SHRM Society for Human Resource Management Complete Study Guide: SHRM-CP Exam and SHRM-SCP Exam (2022)
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SHRM®
Society for Human
Resource Management
Complete Study Guide
SHRM-CP Exam and
SHRM-SCP Exam
Sandra M. Reed, SHRM-SCP
Society for Human
Resource Management
Complete Study Guide
SHRM-CP Exam and
SHRM-SCP Exam
Sandra M. Reed, SHRM-SCP
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Copyright © 2022 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
ISBN: 978-1-119- 80548-9
ISBN: 978-1-119- 80550-2 (ebk.)
ISBN: 978-1-119- 80549-6 (ebk.)
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by
any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under
Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the
Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center,
Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www
.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department,
John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at
http://www.wiley.com/go/permission.
Limit of Liability/Disclaimer of Warranty: The publisher and the author make no representations or warranties
with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties,
including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended
by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation.
This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other
professional services. If professional assistance is required, the services of a competent professional person should
be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an
organization or Website is referred to in this work as a citation and/or a potential source of further information does
not mean that the author or the publisher endorses the information the organization or Website may provide or
recommendations it may make. Further, readers should be aware the Internet Websites listed in this work may have
changed or disappeared between when this work was written and when it is read.
For general information on our other products and services or for technical support, please contact our Customer
Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax
(317) 572-4002.
Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be
available in electronic formats. For more information about Wiley products, visit our web site at www.wiley.com.
Library of Congress Control Number: 2021948880
TRADEMARKS: WILEY, the Wiley logo, Sybex, and the Sybex logo are trademarks or registered trademarks of
John Wiley & Sons, Inc. and/or its affiliates, in the United States and other countries, and may not be used without
written permission. SHRM is a registered trademark of Society for Human Resource Management. All other
trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product
or vendor mentioned in this book.
Cover image: © Jeremy Woodhouse/Getty Images
Cover design: Wiley
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
ISBN: 978-1-119- 80548-9
ISBN: 978-1-119- 80550-2 (ebk.)
ISBN: 978-1-119- 80549-6 (ebk.)
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by
any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under
Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the
Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center,
Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www
.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department,
John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at
http://www.wiley.com/go/permission.
Limit of Liability/Disclaimer of Warranty: The publisher and the author make no representations or warranties
with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties,
including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended
by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation.
This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other
professional services. If professional assistance is required, the services of a competent professional person should
be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an
organization or Website is referred to in this work as a citation and/or a potential source of further information does
not mean that the author or the publisher endorses the information the organization or Website may provide or
recommendations it may make. Further, readers should be aware the Internet Websites listed in this work may have
changed or disappeared between when this work was written and when it is read.
For general information on our other products and services or for technical support, please contact our Customer
Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax
(317) 572-4002.
Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be
available in electronic formats. For more information about Wiley products, visit our web site at www.wiley.com.
Library of Congress Control Number: 2021948880
TRADEMARKS: WILEY, the Wiley logo, Sybex, and the Sybex logo are trademarks or registered trademarks of
John Wiley & Sons, Inc. and/or its affiliates, in the United States and other countries, and may not be used without
written permission. SHRM is a registered trademark of Society for Human Resource Management. All other
trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product
or vendor mentioned in this book.
Cover image: © Jeremy Woodhouse/Getty Images
Cover design: Wiley
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This book is dedicated to the tireless HR professionals that show up every
single day and try to make their workplaces—and themselves—better. I see you.
single day and try to make their workplaces—and themselves—better. I see you.
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Acknowledgments
I would like to start by acknowledging the efforts of the incredible editorial team I had the
privilege of working with on this project! It would not have happened without the guidance
(and nudging) from my project manager, Gary Schwartz, who barely digitally reacted
when I added four chapters halfway through the project and submitted content in such a
nonlinear fashion. Similarly, thanks to my editor, Kenyon Brown, whose “flexibility-with-
accountability” approach is exactly what my INTP (Introverted, Intuitive, Thinking, and Per-
ceiving) personality requires.
Whenever I start a new book, I put in a special request for Pantelis Markou as the
technical editor. Having him review my work gives me confidence that, if I make an error,
he will not only catch it, but he will also provide feedback on how to make the content
stronger. I was also fortunate to call upon his expertise for the special features in Chapter 11,
“Diversity and Inclusion,” along with the professional expertise of Reut Schwartz-Hebron,
Jeffrey Pietrzak, and Dawn Kelley. I am grateful that they understood my vision for that
chapter and for their generosity in sharing their work.
I have had the absolute luxury of working with clients and students whom I adore. Thank
you to the businesses and students who put their trust in me and allowed me to conduct my
experiments in their “petri dishes.” We have learned together the incredible value of heart-
felt leadership over these last 18 months, and they (the leaders and employees) were my role
models.
Finally, I’d like to acknowledge my family, Chris, Clara, Calvin, and Jen. I tend to disap-
pear when writing, and yet they continue to support and encourage and love and demand
and enrich my life beyond any professional work I could imagine. This last year was intense
beyond belief, and I wouldn’t want to “do life” without them!
I would like to start by acknowledging the efforts of the incredible editorial team I had the
privilege of working with on this project! It would not have happened without the guidance
(and nudging) from my project manager, Gary Schwartz, who barely digitally reacted
when I added four chapters halfway through the project and submitted content in such a
nonlinear fashion. Similarly, thanks to my editor, Kenyon Brown, whose “flexibility-with-
accountability” approach is exactly what my INTP (Introverted, Intuitive, Thinking, and Per-
ceiving) personality requires.
Whenever I start a new book, I put in a special request for Pantelis Markou as the
technical editor. Having him review my work gives me confidence that, if I make an error,
he will not only catch it, but he will also provide feedback on how to make the content
stronger. I was also fortunate to call upon his expertise for the special features in Chapter 11,
“Diversity and Inclusion,” along with the professional expertise of Reut Schwartz-Hebron,
Jeffrey Pietrzak, and Dawn Kelley. I am grateful that they understood my vision for that
chapter and for their generosity in sharing their work.
I have had the absolute luxury of working with clients and students whom I adore. Thank
you to the businesses and students who put their trust in me and allowed me to conduct my
experiments in their “petri dishes.” We have learned together the incredible value of heart-
felt leadership over these last 18 months, and they (the leaders and employees) were my role
models.
Finally, I’d like to acknowledge my family, Chris, Clara, Calvin, and Jen. I tend to disap-
pear when writing, and yet they continue to support and encourage and love and demand
and enrich my life beyond any professional work I could imagine. This last year was intense
beyond belief, and I wouldn’t want to “do life” without them!
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About the Author
Sandra M. Reed, SPHR, SHRM SCP is a leading expert in the certification of human
resource professionals. She is the author of HRCI: A Guide to the Human Resource Body
of Knowledge (HRBoK) (Wiley, 2017), PHR and SPHR Professional in Human Resources
Certification Complete Deluxe Study Guide: 2018 Exams, Second Edition (Wiley, 2019),
and PHR/SPHR Exam For Dummies with Online Practice, Second Edition (For Dummies
Press, 2021). Reed has trained adult learners at the University of California, Davis; the Uni-
versity of the Pacific, and California State University, Stanislaus. She holds an undergraduate
degree in industrial-organizational psychology and a graduate degree in organizational lead-
ership. She is a master practitioner of the Myers–Briggs Type Indicator (MBTI) personality
assessment, and the owner of a business consulting group that specializes in strategy, organi-
zational effectiveness and design, and leadership development for small businesses. You can
find her at www.sandrareed.co.
