SHRM-CP Exam Study Guide: Questions and Answers for HR Professionals, Exams of Leadership and Team Management

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SHRM-CP EXAM Study Guide | Actual Questions And Answers Latest

Updated 2024/2025 (Graded A+)

An organization's state mandates a $2.00 per hour increase in the minimum wage. As the company implements the change, new hires will now be started at the same wage as workers who have been on the job for two years. What type of pay variation does this exemplify? - ✔✔Pay compression, or salary compression An organization is developing a corporate social responsibility (CSR) strategy. At which two stages of the CSR strategic process is it likely to find the GRI G4 Guidelines most useful? - ✔✔The G4 Guidelines are useful in at least two steps in the strategic process. At the initial assessment stage, the G4 Aspects provide a template for determining the organization's current conditions and needs. At the later measurement and evaluation stage, the G4 Guidelines provide the metrics needed for meaningful progress evaluation. What is a key reason why many diversity initiatives fail to achieve intended workplace changes? - ✔✔You cannot just outlaw bias with classic command-and-control mandates of management training, hiring tests, ties to performance ratings, and remedial grievance procedures. An organization must truly embrace diversity and integrate varied life styles, beliefs, and needs into its business culture. What is the best reason to use social media channels for corporate communication? - ✔✔They provide instantaneous feedback to leaders about employee responses. (Although social media make communication more complex and challenging, they also make it easier to assess reaction to the communication.) The government of country A charges the employees of a business legally headquartered in that country with bribing officials in country B. What legal principle does this illustrate? - ✔✔Extraterritoriality Extraterritorial laws can be applied by a country to businesses owned in that country and to their employees, even when the actions in question occur in another country. Rule of law refers to a culture of respect for legal process to all citizens. Conflict of laws refers to an event in which multiple jurisdictions are involved and there are differences in their relevant laws. Forum shopping occurs when multiple jurisdictions may be involved and a plaintiff sues in the jurisdiction that will be most favorable to the claim.

What is the most desired outcome of an HR audit? - ✔✔Action plan to address underperforming areas. The most desired outcome of an audit would be a clear sense of where performance could be improved and an action plan for implementing these improvements. A checklist of controls does not ensure that the controls are effective in their goals. The audit may not affect efficiency, although it should affect quality. Measuring oneself against peers is instructional, but doing it to gain credibility is shortsighted. What is the most accurate characterization of business value? - ✔✔What constitutes value may be different in different organizations. Because value is tied to an organization's mission, the definition of value will vary. It may not be solely financial and may depend on internal assessment rather than external judges. The need to create the desired value must be communicated to and understood by the entire organization. What is the purpose of "sensing meetings" in the organizational effectiveness and development process? Cultural assessment Team building Strategic alignment Sustaining change - ✔✔Sustaining change. "Sensing" meetings are opportunities to check in on group reactions to an initiative after it has been implemented. They can provide early indications that additional steps may be required. Which motivational theory emphasizes the importance of autonomy, competency, and relatedness? Theory Z Behavioral reinforcement Self-determination

Motivation-hygiene theory - ✔✔The self-determination theory is based on a belief in intrinsic motivation—that people are motivated when they have the ability to direct their actions (autonomy), when they can increase their mastery or competence, and when an action serves a larger purpose. What is the basis of civil law? Regulatory directives Court decisions Tort reforms Legislative acts - ✔✔Civil law is based on legislation: written codes (laws, rules, or regulations) approved by legislative bodies. The law is applied deductively, starting from the abstract rule as stated in the nation's civil law code. A university is beginning its budget planning process. Due to cutbacks in state aid, every department must cut its budget by 3%. What is this budgeting method called? Deficit budgeting Incremental budgeting Formula budgeting Zero-based budgeting - ✔✔In formula budgeting, a specific cost is applied to calculate funding. This method applies an average cost to comparable expenses, and general funding is increased or decreased by a specific amount. Which statement best describes an HR role in the litigation process? Assisting legal counsel as requested Answering the complaint Filing motions Obtaining depositions - ✔✔HR often assists the employer's legal counsel. The organization's attorney handles answering the complaint, conducting depositions, and filing motions.

