INTRODUCTION
Allow us to be the first to congratulate you on deciding to sit for the SHRM certification and obtain your SHRM Certified Professional (SHRM-CP) or SHRM Senior Certified Professional (SHRM-SCP) certification! Professional certifications are a mark of distinction that sets you apart in the profession and speaks volumes as to your commitment to your craft. In 2017, the Society for Human Resource Management (SHRM) awarded its 100,000th certification, just 2 years after first launching its “next-generation” HR professional certifications. It is our belief that HR professional certifications are important to you in your job as an HR professional because they endorse your knowledge and expertise to employers and clients.
Through this book, we can help you ready yourself for the type of materials you will be expected to have mastered. You bring your own professional experience to the process. Combining the two, you can be better able to answer situational-based and knowledge-based questions about human resource situations that you may find on the exam.
We want you to be successful. Having a professional certification is more critical every day in the world of work. It may be a requirement of your next job assignment or the promotional opportunity you are pining for in your organization. You may find that you want to place certification on the list of required qualifications for the future HR professionals you hire. In either event, we wish you the best professional regards and success in passing your exam and earning the prestigious designation of SHRM-CP or SHRM-SCP.
SHRM Certifications
This book was first written in 2015, which was the first year of the new SHRM exams. Over the next couple of years, SHRM modified some of the material to finally land on its official credentialing. We believe that the dust has settled and that the exam’s organization, weightings, and content are now set in stone and you, the reader/exam taker, will find this book of immense help in helping you study and pass your exam.
How to Use This Book
We believe this book covers the entire SHRM Body of Competency and Knowledge (BoCK) identified in the three specific domains that topics are organized into and in the eight behavioral competencies identified by SHRM for application by those in the human resource profession. The manner in which we present the information is based on a learning principle we call foundational knowledge. This means we’ve purposefully organized this book to ensure that the reader first grasps the foundational knowledge items required of the profession. That is why we have placed U.S. laws as one of the first chapter topics; followed by the BoCK knowledge domain chapters of People, Organization, and Workplace; and then the behavioral competency information.
Additionally, within the writing, we have presented the essential “guts” of the information that we feel is minimally necessary for the exam purposes and pointed you to additional resources to discover more information on topics such as theories. It is our belief that as readers progress through the material and progressively move through with a sure-footed understanding of the “what,” they will then be able to progress to the “how” of applying the topics to their roles in HR. We know that the information presented in this book for passing the exam is concise—studying for the exam is no cake walk. The presentation of material was specifically designed to help the self-directed learner by covering information they may already be well familiar with, and yet offering new information in a succinct manner for ease of learning.
Chapter 1
In Chapter 1 we explain everything you need to know about the different types of HR certifications and the benefits of professional certification (such as boosting your credibility as an HR professional and providing a platform to show you’re ready to take on the next-level challenge for your career).
Chapter 2
In Chapter 2 we explain everything you need to know about the SHRM exams, the development process of the exams, eligibility for each exam, and which exam/certifications is right for you. Know that the CP exam is correlated with HR administration, and the SCP is associated more with strategy. New for 2018, SHRM offers the Academic Eligibility Program, which allows students in a bachelor’s or master’s degree program in good standing at academically aligned schools to apply for and take the CP exam. This boosts the HR students’ value prior to graduating and provides opportunities to be as marketable as possible. Additionally, you’ll find information about the process of registering, the actual exam experience, and the style and format of questions on the exams.
Chapter 3
Chapter 3 provides a list of all the current U.S. laws and regulations that you need to know. We placed this information as one of the early chapters, rather than as an appendix, to emphasize the importance of reviewing the laws and regulations prior to diving into the knowledge areas. This should make it easier for you to grasp the reasoning behind the material that is presented in Chapters 4–6. Please remember that laws and regulations change and it’s important that you stay apprised of current federal and local laws that impact your organization in which you do business.
Chapters 4–6
Chapters 4–6 go into the detailed topics of HR technical knowledge (i.e., HR expertise) grouped into “domains”—People, Organization, and Workforce. These domains are defined as the principles, practices, and function of effective HR management and are associated with the expertise required for the HR profession. The explanations are designed to be concise and yet effectively communicate the information you’ll need for the exam. Their application is facilitated by the behavioral competencies identified in Chapter 7. SHRM suggests that to be a successful HR practitioner, one must be in command of both the technical HR knowledge (what you know) and the behavioral components of an effective HR practice (how you apply what you know).
The People domain covers HR strategic planning, talent acquisition, employee engagement and retention, learning and development, and total rewards.
The Organization domain covers structure of the HR function, organizational effectiveness and development, workforce management, employee and labor relations, and technology management.
The Workplace domain covers HR in the global context, diversity and inclusion, risk management, corporate and social responsibility, and the application of U.S. employment law and regulations from Chapter 3.