About the Technical Editor
Pantelis Markou, PhD, is the chief administrative officer for Mikimoto America and an
adjunct professor of business psychology at the Chicago School of Professional Psychology.
He has over 20 years of corporate experience managing human capital in the fashion and
luxury jewelry industries, and some of his specialties are business strategy, executive selection
and coaching, talent management and leadership development, change management, orga-
nizational design and restructuring, and cultural integration for mergers and acquisitions. In
addition to his responsibilities in human resources, he oversees information technology, real
estate, legal, and operations at t=company headquarters in New York.
Markou holds a bachelor of science in psychology from Brooklyn College, a master’s
degree in organizational psychology from Columbia University, and a PhD in business
psychology from the Chicago School of Professional Psychology.
Sandra M. Reed, SPHR, SHRM SCP is a leading expert in the certification of human
resource professionals. She is the author of HRCI: A Guide to the Human Resource Body
of Knowledge (HRBoK) (Wiley, 2017), PHR and SPHR Professional in Human Resources
Certification Complete Deluxe Study Guide: 2018 Exams, Second Edition (Wiley, 2019),
and PHR/SPHR Exam For Dummies with Online Practice, Second Edition (For Dummies
Press, 2021). Reed has trained adult learners at the University of California, Davis; the Uni-
versity of the Pacific, and California State University, Stanislaus. She holds an undergraduate
degree in industrial-organizational psychology and a graduate degree in organizational lead-
ership. She is a master practitioner of the Myers–Briggs Type Indicator (MBTI) personality
assessment, and the owner of a business consulting group that specializes in strategy, organi-
zational effectiveness and design, and leadership development for small businesses. You can
find her at www.sandrareed.co.
About the Technical Editor
Pantelis Markou, PhD, is the chief administrative officer for Mikimoto America and an
adjunct professor of business psychology at the Chicago School of Professional Psychology.
He has over 20 years of corporate experience managing human capital in the fashion and
luxury jewelry industries, and some of his specialties are business strategy, executive selection
and coaching, talent management and leadership development, change management, orga-
nizational design and restructuring, and cultural integration for mergers and acquisitions. In
addition to his responsibilities in human resources, he oversees information technology, real
estate, legal, and operations at t=company headquarters in New York.
Markou holds a bachelor of science in psychology from Brooklyn College, a master’s
degree in organizational psychology from Columbia University, and a PhD in business
psychology from the Chicago School of Professional Psychology.
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Contents at a Glance
Introduction xxiii
SHRM CP Assessment Test xxvi
Part I Preparing for the Exams 1
Chapter 1 The Basics of SHRM Certification 3
Chapter 2 Preparing for the Exam 19
Part II Understanding Human Resource
Competencies 33
Chapter 3 The Dynamic Environment of Human Resource Management 35
Chapter 4 The Business Competency Cluster 47
Part III The People Knowledge
Domain 69
Chapter 5 Strategic Human Resource Management 71
Chapter 6 Talent Acquisition 93
Chapter 7 Employee Engagement and Retention 115
Chapter 8 Learning and Development 141
Chapter 9 Total Rewards 163
Part IV The Workplace Knowledge Domain 181
Chapter 10 HR in the Global Context 183
Chapter 11 Diversity and Inclusion 199
Chapter 12 Risk Management 227
Chapter 13 Corporate Social Responsibility 251
Chapter 14 U.S. Employment Laws and Regulations 271
Part V The Organization Knowledge Domain 309
Chapter 15 Structure of the HR Function 311
Chapter 16 Organizational Effectiveness and Development 335
Chapter 17 Workforce Management 355
Introduction xxiii
SHRM CP Assessment Test xxvi
Part I Preparing for the Exams 1
Chapter 1 The Basics of SHRM Certification 3
Chapter 2 Preparing for the Exam 19
Part II Understanding Human Resource
Competencies 33
Chapter 3 The Dynamic Environment of Human Resource Management 35
Chapter 4 The Business Competency Cluster 47
Part III The People Knowledge
Domain 69
Chapter 5 Strategic Human Resource Management 71
Chapter 6 Talent Acquisition 93
Chapter 7 Employee Engagement and Retention 115
Chapter 8 Learning and Development 141
Chapter 9 Total Rewards 163
Part IV The Workplace Knowledge Domain 181
Chapter 10 HR in the Global Context 183
Chapter 11 Diversity and Inclusion 199
Chapter 12 Risk Management 227
Chapter 13 Corporate Social Responsibility 251
Chapter 14 U.S. Employment Laws and Regulations 271
Part V The Organization Knowledge Domain 309
Chapter 15 Structure of the HR Function 311
Chapter 16 Organizational Effectiveness and Development 335
Chapter 17 Workforce Management 355
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x Contents at a Glance
Chapter 18 Employee and Labor Relations 377
Chapter 19 Technology Management 399
Appendix A Answers to the Chapter Review Questions 413
Appendix B Summary of Form I-9 Changes 433
Index 437
Chapter 18 Employee and Labor Relations 377
Chapter 19 Technology Management 399
Appendix A Answers to the Chapter Review Questions 413
Appendix B Summary of Form I-9 Changes 433
Index 437
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Contents
Introduction xxiii
SHRM CP Assessment Test xxvi
Part I Preparing for the Exams 1
Chapter 1 The Basics of SHRM Certification 3
Exam Notables 4
Exam Overview 4
Exam Eligibility 5
Exam Basics 6
The SHRM Exam Objectives 10
Breaking Down the BoCK 10
The Value of HR Certification 14
Summary 16
Key Terms 16
Exam Essentials 16
Chapter 2 Preparing for the Exam 19
Exam Notables 20
Study Plans 20
Group vs. Self-Study 21
The SHRM Exam Objectives 22
Using Exam Weights 22
Practice Exams 24
Exam-Taking Strategies 24
Understand the Stem 25
Guess When Necessary 26
Exam Day Basics 26
Mental Mechanisms 27
Mindset 28
Confidence Building 29
Summary 30
Exam Essentials 31
Part II Understanding Human Resource
Competencies 33
Chapter 3 The Dynamic Environment of Human Resource
Management 35
Exam Notables 36
An Evolving Landscape 36
Introduction xxiii
SHRM CP Assessment Test xxvi
Part I Preparing for the Exams 1
Chapter 1 The Basics of SHRM Certification 3
Exam Notables 4
Exam Overview 4
Exam Eligibility 5
Exam Basics 6
The SHRM Exam Objectives 10
Breaking Down the BoCK 10
The Value of HR Certification 14
Summary 16
Key Terms 16
Exam Essentials 16
Chapter 2 Preparing for the Exam 19
Exam Notables 20
Study Plans 20
Group vs. Self-Study 21
The SHRM Exam Objectives 22
Using Exam Weights 22
Practice Exams 24
Exam-Taking Strategies 24
Understand the Stem 25
Guess When Necessary 26
Exam Day Basics 26
Mental Mechanisms 27
Mindset 28
Confidence Building 29
Summary 30
Exam Essentials 31
Part II Understanding Human Resource
Competencies 33
Chapter 3 The Dynamic Environment of Human Resource