Nancy Adler identifies four challenges to effective cross-cultural communication. What term describes the challenge that absolves individual responsibility by ascribing obstacles to innate cultural resistance? Cultural determinism Cultural relativism Cultural stereotyping Ethnocentrism - ✔✔Cultural determinism 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. What are the three spheres of sustainability?

• Local, regional, global
• Earth, air, water
• Community, corporate, ecological
• Environmental, social, economic - ✔✔The term "sustainability" originally referred to an ecological or environmental goal. Now that focus has expanded to also consider an organization's social and economic impact (sometimes referred to as the 3Ps: people, planet, profits). A software company makes applications for small businesses and start-ups. As part of its corporate social responsibility (CSR) program, it has set up a community center where its employees are given paid time off to volunteer time and expertise to run a course designed by the company's HR function to help low-income people build their own small businesses. What term best describes this type of employee volunteer effort?
• Employer-planned volunteering
• Employer-sponsored volunteering
• Supported employee volunteering
• Private volunteering - ✔✔In employer-planned volunteering, employees volunteer within a framework of projects developed by the employer that contribute to the organization's reputation or business objectives.

An organization erroneously withheld deductions from several exempt employees' paychecks. Under the safe-harbor provision of the Fair Labor Standards Act, what must the organization do?

• Reimburse employees for any improper deductions plus interest.
• Create a written policy to prevent future improper pay deductions.
• Make a good-faith effort to comply in the future.
• Forfeit the overtime exception for the class of employees for 12 months as a penalty - ✔✔A safe-harbor provision prevents an employer from losing the overtime exemption for improper pay deductions, regardless of the reason, if the employer has "a clearly communicated" policy (not necessarily in writing) and makes a good-faith effort to comply in the future. While the organization must reimburse employees for any improper deductions, there is no requirement to pay any amount beyond the improperly deducted amount. What is the term for the system of rules and processes an organization puts in place to ensure adherence to laws, rules, ethical norms, and environmental and social codes of conduct? Governance Compliance Rule of law Ethics - ✔✔Governance is the system of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct. Good governance is the outcome of a thoughtful assessment of an enterprise's legal, ethical, and civic obligations to the communities it serves and the development of systems that support fulfillment of these obligations. The retention threshold for new hires indicates that 35% of the employees tend to quit during the first 90 days. What HR practice could improve the organization's onboarding program and reduce voluntary turnover?
• Conduct in-depth exit interviews to determine the cause.
• Provide the opportunity for job sharing after 60 days.
• Offer bonuses to new hires if they exceed 90 days.

• Ensure that basic activities are implemented prior to the first day of the job. - ✔✔The HR professional should evaluate the organization's onboarding strategies using a variety of metrics. In this situation, in- depth exit interviews to determine the cause(s) of voluntary turnover could determine any areas of dissatisfaction with the onboarding process and/or other negative organizational issues the new hire may have encountered. In what type of undesirable engagement do employees appear engaged, for example, by working longer hours and even responding as such in engagement surveys, but do not actually feel or think in an engaged way? State engagement Trait engagement Transactional engagement Behavioral engagement - ✔✔Transactional engagement can be seen as undesirable because it is associated with negative well-being outcomes. By contrast, employees not only behaving in an engaged way but also thinking and feeling engaged is associated with positive well-being outcomes. Under Title VII, what is the term for a hiring practice that has an adverse impact on a class of people but is defensible as job-related? Reverse discrimination Reasonable cause Preferential quota system Work-related requirement - ✔✔There are some exceptions to Title VII. According to the work-related requirements exception, an employer may be able to defend a practice that has a disparate impact on a class of people if it is job-related and required by business necessity. What is the most effective method to achieve an employee-friendly, nonunionized workplace?
• Using a flat organizational structure with a broad span of control
• Using frequent promotions
• Creating two-way feedback mechanisms
• Maintaining an open-door policy - ✔✔The most effective of the methods listed is creating feedback mechanisms that promote two-way communication. An open-door policy may be one part of a

workplace communication program, but it is one-way and will work only if management responds to employee feedback. Fair promotions are more important than frequent promotions. Organizational structure is not as important as the quality of management and supervision. What would be considered an employer unfair labor practice?

