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SHRM
You are reviewing an employee performance evaluation in which each compensable factor of a job is ranked and assigned a monetary value to determine its relative worth. Which job evaluation method does this describe?
Correct — D. The factor comparison method is a quantitative job evaluation approach in which jobs are assessed by comparing them factor by factor (such as skill, effort, and responsibility) and assigning monetary values to each factor. The total monetary values are then summed to determine the worth of each job. This is distinct from job analysis (which documents job content), management by objectives (which focuses on goal-based performance), and the critical incident method (which records specific examples of effective or ineffective behavior). -
SHRM
Lewin identified four principles to guide the change management process. Which of the following is NOT one of those principles?
Correct — D. Rushing change contradicts Lewin's approach to change management. Lewin advocated for gradual, planned change—captured in his unfreeze-change-refreeze model—where those affected are prepared and involved. Rapid implementation typically increases resistance and confusion rather than reducing it. The other three options are consistent with Lewin's principles: change should have a valid rationale, should not be abrupt, and should involve those impacted. -
SHRM
Following a 20% workforce reduction, the CEO directs the HR manager to provide assistance programs that help affected employees transition smoothly. These programs may include resume writing, interview coaching, and job search support. What is the term for this type of support?
Correct — A. Outplacement services are employer-sponsored programs designed to help laid-off employees transition to new employment. They typically include career counseling, resume assistance, interview preparation, and job search support. They differ from severance packages (financial compensation), layoff benefits (a general term), and unemployment insurance (a government program). -
SHRM
A salaried, exempt manager occasionally needs to leave work early for personal reasons and the company deducts pay from his salary for those partial-day absences. What is the primary legal risk of this practice under federal wage and hour law?
Correct — C. Under the Fair Labor Standards Act (FLSA), employees classified as exempt from overtime requirements must generally be paid on a 'salary basis,' meaning they receive a fixed salary that is not subject to reduction based on the quality or quantity of work performed. Deducting pay for partial-day absences violates the salary-basis test (except in limited circumstances, such as absences under FMLA or the employee's first and last week of employment). If an employer makes improper salary deductions, it risks losing the overtime exemption — potentially for all employees in the same job classification — which could expose the company to significant back-pay liability. -
SHRM
Which of the following statements about the Americans with Disabilities Act (ADA) is LEAST accurate?
Correct — A. The least accurate statement is that employment discrimination is not covered in the ADA. In fact, the ADA explicitly prohibits employment discrimination against qualified individuals with disabilities in all aspects of employment, including hiring, firing, pay, job assignments, promotions, and benefits. The remaining statements are accurate: the ADA requires reasonable accommodations; undue hardship is a recognized defense against accommodation requirements; and the ADA Amendments Act expanded the definition of disability to cover a broader range of conditions. -
SHRM
What term refers to the trust, goodwill, and positive regard that a community holds toward an organization?
Correct — C. Social capital describes the intangible asset of mutual trust and cooperative relationships between an organization and its community. High social capital enhances an organization's reputation, improves access to resources, and supports resilience during difficult periods. Organizations build social capital by engaging with community partners, supporting local causes, and acting with transparency. -
SHRM
Which of the following approaches is LEAST likely to help prevent a serious conflict from escalating?
Correct — C. Effective conflict resolution requires involving the parties who are most affected. Excluding them leads to solutions that may not address their actual concerns, breeds resentment, and reduces the likelihood that any agreement will be accepted or sustained. In contrast, addressing issues early, facilitating open discussion, and diagnosing root causes before proposing fixes are all sound conflict-prevention strategies. -
SHRM
An HR manager wants to build and maintain trust by communicating honestly and completely with staff. When delivering a message that is particularly difficult or complex, which communication method is generally most effective?
Correct — D. Face-to-face communication is the richest channel available for conveying complex or sensitive messages. It allows for immediate, two-way feedback; enables the sender to read non-verbal cues (body language, facial expressions, tone); facilitates rapport-building; and permits real-time clarification of misunderstandings. The sender can dynamically adjust pacing and detail based on the receiver's reactions, and commitments can be confirmed on the spot. Written channels such as email, memos, and letters lack these dynamic qualities, making them less suitable when nuance, empathy, or interactive dialogue is essential for understanding and trust. -
SHRM
Your staff works in an open cubicle environment where conversations are easily overheard. Several employees have complained about coworkers having distracting conversations. As their manager, how should you most appropriately address this?