Management 35
Exam Notables 36
An Evolving Landscape 36
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xii Contents
Strategic Alignment 37
Global Operations 37
Diversity, Equity, and Inclusion 37
Talent Acquisition and Workforce Management 37
Regulatory Environment 38
Measuring Results 38
Corporate Social Responsibility 38
HR Demographics 38
A Day in the Life of HR 40
HR Professional Development 42
Managing Burnout 43
Summary 45
Exam Essentials 45
Chapter 4 The Business Competency Cluster 47
Exam Notables 48
Business Competencies 49
Business Acumen 49
Business and Competitive Awareness 49
Financial Analysis 51
Strategic Alignment 53
Consultation 58
Evaluating Business Challenges 59
Designing and Implementing HR Solutions 59
Critical Evaluation 63
Data Advocate 63
Data Gathering and Analysis 64
Summary 66
Key Terms 66
Exam Essentials 66
Part III The People Knowledge
Domain 69
Chapter 5 Strategic Human Resource Management 71
Exam Notables 72
The SHRM Exam Objectives 73
Strategic Business Management 75
Systems Theory 76
Systems Thinking 76
Strategic Planning 77
Strategic Analysis 78
The Strategic Planning Process 81
Strategy Formulation 81
Strategic Alignment 37
Global Operations 37
Diversity, Equity, and Inclusion 37
Talent Acquisition and Workforce Management 37
Regulatory Environment 38
Measuring Results 38
Corporate Social Responsibility 38
HR Demographics 38
A Day in the Life of HR 40
HR Professional Development 42
Managing Burnout 43
Summary 45
Exam Essentials 45
Chapter 4 The Business Competency Cluster 47
Exam Notables 48
Business Competencies 49
Business Acumen 49
Business and Competitive Awareness 49
Financial Analysis 51
Strategic Alignment 53
Consultation 58
Evaluating Business Challenges 59
Designing and Implementing HR Solutions 59
Critical Evaluation 63
Data Advocate 63
Data Gathering and Analysis 64
Summary 66
Key Terms 66
Exam Essentials 66
Part III The People Knowledge
Domain 69
Chapter 5 Strategic Human Resource Management 71
Exam Notables 72
The SHRM Exam Objectives 73
Strategic Business Management 75
Systems Theory 76
Systems Thinking 76
Strategic Planning 77
Strategic Analysis 78
The Strategic Planning Process 81
Strategy Formulation 81
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Contents xiii
Strategy Implementation and Evaluation 83
Project Management 84
SHRM SCP Only 85
Becoming Strategic Business Partners 86
Engaging Leaders 86
Evaluating HR Activities 87
Summary 88
Key Terms 88
Exam Essentials 89
Review Questions 90
Chapter 6 Talent Acquisition 93
Exam Notables 94
The SHRM Exam Objectives 94
Aligning Strategy 96
Mergers and Acquisitions 96
Joint Ventures 97
Strategic Alliance 97
Divestitures and Downturns 97
Talent Planning 98
The Employer Brand 99
Employee Value Proposition 99
Job Analysis and Descriptions 100
Recruiting 102
Recruiting Methods 103
Selection 104
Employment Interviews 104
Assessment Centers 105
Job Offers 106
Education, Certification, and Licensing 106
Negotiation Techniques 107
Acculturation, Socialization, Orientation, and Onboarding 108
Workforce Analytics 108
SHRM SCP Only 110
Summary 110
Key Terms 111
Exam Essentials 112
Review Questions 113
Chapter 7 Employee Engagement and Retention 115
Exam Notables 116
The SHRM Exam Objectives 116
Employee Engagement 119
Organizational Behavior 119
Strategy Implementation and Evaluation 83
Project Management 84
SHRM SCP Only 85
Becoming Strategic Business Partners 86
Engaging Leaders 86
Evaluating HR Activities 87
Summary 88
Key Terms 88
Exam Essentials 89
Review Questions 90
Chapter 6 Talent Acquisition 93
Exam Notables 94
The SHRM Exam Objectives 94
Aligning Strategy 96
Mergers and Acquisitions 96
Joint Ventures 97
Strategic Alliance 97
Divestitures and Downturns 97
Talent Planning 98
The Employer Brand 99
Employee Value Proposition 99
Job Analysis and Descriptions 100
Recruiting 102
Recruiting Methods 103
Selection 104
Employment Interviews 104
Assessment Centers 105
Job Offers 106
Education, Certification, and Licensing 106
Negotiation Techniques 107
Acculturation, Socialization, Orientation, and Onboarding 108
Workforce Analytics 108
SHRM SCP Only 110
Summary 110
Key Terms 111
Exam Essentials 112
Review Questions 113
Chapter 7 Employee Engagement and Retention 115
Exam Notables 116
The SHRM Exam Objectives 116
Employee Engagement 119
Organizational Behavior 119
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xiv Contents
Job Attitudes 119
Organizational Commitment 120
Job Characteristics 121
The Role of Culture 122
Assessing Engagement 123
Positive Engagement Strategies 124
Engaging a Remote Workforce 125
Human Resources and the Employee Life Cycle 126
Performance Management Systems 128
Performance Standards 129
Evaluating Performance 130
Appraisals 132
Positive Feedback Systems 133
Evaluating Performance Management Systems 134
SHRM SCP Only 134
Summary 136
Key Terms 136
Exam Essentials 137
Review Questions 138
Chapter 8 Learning and Development 141
Exam Notables 142
The SHRM Exam Objectives 142
The Learning and Development System 144
Knowledge Management 145
Learning Management Systems 146
Career Development 146
L&D Intervention Strategies 147
Needs Analysis 147
Training Interventions and Delivery 150
Instructional Design 151
Developmental Interventions 154
Leadership Development 157
SHRM SCP Only 158
Summary 158
Key Terms 159
Exam Essentials 160
Review Questions 161
Chapter 9 Total Rewards 163
Exam Notables 164
The SHRM Exam Objectives 164
Strategic Total Rewards 166
Building Pay Structures 166
Job Attitudes 119
Organizational Commitment 120
Job Characteristics 121
The Role of Culture 122
Assessing Engagement 123
Positive Engagement Strategies 124
Engaging a Remote Workforce 125
Human Resources and the Employee Life Cycle 126
Performance Management Systems 128
Performance Standards 129
Evaluating Performance 130
Appraisals 132
Positive Feedback Systems 133
Evaluating Performance Management Systems 134
SHRM SCP Only 134
Summary 136
Key Terms 136
Exam Essentials 137
Review Questions 138
Chapter 8 Learning and Development 141
Exam Notables 142
The SHRM Exam Objectives 142
The Learning and Development System 144
Knowledge Management 145
Learning Management Systems 146
Career Development 146
L&D Intervention Strategies 147
Needs Analysis 147
Training Interventions and Delivery 150
Instructional Design 151
Developmental Interventions 154
Leadership Development 157
SHRM SCP Only 158
Summary 158
Key Terms 159
Exam Essentials 160
Review Questions 161
Chapter 9 Total Rewards 163
Exam Notables 164
The SHRM Exam Objectives 164
Strategic Total Rewards 166
Building Pay Structures 166
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Contents xv
Job Evaluation 167
Collecting Compensation Data 168
Data Collection Methods 171
Pay Practices 172
Labor Law Compliance 173
Benefits 174
Compensation Metrics 175
SHRM SCP Only 176
Summary 177
Key Terms 178
Exam Essentials 178
Review Questions 179
Part IV The Workplace Knowledge Domain 181
Chapter 10 HR in the Global Context 183
Exam Notables 184
The SHRM Exam Objectives 184
