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SHRM-CP PEOPLE Questions - Part 21
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
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
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.
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.
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