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SHRM-CP PEOPLE Questions - Part 20

Jenny Clarke

Sat, 29 Aug 2026

SHRM-CP PEOPLE Questions - Part 20

1. It is estimated that one-third of Fortune 500 CEOs have remained in their positions fewer than three years. Which does this indicate about executive development?

A) Executives have the people skills and intellect to succeed but lack the personal drive and initiative to manage change.
B) Executives are open to change and have the skills to succeed but are not getting honest feedback about their performance.
C) Executives have Β strong people management skills but lack the knowledge and intellect to outperform the competition.
D) Executives have the knowledge and intellect to succeed but lack the people skills to build Β teams or maintain productive relationships.



2. The 70-20-10 model created by the Center for Creative Leadership identifies three clusters of experiences to develop people. Which type of experience does the 70 in the model represent?

A) Challenging assignments
B) Coursework and training
C) Developmental relationships
D) On-the-job training



3. Although the founder of an organization is very competent, she has alienated nearly everyone in the organization. Β Colleagues have tried to share their concerns; however, she does not believe there to be an issue. Rather she believes she merely has a direct approach. Which assessment tool is best suited to display how her directness is impacting others?

A) 360-degree assessments
B) Assessment center simulations
C) Emotional intelligence tools
D) Situation judgment tests



4. HR is interviewing candidates who will have to think on their feet and keep calm in high-pressure, high-stakes, and emotionally charged situations. Which leadership development method is best suited to develop this skill?

A) Risk management
B) Hardship testing
C) Situation judgment tests
D) Action learning



5. How does communicating the guiding principles behind employee pay support an effective compensation philosophy?

A) It creates a framework for transparency.
B) It guarantees how much employees are paid.
C) It eliminates local conditions in pay considerations.
D) It removes leadership from pay decisions.



1. Right Answer: D
Explanation: Several studies demonstrate that leaders may have the knowledge and intellect to succeed but fail because they lack the necessary people skills. This impairs their ability to learn from mistakes and readily adapt to change.

2. Right Answer: A
Explanation: Assignments that are challenging and are sequenced to provide learning advance the development of high-potential employees as well as adults in general. To develop managers, it is important to engage them in three clusters of experience, using a 70-20-10 ratio: challenging assignments (70%), developmental relationships (20%), and coursework and training (10%).

3. Right Answer: A
Explanation: 360-degree assessments gather and report feedback from managers, peers, and subordinates for a complete picture of skills and weaknesses for leader development. If there is consensus among the findings, the founder may be forced to face facts. Situation judgment tests, assessment centers, and emotional intelligence tools won't be helpful in convincing the CEO that Β she needs to change.

4. Right Answer: B
Explanation: Hardship testing involves Β stretch assignments that support the development of leaders. Experiencing failures, difficulties, and periods with little or no support help the individual develop competence and resilience.

5. Right Answer: A
Explanation: A compensation philosophy creates a framework for consistency and transparency. Communicating the guiding principles behind employee pay plays a key role in being transparent. A compensation philosophy will guide how an organization pays employees, but it will not guarantee how much an employee will be paid. Compensation philosophies are typically created in collaboration with leadership. Compensation philosophies take local conditions into consideration as part of the review for competitiveness.

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