Defining Global Strategy 186
Multinational Enterprises 187
Structuring an MNE 187
HR and Due Diligence 188
Global Staffing 188
Managing Expatriates 189
SHRM SCP Only 194
Summary 195
Key Terms 195
Exam Essentials 196
Review Questions 197
Chapter 11 Diversity and Inclusion 199
Exam Notables 200
The SHRM Exam Objectives 201
Defining Diversity, Equity, and Inclusion 202
Focusing on Diversity, Equity, and Inclusion 205
A Strategic Focus 207
An Operational Focus 209
Demographic Barriers to Success 212
Workplace Accommodations 220
Competency and Knowledge Alignment 221
Operating in a Diverse Workplace 221
Advocate for Diversity and Inclusion 221
SHRM SCP Only 223
Summary 223
Job Evaluation 167
Collecting Compensation Data 168
Data Collection Methods 171
Pay Practices 172
Labor Law Compliance 173
Benefits 174
Compensation Metrics 175
SHRM SCP Only 176
Summary 177
Key Terms 178
Exam Essentials 178
Review Questions 179
Part IV The Workplace Knowledge Domain 181
Chapter 10 HR in the Global Context 183
Exam Notables 184
The SHRM Exam Objectives 184
Defining Global Strategy 186
Multinational Enterprises 187
Structuring an MNE 187
HR and Due Diligence 188
Global Staffing 188
Managing Expatriates 189
SHRM SCP Only 194
Summary 195
Key Terms 195
Exam Essentials 196
Review Questions 197
Chapter 11 Diversity and Inclusion 199
Exam Notables 200
The SHRM Exam Objectives 201
Defining Diversity, Equity, and Inclusion 202
Focusing on Diversity, Equity, and Inclusion 205
A Strategic Focus 207
An Operational Focus 209
Demographic Barriers to Success 212
Workplace Accommodations 220
Competency and Knowledge Alignment 221
Operating in a Diverse Workplace 221
Advocate for Diversity and Inclusion 221
SHRM SCP Only 223
Summary 223
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xvi Contents
Key Terms 224
Exam Essentials 224
Review Questions 225
Chapter 12 Risk Management 227
Exam Notables 228
The SHRM Exam Objectives 228
Types of Risk 230
Workplace Safety and Health 231
Security Risks 235
Enterprise Risk Management 238
The Risk Management Process 239
Risk Management Techniques 241
Written Risk Management Plans 243
SHRM SCP Only 245
Summary 246
Key Terms 247
Exam Essentials 247
Review Questions 248
Chapter 13 Corporate Social Responsibility 251
Exam Notables 252
The SHRM Exam Objectives 252
Defining Corporate Social Responsibility (CSR) 254
Corporate Shared Value 257
Benefits of Corporate Social Responsibility 258
Corporate Citizenship 258
Sustainable Business Practices 260
The Role of Human Resources 262
Business Strategy 262
Talent Acquisition 262
Risk Management 263
Total Rewards 264
Learning and Development 265
SHRM SCP Only 265
Summary 266
Key Terms 267
Exam Essentials 267
Review Questions 268
Chapter 14 U.S. Employment Laws and Regulations 271
Exam Notables 272
The SHRM Exam Objectives 272
The Regulatory Environment 275
Key Terms 224
Exam Essentials 224
Review Questions 225
Chapter 12 Risk Management 227
Exam Notables 228
The SHRM Exam Objectives 228
Types of Risk 230
Workplace Safety and Health 231
Security Risks 235
Enterprise Risk Management 238
The Risk Management Process 239
Risk Management Techniques 241
Written Risk Management Plans 243
SHRM SCP Only 245
Summary 246
Key Terms 247
Exam Essentials 247
Review Questions 248
Chapter 13 Corporate Social Responsibility 251
Exam Notables 252
The SHRM Exam Objectives 252
Defining Corporate Social Responsibility (CSR) 254
Corporate Shared Value 257
Benefits of Corporate Social Responsibility 258
Corporate Citizenship 258
Sustainable Business Practices 260
The Role of Human Resources 262
Business Strategy 262
Talent Acquisition 262
Risk Management 263
Total Rewards 264
Learning and Development 265
SHRM SCP Only 265
Summary 266
Key Terms 267
Exam Essentials 267
Review Questions 268
Chapter 14 U.S. Employment Laws and Regulations 271
Exam Notables 272
The SHRM Exam Objectives 272
The Regulatory Environment 275
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Contents xvii
Laws Enforced by the Equal Employment Opportunity
Commission 277
Americans with Disabilities Act 278
Civil Rights Act of 1964 278
Genetic Information Nondiscrimination Act 279
Laws Enforced/Administered by the Occupational
Safety and Health Administration 279
Occupational Safety and Health Act 280
National Institute for Occupational Safety and Health 281
Whistleblower Protection 281
Laws Administered by the Office of Workers’
Compensation Programs 282
Federal Employees’ Compensation Act 282
Longshore and Harbor Workers’ Compensation Act 282
Laws Administered by the National Labor Relations
Board and the Office of Labor-Management Standards 282
National Labor Relations Act 283
Labor Management Relations Act 283
Labor-Management Reporting and Disclosure Act 285
Laws Administered by the Wage and Hour Division 286
Davis-Bacon Act 287
Employee Polygraph Protection Act 287
Fair Labor Standards Act 288
Family and Medical Leave Act 289
Walsh–Healey Public Contracts Act 290
Laws Administered by the Mine Safety and Health
Administration 290
Federal Mine Safety and Health Act 291
The Mine Improvement and New Emergency
Response Act 292
Laws Administered by the Employee Benefits Security
Administration 292
Employee Retirement Income Security Act 293
Patient Protection and Affordable Care Act 294
Laws Administered by the Department of Homeland
Security or the Department of Justice 294
H2A Temporary Agricultural Workers 294
Immigration and Nationality Act 295
Miscellaneous Laws and Concepts 296
Drug Free Workplace Act 296
Garnishment of Wages 296
Harassment 296
Lilly Ledbetter Fair Pay Act 297
Laws Enforced by the Equal Employment Opportunity
Commission 277
Americans with Disabilities Act 278
Civil Rights Act of 1964 278
Genetic Information Nondiscrimination Act 279
Laws Enforced/Administered by the Occupational
Safety and Health Administration 279
Occupational Safety and Health Act 280
National Institute for Occupational Safety and Health 281
Whistleblower Protection 281
Laws Administered by the Office of Workers’
Compensation Programs 282
Federal Employees’ Compensation Act 282
Longshore and Harbor Workers’ Compensation Act 282
Laws Administered by the National Labor Relations
Board and the Office of Labor-Management Standards 282
National Labor Relations Act 283
Labor Management Relations Act 283
Labor-Management Reporting and Disclosure Act 285
Laws Administered by the Wage and Hour Division 286
Davis-Bacon Act 287
Employee Polygraph Protection Act 287
Fair Labor Standards Act 288
Family and Medical Leave Act 289
Walsh–Healey Public Contracts Act 290
Laws Administered by the Mine Safety and Health
Administration 290
Federal Mine Safety and Health Act 291
The Mine Improvement and New Emergency
Response Act 292
Laws Administered by the Employee Benefits Security
Administration 292
Employee Retirement Income Security Act 293
Patient Protection and Affordable Care Act 294
Laws Administered by the Department of Homeland
Security or the Department of Justice 294
H2A Temporary Agricultural Workers 294
Immigration and Nationality Act 295
Miscellaneous Laws and Concepts 296
