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THE

WORK IS PROVIDED “AS IS.” McGRAW-HILL EDUCATION AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill Education and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill Education nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill Education has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill Education and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise.

We dedicate this book to all HR professionals who constantly strive to do better.

I dedicate this book to two career-impactful bosses of mine, Peter Raisbeck, CEO, and Jim Benson, COO. They understood the value of what the HR function could be as a business partner for an organization. They mentored me with the foundational knowledge and experience of tying HR operations and strategies into the organization’s overall vision, grasping business acumen, and earning a seat at the executive round table.

This book is dedicated to the HR professionals who choose to do an increasingly difficult job as our world becomes more complex every day. You are carrying the banner for your employees and employers. Best wishes for a wonderful career.

Bill T.

I dedicate this book with love to my wife, Cheryl. Through days and nights, thick and thin, and months that have grown into years, you are always there!

Bill K.

ABOUT THE AUTHORS

Dory Willer, SHRM-SCP, PCC, is a certified executive coach with more than 30 years of experience as a senior HR executive, keynote speaker, and strategic planning facilitator. She has broad and diverse experience working for blue-chip and Fortune 100 companies, leaving her last corporate position as a vice president of HR to open Beacon Quest Coaching based in the San Francisco Bay Area. Willer coaches clients in leadership enhancement, performance improvement, and career renewal, and helps teams unleash their full potential. Additionally, she facilitates strategic planning sessions that stretch paradigms, align activities with behaviors, and hold groups accountable to produce end results. She was among the first graduating classes from Stanford’s Executive HR Certification Program (Graduate School of Business, 1994). Willer achieved the designation of SPHR more than 20 years ago, has a B.S. degree in behavioral science from the University of San Francisco, and earned several advanced certifications in professional coaching. If you would like to contact Dory for speaking engagements or individual and team coaching, you may reach her at Dory@BeaconQuest.com.

William H. Truesdell, SHRM-SCP, is president of The Management Advantage, Inc., a personnel management consulting firm. He spent more than 20 years in management with American Telephone and Telegraph in HR and operations. Truesdell is an expert on the subjects of personnel practices, employee handbooks, equal opportunity, and performance management programs. He is a past president of the Northern California Employment Round Table and former HR course instructor at the University of California – Berkeley extension program. Truesdell holds the SPHR certification and a B.S. in business administration from California State University – Fresno.

William D. Kelly, SHRM-SCP, SPHR-CA, is the owner of Kelly HR, an HR consulting services firm specializing in providing generalist HR

consulting services and support for small business enterprises. Bill’s experience includes more than 40 years of professional-level HR responsibilities that include 22 years within industry at Bechtel and later at Brown and Caldwell as an environmental engineer. His credentials include experience in employee relations, state and federal legal compliance, staffing and recruitment, equal employment opportunity and affirmative action, compensation, benefits, training and development, health and safety, and government contract management. Bill also has 20 years’ HR consulting experience that includes providing HR services, support, and advice to a wide range of Northern California clients. He also has 17 years’ experience as an instructor for the University of California – Berkeley extension program teaching Management of Human Resources; Recruiting, Selection, and Placement; California Employment Law; and professional HR certification preparation courses. Bill has more than 18 years’ experience teaching the Professional PHR/SPHR Certification Preparation Course as well as 7 years’ experience teaching the California HR Certification Preparation Course for the Society for Human Resource Management (SHRM) and the Northern California HR Association (NCHRA). He played a key role in the development of California’s HR certification credential; also, he was the project manager for the team of California HR professionals who developed SHRM’s first California Learning System in support of the California certification. Bill’s professional leadership also included roles on the board of directors and national vice president for the Society for Human Resource Management; the board of directors and president for the HR Certification Institute (HRCI); state director, California State Council of SHRM; the board of directors and president for the Northern California HR Association (NCHRA); and commissioner and chair, Marin County Personnel Commission. Bill received his B.S. in political science from Spring Hill College in Mobile, Alabama, and undertook post-graduate studies in organizational management at the College of William and Mary in Williamsburg, Virginia, and the University of Virginia in Richmond, Virginia. Prior to HR, Bill had a military career achieving the rank of Major in the United States Army with tours of duty in the United States, Germany, Thailand, and Vietnam.