• Terminating an employee for just cause
• Refusing to bargain with a legally recognized union
• Filing charges against the union for coercing employees
• Conducting scheduled performance appraisals during negotiations - ✔✔Refusal to bargain with a legally recognized union or to provide information necessary for negotiations is an unfair labor practice. What task must be accomplished before identifying and analyzing risks?
• Creating risk-monitoring mechanisms
• Establishing risk management objectives for programs
• Evaluating the effectiveness of current risk controls
• Understanding the organization's risk appetite - ✔✔Identifying and analyzing risks is most effectively performed after risk managers understand the context of risk in the organization, which includes the leaders' risk appetite and broad risk management goals. What is an example of indirect compensation?
• Granting compensatory time off to a salaried employee for extra hours worked at a convention
• Awarding store gift cards to top performers in a sales contest
• Paying individual bonuses to team members for meeting critical project deadlines
• Paying non-management employees at a higher rate for overtime hours worked - ✔✔Compensatory time off is considered indirect compensation. Cash recognition and achievement awards (gift cards), overtime pay, and cash bonuses are all considered direct compensation. A consultant reports that a company can increase revenue by following a quality-oriented strategy. What would be a good first step towards implementing this strategy?

• Train work units in new quality assurance procedures
• Gain management commitment to necessary investments and changes.
• Implement quality assurance practices in all parts of the company that produce products or services.
• Develop a rewards system that is aligned with quality results. - ✔✔Quality initiatives must begin with management commitment, since they involve significant change, investment in equipment and training, and possibly temporary loss of productivity. An objective in broadbanding is to
• decrease the involvement of line managers in salary and promotion decisions.
• restrict employee movement between jobs.
• enhance the value of ranges in making pay decisions.
• support the de-layering efforts of an organization. - ✔✔Surveys indicate that broadbanding reduces the number of job grades within an organization. This approach can be used to support de-layering efforts, which reduce the number of reporting levels within an organization. Which of the following is considered a key aspect of the assessment and selection step in the global assignment process?
• Analysis of the costs and benefits of the assignment
• Preparation of the assignment plan
• Involvement of the right people
• Taxation considerations - ✔✔The only option that falls under the assessment and selection step is involving the right people. The other options refer to the steps of management and assignee decision and pre-departure preparation. What global trend has been marked by increases in both foreign direct investments (FDIs) and reverse innovations? Increasing power of developed economies Shift in influence from developed to emerging economies

Growing importance of technology over geography Impact of a global recession - ✔✔Increases in FDIs and reverse innovations are indicative of the shift from developed to emerging economies. FDI inflow into developing economies now exceeds flows to developed economies. Reverse innovations are those that start in emerging economies and spread to developed economies. What political factors can have an impact on HR initiatives?

• Education and skill profiles
• Government and taxes
• Labor availability and costs
• Technology vulnerability - ✔✔Government and taxes are political factors that can affect HR. Exchange rates and credit are economic factors, health and education are social factors, and technology and infrastructure are technological factors What is the critical policy challenge for global HR regarding organizational values and policies and its diversity and inclusion strategy?
• Ensuring that each policy meets all legal requirements for each global location in which the organization operates
• Ensuring that policy implementation is identical across all dimensions, functions, and locations
• Ensuring that each diversity dimension, function, and location has at least one policy that focuses solely on its needs and concerns
• Ensuring that each policy applies equitably and fairly across all the organization's diversity dimensions, functions, and global locations - ✔✔HR must devise and implement each policy to apply equitably and fairly across all the dimensions of diversity and across all functions and all global locations. That doesn't mean that implementation is identical; policies must be flexible enough to accommodate unique local needs and situations. Policies should strive for more than legal compliance. What can we learn from observing how organizations manage change?
• Most organizational changes involve management and have little effect on employees as a group.
• Change usually results from external forces.

