SHRM Topic - Leadership
Thu, 17 Apr 2025
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SHRM-CP Certification Exam Questions 2023 - Day 19
1. A company has reached a point of stability in its internal processes and ways of doing business. What stage of the life cycle characterizes this company?
A) Maturity
B) Decline
C) Introduction
D) Growth
2. How is Porter's 'Five Forces' framework used in developing strategies?
A) To determine the cost-effectiveness of strategic initiatives
B) To identify internal strengths and weaknesses
C) To understand competitive factors that influence the strategy
D) To assess the strength of various competitors
3. Refer to the following scenario for the next 3 questions. A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the aged current learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. The TDL knows that championing creativity and innovation in a risk-averse industry is a challenge because this behavior is usually not promoted or rewarded. How should the talent development lead position the proposed LMS to gain leadership commitment for investing in this new technology?
A) A. Survey the founder and senior leaders to gather their thoughts and feelings about how the LMS should support operations.
B) B. Task the Millennial leaders with researching LMS capabilities and trends and preparing a presentation for the founder, leaders, and stakeholders.
C) C. Implement the new LMS and, after usage data is gathered, then demonstrate its benefits.
D) D. Show how the LMS can effectively use technology, trends, and innovations to support the organizational strategy.
4. The TDL understands that cross-functional collaboration will be required to sort out the features needed to support the organization's learning management system. What is the best way to organize the right cross-functional team?
A) A. Contact analogous organizations and implement the exact features they are using.
B) B. Ask the senior leaders who they would like to see on the cross-functional team.
C) C. Assemble a team including senior functional leaders and younger managers with an interest in diversity and innovation.
D) D. To save time, limit the team to tech-savvy employees who already understand LMS trends and applications.
5. How can the TDL ensure that the LMS is consistently and widely used and supports the cost of investment?
A) A. Contract with an LMS vendor to set up a hotline to answer all questions related to information seeking and sharing with the new technology.
B) B. Create an effective communication plan so employees are aware of the benefits the new LMS offers and implement incentives for using the LMS.
C) C. Do nothing and assume that the LMS will eventually be consistently and widely used since it has so many benefits.
D) D. Require IT department employees to field calls and answer all questions from other employees on a rotating basis.
6. Which approach to offsetting a downturn is often used by companies in the decline phase of their life cycle?
A) Emphasizing training
B) Introducing product extensions
C) Building teams
D) Reducing costs
7. In a value chain, which business function is likely to be closest to the customer?
A) Operations
B) Fulfillment
C) Marketing and sales
D) Research and development
8. CHRO conducts this audit. The CHRO had been one of the CEO's first hires. How should the CHRO respond to this situation?
A) A. Accept the board's assignment, explaining to the CEO the board's power to order this.
B) B. Explain the difficult position and promise to get the board to agree to a third-party audit.
C) C. Tell the board that there is a conflict of interest that prevents the CHRO from complying with the board's request.
D) D. Persuade the CEO to accept the situation by promising the CEO a major role in the audit committee.
9. What would be the most effective tactic in persuading the CEO to accept the audit?
A) A. Give specific examples of the impact that the publicity has had on hiring.Â
B) B. Assure the CEO that all recommendations will be reviewed by the organization's legal representatives.
C) C. Ask the CEO to remember their joint commitment to doing what is in the organization's best interest.
D) D. Refer to examples of competitors who have met both financial and corporate social responsibility (CSR) objectives.Â
10. While the company's leadership is struggling with this issue, the CHRO receives an urgent call from the global head of recruiting. Recruiters report that their appearance at job fairs has been met with what seems to be organized demonstrations. The fairs have produced very few prospective candidates. The recruiting head asks what the CHRO wants them to do. How should the CHRO respond?
A) A. Have recruiting directors contact local law authorities and the security directors for the fair venues and demand better protection.
B) B. Hold off on appearances at job fairs for now and focus on using recruiting firms.
C) C. Tell the recruiters to persist and to project a professional demeanor at all times.
