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SHRM-CP Certification Exam Questions 2023 - Day 56
1. Which is the most important factor an HR leader should use when planning pay increases?
A) HR workload
B) HR systems
C) Employee support
D) Financial implication
2. An organization finds that, without consciously meaning to, it is rewarding behaviors that violate its values. As it returns to the beginning of the total rewards strategy process, what factor should the organization be sure to include in its assessment of its total rewards needs?
A) Competitive forces that may be driving the behaviors
B) What leaders are willing to tolerate in high performers Β
C) Effectiveness of the current code of conduct Β
D) Executive commitment to the required investment for the strategy
3. An HR manager discovers a discrepancy between the organization's current compensation policy and the laws of the location the organization operates in. Which is the best first step the HR manager should take to address this?
A) Investigate regulations that most benefit the organization.
B) Request that the governmental agency provide a recommended approach.
C) Ask the CEO his opinion on what approach is best.
D) Determine Β which regulation most benefits the employee.
4. Which is the best example of direct compensation?
A) Disability insurance
B) Use of a company car
C) Cash achievement award
D) Deferred pay
5. Compensation System Design What job evaluation method assesses the responsibilities and requirements of each job and its relationship to other jobs in the organization?
A) Survey-based
B) Job-content-based
C) Quantitative
D) Market-based
6. When developing a pay structure, which data set should the HR practitioner use during the development process?
A) Average of low-paying Β and high-paying positions
B) Compiled job analysis, job documentation, and job evaluation
C) Overall points or values used during job evaluation
D) Information gathered from surveys, local markets, and like institutions
7. Under which circumstances should a market-based job evaluation be used?
A) When an organization is positioning against its compensation philosophy
B) In larger organizations where a hierarchy of positions is being established
C) When using generic job characteristics to reflect skill and responsibility
D) In smaller organizations where jobs are grouped by job families
8. Which is an advantage of using the point-factor method in job evaluation?
A) Reduces administration, thus is Β less time-consuming
B) Easier for employees to Β understand
C) Relies on some degree of judgment by evaluators
D) Provides documentation and an audit trail
9. Which type of survey should an HR professional use to collect information on base pay, incentive plans, and benefits?
A) Competitiveness
B) Global
C) Remuneration
D) Marketplace
10. Which is an advantage of using the point-factor method in job evaluation?
A) Reduces administration, thus is Β less time-consuming
B) Relies on some degree of judgment by evaluators
C) Provides documentation and an audit trail
D) Easier for employees to Β understand
A) HR workload
B) HR systems
C) Employee support
D) Financial implication
2. An organization finds that, without consciously meaning to, it is rewarding behaviors that violate its values. As it returns to the beginning of the total rewards strategy process, what factor should the organization be sure to include in its assessment of its total rewards needs?
A) Competitive forces that may be driving the behaviors
B) What leaders are willing to tolerate in high performers Β
C) Effectiveness of the current code of conduct Β
D) Executive commitment to the required investment for the strategy
3. An HR manager discovers a discrepancy between the organization's current compensation policy and the laws of the location the organization operates in. Which is the best first step the HR manager should take to address this?
A) Investigate regulations that most benefit the organization.
B) Request that the governmental agency provide a recommended approach.
C) Ask the CEO his opinion on what approach is best.
D) Determine Β which regulation most benefits the employee.
4. Which is the best example of direct compensation?
A) Disability insurance
B) Use of a company car
C) Cash achievement award
D) Deferred pay
5. Compensation System Design What job evaluation method assesses the responsibilities and requirements of each job and its relationship to other jobs in the organization?
A) Survey-based
B) Job-content-based
C) Quantitative
D) Market-based
6. When developing a pay structure, which data set should the HR practitioner use during the development process?
A) Average of low-paying Β and high-paying positions
B) Compiled job analysis, job documentation, and job evaluation
C) Overall points or values used during job evaluation
D) Information gathered from surveys, local markets, and like institutions
7. Under which circumstances should a market-based job evaluation be used?
A) When an organization is positioning against its compensation philosophy
B) In larger organizations where a hierarchy of positions is being established
C) When using generic job characteristics to reflect skill and responsibility
D) In smaller organizations where jobs are grouped by job families
8. Which is an advantage of using the point-factor method in job evaluation?
A) Reduces administration, thus is Β less time-consuming
B) Easier for employees to Β understand
C) Relies on some degree of judgment by evaluators
D) Provides documentation and an audit trail
9. Which type of survey should an HR professional use to collect information on base pay, incentive plans, and benefits?
A) Competitiveness
B) Global
C) Remuneration
D) Marketplace
10. Which is an advantage of using the point-factor method in job evaluation?
A) Reduces administration, thus is Β less time-consuming
B) Relies on some degree of judgment by evaluators
C) Provides documentation and an audit trail
D) Easier for employees to Β understand
1. Right Answer: D
Explanation: HR should consider the potential financial implications of recommendations and actions. Financial analyses and HR decisions are always intertwined. While HR systems, employee support, and HR workload are all viable factors, they are not the most important and are not part of the decision making. They are factors to consider for implementing and communicating the increases
2. Right Answer: B
Explanation: In this case, HR needs to ask leadership what behavior they are willing to accept from individuals who are contributing to the organization's strategic success. This will affect the total rewards system's design and implementation. This is not an issue of willingness to invest money but of commitment to the priority of stated values. Competitive factors may be influencing employees' behaviors, but rewarding that behavior through compensation systems goes back Β to the basic question of whether leaders are willing to sacrifice revenue for the organization's values. The code of conduct defines desired behaviors but may be ineffective in changing behavior if the rewards system is not aligned with the code.
