
consumer needs. For example, if an American company begins a subsidiary in Singapore, it adapts
its products and services to the Singaporean culture. Global integration is the degree to which the
company is able to use the same products and home country-methods in other countries. Local
responsiveness is the degree to which the company must customize their products and methods to
meet conditions in other countries.
49.In order to add value to the human capital of the organization:
A. HR must have good metrics about the HR side of the business
B. HR managers must be focused on reducing the total cost of labor.
C. the HR function must form the interface between the external environment of the organization and
its internal environment.
D. HR policies and practices should result in a workforce with the maximum quantity and maximum
quality needed to achieve productivity goals
Answer: A
Explanation:
Measuring HR information and data helps organizations figure out their people strategy for the future,
recognizing what is working well for the organization, what needs improvement, and what trends can
be expected down the line.
50.An employee relations manager works on a 400 person call center that is part of a larger
7000-person organization. The center operates 24 hours a day, 7 days a week. The manager
received an email from one of the call center employees, who indicated that he feels harassed and
needs to speak with someone immediately. The HR manager makes plans to meet with the employee
before his evening shift. The employee says that his supervisor treats him differently and is spying on
him at work. He accuses her of logging onto his computer and making program changes and sending
inappropriate changes and of sending inappropriate messages to other employees. When the HR
manager asks for proof the employee says that the manager has deleted all evidence of her activities.
In addition, he believes that at least six other employees, including the marketing manager, are trying
to discredit him. The employee further accuses the marketing manager of making sex advance
toward him. The HR manager says that she will investigate the charges. Her first steps to speak with
the supervisor. The supervisor reports that there have been problems with the employee for some
time, as the HR managers know from looking at his file. There have been several warnings, but his
behavior is becoming more erratic, and other team members do not feel comfortable working with
him. The supervisor wants to proceed with the termination of the employee. She is concerned that
nothing happens, she will start to see high performing employees leaving the organization. The HR
manager then mentions accusations of sexual harassment. The Supervisor is angry at being accused
of harassment, threatens to obtain legal counsel if this investigation proceeds, and yells, "This
employee is crazy!" as she storms out of the HR manager's office. The employee leaves work at the
end of his shit gets into a car accident and sustains minor injuries. He alerts the HR manager that he
will be away from work for 2 to 3 weeks and, as proof, forward a physician's note. This note
accidentally includes a reference to possible mental illness. The employee also states that he
believes the supervisor caused the accident.
What steps should the manager take concerning the patient information included by mistake in the
physician's note?
A. Destroy the medical information
B. Call the physician's office and share the fact that diagnostic information was inappropriately
disclosed. The HR manager should then destroy the medical information
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C. Hold the information in a special file so that, if it is necessary to have this information in the future,
it will be readily accessible
D. Include the information in the investigation, as it is critical to the outcome of the investigation
Answer: B
51.An organization is extremely risk-averse, and its technology policies aim at retaining the greatest
degree of physical and legal control.
Which option for acquiring software offers the most control to the organization?
A. Software as a subscription hosted on the public cloud
B. Perpetual license software hosted on private cloud servers.
C. Subscription software hosted on private cloud servers.
D. Proprietary software hosted on the organization's on-site servers
Answer: D
Explanation:
Proprietary software hosted on the organization's on-site servers. The organization owns proprietary
software outright, and hosting it on site on the organization's own servers allows the organization to
maintain physical and logical security levels to the degree it finds necessary. Risk-averse means
disinclinedor reluctant to take risks.
52.A high-potential member of the HR department wants to develop OED expertise. The manager
notes that this individual has a natural talent in analyzing issues and in establishing relationships with
others. The manager can provide training and experience in the skills involved in the Consultation
competency.
What else will be critical for this employee?
A. Technical expertise
B. Knowledge of local legal requirements
C. Skill in building trust
D. Business acumen
Answer: D
Explanation:
Business acumen is critical for HR professionals because HR is expected to have support the
organization's business, strategy, and competitive advantage. When HR professionals understand the
internal and external business, they're better able to align people programs with business needs.
53.What is revealed when leaders see a danger but decide not to address it?
A. Risk avoidance
B. Risk mitigation
C. Risk tolerance
D. Risk culpability
Answer: C
Explanation:
Risk tolerance is the amount of risk that an employer is comfortable taking or the degree of
uncertainty that an employer is able to handle. Risk tolerance is a more specific measure of the
degree of uncertainty that an investor is willing to accept. risk tolerance is level of the willingness of
one to endure variability and volatility in investments, and how it can impact a business.
54."Even though there is an over-arching HR strategy, it is debilitating to the company to keep having
independent HR functions in our product units because it is cost-intensive and has led to variations in
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HR practices in the organization".
The speaker is most likely referring to….?
A. a hybrid HR model
B. a dedicated HR model
C. a decentralized HR model
D. a functional HR model
Answer: C
Explanation:
In a decentralized HR structure, strategy and policies are created by Headquarters HR while HR in
the business units operate and make decisions on HR processes independent of the other units. In
this structure, HR policies and practices differ significantly across locations. Note that in a Dedicated
HR model, each business unit will have its own strategy and policy.
55.An OED team launches an intervention, developing a new process for the accounting department.
Accounting has been directly involved in the project, and its members are prepared for the change.
The process affects other departments, however, and their reaction is negative.
What is the probable cause of this outcome?
A. The processes did not reflect the real-world organization
B. The organization was not prepared for the change
C. Senior management did not support the project
D. The other departments should have been included in revising job descriptions
Answer: B
Explanation:
The most valid reason for the negative reaction by the other departments is because the entire
organization was not prepared for the change that would affect them in implementation. OED
interventions may fail due to the OED team not making a compelling case for the change, stakeholder
involvement and communication, and not dealing proactively with resistance.
