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SHRM-CP PEOPLE Questions - Part 1

Jenny Clarke

Sat, 29 Aug 2026

SHRM-CP PEOPLE Questions - Part 1

1. Which organization is least likely to succeed in its strategic planning and management?

A) An organization that shares strategic plans with top management only to preserve its competitive edge
B) An organization that develops its business and functional strategies after the organizational strategy is defined to ensure alignment
C) An organization that researches internal and external factors before setting a strategy to consider all factors
D) An organization that invites input from all divisions, managers, and employeesΒ to ensure buy-in



2. What indicates that an organization is using strategic planning and management?

A) The organization's structure, resources, and policies are aligned to meet agreed-upon goals.
B) A cross-functional team is assembled to resolve issues that are in conflict with the strategy.
C) The core competencies of the organization are reflected in each department.
D) The mission, vision, and values have been defined and communicated consistently across the organization.



3. Strategic management refers to the actions that leaders take to move their organizations toward strategic goals and creating value for stakeholders. Which is considered a benefit of strategic management?

A) Decreasing use of resources
B) Demonstrating systems thinking
C) Allowing for consistent decision making
D) Focusing on core competencies



4. How should an HR leader best addressΒ the perception of HR as a cost center?

A) By ensuring that HR services are aligned to the organizational strategy
B) By charging other core business functions for HR services
C) By increasing HR operational efficiency in recruitment and retention
D) By reducing HR fixed costs while maintaining control over variable costs



5. During which stage of strategic planning do managers develop action plans and assign staff members to projects?

A) Formulation
B) Evaluation
C) Implementation
D) Manipulation



1. Right Answer: A
Explanation: The only poor strategic planning practice here is to communicate strategic plans within just a small leadership group. The organization will benefit from having all employees understand how their work relates to and supports the strategy.

2. Right Answer: A
Explanation: Strategic planning and management are distinguished by the way assets, structure, and policies are focused and integrated to achieve goals. The mere existence and communication of the mission and the vision does not mean that an organization is using strategic planning and management. The organization's core competencies may be distributed across multiple functions; they will probably not be the same in each function.Β A cross-functional team pointed toward problem resolution does not distinguish an organization as having a strategic plan that is well managed.

3. Right Answer: C
Explanation: When managers are mindful of the organization's strategic goals, management decisions throughout the organization will be more consistent, with each manager assessing his or her alternatives against the same set of goals and objectives. Systems thinking and a focus on core competencies are critical in strategic planningβ€”in determining what the organization will work toward and how its parts will work together. Strategic management encourages less waste, but this does not mean the organization will use fewer resources.

4. Right Answer: A
Explanation: The best response to this perception is to demonstrate the strategic value of HR services such as recruiting and onboarding. Increasing efficiency and decreasing costs will not change the organization's financial structure. Charging for HR services is a management decision.

5. Right Answer: C
Explanation: During the strategy implementation phase of strategic planning, the plan is put into action. Managers develop action plans and allocate resources toward achieving organizational objectives.

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