D) D. Report this to the CEO as an example of what the company is doing wrong.
A) Maturity
B) Decline
C) Introduction
D) Growth
2. How is Porter's 'Five Forces' framework used in developing strategies?
A) To determine the cost-effectiveness of strategic initiatives
B) To identify internal strengths and weaknesses
C) To understand competitive factors that influence the strategy
D) To assess the strength of various competitors
3. Refer to the following scenario for the next 3 questions. A renowned financial institution, a former leader in the financial market, is now facing decelerated growth. Its product portfolio lacks innovation compared to that of competitors. Although the institution was once a favorite place to work, recently HR has been facing issues attracting top talent, and time-to-hire metrics have deteriorated. A technology gap between the leadership and the employees is beginning to widen. The founder, who is very sales-oriented, is not an early adopter when it comes to technology. Since his client relationships all began with face-to-face contact, he is wary that technology removes the personal element. To create a more collaborative culture and social learning environment, the HR talent development lead (TDL) wants to foster a culture of learning and innovation. This will require a change in corporate culture and a significant investment in new technology. Despite a recent upgrade, the aged current learning management system (LMS) still feels outdated, sluggish, and static. The TDL believes that a new LMS with more powerful social learning technologies will be critical for attracting and retaining top talent, capturing the attention of a broader and rapidly changing demographic, and meeting their demands. The workforce is around 40% Millennials, compared with 10% just five years ago. The TDL knows that championing creativity and innovation in a risk-averse industry is a challenge because this behavior is usually not promoted or rewarded. How should the talent development lead position the proposed LMS to gain leadership commitment for investing in this new technology?
A) A. Survey the founder and senior leaders to gather their thoughts and feelings about how the LMS should support operations.
B) B. Task the Millennial leaders with researching LMS capabilities and trends and preparing a presentation for the founder, leaders, and stakeholders.
C) C. Implement the new LMS and, after usage data is gathered, then demonstrate its benefits.
D) D. Show how the LMS can effectively use technology, trends, and innovations to support the organizational strategy.
4. The TDL understands that cross-functional collaboration will be required to sort out the features needed to support the organization's learning management system. What is the best way to organize the right cross-functional team?
A) A. Contact analogous organizations and implement the exact features they are using.
B) B. Ask the senior leaders who they would like to see on the cross-functional team.
C) C. Assemble a team including senior functional leaders and younger managers with an interest in diversity and innovation.
D) D. To save time, limit the team to tech-savvy employees who already understand LMS trends and applications.
5. How can the TDL ensure that the LMS is consistently and widely used and supports the cost of investment?
A) A. Contract with an LMS vendor to set up a hotline to answer all questions related to information seeking and sharing with the new technology.
B) B. Create an effective communication plan so employees are aware of the benefits the new LMS offers and implement incentives for using the LMS.
C) C. Do nothing and assume that the LMS will eventually be consistently and widely used since it has so many benefits.
D) D. Require IT department employees to field calls and answer all questions from other employees on a rotating basis.
6. Which approach to offsetting a downturn is often used by companies in the decline phase of their life cycle?
A) Emphasizing training
B) Introducing product extensions
C) Building teams
D) Reducing costs
7. In a value chain, which business function is likely to be closest to the customer?
A) Operations
B) Fulfillment
C) Marketing and sales
D) Research and development
8. CHRO conducts this audit. The CHRO had been one of the CEO's first hires. How should the CHRO respond to this situation?
A) A. Accept the board's assignment, explaining to the CEO the board's power to order this.
B) B. Explain the difficult position and promise to get the board to agree to a third-party audit.
C) C. Tell the board that there is a conflict of interest that prevents the CHRO from complying with the board's request.
D) D. Persuade the CEO to accept the situation by promising the CEO a major role in the audit committee.
9. What would be the most effective tactic in persuading the CEO to accept the audit?
A) A. Give specific examples of the impact that the publicity has had on hiring.Â
B) B. Assure the CEO that all recommendations will be reviewed by the organization's legal representatives.
