SHRM SHRM-SCP Online Practice Questions and Exam Preparation

SHRM SHRM-SCP Online Questions & Answers

• Question 1011:

  In the McKinsey 7S Framework, what is the fundamental building block of the model?

  A. Skilled staff
  B. Shared values
  C. Strategy
  D. Staff
  B. Shared values

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  Shared values sit at the center of the McKinsey 7S Framework, underpinning and aligning the other six elements - structure, strategy, systems, skills, style, and staff.

• Question 1012:

  Which question would be most suitable in an employee opinion survey?

  A. Is the organization's compensation level ideal compared to industry standards?
  B. Are the organization's values accurately presented in the employee handbook?
  C. Does your manager administer the flex-work policy in a consistent manner?
  D. Does the organization maintain its competitive advantage in the industry for industry leadership?
  C. Does your manager administer the flex-work policy in a consistent manner?

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  Employee opinion survey seek to gain opinions on specific WORK PROCESSES an employee performs, safety procedures, or some other issue the employer may be evaluating or considering.

• Question 1013:

  Under which category would SBU's (Strategic Business Units) with high growth rate but low relative market share come under?

  A. question mark
  B. stars
  C. cash cows
  D. dogs
  A. question mark

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  The correct answer is Question Marks. The term "question mark" is given because the company doesn't know whether the SBU will be successful or not. Neither do they know how much money they should pour in to the SBU.Question marks or Problem Child: Products in high growth markets with low market share. Investment should be made in "Question Mark" depending on their chances of becoming a star.

• Question 1014:

  At what stage of the corporate social responsibility (CSR) strategic process does a global organization decide whether there will be local initiative leadership and how they will coordinate with global efforts?

  A. Step 1: Executive commitment
  B. Step 2: Assessment
  C. Step 3: Infrastructure creation
  D. Step 4: Plan implementation
  C. Step 3: Infrastructure creation

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  Step 3: Infrastructure creation. This is the third step of the CSR strategy. Infrastructure Creation. This step involves creating the infrastructure that will be responsible for guiding, overseeing, administering, reviewing, and championing the CSR strategy. This is the step where "how" is answered. Questions to answer at this step include: Will there be a single head of CSR? Will a separate sustainability department be created? Will HR spearhead strategic implementation?The CSR Strategic Process.

  1. 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.

  2. Assessment - There are two components to the assessment step: >Reviewing systems and procedures within one's own organization to determine their current state of sustainability. >Gathering input from internal and external stakeholders.

  3. Infrastructure Creation - This step involves creating the infrastructure that will be responsible for guiding, overseeing, administering, reviewing, and championing the CSR strategy.

  4. Plan Implementation - The implementation stage of the CSR strategy involves setting priorities and objectives, tactical steps, and how to implement action plans.

  5. 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 (GRI) G4 Sustainability Reporting Guidelines are the universally accepted standard for reporting of an organization's sustainability efforts and progress)

  6. Reassessment and Revision - Based on the evaluation of results, tactics and strategic goals should then be revised.

• Question 1015:

  What is a turnkey operation?

  A. a for-profit operation that is ready to use as-is the moment it is purchased by a new owner.
  B. a licensor provides their products, services, brand and/or technology to a licensee via an agreement.
  C. a business will take the majority of the risk in opening a new location while gaining the advantage of an already established brand name and operational process
  D. the practice of shipping goods from the domestic country to a foreign country through outsourcing.
  A. a for-profit operation that is ready to use as-is the moment it is purchased by a new owner.

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  A turnkey operation is an agreement by a seller to supply a buyer with a facility fully equipped and ready to be operated by the buyer's personnel, who will be trained by the seller (i.e., ready to go, put together, already assembled).The term "turnkey" is based on the concept of only needing to turn the key to unlock the doors to begin operations, or to put the key in the ignition to drive the vehicle.

• Question 1016:

  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. Because the company is a government contractor, it is required to;

  A. abide EEOC requirements in all its selection procedures
  B. allow employees to view the information in their personnel files
  C. have a formal affirmative action plan
  D. establish a quota system for hiring minority employees
  C. have a formal affirmative action plan

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  OFCCP administers and enforces the three equal employment opportunity mandates 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 specific dollar thresholds.

• Question 1017:

  Which action is likely to be a key HR activity of an organization pursuing a corporate growth strategy?

  A. Basing rewards on length of service to the organization
  B. Recruiting primarily for entry-level positions
  C. Basing compensation on performance incentives
  D. Emphasizing promotion from within the organization
  C. Basing compensation on performance incentives

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  Companies employ a growth strategy as it allows for business expansion. Growth can be achieved by practices like rewarding employees based on performance, adding new locations, investing in customer acquisition, or expanding a product line.

• Question 1018:

  Which of the following best describes the regiocentric strategy that is used by multinational corporations to build a global workforce?

  A. Has managers that move around to the business entities of different countries in the area.
  B. Expatriates fill all the key management roles in the organization.
  C. Host Country Nationals are used to fill management positions in host countries.
  D. Positions are filled with individuals who have the best qualifications.
  A. Has managers that move around to the business entities of different countries in the area.

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  Multinational corporations use four basic strategies in making decisions about global workforce staffing:- The ethnocentric approach is one in which all key management positions are filled by expatriates.- A polycentric approach fills corporate positions in the home country with expatriates, whereas management positions in the host country are filled by Host Country Nationals (HCNs).- A regiocentric approach covers a trade region such as the European Union and has managers move between business units in different countries in the region.- The geocentric approach seeks to place the best-qualified person into each position, regardless of their country of origin.

• Question 1019:

  What is the best definition of moral hazard?

  A. An organization violates employment laws or regulations unintentionally.
  B. A leader demonstrates poor ethical behavior, leading to poor choices by employees.
  C. An organization decides to behave ethically, even though this means a financial loss.
  D. A person engages in risky behavior knowing that someone else will absorb any losses.
  D. A person engages in risky behavior knowing that someone else will absorb any losses.

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  Moral hazard exists when someone takes risks because he or she will not be affected by losses or damages that occur as a result. It is the concept that individuals have incentives to alter their behavior when their risk or bad-decision making is borne by others.

• Question 1020:

  The CEO of a small distribution company wants to create a succession management plan. The CEO has used a talent assessment tool in the past and has asked the HR director to create one for the distribution company. The company has never had a formal process for evaluating its talent pool and identifying potential leaders, and senior managers are neither familiar with nor supportive of this new initiative. The CEO asks the HR manager to gain the cooperation and support of senior managers for the initiative.

  The HR director learns that senior managers have not explained the purpose of the new initiative and performance evaluations, which has caused uncertainty and subsequently, a decrease in morale among employees. What should the HR director do to address this issue?

  A. Hold an organization wide meeting to explain the rationale for the succession management initiative and the performance evaluations.
  B. Meet with employees to learn more about their concerns before taking further action.
  C. Make information about the talent assessment and succession management initiative available to all employees via the company intranet.
  D. Encourage employees to seek more information from senior managers if they have any questions or concerns about the initiative.
  A. Hold an organization wide meeting to explain the rationale for the succession management initiative and the performance evaluations.

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  Leading an all-hands meeting to explain the purpose and benefits of the succession initiative and associated evaluations directly addresses uncertainty, demonstrates transparency, and helps rebuild morale by ensuring everyone understands the rationale.