SHRM-CP Exam Terms and Practice Questions

Americans with Disabilities Act (ADA)

Prohibits discrimination against people with disabilities in several areas, including employment, transportation, public accommodations, communications and access to state and local government programs and services.

Americans with Disabilities Act Amendments Act (ADAAA)

Amends the Americans with Disabilities Act (ADA) and the Rehabilitation Act. ADAAA is intended to make it easier for people to establish that they have a disability.

ADDIE

Analysis, design, development, implementation, evaluation model; a five-step instructional design framework that guides the design and development of learning programs.

Age Discrimination in Employment Act (ADEA)

Forbids age discrimination against people who are age 40 or older.

Alternative Dispute Resolution (ADR)

An umbrella term for the various approaches and techniques (other than litigation) that can be used to resolve a dispute, such as arbitration, conciliation and mediation.

Analytics

Tools that add context or subclassifying comparison groups to data so that the data can be used for decision support.

Applicant

Person who applies for or formally expresses interest in a position.

Arbitration

Method of alternative dispute resolution (ADR) by which disputing parties agree to be bound by the decision of one or more impartial individuals to whom they submit their dispute for final determination.

Assessment Center

Processes by which job candidates or employees are evaluated to determine suitability and/or readiness for employment, training, promotion or an assignment.

Applicant Tracking System (ATS)

A software application that automates organization’s management of the recruiting process, such as accepting application materials and screening applicants.

Balance Sheet

Statement of an organization’s financial position at a specific point in time, showing assets, liabilities and shareholder equity.

Balanced Scorecard

Performance management tool that depicts an organization’s overall performance as measured against goals, lagging indicators and leading indicators.

Benchmarking

Process by which an organization identifies performance gaps and sets goals for performance improvement by comparing its data, performance levels and/or processes against those of other organizations.

Benefits

Mandatory or voluntary payments or services provided to employees, which typically cover retirement, health care, sick pay/disability, life insurance and paid time off (PTO).

Bona Fide Occupational Qualification (BFOQ)

A factor (such as gender, religion or age) that is reasonably necessary, in the normal operations of an organization, to carry out a particular job function.

Bias

A partially or an inclination or predisposition for or against something.

Business Case

Tool or document that defines a specific problem, proposes a solution and provides justifications for the proposal in terms of time, cost-efficiency and probability of success.

Business Intelligence

Raw data (which may be internal or external to an organization) that is translated into meaningful information for decision-makers to use in taking strategic action.

Business Unit

Element or segment of an organization that represents a specific business function, such as accounting, marketing or production; also may be called department, division, group, cost center or functional area.

Buy-in

Process by which a person or group provides a sustained commitment in support of a decision, approach, solution or course of action.

Candidate Experience

Perception of a job seeker about an employer based on interaction during the complete recruitment process.

Career Development

Progression through a series of employment stages characterized by relatively unique issues, themes and tasks.

Career Mapping

Process by which organizations use visual tools or guides to depict prototypical or exemplary career possibilities and paths in terms of sequential positions, roles and stages.

Career Pathing

Process by which employers provide employees with a clear outline for moving from a current to a desired position.

Cash Flow Statement

Statement of an organization’s ability to meet its current and short-term obligations by showing incoming and outgoing cash and cash reserves in operations, investments and financing.

Center of Excellence

Team or structure that provides expertise, best practices, support and/or knowledge transfer in a focused area.

Chief Executive Officer (CEO)

A senior executive responsible for leading the entire organization or company.

Chief Financial Officer (CFO)

A senior executive responsible for the financial affairs of an organization or company.

Change Initiative

Transition in an organization’s technology, culture, or behavior of its employees and managers.

Change Management

Principles and practices for managing a change initiative so it is more likely to be accepted and to receive the resources necessary (such as financial, human, physical, etc.) to reshape the organization and its people.

Chief Human Resource Officer

A senior executive responsible for recruiting, managing and retaining a business’s talent.

Coaching

Focused, interactive communication and guidance intended to develop and enhance on-the-job performance, knowledge or behavior.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

A federal law that provides rights to temporary continuation of group health plan coverage for certain employees, retirees and family members at group rates when coverage is lost due to certain qualifying events.