Chapter 7
Chapter 7 consists of the eight behavioral competencies that have been defined by SHRM as needed for success in any HR role, regardless of organization size or sector. These behavioral competencies provide the foundation for talent management throughout the HR lifecycle. They are grouped into three clusters: Leadership and Navigation, Interpersonal, and Business. Each competency cluster is further divided into subcompetencies that specifically describe its components and is composed of proficiency key behavior indicators—the statements that illustrate effective use in the HR role. Pay close attention to the SHRM BoCK related to the behavioral competencies that we have outlined in this chapter. The situational judgment test questions (SJTs) rely heavily on those descriptions.
Notes Specially called out Notes are part of each chapter, too. These are interesting tidbits of information that are relevant to the topic and point out helpful information.
Practice Questions and Answers At the end of Chapters 3 through 7 you will find a set of questions and answers to help you test your knowledge and comprehension. Practice, practice, practice—it will pay off on exam day.
Appendixes
We have created three appendixes to supplement the information you need to know.
Appendix A Appendix A lists acronyms used in the HR profession. The HR profession is notorious for using jargon in HR language, and these acronyms have flowed into the everyday business language of employers, employees, and the public at large. Will there be exam questions related to acronyms? Our guess is that questions may have acronyms in them but not necessarily be a question such as “What does ABC stand for?”
Appendix B In Appendix B we have listed all the associated legal cases you should know and review. They are organized under each chapter’s functional area and include a brief synopsis of what the case addressed. A URL is provided to review the case in more detail, and we recommend you delve into more information about the cases.
Appendix C Appendix C lists additional resources that are not only helpful for your exam study but are also helpful as you navigate through the lifecycle of your HR career. You should treat this resource list as a “living document,” adding new listings as new theories and best practices are developed over the course of your HR career.
Appendix D Appendix D provides information for the accompanying practice exams we’ve created. There are 160 questions each with answers that relate to each possible response, both correct and incorrect. These two exams should help you prepare yourself for sitting for the SHRM exam.
You can access the software from an Internet-enabled computer whenever convenient. Access is activated through the registration on hub.totalsem.com/mheclaim with the key code provided in the “Access” section.
Glossary
The glossary of terms has been created for just about every conceivable term in the HR profession that you will encounter. Not only will using this glossary help you review and learn the key terms contained in this material, it will help you move through your HR career lifecycle in human resource management. We recommend you study the glossary, not just review or reference it, because several exam questions may pertain to glossary terms.
Index
In the back of the book is an index that will guide you to the appropriate pages where a term is mentioned or discussed.
The Examinations
The SHRM-CP and SHRM-SCP exams are neither simple multiple-choice nor memory-recall exams. You will be sitting for a 4-hour, 160-question exam with 60 percent of it individual knowledge-based multiple-choice questions and 40 percent of it “situational judgment” scenario-based questions. There will be complex situational questions, short situational questions, formula-based questions, knowledge-based questions, and interpretive questions. Knowing how to get the most out of each question is crucial.
The questions will come in clusters; you’ll see 40 knowledge questions and then 40 scenario-based situational judgment questions, in that pattern until all 160 questions have been delivered. When the scenario questions begin, a second page will display like a book. The scenario stays on the left side of the screen, and the questions will be on the right side of the screen, one at a time.
Situational Questions
Situational questions will test your ability to identify the relevant content and are associated with the behavioral competencies. These questions will be lengthy and make up 40 percent of the exam weighting. Pay particular attention to reading and accurately identifying the question so that you can eliminate irrelevant and insignificant information.
Formula-Based Questions
Formula-based questions are more thought-provoking. You must know both the formula and how to perform the calculation to reach a correct answer.
Knowledge-Based Questions
The knowledge-based type of questions will require you to know your facts. These questions test your knowledge of HR theories and laws. Sometimes you are asked to identify an example chart or graph, so pay attention to the figures that are included in the chapters.
Interpretational Questions
An interpretational question will seek your ability to deduce a situation or condition and select the best appropriate answer. All answers may actually be correct, yet selecting the best answer could apply.
Specific Technique Questions
With this last type of question format, you will be tested on how to apply a tool or technique. The questions included at the end of the chapters and in the online practice exams will provide you with good examples of these different question types.
Preparing for the Exam
Preparing for any type of certification exam is not about memorizing information. As with the CP/SCP exams, they require that an established HR professional with a minimum number of years’ experience be able to demonstrate that they can apply their experience and knowledge in a host of different situations. You have already invested in an education for your career, and investing in serious study time and preparation now will pay off so that you can pass the exam.
For those with more limited or minimal experience, we suggest you begin studying 6 months prior to the exam-taking date. For those with significantly more experience as an HR professional, 3 months should be your yardstick. If you want to “shoot from the hip” and not study the material outlined in this book, your chances of passing one of the professional exams will likely be low—even if you have been in an HR exempt position for eons. We aren’t saying that it can’t be done, but we know that your chances are much better if you use the information in this book and its accompanying practice exams to prepare for the time when you will sit in that room with 100 other candidates and spend 4 hours selecting the correct answers. Guessing strategies are not foolproof and not a good substitute for solid study habits in preparation for an exam.