• The way an organization responds to change is a good predictor of success.
• Change usually results from internal events. - ✔✔An organization's ability to deal with change is a good indicator of the organization's ability to achieve its strategic goals. Change management requires communication and coordination across and down the organization, effective planning to identify impacts and avoid pitfalls, managing relationships with all stakeholders, and ongoing monitoring. During workforce planning, HR determines that 20 new employees will be needed to achieve organizational plans for growth in global markets. This determination is part of which area in a workforce analysis process? Supply analysis Demand analysis Gap analysis Solution analysis - ✔✔Demand analysis forecasts an organization's future workforce composition and considers the number of employees and the skills required to meet organizational goals. Why would an HR professional use trend analysis?
• To understand how the organization's policies can adapt to a certain country's cultural environment
• To assess the effectiveness of organizational development efforts
• To align organizational and HR strategies
• To plan possible responses to changes in labor supply - ✔✔As you conduct trend analysis, you seek a better understanding of how circumstances throughout the world may influence your organization. Analyzing the fit of HR-related policies to a specific country's cultural environment, creating strategic alignment, and assessing HR performance do not produce information about what will happen in the future. What current globalization force affects workplace diversity, and what is its effect?

• The "demographic dichotomy" has brought new attention to generational diversity.
• The "demographic dichotomy" has reduced diversity in emerging economies.

The diaspora has reduced diversity in developed economies.

• The diaspora has increased attention on gender diversity. - ✔✔In the growing "demographic dichotomy," developed countries are facing an aging workforce while emerging economy workforces are much younger. So globalization has brought new attention to generational, as well as cultural, diversity. The diaspora of increased global migration has made the workforce increasingly diverse in all countries. What is hyperconnectivity?
• Increasing digital interconnection of people and things, any time and any place
• Increasing economic interconnection between emerging and developed economies
• Increasing speed of broadband connections
• Increasing interconnection of all PESTLE forces: political, economic, social, technological, legal, and environmental - ✔✔The World Economic Forum defines hyperconnectivity as the "increasing digital interconnection of people, and things, any time and any place." It is the purely digital/virtual aspect of globalization's "accelerating interconnectedness." An organization seeks ways of increasing initiative at all levels. What type of intervention could help to address this engagement issue? - ✔✔Structural interventions look at how the structure of the organization is helping or hindering it. In this case, an intervention may design new decision-making policies that grant employees greater freedom to test ideas. A large organization with federal contracts is under investigation for discriminatory hiring practices. How can HRIS help in the organization's defense? - ✔✔An HRIS can assist HR departments with tracking data and documenting the organization's actions. If the organization's hiring practices are in question, then data pertinent to its affirmative action programs would be most appropriate to review. For example, the

proportion of minority applicants for a position can be established and compared with the availability of qualified applicants in the general population. Similarly, the proportion of minority hires can be documented. In the balanced scorecard approach, what is the purpose of leading indicators? - ✔✔Leading indicators predict future performance. For example, improved customer loyalty (a customer measure) will translate into increased revenue and profits (a financial measure). Which function has the most effective intelligence about and highest awareness of customers, market needs, and competitive threats? - ✔✔Marketing and sales has the most effective intelligence because it is in the closest contact with customers. What is the greatest benefit of Internet recruiting in a global environment? - ✔✔Recruiting through the Internet will generally yield a much higher volume of applicants in less time than other methods. However, even with electronic screening, the time required to individually review the large number of applications may be considerable. Using the Internet may provide a biased sample of potential applicants, particularly in a global situation, because many people do not have access to the Internet. Finally, for those who do have access, the process is relatively easy, encouraging people to submit applications even if they do not quite fit the job specifications. What is meant by a fiduciary duty or obligation? - ✔✔A fiduciary duty (or fiduciary obligation) implies a legal obligation of one party to act in the best interest of another. The obligated party is typically referred to as a "fiduciary" (e.g., an individual or party entrusted with the care of money or property). How did the Patient Protection and Affordable Care Act (PPACA) amend the Consolidated Omnibus Budget Reconciliation Act (COBRA)? - ✔✔Under PPACA, employers are required to notify COBRA participants, in addition to their general employee populations, that adult children may be eligible for health plan coverage up to age 26. This provision requires an employer to make available dependent coverage for children who have not attained age 26, effective for plan years beginning on or after September 23, 2010 (January 1, 2011, for calendar year plans). At what point in the hiring process does an employer first have an opportunity for employee engagement? - ✔✔According to the "Employee Experience Survey," up to 82% of job prospects rely on company websites as a primary means for learning about a company. However, almost 40% of those prospects feel that the information isn't valuable. The company's careers page and all public-facing job listings should be current, informative, and meaningful.

