Download SHRM SCP CERTIFICATION STUDY GUIDE 100% VERIFIED ANSWERS 2024/2025 CORRECT STUDY SET and more Exams Organization and Business Administration in PDF only on Docsity!

SHRM SCP CERTIFICATION

STUDY GUIDE 100% VERIFIED

ANSWERS 2024/

CORRECT STUDY SET

Ishikawa Diagram Cause and Effect Diagram/Fishbone. Helps identify possible causes for an effect or problem. Green Circle Employees Employee paid below the minimum salary range for the job position. Computing overtime Non-discretionary bonus are included in calculations Punishment BF Skinner says it is a process where a consequence immediately follows a a behavior which decreases the likelihood of repetition. Minimum Wage State vs Federal The higher wage always supersedes. Unemployment benefits paid by The States Turnover Formula

of employees who left during the period X 100 divided by average # of employees during the

period

WARN Notice 60 day advance notice of layoff/ closing 500 employees OR 33% of workforce if company has more than 50 employees Exemptions to salary requirement for Exempt Outside Sales only Red Circle employees Paid over the maximum salary range for the job position. Trade Adjustment Assistance Program (TTA) Assistance to unemployed who lose their jobs as a result of increased exports NIOSHA Agency responsible for conducting research and making recommendations for the prevention of work related injuries and illnesses Child support garnishment maximums 60 % of disposable income but if supporting another family, then only 50% An additional 5% for being more than 12 weeks behind. Golden Life Jacket (Stay Bonus) A compensation package paid to executives to retain them in their current role when the company has been acquired by another company. Can be large bonuses or stock options. Golden Handcuffs Offered to key employees to keep them employed with the company and to increase employee retention. Zipper Clause Found in collective bargaining contract and means both parties waive the right to bargain during the term of the contract. They should be clear and unmistakable.

Line of Sight A compensation program where employee can clearly see that their performance impacts their pay. Federal Labor Relations Authority (FLRA) Governs labor relations between employees and the federal government. An independent agency Construct Validity The degree to which a test or other measure assesses the theoretical construct it is supposed to measure. Content Validity Measures the significant parts or contents of the job (e.g. A practical driving test for a truck driver role). Payroll records must be kept for how long? 3 years for all employees Affirmative actions Incumbency to Availability is A comparison of protected class employed in each job group with the availability in the labor force within a reasonable recruiting area. Jobs can be evaluated by 2 methods: Classification method evaluates them by identifying benchmarking positions and determining internal equity which means the value of a job relative to other jobs in the company. Pay rate procedural justice How fair the process of arriving at pay ranges is perceived to be Pay equity The means of eliminating race and sex discrimination from pay or wages. Equity pay

A form of non-cash compensation that offers a form of ownership interest in the company. Wage garnishments Deductions may not exceed 25% of an employees disposable income. Balanced Score Card Management Tool Ties the outcome of each department into one measurement system. Evaluates 4 areas: financial results, customer results, internal business processes, and learning & innovation. Budgeting is a mgt function NOT a project phase. Title III of consumer credit protection act Prohibits employer from terminating an employee whose wages are garnished for one debt. Lily Ledbetter Fair Pay Act Employee has 180 days to so from the last discriminatory paycheck so the 180 day window rests with each paycheck. Employee can collect back pay for 2 years. Compa-ratio Compares employees pay with the midpoint of the salary range. It is used to measure an employees pay relative to the market average pay for her position for salary equity analyses. Salary range midpoint is usually 100%. Cliff vesting Employee becomes fully vested at a specified time Graded vesting An employee is partially vested in increasing amounts over an extended period of time. 5 yr schedule where employee vests 20% each year. Conflicting resolution/ internal procedure