Exam Tips
Exam tips are exactly what they sound like—tips to assist you in your preparation for the exam. From Dory’s years of experience coaching people to achieve goals and achievements, she has compiled a list of tips from exam takers of all disciplines. First let’s start with studying.
• Before studying, go for a brief walk to take in some air and clear your mind in preparation for being focused. Put all the other thoughts and projects of the day on a back burner and allow your mind to be a clean slate, setting the intention that this specific amount of time is for the exclusive attention of SHRM studying.
• Make sure your “do not disturb” sign is on your door if you are at home or in the office and that others clearly know nothing is to disturb you during the hour-long study time. Speaking of an hour, that’s plenty of time to devote on a regular schedule to study. Most people find that 4 or 5 hours a week is sufficient for this type of material.
• Clear your study area. It should be void of anything else that might capture and distract you from studying. Keep the focus on the studying at hand, and to add a little incentive, create a bit of visual incentive for yourself—the desired end result, which would be a letter stating you have successfully passed your exam. Spoof a letter from SHRM, print it, put it in a nice picture frame, and place it in front of you every time you begin your study time. What the mind can conceive, you can achieve!
• Select a time of day that is optimum for you to study. Are you best in the wee hours of the early morning with a cup of coffee prior to work, or perhaps it’s the noon hour? Maybe your rhythm is one of a person who kicks in just after dinner. Find that sweet hour and make the appointment on your calendar listing it as VIP-SHRM. You are the very important person, and this appointment will cause you to think twice before allowing another activity to slip in on your time slot.
• The old adage “practice makes perfect” is not quite right. “Perfect practice makes perfect” is a better way to state the intention. As you make your study time perfect and practice saying “no thank you” to others and other things that would interrupt your study time, you are practicing the perfect combination that will allow you to stay focused and produce the results you are after.
• As you study the material, you may want to make flash cards to help you shore up areas of knowledge that will help you pass the exam. You can make flash cards using the web site http://www.kitzkikz.com/flashcards/ by taking notes and transferring them to this web site later.
• As you work through this exam guide and discover a term that is new to you, pause long enough to flip to the glossary and look it up. Knowing how a word or phrase is used can be helpful in discovering its application or meaning. Consider adding those terms to your flash cards.
• We strongly recommend you consider using the complement publication to this exam guide, SHRM-CP®/SHRM-SCP® Certification Practice Exams by William D. Kelly and Joanne Simon-Walters, to further help you with an assessment of your HR knowledge strengths and weaknesses. Time yourself as you take the mock exams.
• Two days prior to the exam, be sure to get a full night’s sleep each night, which is typically 7 to 9 hours for most people. Studies prove that a REM state of sleeping is extremely helpful for brain function.
• Hydrate, hydrate, hydrate the day before and the day of the exam. Try to avoid massive amounts of caffeine (it will keep you awake and rob you of precious H2O hydration). Water is good for the body but even better for the brain; it brings oxygen that helps your brain functions improve.
Here are a couple of other helpful tips about the SHRM exam in particular:
• Nothing that has occurred in the last 2 years will be covered on your exam. It can take a year or two to process the questions and include them on an exam. So, don’t worry about current events or a new law that just passed.
• Trust your gut, your first impression. First impressions of the correct answer are many times the best choice. This should not be confused with “guessing.” This refers to topics you know that you know.
• Watch out for basing your answer on what your current organization’s policy is. Keep focused on generally accepted HR practices as the correct answer.
• There will be no patterns, so don’t even try to look for them. The psychometric exam process used for the SHRM exam prevents questions from falling into patterns.
• Only federal laws apply—don’t mix them up with your state laws.
• The most common weakness of HR test takers is over-analyzing the options. Be thorough, but be reasonable in your analysis and selection of the options.
• When stumped, try to eliminate the obvious answers and then just focus on what remains.
• Do read all four answers—it may be that you need to select the best answer and yet all answers are correct.
• Use the highlighting tool that the exam has to help you identify key phrases.
• Resist the urge to change your answers—this goes hand in hand with the first tip. If you are absolutely, positively sure that you have an incorrect answer, go ahead. But for the most part, resist the urge to change answers.
• Don’t rush. Manage your time. You will have a little over a minute for each question. A clock visible on your monitor screen counts down what amount of time is left.
Lastly, this book has been designed not only to assist SHRM exam takers but also to be a reliable reference book on the shelf in any HR professional’s office. There is a lot to remember in the discipline of human resources. It is our desire that you find this book to be a quick resource that guides you in times when something pops up that you may need a refresher on. At a minimum, we hope it provides you with direction to gather more information for your HR circumstances.
Finally, dear reader, thank you for selecting this book. We sincerely hope your SHRM exam goes well and wish you the absolute best on exam day!