Drug Free Workplace Act 296
Garnishment of Wages 296
Harassment 296
Lilly Ledbetter Fair Pay Act 297
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xviii Contents
LGBTQ Sex-Based Discrimination 298
Retaliation 298
Sexual Harassment 299
Worker Adjustment and Retraining Notification Act 299
Retention of Documents 300
SHRM-SCP Only 302
Summary 303
Key Terms 304
Exam Essentials 304
Review Questions 306
Part V The Organization Knowledge Domain 309
Chapter 15 Structure of the HR Function 311
Exam Notables 312
The SHRM Exam Objectives 312
Human Resources as a Core Competency 314
The Role of Human Resources 315
HR’s Job 317
Integrating Human Resources 320
Human Resource Service Models 322
Centralized/Decentralized HR Structures 322
Outsourcing 323
Measuring Human Resource Contributions 324
Competency and Knowledge Alignment 326
Delivering Messages 326
Exchanging Organizational Information 327
Listening 327
Networking 328
Relationship Building 329
SHRM SCP Only 329
Summary 330
Key Terms 331
Exam Essentials 331
Review Questions 332
Chapter 16 Organizational Effectiveness and Development 335
Exam Notables 336
The SHRM Exam Objectives 336
Organizational Effectiveness
and Development Defined 338
People Interventions 339
Individual Behaviors 339
Group and Team Dynamics 341
LGBTQ Sex-Based Discrimination 298
Retaliation 298
Sexual Harassment 299
Worker Adjustment and Retraining Notification Act 299
Retention of Documents 300
SHRM-SCP Only 302
Summary 303
Key Terms 304
Exam Essentials 304
Review Questions 306
Part V The Organization Knowledge Domain 309
Chapter 15 Structure of the HR Function 311
Exam Notables 312
The SHRM Exam Objectives 312
Human Resources as a Core Competency 314
The Role of Human Resources 315
HR’s Job 317
Integrating Human Resources 320
Human Resource Service Models 322
Centralized/Decentralized HR Structures 322
Outsourcing 323
Measuring Human Resource Contributions 324
Competency and Knowledge Alignment 326
Delivering Messages 326
Exchanging Organizational Information 327
Listening 327
Networking 328
Relationship Building 329
SHRM SCP Only 329
Summary 330
Key Terms 331
Exam Essentials 331
Review Questions 332
Chapter 16 Organizational Effectiveness and Development 335
Exam Notables 336
The SHRM Exam Objectives 336
Organizational Effectiveness
and Development Defined 338
People Interventions 339
Individual Behaviors 339
Group and Team Dynamics 341
Loading page 21...
Contents xix
Process Interventions 344
International Organization for Standardization 345
Structural Interventions 345
Customer or Product 345
Functional 346
Geographic 346
Matrix 346
Managing Change 346
Competency and Knowledge Alignment 348
Teamwork 348
Conflict Management 349
SHRM SCP Only 350
Summary 351
Key Terms 352
Exam Essentials 352
Review Questions 353
Chapter 17 Workforce Management 355
Exam Notables 356
The SHRM Exam Objectives 356
Integrating Workforce Management 358
Workforce Planning 358
Identify Gaps and Plan Action 361
Knowledge Management 362
Leadership Development 363
The Leadership Gap 363
Leadership Theories and Styles 365
Competency and Knowledge Alignment 369
Navigating the Organization 369
Vision 370
Managing HR Initiatives 370
Influence 371
SHRM SCP Only 372
Summary 372
Key Terms 373
Exam Essentials 373
Review Questions 375
Chapter 18 Employee and Labor Relations 377
Exam Notables 378
The SHRM Exam Objectives 378
Employment Rights and Responsibilities 380
Employment Agreements 381
Employment Disputes 383
Process Interventions 344
International Organization for Standardization 345
Structural Interventions 345
Customer or Product 345
Functional 346
Geographic 346
Matrix 346
Managing Change 346
Competency and Knowledge Alignment 348
Teamwork 348
Conflict Management 349
SHRM SCP Only 350
Summary 351
Key Terms 352
Exam Essentials 352
Review Questions 353
Chapter 17 Workforce Management 355
Exam Notables 356
The SHRM Exam Objectives 356
Integrating Workforce Management 358
Workforce Planning 358
Identify Gaps and Plan Action 361
Knowledge Management 362
Leadership Development 363
The Leadership Gap 363
Leadership Theories and Styles 365
Competency and Knowledge Alignment 369
Navigating the Organization 369
Vision 370
Managing HR Initiatives 370
Influence 371
SHRM SCP Only 372
Summary 372
Key Terms 373
Exam Essentials 373
Review Questions 375
Chapter 18 Employee and Labor Relations 377
Exam Notables 378
The SHRM Exam Objectives 378
Employment Rights and Responsibilities 380
Employment Agreements 381
Employment Disputes 383
Loading page 22...
xx Contents
Intellectual Property Rights 386
Trade Unions 387
Works Councils 389
Collective Bargaining 390
Contract Administration 390
Union Strategies 391
International Labor Relations 392
Competency and Knowledge Alignment 392
Negotiation 393
SHRM SCP Only 394
Summary 394
Key Terms 395
Exam Essentials 395
Review Questions 396
Chapter 19 Technology Management 399
Exam Notables 400
The SHRM Exam Objectives 400
Impact of Technology on HR Management 402
Technology and General HR Practices 403
Automation 403
Third-Party Vendor Management 404
Technology Policies 404
Employee Monitoring 407
Risk Management 407
SHRM SCP Only 408
Summary 408
Key Terms 409
Exam Essentials 409
Review Questions 410
Appendix A Answers to the Chapter Review Questions 413
Chapter 5: Strategic Human Resource Management 414
Chapter 6: Talent Acquisition 415
Chapter 7: Employee Engagement and Retention 416
Chapter 8: Learning and Development 417
Chapter 9: Total Rewards 419
Chapter 10: HR in the Global Context 420
Chapter 11: Diversity and Inclusion 421
Chapter 12: Risk Management 423
Chapter 13: Corporate Social Responsibility 424
Chapter 14: U.S. Employment Laws and Regulations 425
Chapter 15: Structure of the HR Function 426
Chapter 16: Organizational Effectiveness and Development 427
Intellectual Property Rights 386
Trade Unions 387
Works Councils 389
Collective Bargaining 390
Contract Administration 390
Union Strategies 391
International Labor Relations 392
Competency and Knowledge Alignment 392
Negotiation 393
SHRM SCP Only 394
Summary 394
Key Terms 395
Exam Essentials 395
Review Questions 396
Chapter 19 Technology Management 399
Exam Notables 400
The SHRM Exam Objectives 400
Impact of Technology on HR Management 402
Technology and General HR Practices 403
Automation 403
Third-Party Vendor Management 404
Technology Policies 404
Employee Monitoring 407
Risk Management 407
SHRM SCP Only 408
Summary 408
Key Terms 409
Exam Essentials 409
Review Questions 410
Appendix A Answers to the Chapter Review Questions 413
Chapter 5: Strategic Human Resource Management 414
Chapter 6: Talent Acquisition 415
Chapter 7: Employee Engagement and Retention 416
Chapter 8: Learning and Development 417
Chapter 9: Total Rewards 419
Chapter 10: HR in the Global Context 420
Chapter 11: Diversity and Inclusion 421
Chapter 12: Risk Management 423
Chapter 13: Corporate Social Responsibility 424
Chapter 14: U.S. Employment Laws and Regulations 425
Chapter 15: Structure of the HR Function 426
Chapter 16: Organizational Effectiveness and Development 427
Loading page 23...