Same as peer review panel. A problem solving process where an employee takes a dispute to a group or panel of fellow employees an managers for a decision. The decision is NOT binding so they can seek relief in traditional forums if dissatisfied with decision. Voluntary Resolution Practices by EEOC are: Mediation and Settlement. EEOC notifies the employer of the charge within 10 days of the complaint being filed. They will notify both parties if they are eligible for mediation and settlement. Taft-Hartley Act is: Known as Labor Management Relations Act (LMRA). Prohibits closed shops, allowed states to enact right to work laws, and created the Federal Mediation and Conciliation Service (FMCS) to assist in the settlement of labor disputes. Landrum-Griffith Act is: Known as the Labor Magement Reporting and Disclosures Act (LMRDA). Promotes Union democracy, transparency, and financial integrity in private sector labor unions through standards for union officers elections, trustees hips and safeguards for Union assets. Wagner Act is: Called the National Labor Relations Act Unfair Labor Practices Refusal to bargain. Discrimination based on labor activity. Discrimination in retaliation for going to the NLRB. How to start the election process for a union? A petiole must be filed with the nearest NLRB office showing interest in a union from at least 30% of employees. Office of Labor-Management Standards (OLMS) USDOLAbor Administers and enforces the LMRDA also known as Landrum-Griffith Act (unions) Indirect compensation

Compensation not paid directly to the employee (non-monetary remuneration) Variable compensation Also known as pay for performance is paid directly to the employee. 2 requirements for FLSA administrative exemption are: Primary duty of office work directly related to management or business operations AND duties which require the use of discretion and independent judgement. FLSA executive exemption requirement is: Primary duty is managing the organization FLSA Creative Professional exemption requirement is: Primary duty of artistic or creative endeavors Secondary Boycott is: When a union coerces a neutral employer to cease doing business with a primary employer. Unlawful labor practices (LMRA or Taft-Hartley Act) Norris-Laguardia Act (Yellow Dog Contract) When an employer instigates an agreement that prohibits an employee from joining a union Title VII of Civil Rights Act's 5 protected classes are:p Race, Color, Religion, National Origin, and Sex Age Discrimination Act of 1967 (ADEA) Protects against age discrimination Americans with Disabilities Act (ADA) of 1990 Protects against disability discrimination Basic steps for administering progressive discipline: Verbal warning, first written warning, final written warning, suspension, termination.

Commissioned survey A salary survey that provides specific information about predetermined skill sets or competitors Malcolm Knowles 5 steps of adult learning: Self-concept, experience, readiness to learn, orientation to learning, motivation to learn. Kinesthetic or Tactile learning is Physical learning where learners use a sense of touch to memorize knowledge. Job rotation The systematic movement of employees from one job to another within the organization as a way to achieve different human resource objectives such as orienting new employees, training them, enhancing career development, and preventing job boredom. It is not a recruitment strategy. Zero based budgeting is: When a company draws up a budget from scratch each year requiring managers to justify every dollar they plan on spending in the year. Advantages: flexible budgets, lower costs and more disciplined execution. Disadvantages: resource intensive nests and a bias towards short-term planning. Mediation Non-binding and the process is a negotiation with the assistance of a neutral third party who simply helps to facilitate discussion and the eventual resolution of the dispute. Arbitration Similar to the court process as parties provide testimonies, give evidence similar to a trial and arbitrators are similar to judges. Consent Election An election where the employer and the union agree to waive the pre-election hearing. They are generally held when there is no dispute between the employer and the unions involved in a union representation case.

Employee Polygraph Protection Act Prohibits private employers from using lie detector tests pre or during employment. Exceptions: security service firms, pharmaceutical manufacturers, and distributors, private firm employees who are reasonably suspected of involvement of theft, embezzlement that resulted in specific economic loss or injury to the employer such as industrial espionage. Results Level Evaluations Determine tangible business results of the training process in terms of reduced costs, improved quality, increased production, and effects on the bottom line. Learning Level Evaluations Analyses the increase in Knowlege and Sills learned in the training process. Organization Development (OD) A systemic method dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance Practical Application results in the Highest level of participant retention. Higher than Discussion and Revision. Mental Models Deep seated beliefs or thought processes that color perceptions about how the world works. TQM Organization wide efforts designed to continuously improve an organizations ability to deliver high- quality products and services with the end goal of meeting customers needs. Glass Ceiling Act Established a commission which identified three barriers to women and minorities from getting into senior management positions. These are: Societal Barriers, Internal Structer Barriers, and Governmental Barriers. Mediation Process