What is the most important factor HR should consider before conducting an employee engagement survey? - ✔✔Leaders and managers must demonstrate a commitment to responding to survey results. Surveys that are administered and not followed up on can signal a lack of respect and commitment to the employees and can erode the trust employees have in their leaders. An organization has experienced rapid growth, outpacing its ability to respond quickly to competitive threats. Which form of restructuring will offer the best opportunity to minimize response times? - ✔✔Redistribution of decision-making authority, in this case, shifting authority downward toward line managers or outward from headquarters to field, will shorten response time. What type of compliance program evaluation asks questions such as "Is there less misconduct?" "How willing are employees and agents to report concerns?" or "How satisfied are stakeholders with the organization"? - ✔✔Process evaluation of the compliance program monitors components and outputs. Its purpose is to monitor which program activities are actually performed and what their outputs are. It asks questions such as "What training classes exist?" "How often are they given?" or "How many attend?" Outcomes evaluation aims to determine the actual results achieved by the program. It asks questions such as "Is there less misconduct?" "How willing are employees and agents to report concerns?" or "How satisfied are stakeholders with the organization?" What type of job design strategy increases the variety of responsibilities but requires the same skill level? - ✔✔Job enlargement attempts to alleviate the boredom and low morale associated with excessive job simplification. It increases the number of tasks to be performed, expanding the scope of the job and allowing for more variety, but all of the tasks require the same skill level. Job enrichment, which is sometimes confused with job enlargement, increases the depth of a job by adding increased responsibility for planning, organizing, controlling, and evaluation. It may improve morale but may not necessarily improve productivity. Job simplification and specialization generally reduce the number of tasks required of an employee. What is a key reason why many diversity initiatives fail to achieve intended workplace changes? - ✔✔You cannot just outlaw bias with classic command-and-control mandates of management training, hiring tests, ties to performance ratings, and remedial grievance procedures. An organization must truly embrace diversity and integrate varied life styles, beliefs, and needs into its business culture. An employee life cycle describes all of the activities associated with an employee's tenure in the organization. What is the first phase in the employee life cycle?

Development Performance management Onboarding and orientation Recruitment - ✔✔Recruitment Recruitment initiates the employer-employee relationship and begins the employee's life cycle. What does an HR audit measure? Learning and growth Accuracy and Improvements Validity and reliability Effectiveness and efficiency - ✔✔Effectiveness and efficiency An HR audit measures HR effectiveness and efficiency and demonstrates the value of HR in helping an organization meet its strategic goals. The HR audit has two main functions: to help organizational decision makers understand what is happening with various HR activities and to allow HR managers to determine which programs and positions should be eliminated or enhanced. In an assessment center, a candidate is asked to handle a hypothetical situation dealing with typical job- related challenges. This is an example of what type of selection tool? Simulation Test Work Sample Skill Review - ✔✔Simulation A simulation or situational case study is tailored to reflect typical problems that might be encountered. Trained assessors can evaluate how well the candidate performs.

What is the correct term for the right of an individual worker to unite with other workers to promote desired employment conditions as a group? Codetermination Collective Bargaining Workforce relations Freedom of association - ✔✔Freedom of Association Freedom of association is the right of workers to join (or not join) an organization of their choosing without prior authorization by their employer. According to Goleman, what leadership attribute separates good leaders from great leaders? Adaptability to change Emotional intelligence High Intellectual capability Technical expertise - ✔✔Emotional Intelligence In his study of 181 competency models, Goleman found that 67% of the abilities deemed essential for effective performance for managers were emotional (interpersonal) competencies. And, compared to intellect and technical expertise, emotional competence mattered twice as much. What is the impact of cognitive barriers on risk management? Managers perceive risks in an outdated manner. Teams are rewarded for being risk-averse. Leadership's example does not motivate good risk management practices.