About the Contributing Author

Beverley N. Dance, MBA, SHRM-SCP, SPHR-CA, CCP, is a human resource professional with significant HR management and independent consulting experience. She is the founder and principal of Dance Associates, providing human resource consulting; supporting a variety of clients including commercial businesses, nonprofits, and higher-educational institutions; and coaching leadership and individuals.

Beverly joined the Society for Human Resources Management faculty in 2007 and facilitates SHRM’s certification preparation and compensation classes. Beverly also facilitates for the Northern California Human Resources Association where she is a certified facilitator and certified mentor. She is approaching facilitating certification class number 100 and has presented at the HR West conference three times and at an SHRM Annual conference.

Beverly earned a master’s degree in business administration from the Haas School of Business at the University of California – Berkeley with a concentration in organizational design and industrial relations. Beverly has earned the Certified Compensation Professional (CCP) and Certified Employee Benefit Specialist (CEBS) certifications.

CONTENTS AT A GLANCE

Part I The Human Resources Profession

Chapter 1 Human Resource Certification

Chapter 2 SHRM’s Certification Program

Chapter 3 U.S. Laws and Regulations

Part II HR Knowledge and Behavior Competencies

Chapter 4 People

Chapter 5 Organization

Chapter 6 Workplace

Chapter 7 Behavioral Competencies

Part III Appendixes

Appendix A List of Common HR Acronyms

Appendix B Case Laws by Chapter

Appendix C For Additional Study

Appendix D About the Digital Content

Glossary

Index

CONTENTS

Acknowledgments

Introduction

Part I The Human Resources Profession

Chapter 1 Human Resource Certification

Professional Human Resources Management Certification

Benefits of Certification

HR Certification Organizations

The HR Certification Institute

The Society for Human Resource Management

Chapter Review

References

Chapter 2

SHRM’s Certification Program

HR Expertise / Knowledge

SHRM’s BoCK Advisory Panel

SHRM Certification Commission

The SHRM Body of Competency and Knowledge

SHRM-CP and SHRM-SCP Exam Eligibility

HR-Related Degrees

Which Certification Is Right for You?

Application Deadlines and Exam Windows

Exam Delivery, Duration, and Format

Exam Content Outline

Exam Identification and Conduct Guidelines

How Exams Are Scored

Chapter Review

References

Chapter 3 U.S. Laws and Regulations

What You Need to Know Concerning Employee Management

1. When You Have One or More Employees

1.1. The Clayton Act (1914)

1.2. The Consumer Credit Protection Act (1968)

1.3. The Copeland “Anti-Kickback” Act (1934)

1.4. The Copyright Act (1976)

1.5. The Davis-Bacon Act (1931)

1.6. The Dodd-Frank Wall Street Reform and Consumer Protection Act (2010)

1.7. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) (2001)

