SHRM Society for Human Resource Management MCQ 3 — Questions and Answers
Question 1: An HR director is designing a total rewards strategy. Which component is considered a non-monetary element of total rewards?
- Base salary
- Annual bonus
- Recognition programs (Correct answer)
- Health insurance premiums
Correct answer: Recognition programs
Recognition programs are non-monetary rewards that contribute to employee engagement and satisfaction without direct financial cost to the employee.
Question 2: Under ERISA, a 401(k) plan fiduciary has a duty of loyalty, meaning the fiduciary must:
- Maximize investment returns regardless of risk
- Act solely in the interest of plan participants and beneficiaries (Correct answer)
- Follow the employer's investment preferences
- Ensure all employees participate in the plan
Correct answer: Act solely in the interest of plan participants and beneficiaries
ERISA's duty of loyalty requires fiduciaries to act solely in the interest of plan participants and beneficiaries, prioritizing their financial interests.
Question 3: A structured behavioral interview is most effective at predicting future job performance because it:
- Allows interviewers to build rapport with candidates freely
- Uses consistent, job-relevant questions based on past behavior (Correct answer)
- Focuses on hypothetical scenarios to assess creative thinking
- Enables interviewers to probe any topic that interests them
Correct answer: Uses consistent, job-relevant questions based on past behavior
Structured behavioral interviews use standardized, job-related questions about past behavior, which is the strongest predictor of future performance.
Question 4: Which of the following best describes 'disparate impact' under employment law?
- Intentional discrimination against a protected class
- A neutral policy that disproportionately affects a protected group (Correct answer)
- Harassment based on a protected characteristic
- Retaliation for filing an EEOC complaint
Correct answer: A neutral policy that disproportionately affects a protected group
Disparate impact occurs when a facially neutral employment practice disproportionately excludes members of a protected class without business justification.
Question 5: An organization wants to reduce voluntary turnover. Which intervention is most directly supported by exit interview data?
- Implementing a mandatory arbitration agreement
- Targeting specific root causes identified by departing employees (Correct answer)
- Increasing base salaries across all departments
- Introducing a non-compete clause for all positions
Correct answer: Targeting specific root causes identified by departing employees
Exit interviews provide qualitative insight into why employees leave, allowing HR to address specific, evidence-based causes of voluntary turnover.
Question 6: The SHRM Competency Model identifies which of the following as a behavioral competency?
- HR expertise (HR knowledge)
- Business acumen
- Ethical practice (Correct answer)
- Technology management
Correct answer: Ethical practice
Ethical practice is a behavioral competency in the SHRM BoCK, reflecting the expectation that HR professionals model integrity and accountability.
Question 7: When conducting a job analysis, which method involves having job incumbents record their daily tasks and time allocation in a structured log?
- Critical incident technique
- Observation method
- Diary/log method (Correct answer)
- Functional job analysis
Correct answer: Diary/log method
The diary/log method requires employees to document their activities over time, providing detailed data on task frequency and duration.
SHRM Society for Human Resource Management MCQ 3
An HR director is designing a total rewards strategy.
Which component is considered a non-monetary element of total rewards?