C) C. Ask the CEO to remember their joint commitment to doing what is in the organization's best interest.
D) D. Refer to examples of competitors who have met both financial and corporate social responsibility (CSR) objectives.Â
10. While the company's leadership is struggling with this issue, the CHRO receives an urgent call from the global head of recruiting. Recruiters report that their appearance at job fairs has been met with what seems to be organized demonstrations. The fairs have produced very few prospective candidates. The recruiting head asks what the CHRO wants them to do. How should the CHRO respond?
A) A. Have recruiting directors contact local law authorities and the security directors for the fair venues and demand better protection.
B) B. Hold off on appearances at job fairs for now and focus on using recruiting firms.
C) C. Tell the recruiters to persist and to project a professional demeanor at all times.
D) D. Report this to the CEO as an example of what the company is doing wrong.
1. Right Answer: A
Explanation: As an industry, organization, or product matures, problems are largely resolved. In an organization, staffing and culture begin to stabilize, and the rate of change levels off. Policies, procedures, and rules are formalized and communicated to all employees. Training is emphasized, and labor cost control becomes a factor.
2. Right Answer: C
Explanation: Porter's 'Five Forces' framework helps strategists understand the competitive forces at work in their industries so that they can assess the strengths and weaknesses of their own competitive position.
3. Right Answer: D
Explanation: D is the best answer. The TDL should develop knowledge about LMS applications that directly support the organizational strategy. A is incorrect. The founder and senior leaders may not know enough about current LMS trends and capabilities to see how it might support operations. B is incorrect. The Millennial leaders may assume general understanding and present information over the heads of the senior, less tech-competent leaders. C is incorrect. Prior to implementing the new LMS, the TDL needs to obtain buy-in by demonstrating how it will support the organization's strategy.
4. Right Answer: C
Explanation: C is the best answer. The team should include senior leaders and younger leaders who represent the spectrum of LMS users as well as the spectrum of potential mentors and collaborators. Assembling a team of experts will provide more efficient use of time and resources. A is incorrect. Although it could be beneficial to know what similar organizations are doing, the TDL cannot rely on only that information, as the other organizations' business strategies and needs may differ. B is incorrect. The senior leaders may be too far removed from the end users to be best suited to assembling a cross-functional team. Also, this might not be the most effective use of their time. D is incorrect. Limiting the cross-functional team to tech-savvy employees does not adequately represent the needs of tech-challenged employees.
5. Right Answer: B
Explanation: B is the best answer. For the LMS to be consistently used, employees must be aware of its capabilities. In addition to awareness, employees will need training to capitalize on the benefits. For an incentive to use the LMS, adding a performance measurement to job descriptions may provide the right nudge. A is incorrect. Simply adding a hotline for LMS answers will not guarantee use of the system. C is incorrect. A communication strategy needs to be created in order to ensure that employees understand the benefits and features of the LMS and therefore will be more willing to use it. D is incorrect. Requiring IT employees to field calls will only serve to disrupt IT without guaranteeing LMS usage.
6. Right Answer: D
Explanation: Decline occurs when an industry, organization, or product begins to experience a sustained drop in demand. When the decline is apparent, leadership often may introduce cost reduction measures.
