SHRM Exam Study Material (Answered)
140 Questions and Correct Answers,
100% Correct. Updated Fall 2024/2025.
Which test most effectively identifies potential high-performing leaders in a collaborative work
environment?*
Emotional intelligence. Rationale: Leaders with a high level of emotional intelligence perform better
and achieve superior outcomes than leaders with less of this competence. Psychomotor, work
sample, and personality test do not measure emotions. Psychomotor tests measure dexterity,
coordination, and steadiness. Personality tests are designed to measure whether an applicant's
attributes match certain job criteria. Work sample test require an applicant to perform a simulated
task associated with the job.
Recently, HR has received complaints about the fairness of the CEO's compensation. Which should
the HR manager do first to ensure that the executive compensation practices of the company are
fair?*
a. Identify the rewards being offered to incentivize long-term goals.
b. Analyze the company culture and compensation structure history.
c. Confirm the plan is balanced with long-term and short-term incentives.
d. Determine which objectives are being used to evaluate executives.
Analyze the company culture and compensation structure history. Rationale: Analyzing the company
culture and compensation structure history sets the groundwork for determining if the CEO's
compensation plan is fair and consistent with the existing values of the company. After the
compensation structure is examined and understood, the HR manager can determine what, if any,
objectives, rewards, and incentives are used.
A CEO thinks the best way to make his organization a leading competitor is to merge with a
healthcare organization that recently acquired the rights to new technology. Which best describes
the degree and timing of the change the CEO is implementing?*
a. Incremental-reactive
b. Radical-anticipatory
c. Radical-reactive
d. Incremental-anticipatory
Radical-reactive. Rationale: The degree of change would be radical because the merger is a major
change to how the organization currently does business. The time of change would be reactive
because they are forced to change by some event in the external environment. Thus, the correct
answer is B.
Which incentive plan is most likely to cause frustration to higher-performing employees?*
a. Profit sharing
b. Gain sharing
,c. Piecework
d. Behavioral encouragement
Gain sharing. Rationale: With group incentive plans, such as gain sharing, some employees may
make fewer contributions to the group goals because they have lower ability, skills, experience, or
desire. This may make the high-performing employees frustrated because they feel these employees
are not contributing equally to the attainment of group goals. Piecework, profit sharing, and
behavioral encouragement are individual incentive plans.
Which is the best way to address the lack of diversity within organizational units?*
a. Confirm that recruiters incorporate diversity policy into the recruitment process.
b. Implement incentives to employees for candidate referrals.
c. Develop a diversity initiative with targeted hiring objectives.
d. Consult legal to mitigate discrimination claims in hiring.
Develop a diversity initiative with targeted hiring objectives. Rationale: The best way to address lack
of diversity is to create a diversity initiative because it places importance on diversity by aligning it
with the business priorities. The initiative will also outline what changes are needed in the workforce
and what strategies will be put in place to achieve these changes. Simply confirming that recruiters
are incorporating the diversity policy is not specific enough to address the issue. Legal will advise to
mitigate discrimination claims, hire more diverse applicants. Candidate referrals are more likely to
be similar to existing employees, thus perpetuating the diversity issue.
Which measure shows how much more valuable an organization has become because of its
investment in human capital?*
a. Return on investment
b. Human capital return on investment
c. Human economic value added
d. Human capital value added
Human economic value added.
Rationale: Human economic value added shows the wealth created per employee. It shows how
much more valuable the organization has become because of its investment in human capital.
Return on investment shows the value of investments in human capital. Human capital return on
investment shows the amount of profit derived from investments in labor. Human capital value
added shows the operating profit per full-time employee.
Scenario Background: A manufacturer has secured a contract from a large hospital to build and
supply operating room equipment. The hospital specifies the steps in the manufacturing and quality
control processes that it expects, and the manufacturing company has contractually committed to
meet these specifications. The production line employees discover that they can skip one of the
steps in the quality control process when building respirators without any noticeable change in the
final product. The client unknowingly accepts the finished respirators as meeting specifications.
During an exit interview, a departing employee reveals to the senior HR director that his entire unit
is skipping a critical step in the quality control process for building the respirators. No one in the
production's supervisory line or management is aware this is happening.
, What is the first thing the HR director should do?*
a. Confer with co
Initiate an investigation to swiftly determine the accuracy of employee's claim. Rationale: Situational
judgment test (SJTs) require you, as an examinee, to think about what is occurring in the scenario
and decide which response option identifies the most effective course of action. Other response
options may be something you could do to respond in the situation, but SJTs require thinking and
acting based on the best of the available options. Do not base your answer on your organization's
approach to handling the situation, but rather, answer based on what you know should be done
according to best practice. Panels of SHRM-certified subject matter experts rate the effectiveness of
each response option, and the "best" answer is derived by statistical analysis of those expert
opinions.
Scenario Background: A manufacturer has secured a contract from a large hospital to build and
supply operating room equipment. The hospital specifies the steps in the manufacturing and quality
control processes that it expects, and the manufacturing company has contractually committed to
meet these specifications. The production line employees discover that they can skip one of the
steps in the quality control process when building respirators without any noticeable change in the
final product. The client unknowingly accepts the finished respirators as meeting specifications.
During an exit interview, a departing employee reveals to the senior HR director that his entire unit
is skipping a critical step in the quality control process for building the respirators. No one in the
production's supervisory line or management is aware this is happening.
The HR director reviews performance expectations for employees on the
Work with supervisors to determine improvements that will help employees meet production goals.
Scenario Background: A year after a premium hotel opened in a medium-sized town, the discount
hotel across town is forced to close. Many of their housekeepers and desk attendants get picked up
by the premium hotel. A few weeks later, the managers of the hotel notice that the former discount
hotel employees are clashing with the other employees. The hotel manager discovers that one of the
housekeepers from the affordable motel is allowing family members to stay overnight at the hotel
without paying. At the same time, an employee anonymously alleges that the facilities manager does
not like the hospitality director and purposely delays and neglects completing room repairs, so they
are not available for reservations. Ultimately, this reflects poorly on the hospitality director.
After determining the allegations about the facility manager to be true, the HR generalist presents
these findings to the HR director. Which is
Meet with the facilities manager and hospitality director individually to determine if mediation will
solve the problem.
Scenario Background: A year after a premium hotel opened in a medium-sized town, the discount
hotel across town is forced to close. Many of their housekeepers and desk attendants get picked up
by the premium hotel. A few weeks later, the managers of the hotel notice that the former discount
hotel employees are clashing with the other employees. The hotel manager discovers that one of the
housekeepers from the affordable motel is allowing family members to stay overnight at the hotel
without paying. At the same time, an employee anonymously alleges that the facilities manager does
not like the hospitality director and purposely delays and neglects completing room repairs, so they
are not available for reservations. Ultimately, this reflects poorly on the hospitality director.