Contents xxi
Chapter 17: Workforce Management 429
Chapter 18: Employee and Labor Relations 430
Chapter 19: Technology Management 431
Appendix B Summary of Form I-9 Changes 433
Exam Notables 434
Summary of Changes 434
Updates Based on Form I-9 Revision 434
Major Guidance Changes 434
New Content 435
Major Clarifications 435
Plain Language Updates 435
Index 437
Chapter 17: Workforce Management 429
Chapter 18: Employee and Labor Relations 430
Chapter 19: Technology Management 431
Appendix B Summary of Form I-9 Changes 433
Exam Notables 434
Summary of Changes 434
Updates Based on Form I-9 Revision 434
Major Guidance Changes 434
New Content 435
Major Clarifications 435
Plain Language Updates 435
Index 437
Loading page 24...
Loading page 25...
Introduction
Writing a book at any time is always exciting; writing a book in the middle of a pandemic
is an extreme adventure. Toward the beginning of this project, I became ill with Covid-19.
Six months later, my Type 1 diabetic husband also caught the virus. Five months later my
oldest son got married. In between these major events, my daughter began her independent
study at high school, there were a couple of job changes in the house, a cancelled vacation to
New York, a strategic rebrand, an added 10 pounds, and a switch to a vegetarian diet. Oh,
and one other small item: I let my SHRM SCP certification expire and had to retest—not
because I didn’t have the credits, but because I simply did not register them. My first thought
when I found out was “Am I an adult or not?” Anxiety, joy, lack of balance, a healthy dose
of curiosity, and the original cast of “Hamilton: An American Musical” were the companions
inside my head.
As I navigated these circumstances and thoughts that informed my perspective: I am you,
and you are me. Your experiences may bedifferent, but we have weathered this time in his-
tory, and all of its uncertainties, together.
During the pandemic, my LinkedIn message box filled daily with questions about certification,
specifically: “Is now the right time to take the exam?” Other concerns included pass rates, fear
of failure, finances, job security, and perhaps the most common of concerns—capacity and time.
The truth is, doing anything of significance is never convenient, even in the absence of a global
shutdown. Those issues have always been barriers to taking a first step toward professional
certification. The pandemic simply spotlighted them in a more emotionally intensive way.
If the exam concerns and my experience are familiar to you, consider the words of Lao
Tzu, who asked, “Do you have the patience to wait until your mud settles, and the right
course of action comes along?” (Tao Te Ching, Stephen Mitchell translation, 1995). When
I read this, I visualize myself thrashing about in a stream, blocking my own vision by stir-
ring up the mud. It was in one of these underwater moments that the theme for my writing
process (and quite frankly, life), declared itself: Be still, not idle. I encourage you to do the
same. Read this book. Take practice exams. Reach out to your network. Set the worry aside.
Wander when stuck. Rest before you quit. Life will happen whether you prepare, pass, or
fail. The key to success of all sorts is to plant your feet firmly on the ground and stop thrash-
ing about. This will allow you to be on your path with a still mind and a clear vision. This
is important because, as a therapist told me, “We are not human thinkers, we are human
beings, meant to do, to act.” Stop thinking, start doing, and enjoy the people you meet and
the perspectives you gain along the way. I truly wish you the best of luck!
How This Book Is Organized
The goal of this book is to serve two outcomes: prepare for a difficult exam and be a go-to
resource as you practice the craft of human resources. For these reasons, a few structural
features were included.
Writing a book at any time is always exciting; writing a book in the middle of a pandemic
is an extreme adventure. Toward the beginning of this project, I became ill with Covid-19.
Six months later, my Type 1 diabetic husband also caught the virus. Five months later my
oldest son got married. In between these major events, my daughter began her independent
study at high school, there were a couple of job changes in the house, a cancelled vacation to
New York, a strategic rebrand, an added 10 pounds, and a switch to a vegetarian diet. Oh,
and one other small item: I let my SHRM SCP certification expire and had to retest—not
because I didn’t have the credits, but because I simply did not register them. My first thought
when I found out was “Am I an adult or not?” Anxiety, joy, lack of balance, a healthy dose
of curiosity, and the original cast of “Hamilton: An American Musical” were the companions
inside my head.
As I navigated these circumstances and thoughts that informed my perspective: I am you,
and you are me. Your experiences may bedifferent, but we have weathered this time in his-
tory, and all of its uncertainties, together.
During the pandemic, my LinkedIn message box filled daily with questions about certification,
specifically: “Is now the right time to take the exam?” Other concerns included pass rates, fear
of failure, finances, job security, and perhaps the most common of concerns—capacity and time.
The truth is, doing anything of significance is never convenient, even in the absence of a global
shutdown. Those issues have always been barriers to taking a first step toward professional
certification. The pandemic simply spotlighted them in a more emotionally intensive way.
If the exam concerns and my experience are familiar to you, consider the words of Lao
Tzu, who asked, “Do you have the patience to wait until your mud settles, and the right
course of action comes along?” (Tao Te Ching, Stephen Mitchell translation, 1995). When
I read this, I visualize myself thrashing about in a stream, blocking my own vision by stir-
ring up the mud. It was in one of these underwater moments that the theme for my writing
process (and quite frankly, life), declared itself: Be still, not idle. I encourage you to do the
same. Read this book. Take practice exams. Reach out to your network. Set the worry aside.
Wander when stuck. Rest before you quit. Life will happen whether you prepare, pass, or
fail. The key to success of all sorts is to plant your feet firmly on the ground and stop thrash-
ing about. This will allow you to be on your path with a still mind and a clear vision. This
is important because, as a therapist told me, “We are not human thinkers, we are human
beings, meant to do, to act.” Stop thinking, start doing, and enjoy the people you meet and
the perspectives you gain along the way. I truly wish you the best of luck!
How This Book Is Organized
The goal of this book is to serve two outcomes: prepare for a difficult exam and be a go-to
resource as you practice the craft of human resources. For these reasons, a few structural
features were included.
Loading page 26...
xxiv Introduction
Applied Examples
As you may be aware, these exams are experience-based, and thus it is critical that you
see examples of how the content applies to the workplace. This is accomplished in three
main ways:
Exam Notables: Each chapter opens with a section entitled “Exam Notables.” The purpose
of this section is to introduce SHRM’s definition of the exam functional area and to pro-
vide a relevant example that demonstrates how the concepts apply in real life. You will also
see a list of key terms within each chapter. Some of these terms are drawn straight from
SHRM’s Glossary of Terms, whereas others are drawn from the best practices of HR.
Chapter Feature: Titled “Note,” “Case Study,” or “Tip,” these sidebars feature relevant
examples of an exam concept as it is being practiced in the field or as it may appear
on the exam.
Review Questions: Chapters 5–19 closes with 10 Review Questions that are designed to
test your knowledge. A few are written to place you into the workplace, requiring that
you use critical thinking skills to apply what you just read.