7. Right Answer: B
Explanation: Refer to the following scenario for the next 3 questions. A large clothing company has a bad reputation because of its hiring practices, its treatment of employees, and its lack of support to the communities it operates in. The CEO and senior managers are known to make decisions based solely on revenue potential, without regard for the impact it may have on society. In fact, the CEO has commented several times that investing money in anything other than operations is a bad business strategy and unethical in terms of the company's obligation to its investors. Recently, major suppliers for the company, located outside the company's home country, were accused of unethical labor practices, unsafe workplace conditions, and possible human rights violations. This has become a public relations nightmare. Several groups have called for boycotts against the company. At the last shareholders' phone conference, several institutional investors expressed their displeasure with management's failure to respond strongly to the problems with suppliers. The CEO expressed his belief that critics were being unrealistic about their expectations for the suppliers. In fact, they were themselves insensitive to business practices and local norms in these countries. Concerned with the negative publicity and lacking confidence in the CEO's response to it, the company's board of directors requests that the CHRO immediately be given the task of formulating a committee to audit the company's operating practices, its employer branding, and its attitude on social issues. This action would at least show that the company has heard the criticisms. The CEO immediately goes to the CHRO's office and angrily says that the CHRO will be showing disloyalty if the
8. Right Answer: A
Explanation: A is the best response. The CHRO has an ethical obligation to fulfill the appropriate request from the board and to disregard personal ties to the CEO. B is incorrect. While it may prove to be better to use a third party to conduct the audit, the CHRO would not be doing justice to HR's responsibilities to the organization by declining the task. It would not be the act of an organizational leader and would set a bad example to the HR function and the entire organization. C is incorrect. As with B, the CHRO is not fulfilling his or her responsibilities as a leader and member of the organization. D is incorrect. In light of the CEO's behavior, giving the CEO a major role might undermine the effectiveness of the committee, and the action would be dishonest to the board.
9. Right Answer: D
Explanation: D is the best response. Since he is primarily interested in financial performance, the CEO needs to see evidence that financial objectives can successfully coexist with CSR objectives. A is incorrect. While the CHRO is using evidence to persuade the CEO, it may be the wrong evidence for this audience. An analysis of the financial costs of a poor employer brand might be more persuasive. B is incorrect. The audit may uncover issues that do not involve violating laws but are unethical or unsustainable. The CEO has to begin to see the issue as one of strict legal compliance. C is incorrect. Reminding someone of a shared commitment to a value or vision can be effective in resolving a conflict, but it is unlikely to be enough to convince a CEO who is apparently opposed to sustainable business strategies.
10. Right Answer: B
Explanation: B is the best response. Since this aspect of the recruitment strategy is not producing results and is probably damaging the recruiting team's engagement, it would be best to revise the strategy for now. A is incorrect. Appealing to security will not remove lawful protests, and its effect on increasing recruitment effectiveness is questionable. C is incorrect. Repeating an ineffective tactic, even with a professional demeanor, shows inflexibility and unresponsiveness to environmental factors. D is incorrect. This will not address the recruiters' problems or the negative attention the company is getting at the fairs, and it will probably not change the CEO's attitude.
Explanation: As an industry, organization, or product matures, problems are largely resolved. In an organization, staffing and culture begin to stabilize, and the rate of change levels off. Policies, procedures, and rules are formalized and communicated to all employees. Training is emphasized, and labor cost control becomes a factor.
2. Right Answer: C
Explanation: Porter's 'Five Forces' framework helps strategists understand the competitive forces at work in their industries so that they can assess the strengths and weaknesses of their own competitive position.
3. Right Answer: D
Explanation: D is the best answer. The TDL should develop knowledge about LMS applications that directly support the organizational strategy. A is incorrect. The founder and senior leaders may not know enough about current LMS trends and capabilities to see how it might support operations. B is incorrect. The Millennial leaders may assume general understanding and present information over the heads of the senior, less tech-competent leaders. C is incorrect. Prior to implementing the new LMS, the TDL needs to obtain buy-in by demonstrating how it will support the organization's strategy.
4. Right Answer: C
Explanation: C is the best answer. The team should include senior leaders and younger leaders who represent the spectrum of LMS users as well as the spectrum of potential mentors and collaborators. Assembling a team of experts will provide more efficient use of time and resources. A is incorrect. Although it could be beneficial to know what similar organizations are doing, the TDL cannot rely on only that information, as the other organizations' business strategies and needs may differ. B is incorrect. The senior leaders may be too far removed from the end users to be best suited to assembling a cross-functional team. Also, this might not be the most effective use of their time. D is incorrect. Limiting the cross-functional team to tech-savvy employees does not adequately represent the needs of tech-challenged employees.