Correct — B. The most effective response is to address individual complaints with specific, constructive guidance. This approach respects the nuance of each situation and avoids broadly reprimanding the entire team for issues that may only involve a subset of employees. Targeted feedback allows the manager to coach employees on professional conduct in a way that is actionable and proportionate. -
SHRM
An employee comes to you with a complaint about a coworker who repeatedly fails to file paperwork properly and on time. The employee is furious during the meeting and begins screaming that you are taking the other person's side, continuing to rant without allowing you to respond. What should you do?
Correct — C. It is not productive to try to reason with someone who is acting irrationally in the moment. The best course of action is to end the meeting and let the employee know you are prepared to discuss her concern calmly and constructively when she is ready. This approach maintains professionalism without escalating the situation. -
SHRM
Which element is considered most essential when building a workplace safety program aimed at achieving a zero-incident environment?
Correct — C. While financial investment in safety measures, community notification, and employee training all contribute to workplace safety, none of these is as foundational as building a genuine culture of safety. A safety-first culture requires visible leadership commitment, employee empowerment to raise concerns without fear, continuous education, and ongoing monitoring — all of which make individual safety programs more effective and sustainable. Culture embeds safety into everyday decisions rather than treating it as a compliance checkbox. -
SHRM
During the assessment phase of developing a CSR strategic process, HR engages both internal and external stakeholders with targeted questions. Which question is most critical to ask them?
Correct — D. Understanding stakeholders' assessment of current organizational policies and practices is the most critical question during the CSR assessment phase. This feedback reveals gaps between current behavior and stakeholder expectations, providing the evidence base for determining which CSR priorities are most credible and meaningful to pursue. -
SHRM
Which of the following actions is typically classified as a violation of employee confidentiality?
Correct — C. Drug test results are sensitive medical information and their unauthorized disclosure constitutes a breach of confidentiality. Allowing employees to review their own files, providing basic employment verification information, and sharing data with authorized vendors for legitimate business purposes are generally permissible when handled appropriately. -
SHRM
At a battery manufacturing facility, employees are concerned about exposure to chemical fumes on the assembly floor after learning about potential risks including eye damage and blindness. Which agency is responsible for setting the standards that govern how HR must respond to this type of workplace safety concern?
Correct — C. The Occupational Safety and Health Administration (OSHA) is the federal agency responsible for establishing and enforcing workplace safety and health standards, including regulations governing hazardous chemical exposure. The NLRB handles labor relations and collective bargaining; the EEOC enforces employment discrimination laws; and EBSA administers employee benefit protections — none of these agencies covers workplace safety standards. -
SHRM
A rapidly expanding healthcare organization has concerns about filling skilled nursing, food services, and maintenance roles given a limited local labor pool. A significant number of underutilized retirees and military veterans live in the area, but there is internal disagreement in HR about whether to target these groups. What should be the first action taken by the recruiting manager and business leaders to identify a suitable candidate pool?
Correct — D. A job analysis is the foundational step in building a recruitment strategy. It systematically identifies what each role requires — in terms of tasks, skills, and qualifications — and links those requirements to organizational goals. This information then informs job descriptions, previews, and targeted outreach. Beginning with anything else risks recruiting for the wrong criteria or advertising before the roles are properly defined. -
SHRM
An employee is struggling to integrate into the company's workplace culture. HR suggests whether a reverse mentorship arrangement might be helpful. When the employee asks what reverse mentorship involves, which of the following is the most accurate description?
Correct — C. Reverse mentorship inverts the traditional mentor-mentee relationship: a less-experienced or younger employee shares knowledge with a more senior colleague. This is often used to help experienced employees stay current with digital tools, evolving workplace norms, or emerging generational perspectives. While age differences are common, they are not a defining requirement — the key element is the reversal of the typical knowledge-sharing direction. -
SHRM
You are the HR Director for a new pharmaceutical company and need to hire two chemists. You are unsure of competitive pay levels, so you gather compensation data from multiple sources for similar roles in similar industries. What is this data collection process called?