Units or functions may not communicate well with each other. - ✔✔Managers perceive risks in an outdated manner. Cognitive barriers to risk management relate to managers' tendencies to rely on older perceptions of the risks they face and the most effective ways of managing them. What process determines the relative worth of each job in an organization? Job evaluation Job specification Job study Job analysis - ✔✔Job evaluation Job evaluation determines the relative worth of each job by establishing a hierarchy of jobs within an organization. It is intertwined with a concern for internal pay equity. What does OSHA's General Duty Clause mandate? That employers must provide work environments free of recognized hazards to safety That employees report unsafe working conditions to OSHA That employers develop standards if none exist for their industries That employees need not report for duty if their safety is at risk - ✔✔That employers must provide work environments free of recognized hazards to safety The General Duty Clause of the Occupational Safety and Health Act requires that employers provide a work environment free of recognized hazards that could cause employee death or serious physical harm to employees, even if there are no standards governing the work area or industry.

A major reorganization is announced. What is most likely to happen after the initial shock? Employees will suggest adaptive strategies. A major exodus of key employees will occur. Individuals may deny the reality of the change. Employees will become resigned to the inevitability of the reorganization and try to define their own places. - ✔✔Individuals may deny the reality of the change. After the initial shock has passed, it is common for individuals to deny that the change will happen or is beneficial. They focus on the past, believing that the past situation was acceptable or better and change was not needed. What is the basis for international law? Rule of law Conventions and treaties - ✔✔Conventions and treaties International law is based on treaties, conventions, pacts, protocols and covenants. What balance must be struck for effective information management? Between openness and security Between text and video Between home country and global

Between competing stakeholders - ✔✔Between openness and security For effective information management, a balance must be struck between openness (for innovation and collaboration) and security of information. A consulting company recently changed its vacation and leave policies and wants to know how employees feel about the changes. Its 500 employees are located in 40 locations throughout the U.S. and western Europe. What survey method is likely to yield the highest response rate and best data? Telephone survey Fax survey Mail survey Online survey - ✔✔Online survey Online surveys generally yield the highest response rate due to the convenient 24/7 access via the Internet or company intranet. In addition, responses to open-ended questions are often more complete if employees can type them in as opposed to writing them on a form. Given the time zone changes, phone interviews would be cumbersome; fax and mail surveys are less convenient and run the risk of being lost and not reaching all employees. What process initially helps an employee become familiar with a new job, department, and coworkers? Relocation Orientation Integration Onboarding - ✔✔Orientation Orientation generally lasts one to two days and helps the employee develop a realistic image of the organization and/or the job. Onboarding encompasses orientation as well as the first months of an employee's tenure in a position.

HR has been asked to target and identify how to improve employee performance. This will necessitate examining current organizational competencies against those needed in the future and reconciling the differences. What process would help HR to make these determinations? Talent Management Benchmarking Workforce analysis Succession planning - ✔✔Workforce analysis Workforce analysis would allow HR to mine employee data, evaluate the internal environment, and help to identify the steps necessary to improve employee performance. Which situation that leads to workplace violence can be controlled by an organization? Domestic problems Low employee self-esteem Pressure for increased productivity Unstable economy - ✔✔Pressure for increased productivity Conditions causing employee frustration and anger can lead to violence. Examples include pressure for productivity, rigid management style, and layoffs. What organization is most likely to fail in its strategic planning and management? To preserve competitiveness, strategic plans are shared among top management only. The strategic planning team invites input from all divisions and from managers and employees alike.

Business unit and functional strategies are developed after the organization strategy is defined. An organization invests considerable time in researching internal and external factors before setting strategy. - ✔✔To preserve competitiveness, strategic plans are shared among top management only. The only poor strategic planning practice here is to communicate strategic plans within just a small leadership group. The organization will benefit from having all employees understand how their work relates to and supports the strategy. What type of learning is characterized by rapid and easy access and opportunities for continuous learning? learning E-learning The "push" model of training The "pull" model of learning - ✔✔The "pull" model of learning The "pull" model of learning and development is a continuous process, with training "pulled" seamlessly through computers or mobile devices anywhere, anytime. "Pull" training is usually linked to acquiring skills, abilities, knowledge, and competencies needed to better perform one's job. "Pull" models may use e-learning and blended delivery methods. What is the most important reason to complete a risk assessment? To develop management tactics for strategic and operational risks