1.8. The Electronic Communications Privacy Act (ECPA) (1986)

1.9. The Employee Polygraph Protection Act (1988)

1.10. The Employee Retirement Income Security Act (ERISA) (1974)

1.11. The Equal Pay Act (EPA) (Amendment to the FLSA) (1963)

1.12. The FAA Modernization and Reform Act (2012)

1.13. The Fair and Accurate Credit Transactions Act (FACT) (2003)

1.14. The Fair Credit Reporting Act (FCRA) (1970)

1.15. The Fair Labor Standards Act (FLSA) (1938)

1.16. The Foreign Corrupt Practices Act (FCPA) (1997)

1.17. The Health Information Technology for Economic and Clinical Health Act (HITECH) (2009)

1.18. The Health Insurance Portability and Accountability Act (HIPAA) (1996)

1.19. The Immigration and Nationality Act (INA) (1952)

1.20. The Immigration Reform and Control Act (IRCA) (1986)

1.21. The IRS Intermediate Sanctions (2002)

1.22. The Labor-Management Relations Act (LMRA) (1947)

1.23. The Labor-Management Reporting and Disclosure Act (1959)

1.24. The Mine Safety and Health Act (1977)

1.25. The National Industrial Recovery Act (1933)

1.26. The National Labor Relations Act (NLRA) (1935)

1.27. The Needlestick Safety and Prevention Act (2000)

1.28. The Norris-LaGuardia Act (1932)

1.29. The Occupational Safety and Health Act (OSHA) (1970)

1.30. The Omnibus Budget Reconciliation Act (OBRA) (1993)

1.31. The Pension Protection Act (PPA) (2006)

1.32. The Personal Responsibility and Work Opportunity Reconciliation Act (1996)

1.33. The Portal-to-Portal Act (1947)

1.34. The Railway Labor Act (1926)

1.35. The Rehabilitation Act (1973)

1.36. The Retirement Equity Act (REA) (1984)

1.37. The Revenue Act (1978)

1.38. The Sarbanes-Oxley Act (SOX) (2002)

1.39. The Securities and Exchange Act (1934)

1.40. The Service Contract Act (SCA) (1965)

1.41. The Sherman Anti-Trust Act (1890)

1.42. The Small Business Job Protection Act (1996) (SBJPA)

1.43. The Social Security Act (1935)

1.44. The Tax Reform Act (1986)

1.45. The Taxpayer Relief Act (1997)

1.46. The Trademark Act (1946)

1.47. The Unemployment Compensation Amendments Act (UCA) (1992)

1.48. The Uniformed Services Employment and Reemployment Rights Act (USERRA) (1994)

1.49. The Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) (1974) [as amended by the Jobs for Veterans Act (JVA) (2008)]

