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SHRM-CP Competencies Questions - Part 39

Jenny Clarke

Sat, 29 Aug 2026

SHRM-CP Competencies Questions - Part 39

1. Business Analysis What is the best description of an information system portal?

A) User-customized search engine
B) Organization's access to the Internet
C) Screen area in which data can be entered into the system
D) User's point of access to system data and applicationsΒ 



2. What type of analytical task would be best served by online analytical processing (OLAP)?

A) Trying to establish a declining trend in the use of a wellness program
B) Identifying how many employees have quit in each functional area
C) ExploringΒ the types of variables that may be affecting attendance rates
D) ProvingΒ the cost-effectiveness of purchasing an HR application



3. What is the key benefit of an enterprise resource planning (ERP) system over function-based stand-alone systems?

A) Shared, current database for allΒ departmentsΒ 
B) Forecasting capabilities to run planning scenarios
C) User-customized data interfaces for greater security
D) Greater analytical power and capabilities



4. What are the key components of a business intelligence system?

A) Input, processing, output
B) Data gathering, data warehousing, query and reporting
C) User interface, access to the Internet, integrated database
D) Accuracy, currency, and completeness



5. Refer to the following scenario for the next 4 questions. The annual loss ratio for a company's health plan is a staggering 158%. The head of HR has been asked by the CEO to propose changes to the plan that will lower costs while retaining as many of the current benefits as possible. An actuarial review reveals that the riders for dental and prescription drug coverage account for 84% of the plan's claims and that three employees in a workforce of 91 account for 73% of the claims. After reviewing a series of benefit options, the head of HR decides that the best option is a plan that doubles the deductibles on the dental and prescription benefits while also lowering the maximum reimbursement coverage by 25%. She makes a presentation outlining this suggestion to the company's executive committee. After a brief discussion of the rationale and the merits, the chief operating officer mentions that the company should announce the plan's changes to employees immediately. The head of HR responds that doing so would risk defeating the purpose of the changes. Without further discussion, the executive committee proceeds to vote and accepts the changes to become effective upon plan renewal the following month. Two months after the introduction of the new plan, it is discovered that two employees made bulk prescription purchases (a six-month supply) one week prior to the changes in the benefit plan going into effect. This seems a peculiar coincidence, and the head of HR suspects a leak of confidential information. Why would announcing any plan changes to employees in this way be problematic?

A) A. Incentivizing use just prior to a change could increase the loss ratio even further, requiring even more funding adjustments to make the plan sustainable.
B) B. The plan's normal renewal date must be allowed to transpire in order to verify, without bias, that yearly use rates are in fact occurring naturally.
C) C. The terms and conditions of a benefit provider require a blackout period to avoid insider information about the change being leaked.
D) D. It would be inappropriate to announce any pending policy changes until they become official and are implemented.



1. Right Answer: D
Explanation: An information system portal is the point of entry for a user into an information system. The system does not need to be web-hosted. It may provide access to the system's search engine, but it is not a search engine. It may be customized to users.

2. Right Answer: C
Explanation: OLAP allows the analyst to sortΒ data quickly in different ways, according to different and multiple variables. A conventional relational database would be sufficient to identify a trend in one factor or numbers in different departments. A cost-effectiveness analysis could be done on a spreadsheet.

3. Right Answer: A
Explanation: An ERP integrates current data from across an organization's functional areas, while a stand-alone system would require a customized bridge to access the ERP database. Integrated data enables more thorough analysis. Stand-alone systems can provide significant analytical power. Customization and forecasting can be performed in integrated and stand-aloneΒ systems.

4. Right Answer: B
Explanation: A business intelligence system has three components: a means to gather information from various data collection points, a secure means of storing or warehousing data so that it is available to users, and the means to analyze the data via queries and reports.

5. Right Answer: A
Explanation: A is the best answer. It demonstrates a superior understanding of the cause-and-effect relationship between a plan's use and its funding. It also incorporates the moral hazard associated with asymmetric information (one side having more information than the other). B is incorrect. The trend in use is already unsustainable. Many plans include auto-renewal clauses that, if allowed to pass, could unnecessarily extend the current loss ratio structure. C is incorrect. While blackout periods may apply to certain changes in some employee benefits, such is not the case for private health plans. D is incorrect. Although this may be the correct course of action in this specific case, it is not true for all policy changes.

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