To address compliance risks associated with applicable laws and regulations To lower financial risks due to workers' compensation claims To create transparency through ownership of the risk management strategy - ✔✔To develop management tactics for strategic and operational risks The primary outcome of a risk assessment is to give organizations the information they need to develop an efficient and effective program that manages strategic and operational risk across the organization. The choices related to workers' compensation and compliance focus on reactive HR roles in managing negative risks. Roles in the management strategy can be assigned only after it is decided which risks will be managed and how they will be managed. In which form of budgeting is the prior year's budget the basis for the next budget? Activity-based budgeting Formula budgeting Incremental budgeting Zero-based budgeting - ✔✔Incremental budgeting Incremental or line-item budgeting uses the previous year's budget. The prior budget is simply increased by a set percentage. Additional funds are requested based on need and objectives. During which stage of strategic planning do managers develop action plans and assign staff members to projects? Evaluation

Manipulation Implementation Formulation - ✔✔Implementation During the strategy implementation phase of strategic planning, the plan is put into action. Managers develop action plans and allocate resources toward achieving organizational objectives. An HR specialist prepares a business case to support an initiative. The case includes descriptions of the project's goals and benefits, method, budget, and time line. What other information would have been good to include? Endorsements from organization stakeholders Communication plan the project team will use Detailed description of the methodology that will be used Analysis of the initiative's possible risks - ✔✔Analysis of the initiative's possible risks The business case should include some discussion of possible risks and approaches to managing them. Detailed descriptions and plans are not appropriate for this audience. Endorsements are not usually part of a business case, but it would certainly be a good idea to encourage supporters to communicate to management their reasons for support. What quality of mind suggests that an employee has a global mindset? Comfort with change and ambiguity Trusting the organizational structure to solve problems

Valuing independence rather than interdependence Expecting conflicts to be resolved - ✔✔Comfort with change and ambiguity Global minds are comfortable with change and ambiguity and can live with conflict management as opposed to resolution. They value teamwork and interdependence and trust the process to solve problems. How can an organization determine recruiting effectiveness? By reviewing industry data By conducting a needs assessment By analyzing yield ratios By administering employee surveys - ✔✔By analyzing yield ratios Organizations need to evaluate recruitment strategies against objective criteria. Yield ratios produce factual data that can be used to determine which source, method, or recruiter produces the greatest yield. After completing a benefits needs analysis, HR begins to compare existing benefits to the needs of the organization and of the employees. What does this activity exemplify? PEST analysis Gap analysis

SWOT analysis Trend analysis - ✔✔Gap analysis The HR professional performs a gap analysis to identify the set of benefits that best matches the needs of the organization and its employees. A manager begins with no allocated budget and must justify allocations based on how the function will contribute to the organization's strategic goals. What budgeting method is being used? Incremental budgeting Zero-based budgeting Capital budgeting Formula-based budgeting - ✔✔Zero-based budgeting Zero-based budgeting requires all managers to start at zero. A department must justify its entire budget and show how its funding will help the organization to meet its goals. In zero-based budgeting, all operations are given a priority rating, each unit or goal is ranked, and funds are given in order of the ranking. How has talent acquisition been affected by social media? It is harder to find passive candidates. It is easier to find passive candidates. It increases competition for passive candidates.

It decreases trust on the part of passive candidates. - ✔✔It is easier to find passive candidates. Social media make it easier to find passive candidates. In addition to finding passive candidates directly online 24/7, social media enable talent scouts access to passive candidates' networks of key connections. What is the relationship between corporate social responsibility (CSR) and sustainability? Sustainability focuses on external (community) stakeholders; CSR focuses on internal (financial) stakeholders. Sustainability has completely replaced CSR in light of recent environmental imperatives. They form two halves of a whole; CSR focuses on social concerns, while sustainability focuses on environmental issues. An organization's CSR strategy will most likely include goals related to sustainability. - ✔✔An organization's CSR strategy will most likely include goals related to sustainability. The definition of CSR has broadened from the traditional areas of ethics, governance, corporate philanthropy, and volunteerism to include sustainability. Recently, top management agreed on major organizational changes without including HR in change planning. Now, HR has been tasked with developing a plan for communicating the changes to the employees. Which is the most effective way to communicate the changes? Through multiple channels (e-mail, meetings, training) Through one company-wide presentation