1.50. The Wagner-Peyser Act (1933) [as amended by the Workforce Investment Act (WIA) (1998)]

1.51. The Walsh-Healey Act (Public Contracts Act) (1936)

1.52. The Work Opportunity Tax Credit (WOTC) (1996)

1.53 Labor-Management Reporting and Disclosure Act (1959)

1.54. Whistleblowing

2. When You Have 15 or More Employees

2.1. Americans with Disabilities Act (ADA) (1990)

2.2. Civil Rights Act (Title VII) (1964)

2.3. The Civil Rights Act (1991)

2.4. Drug-Free Workplace Act (1988)

2.5. The Equal Employment Opportunity Act (EEOA) (1972)

2.6. The Genetic Information Nondiscrimination Act (GINA) (2008)

2.7. Guidelines on Discrimination Because of Sex (1980)

2.8. The Lilly Ledbetter Fair Pay Act (2009)

2.9. The Pregnancy Discrimination Act (1978)

2.10. Uniform Guidelines on Employee Selection Procedures (1976)

3. When You Have 20 or More Employees

3.1. The Age Discrimination in Employment Act (ADEA) (1967)

3.2. The American Recovery and Reinvestment Act (ARRA) (2009)

3.3. The Consolidated Omnibus Budget Reconciliation Act (COBRA) (1986)

3.4. The Older Workers Benefit Protection Act (OWBPA) (1990)

4. When You Have 50 to 99, 100, or More Employees

4.1. Executive Order 11246—Affirmative Action (1965)

4.2. The Family and Medical Leave Act (FMLA) (1993)

4.3. The Mental Health Parity Act (MHPA) (1996)

4.4. The Mental Health Parity and Addiction Equity Act (MHPAEA) (2008)

4.5. The National Defense Authorization Act (2008)

4.6. The Patient Protection and Affordable Care Act (PPACA) (2010)

5. When You Have 100 or More Employees

5.1. The Worker Adjustment and Retraining Notification Act (WARN) (1988)

6. For Federal Government Employees

6.1. The Civil Service Reform Act (1978)

6.2. The Congressional Accountability Act (1995)

6.3. The False Claims Act (1863)

6.4. The Homeland Security Act (2002)

6.5. The Privacy Act (1974)

6.6. The USA PATRIOT Act (2001)

Employment Visas for Foreign Nationals

E Nonimmigrant Visas

H Visas

L-1 Intra-Company Transferee

O-1 Alien of Extraordinary Ability in Arts, Science, Education, Business, Athletics

P Visa Categories

EB-Employment–Based Visas

Chapter Review Questions Answers References

Part II HR Knowledge and Behavior Competencies

Chapter 4 People

Functional Area 1 HR Strategic Planning

Key Concepts

The Role of Strategy

Strategy Formulation

Developing Strategy

Implementing Strategy Production

Evaluating Strategic Performance

Providing Leadership and Strategy

Functional Area 2 Talent Acquisition

Key Concepts

Organizational Staffing Requirements

Strategic Staffing

Planning for Talent Acquisition on a Global Basis

Employment Branding

Job Analysis and Job Documentation

Sourcing and Recruiting

Selection

Orientation and Onboarding

Functional Area 3 Employee Engagement & Retention

Key Concepts

Understanding Employee Engagement

Drivers and Role of Organizational Culture in Engagement

Challenges to Employee Engagement

HR’s Employee Engagement Strategy

Assessing Employee Engagement

Engaging Employees from Hiring to Separation

Performance Management

Retention

Functional Area 4—Learning & Development

Key Concepts

Learning and Development in Today’s Organizations

Adult Learning

Training and Development

Career Development

Developing Leaders

Functional Area 5 Total Rewards

Key Concepts

Total Rewards and Organizational Strategy

Compensation Structure

Compensation Systems

Benefits and Perquisites

Legislation Affecting Compensation and Benefits

Chapter Review

Questions

Answers

References

Chapter 5 Organization

Functional Area 6 Structure of the HR Function

Key Concepts

The Strategic Role of HR

Understanding the Organization

The HR Organization and Function

Measuring and Demonstrating HR Value

HR’s Role in Organizational Strategy

Functional Area 7 Organizational Effectiveness & Development

Key Concepts

Overview of Organizational Effectiveness and Development (OED)