Code of Conduct

Document that summarizes the standards of business conduct for an organization, such as rules, values, ethical principles and vision.

Comparable Worth

Concept that jobs that are primarily filled by women and require skills, effort, responsibility and working conditions comparable to similar jobs primarily filled by men should have the same classifications and salaries.

Competencies

Clusters of high interrelated attributes, including knowledge, skills, abilities and other characteristics (KSAOs), that give rise to the behaviors needed to perform a given job effectively.

Compliance

State of being in accordance with all national, federal, regional and/or local laws, regulations, and/or other government authorities and requirements applicable to the places in which an organization operates.

Conciliation

Method of nonbinding alternative dispute resolution (ADR) by which a neutral third party tries to help disputing parties reach a mutually agreeable decision, such as mediation.

Conflict of Interest

Situation in which a person or organization may potentially benefit, either directly or indirectly, from undue influence due to involvement in outside activites, relationships or investments that conflict with or have an impact on the employment relationship or its outcomes.

Chief Operating Officer

A senior executive responsible for managing the day-to-day operations of a company or other institution.

Cost-Benefit Analysis

Approach to determining the financial impact of an organization’s activites and programs on profitability by comparing value created against the cost of creating that value.

Critical Path

Amount of time needed to complete all required elements or components of a task, which is determined by taking into account all project-task relationships.

Corporate Social Responsibility (CSR)

An organization’s commitment to operate ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local and global community.

Culture

Basic beliefs, attitudes, values, behaviors and customs shared and followed by members of a group, which give rise to the group’s sense of identity.

Diversity

The differences between individuals on any attribute that may lead to the perception that another person is different from self.

Due Diligence

Requirement to thoroughly investigate an action before it is taken through diligent research and evaluation.

Employee Assistance Program (EAP)

A voluntary, work-based program that offers free and confidential assessments, short-term counseling, referrals, and follow-up services to employees who have personal and/or work-related problems.

Equal Employment Opportunity Commission (EEOC)

A federal agency is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person’s race, color, religion, sex, national origin, age, disability or genetic information.

E-Learning

Electronic media delivery of educational and training materials, processes and programs.

Emotional Intelligence

Ability to be aware of, control and express one’s emotions and to handle interpersonal relationships judiciously and empathetically.

Employee Engagement

Employees’ emotional commitment to an organization, which is demonstrated by their willingness to put in discretionary effort to promote the organization’s effective functioning.

Employee Experience

Sum of all touchpoints an employee has with an employer, including those related to an employee’s role, workspace, manager and well-being.

Employee Surveys

Instruments that collect and assess information on employees’ attitudes and perceptions of the work environment or employment conditions, such as engagement or job satisfaction.

Employees

Individuals who exchange their work for wages or salary.

Equal Pay Act (EPA)

Amended the Fair Labor Standards Act, protects against wage discrimination based on sex.

Equality

Equal treatment of individuals and groups.

Equity

A relative form of equality that takes into consideration the needs and characteristics of the individuals, the context of the situation, and circumstances that result in disparate outcomes.

Employment Retirement Income Security Act (ERISA)

A federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Ethics

Set of behavioral guidelines that an organization expects employees at all levels to follow to ensure appropriate moral and ethical business standards.

Evidence-Based

Approach to evaluation and decision-making that utilizes data and research findings to drive business outcomes.

Employee Value Proposition (EVP)

Employee's’ perceived value of the total rewards and tangible and intangible benefits they receive from the organization as part of employment, which drives unique and compelling organizational strategies for talent acquisition, retention and engagement.

Exit Interview

Meeting held with an employee who is about to leave an organization, typically to discuss the employee’s reasons for leaving and the employee’s experience of working for the organization.

Fair Credit Reporting Act (FCRA)

A federal law that promotes the accuracy, fairness, and privacy of personal consumer information assembled by the Credit Reporting Agencies (CRAs).

Fair Labor Standards Act (FLSA)

Establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

Family and Medical Leave Act (FMLA)

Entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave.

Focus Group

Small group of invited individuals (typically six to 12 people) who actively participate in a structured discussion in which a facilitator elicits input on a specific product, process, policy or program.

Gap Analysis

Method of assessing a current state to determine what is needed to move to a desired future state.

Gig Economy

Free market system in which temporary positions are common and organization's hire independent workers for short-term commitments instead of full-time employees.

Genetic Information Nondiscrimination Act (GINA)

Protects individuals against discrimination based on their genetic information in health coverage and in employment.

Globalization

Status of growing interconnectedness and interdependency among countries, people, markets and organizations worldwide.

Governance

System of rules and processes set up by an organization to ensure its compliance with local and international laws, accounting rules, ethical norms, internal codes of conduct, and other standards.

Hazard

Potential harm that is often associated with a condition or activity that, if left uncontrolled, can result in injury or damage to people or property.

Health Insurance Portability and Accountability Act (HIPAA)

Primarily focused on making it easier for people to keep health insurance, protect the confidentiality and security of healthcare information and help the healthcare industry control administrative costs.

Human Resources (HR)

The department of a business or organization that is responsible for the hiring, administration, and training of personnel.

HR Service Model

Approach to structuring and delivering an organization’s HR services to support organizational success.

HR Business Partner

An HR professional who advises an organization’s leaders in developing and implementing a human capital strategy that closely aligns with overall organizational mission, vision and goals.

Human Resource Information System (HRIS)

Used for gathering, storing, maintaining, retrieving, revising and reporting relevant HR data.

Human Resource Management (HRM)

The strategic approach to nurturing and supporting employees and ensuring a positive workplace environment.

Inclusion

Extent to which each person in an organization’s is and feels welcomed, respected, supported and valued as a team member.

Individual Development Plan

Document the guides employees toward their goals for professional development and growth.

Information Management

Use of technology to collect, process and condense information for the purpose of managing the information efficiently as an organizational resource.

Integrity

Adherence to a set of ethical standards that reflect strong moral principles, honesty and consistency in behavior.

Information Technology (IT)

The use of hardware, software, services, and supporting infrastructure to manage and deliver information using voice, data, and video.

Job Analysis

Process of systematically studying a job to identify the activities/tasks and responsibilities it includes, the personal qualifications necessary to perform it, and the conditions under which it is performed.

Job Description

Document that describes a job and its essential functions and requirements, such as knowledge, skills, abilities, tasks, reporting structure and responsibilities.

Job Enlargement

Process of broadening a job’s scope by adding different tasks to the job.

Job Enrichment

Process of increasing a job’s depth by adding responsibilities to the job.

Job Evaluation

Process of determining a job’s value and price to attract and retain employees by comparing the job against other jobs within the organization or against similar jobs in competing organizations.

Key Performance Indicator (KPI)

A quantifiable measure of performance that gauges an organization’s progress toward strategic objectives or other agreed-upon performance standards.

KSAOs

Knowledge, skills, abilities and other characteristics are attributes required to perform a job.

Labor Union

Group of workers who formally organize and coordinate their activities to achieve common goals their relationship with an employer or group of employers, such as a trade union.

Lagging Indicator

Type of metric describing an activity or change in performance that has already occurred.

Leadership

Ability to influence, guide, inspire or motivate a group or person to achieve their goals.

Leadership Development

Interventions designed to help an individual gain the knowledge, skills, abilities and other characteristics (KSAOs) needed to engage with people and persuade them to work toward a vision or goal.

Leading Indicator

Type of metric describing an activity that can change future performance and predict success in the achievement of strategic goals.

Liabilities

Organization’s debts and other financial obligations.

Labor Management Relations Act (LMRA)

Encourages worker organizing and collective bargaining and to promote equality of bargaining power between employers and employees.

Merger and Acquisition (M&A)

A process by which two separate organizations combine, either by joining together as relative equals (merger) or by one procuring the other (acquisition).

Manager Development

Interventions designed to help an individual gain the knowledge, skills, abilities and other characteristics (KSAOs) required to manage people and resources to deliver a product or service.

Measurement

Process of collecting, quantifying and evaluating data.