Solves grievances with aid of a Mediator. Steps are: Structure, Introductions, Fact finding, Options, Negotiating and Writing the Agreement. Constructive Discharge is: An employee claims their working conditions were so intolerable they were forced to quit. Demotion, reassignment to menial or degrading work, involuntary transfer to a less desirable position are examples. Transactional Leadership Offers rewards for achieved goals. Coaches work with employees to develope skills so they can function independently. Quid pro quo Means This for That and is relevant in sexual harassment cases. Leapfrogging Know also as Parallel, Pattern Bargaining or whipsawing is a bargaining strategy where the union negotiates with one employer at a time and uses the gains made as a base for negotiating with the next employer. Alternative dispute resolution forms Methods used to solve a dispute without litigation. Office of Labor Management Standards OLMS Administers and enforces most provisions of the LMRDA Negative Correlation The relationship between two variables in which one variable increases as the other variable decreases and visa versa. Two types of Classification Methods of job evaluations: Point Factor and Hay System

Wage compression A form of pay inequity where new employees are paid wages higher than those being paid to current employees. This can happen when a particular skill set exceeds the availability or the salary structure does not align with the external market data. Compa- ratio calculation is Base salary X 100/ Midpoint of salary range Positive correlation A relationship between two variables where if one variable increases the other variable increases. Also, if one variable decreases, then the other variable decreases. A negative correlation is when one variable increases and the other variable decreases Classes of employers exempt from keeping OSHA records of employee illness or injuries are: Employers with fewer than 10 employees and Low Hazard Industries Delphi Technique Corpus make decisions by obtaining input from experts anonymously until a consensus is reached. Tactile Accountability Measures Evaluates the effectiveness of specific HR programs such as grievance rates, cost per hire, or turnover and retention. COBRA Covers health care to employees and dependent so for 18 months. Disability cases are covered for 29 months. Death, divorce or loss of dependent status is 36 months. Workforce Investment Act Improves workforce quality, enhance national productivity, and reduce reliance on welfare. Helps with job training programs. Economic Growth and Tax Relief Reconciliation Act

Increase contribution limits and allows for catch up contributions for employees 50 years or older. Non-qualified plans Rabbi Trusts, Excess deferral plans, and Split-dollar life insurance plans Qualified plan Target benefit plan. Skip-level interview An employee engagement approach in which employees are interviewed by their manager's manager to provide accurate insight on job satisfaction or lack thereof Kurt Lewin's change process Three stages of change are: unfreezing, moving, and refreshing. Community of Practice A group of people who share a concern or passion for something they do and learn how to do it better as they interact regularly. It is effective in learning and knowledge management Uniformed Services Employment and Reemployment Rights Act (USERRA) Ensures Reemployment for military individuals upon return from duty. All us employers must comply. Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) Prohibits discrimination against Veterans by requiring federal contractors to list all job openings with state employment agencies. Exceptions: senior level management positions, positions filled from within, and positions lasting 3 days or less. Point of Service Plan A managed care health Insurance Plan which has network physicians and also allows for referrals outside the network for which the employee will submit reimbursement claims. Health Maintenance Organization (HMO) Preferred Provider Organization (PPO)

Fee for Service Plan Actual Defferal Percentage Test (ADP) Used to ensure no discrimination between highly compensated employees and non-highly compensated employees. The test compares the average salary deferral as a % of pre-tax compensation of hces ton hces. To pass the test, the ADP of the hces cannot exceed then hces by a factor of 1.25 or 2 % points. Scatter Diagram Provides a visual representation of the relationship between two variables. It lets you see the patterns in data and confirm or negate assumptions. Gantt Chart Recognition diagram Copyright Act of 1976 Works for hire are protected for the shorter of 95 years from the first year of publication or 120 years from the year of creation whichever expires first. Not available for works of the US Govt. to Classroom style seating Used when participants will need to write or refer to handouts during a class or meeting. Replacement Charts List the critical job roles in a company, employees current in the roles, the current vacancies, and potential replacements for the vacancies. Employees are categorized as Ready for promotion, develop for future promotions, satisfactory in current position, and replace. Talent Management Strategies Attracting, selecting, Engaging, Developing, and retaining employees to gain competitive advantage and achieve business goals. ADDIE Analysis, Design, Development, Implementation, and Evaluation.