56. Executive Commitment - key to getting executive commitment is making a business case for
CSR, i.e. demonstrating that it has business value and contributes to the bottom-line.
57.A ------ span of control refers to a structure with few employees reporting to the manager, while a
----span of control refers to a structure with many employees reporting to a supervisor;
A. functional; dedicated.
B. long; short.
C. narrow; wide.
D. model; modular.
Answer: C
Explanation:
Span of control refers to the number of subordinates a supervisor has.
A narrow span of control refers to a structure with few employees reporting to the manager, while a
wide span of control refers to a structure with many employees reporting to a supervisor.
58.How has Corporate Social Responsibility (CSR) approaches evolved in corporations?
A. They have redefined business strategic goals and missions based on CSR codes.
B. They create public goodwill and positive community relations for business prominence of the
organization
C. They have mandated employee involvement in CSR initiatives at lower levels.
D. They are the principal source of global organizations' earnings and financial growth
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Answer: A
Explanation:
CSR approaches have progressed in corporations to redefine business strategy and goals based on
CSR principles.
Businesses now incorporate social and environmental concerns in corporate strategies as CSR is
viewed as a win-win strategy that benefits the company and society.
59.According to Blake Mouton managerial theory, a manager who delegates all tasks and does not
exercise any authority over the team is what kind of manager?
A. Country club manager
B. Impoverished manager
C. Task manager
D. Team leader
Answer: B
Explanation:
Impoverished Manager, also called Low Results/Low People. This manager has low regard for
productivity and little interest in creating a motivating team environment.
60.Which is the most significant reason that the information technology department is seen as a
strategic partner in an organization?
A. Organizations need accurate reports on which to base decisions
B. Technology contractors execute the organization's business.
C. Information technology provides a competitive advantage for an employer.
D. The department trains other employees and contractors on advanced analytical skills
Answer: C
Explanation:
Information technology fosters innovation in business which results in smarter applications, improved
data storage, faster processing, and wider information distribution. Information technology
departments have also become more strategic because of cyber-security (think of hacking, data
breaches). Competitive advantage is the attribute that allows an organization to outperform its
competitors. These attributes allow the productive entity to generate more sales or superior margins
compared to its market rivals. Good To Know: Michael Porter identified generic strategies "Cost
Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and
"Focus" (offering a specialized service in a niche market). He then subdivided the Focus strategy into
two parts: "Cost Focus" and "Differentiation Focus."
61.An OED team wants to better understand the odds that a particular change can be implemented
successfully.
What tool is designed to support this analysis?
A. Force-field analysis
B. SWOT analysis
C. Multi-criteria decision analysis
D. Delphi technique
Answer: A
Explanation:
Force field analysis is a basic tool for root cause analysis that can help you take action once the root
cause has been identified. The technique is based on the assumption that any situation is the result of
forces for and against the current state being in equilibrium. It looks at forces that are either driving
movement toward a goal or blocking movement toward a goal. It displays and analyses the forces
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driving movement toward a goal (helping forces) or restraining movement toward the goal (hindering
forces). Multi-Criteria Decision Analysis, or MCDA, is a valuable tool that we can apply to many
complex decisions. It is most applicable to solving problems that are characterized as a choice among
alternatives.
Conduct a force field analysis through the following steps:
>Brainstorm all possible forces inside and outside the organization that could work for or against the
solution.
>Assess the strength of each of the forces.
>Place the forces in a force field diagram, with the length of each arrow in the diagram proportional to
the strength of the force it represents.
>For each force, but especially the stronger ones, discuss how to increase the forces for the change
and reduce those against it.
62.To conduct a wage and salary survey, a job evaluator must:
A. createa completely objective survey
B. ignore geographic boundaries in order to benchmark jobs completely
C. define the relevant labor market
D. hire a consulting firm to do the actual survey
Answer: C
Explanation:
A wage and salary survey involves defining the relevant labor market C note that a survey is different
from a job evaluation of the jobs in a company. A salary survey generally contains data about wages
internally and majorly externally. Wage surveys may compare employee wages inter-departmentally,
by company or organization, by job title or position, or earnings for workers in different geographic
regions.
HR experts use survey data for building salary structures, or to determine if employees are receiving
fair and competitive wages.
On the other hand, a job evaluation is a systematic way of determining the value/worth of a job in
relation to other jobs in an organization (internal). It tries to make a systematic comparison between
jobs to assess their relative worth for the purpose of establishing a rational pay structure.
63.To enhance HR effectiveness, what should HR measure as opposed to measuring processes?
A. projects
B. procedures
C. results
D. advisory and support role
Answer: C
Explanation:
To enhance HR effectiveness, HR should measure Results, and not processes
64.When considering a Reduction In Force (RIF), what offer might be made?
A. COBRA benefits must be provided by all employers to all employees subject to the RIF
B. Give employees the option to volunteer
C. Compliance requirements such as a severance package
D. Last In - First Out (LIFO) layoff system per the Older Workers Benefit Protection Act (OWBPA)
Answer: B
Explanation:
COBRA does not apply to every employer but to employers with 20 or more employees. Severance
packages are voluntary and not compliance-related. The OWBPA does not require a LIFO system in
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RIFs - the OWBPA protects the employee benefits of older workers.
65.-------- is a siloed, top-down, management-driven approach that sends people to formal training
events.
A. push training
B. centralized training
C. pull training
D. design training
Answer: A
Explanation:
Push training is a siloed, top-down, management-driven approach that sends people to formal training
events where they receive nice-to-know information.
In the push training method, employees are not connected to one another during or after the training
event, and do not collaborate. The focus is on attendance, participating, and testing.
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