SHRM Knowledge 5 — Questions and Answers
Question 1: An HR professional discovers that a manager is retaliating against an employee who filed an internal harassment complaint. The FIRST action HR should take is to:
- Terminate the manager immediately to protect the company
- Document the retaliation behavior and initiate a prompt, impartial investigation (Correct answer)
- Advise the employee to transfer to a different department
- Wait for additional complaints before taking action
Correct answer: Document the retaliation behavior and initiate a prompt, impartial investigation
HR must treat retaliation as a serious legal and ethical violation by documenting the behavior and launching an immediate, objective investigation.
Question 2: In strategic HR management, 'environmental scanning' refers to:
- Auditing the physical workplace for safety hazards
- Analyzing internal and external factors that may affect the organization's HR strategy (Correct answer)
- Reviewing compensation structures against industry benchmarks
- Monitoring employee social media for policy violations
Correct answer: Analyzing internal and external factors that may affect the organization's HR strategy
Environmental scanning involves systematically gathering and analyzing data about internal and external conditions—such as economic trends, labor markets, and competitive forces—that influence HR planning.
Question 3: Which of the following best describes 'succession planning'?
- Creating a plan to reduce headcount through voluntary separations
- Identifying and developing internal candidates to fill critical leadership roles in the future (Correct answer)
- Establishing a promotion schedule based on seniority
- Outsourcing key roles to reduce long-term labor costs
Correct answer: Identifying and developing internal candidates to fill critical leadership roles in the future
Succession planning proactively identifies and prepares high-potential employees to assume critical roles when vacancies arise, ensuring organizational continuity.
Question 4: Under ERISA, the primary responsibility of a fiduciary managing an employee benefit plan is to:
- Maximize plan investment returns regardless of risk level
- Act solely in the interest of plan participants and beneficiaries (Correct answer)
- Minimize employer contributions to the plan
- Follow the plan sponsor's investment preferences above all others
Correct answer: Act solely in the interest of plan participants and beneficiaries
ERISA fiduciaries must act prudently and exclusively in the interest of plan participants and beneficiaries, not in the interest of the employer or themselves.
Question 5: Which of the following is an advantage of structured behavioral interviews over unstructured interviews?
- They allow interviewers to ask different questions based on candidate responses
- They increase reliability and predictive validity by using standardized, job-relevant questions for all candidates (Correct answer)
- They are faster to conduct because they require less preparation
- They give candidates more freedom to highlight their unique experiences
Correct answer: They increase reliability and predictive validity by using standardized, job-relevant questions for all candidates
Structured behavioral interviews use the same predetermined, job-relevant questions for all candidates, which improves reliability, reduces bias, and increases predictive validity compared to unstructured interviews.
Question 6: The concept of 'employment at will' means that:
- Employees can only be terminated for documented cause after a performance improvement plan
- Either the employer or employee may end the employment relationship at any time for any lawful reason (Correct answer)
- Employees are guaranteed a minimum notice period before termination
- Employers must provide severance pay upon involuntary termination
Correct answer: Either the employer or employee may end the employment relationship at any time for any lawful reason
Employment at will allows either party to terminate the employment relationship at any time, with or without cause, as long as the reason is not illegal.
Question 7: Which of the following HR activities is most closely aligned with the SHRM competency of 'Business Acumen'?
- Facilitating a conflict resolution session between two employees
- Analyzing workforce data to quantify the ROI of a training program to the CFO (Correct answer)
- Updating the employee handbook to reflect new leave policies
- Conducting new-hire orientation for onboarding employees
Correct answer: Analyzing workforce data to quantify the ROI of a training program to the CFO
Business Acumen involves understanding the organization's financial and operational landscape; presenting workforce ROI in financial terms directly demonstrates this competency.
SHRM Knowledge 5
An HR professional discovers that a manager is retaliating against an employee who filed an internal harassment complaint.
The FIRST action HR should take is to: