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SHRM Exam Questions With Verified Answers.

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©BRAINBARTER 2024/2025 SHRM Exam Questions With Verified Answers. Adverse Impact - answerOccurs when the selection rate for a protected class is less than 80% of the rate for the class with the highest selection rate; also known as disparate impact. Eg: High% / Low% X 100 = Adverse Impact Rat...

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  • October 2, 2024
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  • 2024/2025
  • Exam (elaborations)
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SHRM Exam Questions With Verified
Answers.


Adverse Impact - answer✔Occurs when the selection rate for a protected class is less than 80%
of the rate for the class with the highest selection rate; also known as disparate impact.
Eg: High% / Low% X 100 = Adverse Impact Rate

Affirmative Action Plan (AAP) - answer✔A plan that establishes guidelines for recruiting,
hiring, and promoting women, qualified minorities, persons with disabilities, and covered
veterans to eliminate the present effects of past employment discrimination.

Office of Federal Contract Compliance Programs (OFCCP) - answer✔Ensures that employers
doing business with the federal government comply with the nondiscrimination and affirmative
action laws.

Worker Adjustment and Retraining Notification (WARN) Act - answer✔A federal law enacted
in 1989 to protect employees by requiring most employers with full time 100 or more employees
to provide at least 60-day written notification of facility closings and mass layoffs of employees.

Extinction - answer✔the diminishing of a conditioned response; occurs in classical conditioning
when an unconditioned stimulus (US) does not follow a conditioned stimulus (CS); occurs in
operant conditioning when a response is no longer reinforced.

Ishikawa Diagrams - answer✔Also called fishbone diagrams, herringbone diagrams, cause-and-
effect diagrams, or Fishikawa, are causal diagrams that show the causes of a specific event

The Bell Curve - answer✔on a graph of the frequency of some variable, a curve that first rises
and then falls and thus forms a symmetric bell-shaped curve

Pareto Chart - answer✔A bar graph for qualitative data, with the bars arranged in descending
order according to frequencies

Green-Circled Employees - answer✔incumbent who is paid below the range set for a job

Red-Circled Employees - answer✔An incumbent (current jobholder) who is paid above the
range set for the job.

, ©BRAINBARTER 2024/2025


Pay Compression - answer✔Occurs when there is only a small difference in pay between
employees regardless of their skills, experience, or seniority; also known as salary compression.

Severance Packages - answer✔Packages are most typically offered for employees who are laid
off or retire.

Unemployment Insurance - answer✔A joint state-federal program under which state-
administered funds pay a weekly benefit for a limited time to eligible workers when they are
involuntarily unemployed.

Outplacement - answer✔Systematic process by which a laid-off or terminated employee is
counseled in the techniques of career self-appraisal and in securing a new job that is appropriate
to his or her talents and needs.

Contingent Workforce - answer✔Those who work in positions that are temporary or freelance or
who work as independent contractors

Trade Adjustment Assistance Program (TAA) - answer✔Federal assistance program for workers
who become unemployed as a result of increased imports of foreign goods.

National Institute for Occupational Safety and Health (NIOSH) - answer✔Federal agency
responsible for conducting research and making recommendations for the prevention of work-
related injury and illness

Golden Life Jacket - answer✔Offered to Executives of a company being acquired to ensure they
remain with the new firm.

Golden Handshake - answer✔large sum of money paid as compensation to someone who is
obliged to leave a job or retire early

Golden Parachute - answer✔a large payment or other financial compensation guaranteed to a
company executive should the executive be dismissed as a result of a merger or takeover.

Golden Handcuffs - answer✔used to refer to benefits, typically deferred payments, provided by
an employer to discourage an employee from taking employment elsewhere.

Zipper Clause - answer✔Also known as totality of agreement. Agreement between the parties to
a collective-bargaining agreement (CBA) that the contract is the entire agreement between them
and that anything not in it is not part of the agreement. The purpose of this clause is to prevent
reopening of negotiations during the term of the contract.

Line of Sight - answer✔Concept that states that employees must be able to influence the
attainment of a goal and see a direct result of their efforts in order for incentive pay plans to be
effective.

, ©BRAINBARTER 2024/2025


Total Reward - answer✔encompass not only compensation and benefits, but also personal and
professional growth opportunities and a motivating work environment that includes recognition,
job design, and work-life balance

Affirmative Action - answer✔A policy in educational admissions or job hiring that gives special
attention or compensatory treatment to traditionally disadvantaged groups in an effort to
overcome present effects of past discrimination.

Point Method - answer✔A method of job evaluation that places weight (points) on each of the
compensable factors in a job whereby the total points associated with a job establish its relative
worth and jobs that fall within a specific range of points fall into a pay grade with an associated
wage

Classification Method - answer✔Method of job evaluation that identifies benchmark positions,
places them in salary grades, and then matches positions with similar knowledge, skills, and
abilities (KSAs) and slots them into the same grade.

Ranking Method - answer✔In the performance-appraisal process, comparison appraisal method
in which a manager lists employees from the highest to the lowest performer. In the job-
evaluation process, comparison of the value of jobs in an organization to each other.

Lilly Ledbetter Fair Pay Act - answer✔Federal law that extended the statute of limitations for
employees to bring discrimination suits against employers for pay discrimination; time is now
measured from each paycheck and not limited to 180 days from the act of discrimination.

Compa-Ratio - answer✔Calculation tool that compares an employee's base pay to the midpoint
of the base salary range. It is commonly used when making pay decisions.

Cliff Vesting - answer✔The worker only vested 100% after 5 years of service

Graded Vesting - answer✔the worker must be 20% vested by the 3rd year of service, and the
minimum vesting increases another 20% for each year until the worker is 100% vested at year 7

Taft-Hartley Act - answer✔Act that provides balance of power between union and management
by designating certain union activities as unfair labor practices; also known as Labor-
Management Relations Act (LMRA)

Wagner Act - answer✔A 1935 act that upheld the right of industrial workers to join unions and
established the National Labor Relations Board (NLRB), a federal agency with the authority to
protect workers from employer coercion and to guarantee collective bargaining.

Piece-rate Systems - answer✔Systems that reward employees based on the number of units
produced

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