Correct — C. A pay survey is a collection of compensation data compiled either internally or by an external organization that enables HR to make salary decisions by comparing what other organizations pay workers performing similar roles in similar industries. -
SHRM
A high-performing Client Services Manager left the company a year ago, citing inadequate pay. Exit interviews confirm he enjoyed the role and performed exceptionally. Management recommends rehiring him at a higher pay rate. If he returns, he would be called a what?
Correct — D. A boomerang employee is someone who leaves an organization and is later rehired. These individuals bring back familiarity with company culture and processes, often reducing onboarding time. When a former employee's initial departure was driven by addressable concerns — such as insufficient compensation — rehiring them after resolving those issues can be an effective retention strategy. It also signals to the broader workforce that the organization is willing to listen and respond to employee needs. -
SHRM
A benefits department head committed to initiating approval for the stretch assignments his team members requested. Six weeks later, two employees submit two-weeks' notice. Once both have departed, what should the director do next?
Correct — D. Once departures are confirmed, the immediate priority is to backfill the positions to prevent operational disruption. Ensuring job descriptions reflect current needs and engaging recruiting promptly minimizes the staffing gap. Full workload redistribution and long-term restructuring are secondary considerations at this stage. -
SHRM
How does a 'guide and advise' HR strategy affect decisions about personal leave policies at the local level?
Correct — A. Under a 'guide and advise' HR strategy, headquarters establishes the overall framework and policies, but application and interpretation are left to local management. This gives local units the flexibility to adapt policies to their specific cultural, legal, or operational context, while still operating within a centrally defined structure. -
SHRM
How can HR most effectively contribute to the development of organizational strategy?
Correct — D. HR contributes most directly to organizational strategy by engaging with leaders across business units to understand their specific goals and challenges, allowing HR to align its initiatives with where the organization actually operates and needs support. -
SHRM
An employee has been absent for five consecutive days. The company's Employee Handbook states that employees with at least 12 months of service and a minimum number of hours worked in the past year may be eligible for job-protected leave. How many weeks of leave does the FMLA provide to eligible employees?
Correct — B. The Family and Medical Leave Act (FMLA) entitles eligible employees to up to 12 weeks of unpaid, job-protected leave per year for qualifying reasons, including the employee's own serious health condition or to care for a family member. Eligibility requires at least 12 months of employment and sufficient hours worked in the prior year. -
SHRM
An experienced employee has a strong command of all daily processes and software. Two supervisory openings have come up in the past six months, but the employee shows no interest in management. The manager wants to keep challenging and developing this employee without necessarily promoting him. Which stage of the employee life cycle is this scenario addressing?
Correct — D. The employee life cycle includes six stages: attraction, recruitment, onboarding, development, retention, and separation. This scenario focuses on the Development stage, where the goal is to expand an employee's skills and engagement. Development does not always mean promotion; it can include lateral moves, special projects, additional training, or greater autonomy. Effective development also supports retention by keeping employees engaged and satisfied. -
SHRM
Half of a manager's department is about to be laid off. As the HR manager, what guidance would you give the manager on how to handle the layoff conversations?
Correct — A. Individual meetings allow each affected employee to receive clear, direct information about their specific situation while being treated with dignity and empathy. Following up with remaining staff helps address their concerns and maintain morale after a difficult workforce reduction. -
SHRM
A VP of HR leads a globally dispersed team where many members feel geographically and culturally isolated. Staff increasingly rely on regional colleagues for support during absences and audits because headquarters staff lack local knowledge. With a limited travel budget, how should the VP most effectively foster cohesion and team spirit across the entire HR function?
Correct — C. Given budget constraints, regular team-wide calls provide the most practical and consistent mechanism for keeping all members informed and connected regardless of their location. Frequent touchpoints create routine communication rhythms, build a shared sense of purpose, and help the team function cohesively without requiring costly travel. Annual gatherings, newsletters, and role-based subgroups can complement but do not replace regular whole-team communication. -
SHRM
You are project manager for a policies and procedures manual, but mid-project you discover that critical resources are unavailable and the deadline cannot be extended. What is the most appropriate course of action?