5. Right Answer: B
Explanation: B is the best answer. For the LMS to be consistently used, employees must be aware of its capabilities. In addition to awareness, employees will need training to capitalize on the benefits. For an incentive to use the LMS, adding a performance measurement to job descriptions may provide the right nudge. A is incorrect. Simply adding a hotline for LMS answers will not guarantee use of the system. C is incorrect. A communication strategy needs to be created in order to ensure that employees understand the benefits and features of the LMS and therefore will be more willing to use it. D is incorrect. Requiring IT employees to field calls will only serve to disrupt IT without guaranteeing LMS usage.
6. Right Answer: D
Explanation: Decline occurs when an industry, organization, or product begins to experience a sustained drop in demand. When the decline is apparent, leadership often may introduce cost reduction measures.
7. Right Answer: B
Explanation: Refer to the following scenario for the next 3 questions. A large clothing company has a bad reputation because of its hiring practices, its treatment of employees, and its lack of support to the communities it operates in. The CEO and senior managers are known to make decisions based solely on revenue potential, without regard for the impact it may have on society. In fact, the CEO has commented several times that investing money in anything other than operations is a bad business strategy and unethical in terms of the company's obligation to its investors. Recently, major suppliers for the company, located outside the company's home country, were accused of unethical labor practices, unsafe workplace conditions, and possible human rights violations. This has become a public relations nightmare. Several groups have called for boycotts against the company. At the last shareholders' phone conference, several institutional investors expressed their displeasure with management's failure to respond strongly to the problems with suppliers. The CEO expressed his belief that critics were being unrealistic about their expectations for the suppliers. In fact, they were themselves insensitive to business practices and local norms in these countries. Concerned with the negative publicity and lacking confidence in the CEO's response to it, the company's board of directors requests that the CHRO immediately be given the task of formulating a committee to audit the company's operating practices, its employer branding, and its attitude on social issues. This action would at least show that the company has heard the criticisms. The CEO immediately goes to the CHRO's office and angrily says that the CHRO will be showing disloyalty if the
8. Right Answer: A
Explanation: A is the best response. The CHRO has an ethical obligation to fulfill the appropriate request from the board and to disregard personal ties to the CEO. B is incorrect. While it may prove to be better to use a third party to conduct the audit, the CHRO would not be doing justice to HR's responsibilities to the organization by declining the task. It would not be the act of an organizational leader and would set a bad example to the HR function and the entire organization. C is incorrect. As with B, the CHRO is not fulfilling his or her responsibilities as a leader and member of the organization. D is incorrect. In light of the CEO's behavior, giving the CEO a major role might undermine the effectiveness of the committee, and the action would be dishonest to the board.
9. Right Answer: D
Explanation: D is the best response. Since he is primarily interested in financial performance, the CEO needs to see evidence that financial objectives can successfully coexist with CSR objectives. A is incorrect. While the CHRO is using evidence to persuade the CEO, it may be the wrong evidence for this audience. An analysis of the financial costs of a poor employer brand might be more persuasive. B is incorrect. The audit may uncover issues that do not involve violating laws but are unethical or unsustainable. The CEO has to begin to see the issue as one of strict legal compliance. C is incorrect. Reminding someone of a shared commitment to a value or vision can be effective in resolving a conflict, but it is unlikely to be enough to convince a CEO who is apparently opposed to sustainable business strategies.
10. Right Answer: B
Explanation: B is the best response. Since this aspect of the recruitment strategy is not producing results and is probably damaging the recruiting team's engagement, it would be best to revise the strategy for now. A is incorrect. Appealing to security will not remove lawful protests, and its effect on increasing recruitment effectiveness is questionable. C is incorrect. Repeating an ineffective tactic, even with a professional demeanor, shows inflexibility and unresponsiveness to environmental factors. D is incorrect. This will not address the recruiters' problems or the negative attention the company is getting at the fairs, and it will probably not change the CEO's attitude.
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