Change Initiative Overcome employee resistance by helping them understand the need for change. Transformational leaders Inspire and motivate employees Laid see faire leadership All the rights and powers to make decisions are fully given to the employees. Coaching Equips employees with tools and knowledge to fully develop there potential. It is task-oriented, short term, and performance driven. Counseling Offering assistance and guidance in resolving personal, social, or sociological problems and difficulties. Reaction Evaluation Helps to understand how well the training was received by your audience following a training event. It solicits opinions of the learning experience. Behavior Evaluation Analyses how training has changed the trainees behavior. This looks at how trainees apply the information taught. Summary Plan Description (SPD) Changes ERISA requires the SPD be prepared and distributed every 5 years. No changes to SPD then a new SPD would be distributed every 10 years. Negatively Accelerating Learning Curve Has a quick increase in learning in the beginning which then diminishes as the employee becomes familiar with the task e.g the task of operating a cash register.

Critical Incident A performance appraisal method that is used for collecting direct observations of specific events of significance. Public Domain Works Not restricted by copyright. Works published in the USA before 1923. Works past the life of the author plus 70 years. Design Patent Form of legal protection to protect the way an item looks. It grants protection to the ornamental design of an item. Protected for 14 years. Plant and Utility Patents Protected for 20 years. Six Sigma Methodology DMAIC - Define, Measure, Analyze, Improve, and Control Railway Labor Act Applies to interstate railroads and airlines Disaster recovery plan A set of procedures designed to recover and protect a business' infrastructure in the event of a disaster. Sit down strike Workers occupy and sit in their place of employment and refuse to work until the strike is settled. Illegal. Economic Strike Disputes over wages and benefits. Strikers can be permanently replaced. Unfair Labor Practice (ULP) Strikes

Used to protest employer illegal activity. Strikers cannot be permanently replaced. Recognition Strikes Are intended to force employers to recognize unions. Hazard Communication Standard Temp agency gives general hazard info and the employer is responsible for providing site-specific hazard info. Blood Born Pathogens OSHA requires a written exposure control plan that informs employees of preventative steps, post- exposure evaluation and incident evaluation procedures. Hot Cargo Clauses Illegal by the LMRA also Taft-Hagley Act Willful Violations OSHA fines up to $70,000 per violation Sarbanes-Oxley Act Passed to protect shareholders and the general public from accounting errors and fraudulent practices of corporations as well as improve the accuracy of corporate disclosures. Strategic Planning Process 4 questions: where are we now? Where do we want to be? How will we get there? How will we know when we arrive? Vision Statement Describes where a business is headed and what it will look like when it gets there. Mission Statement Defines the company's goals, ethics, culture, and standard for decision-making.

Negative Reinforcement Encourages acceptable behavior by taking away something unpleasant. Positive Reinforcement Encourages the behavior by providing a pleasant reward. Douglas McGregor's X and Y theory Theory X managers believe workers are naturally unmotivated and dislike working. Theory Y managers believe workers are happy to work, self-motivated, and creative. Imputed Income OSHA form retention 5 years following the end of the calendar year the form covers. Employer provided group life coverage in excess of $ The value of excess coverage must be reported as income and is subject to SS and Medicare taxes. Common-situs Picketing Illegal picketing by union workers due to a grievance against a single employer at a worksite shared by other employers Formative Evaluation Tests the training design/process before the training is delivered. Summative Evaluation Evaluates the outcomes of the training and has 4 levels: Reaction, Learning, Behavior and Results. Adverse Impact Occurs when selection rate for a protected class is less than 80% of the selection rate of the group with the largest selection rate. Physicians Hospital Organization (PHO)

A legal entity formed by physicians and hospitals with the intention of negotiating contracts with employer organizations to provide services. Civil Right act of 1991 Any party in a civil suit in which punitive or compensatory damages are sought may demand a jury trial. Cost Benefit analysis The relationship between the results (benefits) and the resources required (costs). HR Role in Customer-focused Organization is: To align employee behavior - training, communications, and performance management are properly aligned. Cultural Noise Candidates give responses that are conventional but not revealing. Vicarious Liability Employers are held liable for the wrong doings of their employees provided it can be shown they took place in the course of their employment. Albermarle Paper vs Moody 1975 Court Ruling Stated that items used to validate employment requirements must be job related. Washington vs Davis Ruling Dealt with job testing and discrimination. Balanced Scorecard Strategic Planning 4key areas: financial results, customer results, key internal processes, learning/innovation. Used to align business activities to the organizations vision and strategy. A balance sheet Shows an organizations, assets, liabilities, and equity at a particular point in time.