Parts
As you begin to prepare for the exams, your main tool from SHRM will be the exam Body
of Competency and Knowledge (BoCK). This document outlines the content focus of the
exams, and it is divided into behavioral competencies, technical competencies, and functional
areas. These are further sorted into clusters and sub-competencies. More on this will be
found in the coming chapters. For our purposes here, though, I sought to organize the book
into parts to reduce the confusion that the BoCK can produce. The five main “parts” of this
book are briefly reviewed next.
Part I: Preparing for the Exams In Part I, you will find a review of the certification pro-
cess and take a closer look at the BoCK.
Part II: Understanding Human Resource Competencies In Part II, we break down the
various competencies that are reviewed throughout the content areas. This includes
a look at the differences between the behavioral competencies and the domains of
knowledge competencies (also called technical expertise), which are further broken
down into HR functional areas.
Part III: The People Knowledge Domain Part III takes a deep dive into the functional
areas related to the workers we trust to achieve organizational goals.
Part IV: The Workplace Knowledge Domain The technical competencies of the work-
place focuses on the internal and external environments where work gets done and how
workplace practices affect achieving organizational results. It is in Part IV that SHRM’s
behavioral competencies begin to be introduced at the end of each chapter.
Part V: The Organization Knowledge Domain This part’s major focus is on the struc-
tures and relationships that drive organizational behavior and successful strategies.
Applied Examples
As you may be aware, these exams are experience-based, and thus it is critical that you
see examples of how the content applies to the workplace. This is accomplished in three
main ways:
Exam Notables: Each chapter opens with a section entitled “Exam Notables.” The purpose
of this section is to introduce SHRM’s definition of the exam functional area and to pro-
vide a relevant example that demonstrates how the concepts apply in real life. You will also
see a list of key terms within each chapter. Some of these terms are drawn straight from
SHRM’s Glossary of Terms, whereas others are drawn from the best practices of HR.
Chapter Feature: Titled “Note,” “Case Study,” or “Tip,” these sidebars feature relevant
examples of an exam concept as it is being practiced in the field or as it may appear
on the exam.
Review Questions: Chapters 5–19 closes with 10 Review Questions that are designed to
test your knowledge. A few are written to place you into the workplace, requiring that
you use critical thinking skills to apply what you just read.
Parts
As you begin to prepare for the exams, your main tool from SHRM will be the exam Body
of Competency and Knowledge (BoCK). This document outlines the content focus of the
exams, and it is divided into behavioral competencies, technical competencies, and functional
areas. These are further sorted into clusters and sub-competencies. More on this will be
found in the coming chapters. For our purposes here, though, I sought to organize the book
into parts to reduce the confusion that the BoCK can produce. The five main “parts” of this
book are briefly reviewed next.
Part I: Preparing for the Exams In Part I, you will find a review of the certification pro-
cess and take a closer look at the BoCK.
Part II: Understanding Human Resource Competencies In Part II, we break down the
various competencies that are reviewed throughout the content areas. This includes
a look at the differences between the behavioral competencies and the domains of
knowledge competencies (also called technical expertise), which are further broken
down into HR functional areas.
Part III: The People Knowledge Domain Part III takes a deep dive into the functional
areas related to the workers we trust to achieve organizational goals.
Part IV: The Workplace Knowledge Domain The technical competencies of the work-
place focuses on the internal and external environments where work gets done and how
workplace practices affect achieving organizational results. It is in Part IV that SHRM’s
behavioral competencies begin to be introduced at the end of each chapter.
Part V: The Organization Knowledge Domain This part’s major focus is on the struc-
tures and relationships that drive organizational behavior and successful strategies.
Loading page 27...
Introduction xxv
Other Resources
Finally, I took care to ensure that each chapter includes additional resources to augment
your studying efforts. Hearing from multiple perspectives, in multiple voices, and in multiple
ways will increase the odds that you will retain information on exam day and beyond.
I encourage you to build additional time each week into your study plan to access the web-
site links, watch the recommended videos, read summaries of the cited authors, or even chase
down a headline about a topic of interest. Context matters with these exams.
Interactive Online Learning
Environment and Test Bank
The interactive online learning environment that accompanies the SHRM® Society for
Human Resource Management Complete Study Guide: SHRM-CP Exam and SHRM-
SCP Exam provides a test bank with study tools to help you prepare for the certification
exams—and increase your chances of passing them the first time! The test bank includes the
following:
Sample Tests
All the questions in this book are provided, including the chapter review questions at the
end of each chapter. In addition, there are two practice exams (one each for the SHRM-CP
and SHRM-SCP). Use these questions to test your knowledge of the material. The online test
bank runs on multiple devices.
Flashcards
Two sets of questions are provided in digital flashcard format (a question followed by a
single correct answer); one set is for the SHRM-CP and the other set is for the SHRM-SCP.
You can use the flashcards to reinforce your learning and provide last-minute test prep
before the exam.
Other Study Tools
A glossary of key terms from this book and their definitions is available as a fully
searchable PDF.
Go to www.wiley.com/go/sybextestprep to register and gain access
to this interactive online learning environment and test bank with study
tools.
Other Resources
Finally, I took care to ensure that each chapter includes additional resources to augment
your studying efforts. Hearing from multiple perspectives, in multiple voices, and in multiple
ways will increase the odds that you will retain information on exam day and beyond.
I encourage you to build additional time each week into your study plan to access the web-
site links, watch the recommended videos, read summaries of the cited authors, or even chase
down a headline about a topic of interest. Context matters with these exams.
Interactive Online Learning
Environment and Test Bank
The interactive online learning environment that accompanies the SHRM® Society for
Human Resource Management Complete Study Guide: SHRM-CP Exam and SHRM-
SCP Exam provides a test bank with study tools to help you prepare for the certification
exams—and increase your chances of passing them the first time! The test bank includes the
following:
Sample Tests
All the questions in this book are provided, including the chapter review questions at the
end of each chapter. In addition, there are two practice exams (one each for the SHRM-CP
and SHRM-SCP). Use these questions to test your knowledge of the material. The online test
bank runs on multiple devices.
Flashcards
Two sets of questions are provided in digital flashcard format (a question followed by a
single correct answer); one set is for the SHRM-CP and the other set is for the SHRM-SCP.
You can use the flashcards to reinforce your learning and provide last-minute test prep
before the exam.
Other Study Tools
A glossary of key terms from this book and their definitions is available as a fully
searchable PDF.
Go to www.wiley.com/go/sybextestprep to register and gain access
to this interactive online learning environment and test bank with study
tools.
Loading page 28...
xxvi SHRM CP Assessment Test
SHRM CP Assessment Test
1. Which of the following intervention strategies would work best for an employee who had
low engagement with their job?
A. Offer training.
B. Place them on a performance improvement plan.
C. Have a conversation with them about career development.
D. Engage a coach or mentor.
2. Which of the following is an equity challenge for performance management systems?
A. Lack of supervisor training
B. Lack of efficacy
C. Being tied to pay increases
D. How time-consuming they are to complete
3. Which of the following is the best example of a team in the workplace?
A. Individuals who work for the same organization
B. Individuals who report to the same boss
C. Individuals who share responsibilities
D. Individuals who work in the same department
4. Which of the following examples best represents an organization that competes using
knowledge as a core competency?
A. A people-analytics corporation
B. A staffing agency
C. An automobile manufacturing company
D. A financial services company
5. Which of the following is necessary for an internship to be legal?
A. The intern’s effort cannot materially produce the work of a paid employee.
B. The intern must agree in writing that the work will be unpaid.
C. The work must be tied to the student’s field of study.
D. The student must come from an accredited college or university.
6. You manage HR for a large employer that has just broke ground on their first global facility,
which will be operational within the next 2 years. The national cultures are significantly dif-
ferent, as are the host-country labor laws. Which of the following HR service models should
you recommend?
