SHRM Ultimate 4 — Questions and Answers
Question 1: An employer requires all job applicants to pass a math test. African American applicants fail at a significantly higher rate. What legal doctrine is most relevant?
- Disparate treatment
- Adverse impact (disparate impact) (Correct answer)
- Quid pro quo discrimination
- Hostile work environment
Correct answer: Adverse impact (disparate impact)
When a neutral practice disproportionately excludes a protected group, it triggers adverse impact (disparate impact) analysis under Title VII.
Question 2: Which compensation strategy pays employees above the market median to attract and retain top talent?
- Lead policy (Correct answer)
- Lag policy
- Match policy
- Broadbanding
Correct answer: Lead policy
A lead pay policy sets wages above market rates, making the organization more competitive in attracting high-quality candidates.
Question 3: A multinational company wants to send a U.S. employee to manage a new office in Germany. Which assignment type offers the most host-country integration?
- Short-term assignment
- Commuter assignment
- Localization (Correct answer)
- Extended business travel
Correct answer: Localization
Localization transitions an expatriate to local compensation and benefits, fully integrating them into the host-country context.
Question 4: What is the primary purpose of a succession plan in an organization?
- To document employee disciplinary history
- To ensure continuity of key roles through leadership pipeline development (Correct answer)
- To formalize annual promotion decisions
- To reduce headcount during restructuring
Correct answer: To ensure continuity of key roles through leadership pipeline development
Succession planning identifies and develops internal talent to fill critical roles, ensuring organizational continuity.
Question 5: Under the NLRA, which of the following is considered protected concerted activity?
- An employee complaining to HR about their personal workload
- Two employees discussing wages and working conditions with each other (Correct answer)
- An employee refusing to follow a direct supervisor instruction
- An employee posting confidential client data on social media
Correct answer: Two employees discussing wages and working conditions with each other
The NLRA protects employees who act collectively regarding wages, hours, and working conditions, including two employees discussing pay.
Question 6: An organization's HR data shows that women are promoted at lower rates than men despite similar performance ratings. This is an example of what phenomenon?
- Recency bias
- The glass ceiling (Correct answer)
- Halo effect
- Salary compression
Correct answer: The glass ceiling
The glass ceiling describes invisible barriers that prevent women and minorities from advancing to senior positions despite qualifications.
Question 7: Which HR strategy is most aligned with a company pursuing a cost-leadership competitive strategy?
- Extensive employee development and high variable pay
- Standardized roles, efficiency-focused training, and tight headcount control (Correct answer)
- Aggressive external recruiting for innovation talent
- Broad employee autonomy and flexible work arrangements
Correct answer: Standardized roles, efficiency-focused training, and tight headcount control
Cost-leadership strategies require HR to focus on efficiency, standardization, and workforce cost control to support the business model.
SHRM Ultimate 4
An employer requires all job applicants to pass a math test.
African American applicants fail at a significantly higher rate.
What legal doctrine is most relevant?