BFOQ ( Bona Fide Occupational Qualifications) Can NEVER be Race or Color. Imputed Income The value of the excess coverage of Employer provided Life insurance that exceeds $50000 must be reported as income and subject to SS and Medicare taxes Corporate Social Responsibility (CSR) Business practices that involve participating in initiatives that benefit society. Total Quality Management TQM Management theory that says quality is defined by the customer and production is aligned to meet customer needs. Assessment Center Assesses a candidates suitability for a job through various tasks and activities that allow an employer to test skills not accessible in an interview. Unemployment Compensation Amendment of 1992 Requires 20% of income tax be witheld from some distributions to some rollover accounts Executive Order 11246 Federal contractors who do over $10000 in business with US can not comity employment related discrimination and must have an Affirmative Action Plan if over $50000 and 0ver 50 employees. Small Business Job Protection Act Helped to simplify the ADP test for 401k plans and redo fined highly compensated employees for small enterprises. Recruitment Advertisements Avoid exclusionary requirements that are not job related Retirement Equity Act

Lowered the age limits for participation and vesting in pension plans Disabled employees ( within two months of reduction) Are entitled to 29 months of COBRA benefits Behavioral Interview question Tell me about a situation where you helped resolve a conflict between subordinates. Indirect compensation Social Security Construct Validity Test that measures a variable believed to be a fundamental trait or characteristic important for successfully performing the job. Forced distribution performance appraisals Placing a specified number of individuals in preset categories of performance. Content Validity Test Requiring an applicant for a truck driver position to take a practical driving test. S-shaped learning curve Learning occurs in a series of increasing and decreasing return. Cross training advantage Encourages teamwork as workers get to know the details of co-workers job. Most valuable evaluation method for company Results evaluation Behavior modeling techniques Used most effectively in supervisory skills training programs

Learning evaluation Determines the increase in employee knowledge as a result of the training. Pilot programs Best method for insuring the effectiveness of a training program prior to delivery Knowledge of predictor Positive expectation and subsequent differentiatial treatment by managers and coworkers based on knowledge of valid performance indicators. When referral bonuses are NOT include in the regular rate of pay for overtime considerations When participation is strictly voluntary, recruitment efforts do not involve significant time, and the activity is limited to after hour solicitations as part of the employees social affairs. Behaviorally Anchored Rating Scales (BARS) BARS must be created from scratch for every position. It requires a high degree of monitoring and maintenance. It overcomes more rating errors than the graph rating appraisal method. Calculating overtime pay with bonuses 60 hours X $13=$780 + $100 bonus= $880/60= $14.67 hour 60 hours X $14.67= $880. 20 hours X $7.345=$146. Total: $ IRCA International Register of Certified Auditors Requires I9 forms be completed for all new employees within 3 days of hire. Employers comply with IRCA in good faith. I9 forms be maintained for all employees. Best reason to keep logs of employee performance To provide support and/or backup and reduce rates errors. Union ULP's

Mass picketing that physically bars employees from entering the plant. Threatening employees that unless they support the unions activities , they'll lose their jobs. Fining employees from crossing the picket line after they have quit the union. Principled bargaining Based on 4 premises: separate the people from the problem, focus on interests, not positions, invent options for mutual gain, and insist on objective criteria Contract Bar A type of election bar the NLRB does not allow because a bargaining unit is covered by a valid collective-bargaining agreement. Clayton Act Limits the use of injunctions to stop strikes and exempts unions from the Sherman Antitrust Act of

Dodd Frank Wall Street Reform Act/ Consumer Protection Act Places major regulations on the financial industry and created the following: Consumer Financial Protection Bureau, Financial Stability Oversight Council, and Whistleblowers may receive 10-30% of the proceeds from litigation settlement. LMRA Cooling off period created President can obtain an injunction to end a strike for an 80 day cooling off period. Porters 5 forces Threat of new entrants, substitute products or services, bargaining power of buyers Environmental Scanning Tools Porters 5 forces, SWOT Analysis, PEST Analysis MAtrix Organizational Structure Has multiple reporting lines