Correct — D. When facing resource constraints with a fixed deadline, the most pragmatic approach is to evaluate the situation, prioritize the most critical deliverables, and complete as much as possible with the resources available. This demonstrates initiative and professionalism while keeping the project moving. It also provides stakeholders with a realistic picture of what can be delivered, enabling informed decisions about next steps. -
SHRM
Which strategy most effectively promotes organization-wide support for a diversity and inclusion initiative?
Correct — A. A cross-functional team brings together representatives from various departments to advocate for and embed the diversity and inclusion initiative throughout the organization. This approach generates broader ownership and sustained engagement, unlike one-time events, compliance-focused mandates, or external speaker sessions that may not lead to lasting change. -
SHRM
Which part of a business case presentation to senior management specifically addresses the factors that could affect whether a proposal succeeds or fails?
Correct — C. The risks and opportunities section of a business case identifies internal and external factors that could either threaten the success of the proposed initiative or create additional value if leveraged effectively. This section gives decision-makers a realistic picture of what could go right or wrong, enabling more informed approval or modification of the proposal. The statement of need explains why action is required, the recommended solution presents the preferred course of action, and the cost and timeline section outlines resource requirements—but none of these specifically address the upside and downside factors that could influence the outcome. -
SHRM
Your company is planning to offer employees the opportunity to participate in a 401(k) plan. Your manager has asked you to research this topic and present your findings in two weeks. Which law should be a central focus of your presentation regarding the implementation of a 401(k)?
Correct — D. The Employee Retirement Income Security Act (ERISA) of 1974 is the primary federal law governing employer-sponsored retirement plans like 401(k)s. ERISA requires that plan participants receive important information about the plan's features and funding, establishes fiduciary duties for those who manage plan assets, gives participants the right to sue for benefits or breaches of fiduciary duty, and mandates a grievance and appeals process. Understanding ERISA's requirements is essential for any company implementing a retirement savings plan, as non-compliance can result in significant legal consequences. -
SHRM
You work for a resort whose bookings have declined over the past three months due to wildfires in the area. Management is considering reclassifying housekeepers as tipped employees to reduce the hourly wage paid to them. What concern should HR raise about this plan?
Correct — A. Under the Fair Labor Standards Act (FLSA), employers may pay tipped employees a reduced cash wage, but only if the employee's total compensation—tips combined with the cash wage—equals at least the federal minimum wage of $7.25 per hour. If the combined amount falls short, the employer must make up the difference. OSHA and the EEOC do not regulate employee classification in this way.
SHRM sample questions
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SHRM An experienced employee has a strong command of all daily processes and software. Two supervisory openings have come up in the past six months, but the employee shows no interest in management. The manager wants to keep challenging and developing this employee without necessarily promoting him. Which stage of the employee life cycle is this scenario addressing?
A. Separation
B. Onboarding
C. Attraction
D. Development ✓
Correct — D. The employee life cycle includes six stages: attraction, recruitment, onboarding, development, retention, and separation. This scenario focuses on the Development stage, where the goal is to expand an employee's skills and engagement. Development does not always mean promotion; it can include lateral moves, special projects, additional training, or greater autonomy. Effective development also supports retention by keeping employees engaged and satisfied.
SHRM Half of a manager's department is about to be laid off. As the HR manager, what guidance would you give the manager on how to handle the layoff conversations?
A. Hold individual meetings. Provide the employee with a clear message regarding the conditions of the layoff. Show compassion. Meet with the remaining employees to offer support. ✓
B. Hold a group meeting with the affected employees. Be completely clear about the conditions of the layoff. Show compassion.
C. Hold individual meetings with affected employees and give them a few weeks to say proper goodbyes to coworkers.
D. Since so many people are affected, a group meeting with time for questions would be the most efficient approach.
Correct — A. Individual meetings allow each affected employee to receive clear, direct information about their specific situation while being treated with dignity and empathy. Following up with remaining staff helps address their concerns and maintain morale after a difficult workforce reduction.
SHRM A VP of HR leads a globally dispersed team where many members feel geographically and culturally isolated. Staff increasingly rely on regional colleagues for support during absences and audits because headquarters staff lack local knowledge. With a limited travel budget, how should the VP most effectively foster cohesion and team spirit across the entire HR function?