A. Centralized
B. Decentralized
C. Offshoring
D. Outsourcing
SHRM CP Assessment Test
1. Which of the following intervention strategies would work best for an employee who had
low engagement with their job?
A. Offer training.
B. Place them on a performance improvement plan.
C. Have a conversation with them about career development.
D. Engage a coach or mentor.
2. Which of the following is an equity challenge for performance management systems?
A. Lack of supervisor training
B. Lack of efficacy
C. Being tied to pay increases
D. How time-consuming they are to complete
3. Which of the following is the best example of a team in the workplace?
A. Individuals who work for the same organization
B. Individuals who report to the same boss
C. Individuals who share responsibilities
D. Individuals who work in the same department
4. Which of the following examples best represents an organization that competes using
knowledge as a core competency?
A. A people-analytics corporation
B. A staffing agency
C. An automobile manufacturing company
D. A financial services company
5. Which of the following is necessary for an internship to be legal?
A. The intern’s effort cannot materially produce the work of a paid employee.
B. The intern must agree in writing that the work will be unpaid.
C. The work must be tied to the student’s field of study.
D. The student must come from an accredited college or university.
6. You manage HR for a large employer that has just broke ground on their first global facility,
which will be operational within the next 2 years. The national cultures are significantly dif-
ferent, as are the host-country labor laws. Which of the following HR service models should
you recommend?
A. Centralized
B. Decentralized
C. Offshoring
D. Outsourcing
Loading page 29...
SHRM CP Assessment Test xxvii
7. Which of the following HR metrics is used to establish the department’s annual budget?
A. HR expense-to-revenue
B. Revenue per FTE
C. Return on investment
D. A balanced scorecard
8. Which of the following statements about the primary purpose of employee hand-
books is true?
A. Handbooks are required by various labor laws.
B. Handbooks are used to communicate the expected standards of employee behaviors.
C. Handbooks are used to help employers manage risk.
D. All of the above.
9. The behavioral competencies required of a human resource professional is best described by
which of the following?
A. HR professionals must be active listeners to understand needs.
B. HR professionals must be competent in their work.
C. HR professionals must be geared toward taking action.
D. HR professionals must be highly educated.
10. Which of the following best describes the value of HR networking?
A. Networking builds relationships that may be mutually beneficial.
B. Networking helps create a pipeline of talent from which to recruit.
C. Networking identifies best HR practices from which to draw upon.
D. Networking is an effective way to socialize with like-minded individuals.
11. Of the four dimensions of diversity, where does a person’s religion and age belong?
A. Demographics
B. Organizational
C. Internal and external
D. Personality
12. Which of the following represent a demographic barrier to success?
A. Transgenderism
B. Age
C. Religion
D. All of the above
7. Which of the following HR metrics is used to establish the department’s annual budget?
A. HR expense-to-revenue
B. Revenue per FTE
C. Return on investment
D. A balanced scorecard
8. Which of the following statements about the primary purpose of employee hand-
books is true?
A. Handbooks are required by various labor laws.
B. Handbooks are used to communicate the expected standards of employee behaviors.
C. Handbooks are used to help employers manage risk.
D. All of the above.
9. The behavioral competencies required of a human resource professional is best described by
which of the following?
A. HR professionals must be active listeners to understand needs.
B. HR professionals must be competent in their work.
C. HR professionals must be geared toward taking action.
D. HR professionals must be highly educated.
10. Which of the following best describes the value of HR networking?
A. Networking builds relationships that may be mutually beneficial.
B. Networking helps create a pipeline of talent from which to recruit.
C. Networking identifies best HR practices from which to draw upon.
D. Networking is an effective way to socialize with like-minded individuals.
11. Of the four dimensions of diversity, where does a person’s religion and age belong?
A. Demographics
B. Organizational
C. Internal and external
D. Personality
12. Which of the following represent a demographic barrier to success?
A. Transgenderism
B. Age
C. Religion
D. All of the above
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xxviii SHRM CP Assessment Test
13. What is the age group identified for protection under the Age Discrimination in Employment
Act (ADEA)?
A. Individuals over the age of 40
B. Individuals over the age of 50
C. Individuals over the age of 60
D. Individuals over the age of 65
14. Which of the following statements regarding the failing of diversity initiatives is true for most
organizations?
A. Most fail because there continues to be systemic racial and other bias in the workplace.
B. Many fail for the same reasons most business strategy fails, including lack of resource
and leadership commitment.
C. Many fail because organizations do not understand the true value of diversity at work.
D. Most fail because HR teams themselves lack diversity.
15. Why do individuals with high STEM skills self-select into routine work?
A. They tend to have lower social skills.
B. They are smart enough to navigate complex technology.
C. There is an abundance of routine jobs within the United States that drives employment
patterns.
D. There are not enough nonroutine jobs to keep people employed.
16. Which of the following data collection methods would be most useful to understand how
employees perceive their company’s pay practices?
A. Conduct online research to see what competitors are paying.
B. Purchase an external salary survey.
C. Conduct an employee survey.
D. Use an online service, such as salary.com.
17. What was the primary outcome from the Lilly Ledbetter Fair Pay Act of 2009?
A. The filing period for a claim of wage discrimination resets with every pay period.
B. Gender-based wage disparity is a form of unlawful discrimination.
C. Employers must pay jobs of comparable worth equally.
D. Nothing; Lily Ledbetter lost her case against her employer.
18. ____________ plans focus on keeping critical operations running in the event of an
emergency.
A. Injury and illness
B. Risk management
C. Emergency response
D. Business continuity
13. What is the age group identified for protection under the Age Discrimination in Employment
Act (ADEA)?
A. Individuals over the age of 40
B. Individuals over the age of 50
C. Individuals over the age of 60
D. Individuals over the age of 65
14. Which of the following statements regarding the failing of diversity initiatives is true for most
organizations?
A. Most fail because there continues to be systemic racial and other bias in the workplace.
B. Many fail for the same reasons most business strategy fails, including lack of resource
and leadership commitment.
C. Many fail because organizations do not understand the true value of diversity at work.
D. Most fail because HR teams themselves lack diversity.
15. Why do individuals with high STEM skills self-select into routine work?
A. They tend to have lower social skills.
B. They are smart enough to navigate complex technology.
C. There is an abundance of routine jobs within the United States that drives employment
patterns.
D. There are not enough nonroutine jobs to keep people employed.
16. Which of the following data collection methods would be most useful to understand how
employees perceive their company’s pay practices?
A. Conduct online research to see what competitors are paying.
B. Purchase an external salary survey.
C. Conduct an employee survey.
D. Use an online service, such as salary.com.
17. What was the primary outcome from the Lilly Ledbetter Fair Pay Act of 2009?
A. The filing period for a claim of wage discrimination resets with every pay period.
B. Gender-based wage disparity is a form of unlawful discrimination.
C. Employers must pay jobs of comparable worth equally.
D. Nothing; Lily Ledbetter lost her case against her employer.
18. ____________ plans focus on keeping critical operations running in the event of an
emergency.
A. Injury and illness
B. Risk management
C. Emergency response
D. Business continuity
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Subject
Society for Human Resource Management