Lean Treadmill COnsumer Credit Protection Act Limits the amount of wages that can be garnished or witheld in any one week by an employer to satisfy creditors. Ranking Method A job evaluation method used by an organization with fewer than 25 employees who each perform unique functions. Pension Benefit Guaranty Corp. Set up by ERISA to insure payment of benefits in the event a private sector defined benefit pension plan terminates with insufficient funds to pay the benefits Robert House' Path-Goal Theory 4 Leadership styles described in theory are: Directive, Supportive, Participative, and Hershey-Bland Theory of Leadership Four sales of leadership are: telling, selling, participating, and delegating SArbanes Oxley Act protects Whistleblowers and is enforced by OSHA No qualified deferred compensation plan Excess deferral plan Davis-Bacon Act Requires companies with federal construction contracts to pay their laborers minimum wage for the geographical area which the work is being performed. Walsh Healy Public Contracts Act Requires all government contractors with contracts exceeding 10k to pay their employees the real, prevailing wage for their locality established by the Secretary of Labor

5 phases of a project life cycle Planning Executing Controlling 6 core principles of SHRM Code of ethical and professional standard in HRM Professional Responsibility, Ethical Leadership, Use of information Quantitative Analysis Tools Mean, weighted average, moving average Tactical Accountability Metric Training cost per employee, Grievance Rates, Cost per hire IRS 20 Factor test Used to determine if an individual is an employee or independent contractor EEO-1 Report If a private employer has 100 employees, this report must be filed. McNamara-Ohara Service Contract Act 1965 Covers federal service contracts. FLSA DOESNT. FLSA Covers minimum wage requirements, exemption conditions for employees, work conditions for children under 18, and overtime. Facilitation Instructional method that enables employees to work together on problem-solving techniques while under the guidance of a facilitator or third party expert in helping different groups interact effectively. Salting

A labor union tactic where someone gets a job at a specific workplace with the intent of organizing a union. It is a legal strategy used by unions. Hot Cargo Clause Prohibits an employer from conducting business some other person with whom the union has or may have a dispute with. The Landrum Griffith Act ( also called the Labor Management Reporting and Disclosure Act) bans all hot cargo agreements except in the garment and construction industry. Torts A wrongful act or infringement of a right (other than under contract) leading to civil legal liability. Examples are constructive discharge, wrongful termination, negligent hiring. Sympathy strike Strikers have no grievance with their employer but attempt to support or aid another group of workers on strike. Wildcat strike An employee work stoppage Not authorized by the union Economic strike A strike by employees over wages, hours, and working conditions. Human Process Interventions Directed at developing competencies at the individual level in the organization. Job Redesign An effort where job responsibilities and tasks are reviewed and possibly reallocated among staff to improve output. It is not a human process intervention. Broadbanding Describes having extremely wide salary bands. Typical salary bands may be 40% difference in pay between the minimum and maximum broad banding would have a 100% difference. Also referred to as collapsing multiple pay grades.

Flexible Spending Account (FSA) IRS requires left over money to be forfeited and the employer keeps the funds. Employers are now allowed a grace period until 3/15 per they can let the employees carry over $500 for the next year but not both. Salary Surveys Conducted with numerous employers to determine pay levels for specific job categories. Generally, conducted by region, sector, or job classification. Human Resources Audit A comprehensive method to review current HR policies, procedures, and systems to identify needs for improvement of the HR function as well as to assess compliance with ever-changing rules and regulations. Office of Federal Contract Compliance Programs (OFCCP) Enforces EO 11246, Section 503 of the Rehabilitation Act of 1973, contractual promise of affirmative action, and equal employment opportunity required of federal contractors and subcontractors. Bottom up communication vehicles Open door policy, staff meetings, all-hands meeting. Intranet is not because it is considered Top- down communications. Seamless Organization One where traditional hierarchies do not exist. It is a horizontal organization connected by networks to enhance communications and creativity. Environmental scanning A framework for collecting information to create a successful strategic plan. SWOT ( Strengths, Weknesses, Opportunities, Threats) analysis takes place during this stage. Intrinsic Rewards Non material things that contribute to employees job satisfaction.