A. Hold an annual in-person meeting for the full team in rotating locations.
B. Divide the team into role-based subgroups to encourage idea sharing among similar roles.
C. Schedule regular calls where all team members share updates on current and upcoming activities. ✓
D. Send a monthly newsletter featuring a different HR team member each issue.
Correct — C. Given budget constraints, regular team-wide calls provide the most practical and consistent mechanism for keeping all members informed and connected regardless of their location. Frequent touchpoints create routine communication rhythms, build a shared sense of purpose, and help the team function cohesively without requiring costly travel. Annual gatherings, newsletters, and role-based subgroups can complement but do not replace regular whole-team communication.
SHRM You are project manager for a policies and procedures manual, but mid-project you discover that critical resources are unavailable and the deadline cannot be extended. What is the most appropriate course of action?
A. Reduce the scope significantly and notify stakeholders that a full manual is not feasible.
B. Request a full budget increase to bring in additional contract workers.
C. Halt all work and escalate immediately to senior leadership.
D. Assess the situation and complete as much as possible with available resources. ✓
Correct — D. When facing resource constraints with a fixed deadline, the most pragmatic approach is to evaluate the situation, prioritize the most critical deliverables, and complete as much as possible with the resources available. This demonstrates initiative and professionalism while keeping the project moving. It also provides stakeholders with a realistic picture of what can be delivered, enabling informed decisions about next steps.
SHRM Which strategy most effectively promotes organization-wide support for a diversity and inclusion initiative?
A. Forming a cross-functional team to champion the initiative across departments ✓
B. Providing mandatory sessions focused on compliance with diversity-related laws
C. Implementing a company-wide diversity day with workshops on cultural awareness
D. Hosting a company-wide town hall featuring a panel of external diversity experts
Correct — A. A cross-functional team brings together representatives from various departments to advocate for and embed the diversity and inclusion initiative throughout the organization. This approach generates broader ownership and sustained engagement, unlike one-time events, compliance-focused mandates, or external speaker sessions that may not lead to lasting change.
SHRM Which part of a business case presentation to senior management specifically addresses the factors that could affect whether a proposal succeeds or fails?
A. Estimated costs and timeframe
B. Statement of need
C. Risks and opportunities ✓
D. Recommended solution
Correct — C. The risks and opportunities section of a business case identifies internal and external factors that could either threaten the success of the proposed initiative or create additional value if leveraged effectively. This section gives decision-makers a realistic picture of what could go right or wrong, enabling more informed approval or modification of the proposal. The statement of need explains why action is required, the recommended solution presents the preferred course of action, and the cost and timeline section outlines resource requirements—but none of these specifically address the upside and downside factors that could influence the outcome.
SHRM Your company is planning to offer employees the opportunity to participate in a 401(k) plan. Your manager has asked you to research this topic and present your findings in two weeks. Which law should be a central focus of your presentation regarding the implementation of a 401(k)?
A. Landrum-Griffin Act
B. MOOC
C. IRCA
D. ERISA ✓
Correct — D. The Employee Retirement Income Security Act (ERISA) of 1974 is the primary federal law governing employer-sponsored retirement plans like 401(k)s. ERISA requires that plan participants receive important information about the plan's features and funding, establishes fiduciary duties for those who manage plan assets, gives participants the right to sue for benefits or breaches of fiduciary duty, and mandates a grievance and appeals process. Understanding ERISA's requirements is essential for any company implementing a retirement savings plan, as non-compliance can result in significant legal consequences.
SHRM You work for a resort whose bookings have declined over the past three months due to wildfires in the area. Management is considering reclassifying housekeepers as tipped employees to reduce the hourly wage paid to them. What concern should HR raise about this plan?
A. The FLSA requires employers to pay the difference if an employee's tips plus hourly wage do not reach at least the federal minimum wage. ✓
B. OSHA classifies housekeeping as a hazardous profession and does not permit hazardous roles to be categorized as tipped employees.
C. This plan raises no concerns.
D. The EEOC prohibits certain roles, including housekeepers, from being reclassified as tipped employees.
Correct — A. Under the Fair Labor Standards Act (FLSA), employers may pay tipped employees a reduced cash wage, but only if the employee's total compensation—tips combined with the cash wage—equals at least the federal minimum wage of $7.25 per hour. If the combined amount falls short, the employer must make up the difference. OSHA and the EEOC do not regulate employee classification in this way.
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