3. Right Answer: D
Explanation: The general rule is to follow the regulation that most benefits the employee. Β This needs to happen as a first step in order to be able to analyze the impact to the organization and provide an effective recommendation to the CEO and other organizational leaders (demonstrating the Consultation competency).
4. Right Answer: C
Explanation: Direct compensation is cash compensation. It includes wages, commissions, and cash achievement awards. Indirect compensation Β includes benefit programs and items like a company car, disability insurance, and noncash rewards.
5. Right Answer: B
Explanation: The relative worth of different jobs is based on the assessment of their content, and they can then be compared to other jobs within the organization.
6. Right Answer: B
Explanation: Once the job analysis, job documentation, and job evaluation are completed and other relevant information is collected, an organization uses all the data to develop its pay structure. Information gathered from surveys, local markets, and like institutions may assist with information gathering for benchmarking the position but Β only a part of the overall data collection for creating a pay structure. An organization should look at all positions, not just low- or high-paying positions. Job evaluation is only one aspect of developing a pay structure.
7. Right Answer: A
Explanation: A compensation and benefits specialist conducted a salary data survey last year but did not have time to benchmark the results to the organization's pay structure. What action should the specialist take at this point in time? Completely redo the survey from the beginning. Weight the data compared to other survey data. Age the data to make it current. Level the data to determine relevance. When data is aged, older wage survey data is changed to reflect the movement of salaries in the market since the survey was conducted. If the data is aged, it is still usable.
8. Right Answer: D
Explanation: The correct answer is the most distinguishable feature of the point-factor method; it is the most systematic and analytical method and it includes documentation of the process. Other job evaluation methods do not have this.
9. Right Answer: C
Explanation: Remuneration surveys, the global terminology for compensation and benefit surveys, are used to collect information on prevailing market compensation and benefit practices. This type of survey allows an organization to check its remuneration structures against global and local trends.
10. Right Answer: C
Explanation: The correct answer is the most distinguishable feature of the point-factor method; it is the most systematic and analytical method and it includes documentation of the process. Other job evaluation methods do not have this.
Explanation: HR should consider the potential financial implications of recommendations and actions. Financial analyses and HR decisions are always intertwined. While HR systems, employee support, and HR workload are all viable factors, they are not the most important and are not part of the decision making. They are factors to consider for implementing and communicating the increases
2. Right Answer: B
Explanation: In this case, HR needs to ask leadership what behavior they are willing to accept from individuals who are contributing to the organization's strategic success. This will affect the total rewards system's design and implementation. This is not an issue of willingness to invest money but of commitment to the priority of stated values. Competitive factors may be influencing employees' behaviors, but rewarding that behavior through compensation systems goes back Β to the basic question of whether leaders are willing to sacrifice revenue for the organization's values. The code of conduct defines desired behaviors but may be ineffective in changing behavior if the rewards system is not aligned with the code.
3. Right Answer: D
Explanation: The general rule is to follow the regulation that most benefits the employee. Β This needs to happen as a first step in order to be able to analyze the impact to the organization and provide an effective recommendation to the CEO and other organizational leaders (demonstrating the Consultation competency).
4. Right Answer: C
Explanation: Direct compensation is cash compensation. It includes wages, commissions, and cash achievement awards. Indirect compensation Β includes benefit programs and items like a company car, disability insurance, and noncash rewards.
5. Right Answer: B
Explanation: The relative worth of different jobs is based on the assessment of their content, and they can then be compared to other jobs within the organization.
6. Right Answer: B
Explanation: Once the job analysis, job documentation, and job evaluation are completed and other relevant information is collected, an organization uses all the data to develop its pay structure. Information gathered from surveys, local markets, and like institutions may assist with information gathering for benchmarking the position but Β only a part of the overall data collection for creating a pay structure. An organization should look at all positions, not just low- or high-paying positions. Job evaluation is only one aspect of developing a pay structure.
7. Right Answer: A
Explanation: A compensation and benefits specialist conducted a salary data survey last year but did not have time to benchmark the results to the organization's pay structure. What action should the specialist take at this point in time? Completely redo the survey from the beginning. Weight the data compared to other survey data. Age the data to make it current. Level the data to determine relevance. When data is aged, older wage survey data is changed to reflect the movement of salaries in the market since the survey was conducted. If the data is aged, it is still usable.
8. Right Answer: D
Explanation: The correct answer is the most distinguishable feature of the point-factor method; it is the most systematic and analytical method and it includes documentation of the process. Other job evaluation methods do not have this.
9. Right Answer: C
Explanation: Remuneration surveys, the global terminology for compensation and benefit surveys, are used to collect information on prevailing market compensation and benefit practices. This type of survey allows an organization to check its remuneration structures against global and local trends.
10. Right Answer: C
Explanation: The correct answer is the most distinguishable feature of the point-factor method; it is the most systematic and analytical method and it includes documentation of the process. Other job evaluation methods do not have this.
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shrm shrmcp shrm-cp hr certified Human resource management Organizational behavior Talent acquisition Performance management Compensation and benefits Employee relations Training and development Diversity and inclusion Legal and ethical considerations HR metrics and analytics Strategic planning Change management HR technology Workforce planning Labor relations Employment law Recruitment and selection Career development0 Comments
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