Organizational Gap Development

Implementing OED Initiatives

Measuring Organizational Effectiveness and Development

Functional Area 8 Workforce Management

Key Concepts

Organizational Workforce Requirements

Workforce Planning

The Staffing Plan

Employee Development

Succession Planning

Knowledge Management

Functional Area 9 Employee and Labor Relations

Key Concepts

The Employment Relationship

Third-Party Influences on Employee Relations

When the Employee Relationship Falters

Functional Area 10 Technology Management

Key Concepts

HR and Technology

HR in the Era of Big Data

HR Information Systems

Policies for Technology Use in the Workplace

Chapter Review Questions

Answers References

Chapter 6 Workplace

Functional Area 11 HR in the Global Context

Key Concepts

The Global Context

Defining the Global Organization

Creating a Global Strategy

Becoming a Multicultural Organization

Managing Global Assignments

Navigating the Global Legal Environment

Functional Area 12 Diversity and Inclusion

Key Concepts

Overview: Key Terms

Developing a Diversity and Inclusion Strategy

HR’s Role in the D&I Process

Functional Area 13 Risk Management

Key Concepts

Establishing the Context of Risk

Identifying and Analyzing Risk

Managing Risks

Evaluating Risk Management

Functional Area 14 Corporate Social Responsibility

Key Concepts

The Ever-Changing and Growing CSR

Creating a CSR Strategy

Philanthropy and Volunteerism

Functional Area 15 U.S. Employment Law and Regulations

Key Concepts

HR and the Legislative and Regulatory Environment

Organizational Compliance

U.S. Laws and Regulations

Employee Records Management

SHRM-SCP

Chapter Review Questions

Answers

References

Chapter 7 Behavioral Competencies

Leadership Cluster

Behavioral Competency 1 Leadership and Navigation

Key Concepts

Definition

Proficiency Indicators for All HR Professionals

Proficiency Indicators for Senior HR Professionals

Summary

Behavioral Competency 2 Ethical Practice

Key Concepts

Definition

Proficiency Indicators for All HR Professionals

Proficiency Indicators for Senior HR Professionals

Summary

Interpersonal Cluster

Behavioral Competency 3 Relationship Management

Key Concepts Definition

Basic Proficiency Indicators

Proficiency Indicators for Senior HR Professionals

Summary

Behavioral Competency 4 Communication

Key Concepts

Definition

Proficiency Indicators for All HR Professionals

Proficiency Indicators for Senior HR Professionals

Summary

Behavioral Competency 5 Global and Cultural Effectiveness

Key Concepts Definition

Proficiency Indicators for All HR Professionals

Proficiency Indicators for Senior HR Professionals

Summary

Business Cluster

Behavioral Competency 6 Business Acumen

Key Concepts

Definition

Proficiency Indicators for All HR Professionals

Proficiency Indicators for Senior HR Professionals

Summary

Behavioral Competency 7 Consultation

Key Concepts

Definition

Proficiency Indicators for All HR Professionals

Proficiency Indicators for Senior HR Professionals

Summary

Behavioral Competency 8 Critical Evaluation

Key Concepts Definition

Proficiency Indicators for All HR Professionals

Proficiency Indicators for Senior HR Professionals

Summary

Chapter Review Questions

Answers

References

Part III Appendixes

Appendix A List of Common HR Acronyms

Appendix B Case Laws by Chapter

Chapter 4: People

Chapter 5: Organization

Chapter 6: Workplace

Chapter 7: Behavioral Competencies

Appendix C For Additional Study

Appendix D About the Digital Content

System Requirements

Your Total Seminars Training Hub Account

Privacy Notice

Single User License Terms and Conditions

TotalTester Online

TotalTester Online Practice Exam Software

Technical Support

Glossary

Index

ACKNOWLEDGMENTS

We’d like to thank our executive editor, Tim Green, and the talented editorial coordinator, Claire Yee, at McGraw-Hill Education for helping this become a written reality. With the many different iterations of its content when SHRM modified its CP and SCP exams, their patience paid off in “getting it right” for you, the reader/exam taker making sure the material we wrote, and its presentation style, is effective in guiding you to passing your SHRM exam. Human resources is most likely part of our DNA makeup; we’ve lived it and breathed it for many decades. To be able to share the knowledge and tactics, we believe that will be helpful for passing the newer CP and SCP exams is our mentorship to budding HR professionals. We’ve tried to design our book to not only help the SHRM certification exam taker but also create a resource that will have a prominent place on the HR bookshelf as a “go-to” reference book. We hope we’ve succeeded with that intention.

A special thanks and much appreciation goes to Beverly N. Dance, MBA, SHRM-SCP, SPHR, PHRca, CCP, CEBS, of Dance Associates, who is what we consider to be an expert in teaching HR professionals to pass the new SHRM exams. Beverly is our contributing author for the situational judgment questions in our book’s practice exam, which pertain to the eight behavioral competencies that make up 50 percent of the exam’s passing grade. Beverly’s consultations and guidance, from her experience facilitating SHRM study groups, has helped us develop our approach in describing the behavioral competencies that SHRM has determined HR professionals need in order to be effective in their jobs.

A final recognition goes out to co-author William Kelly, who once again fulfilled the most important role of technical editor for the content of this book. In addition to Bill’s treasure trove of advice about all things HR and the various certification exams, as well as his experience as a facilitator/teacher for both the SHRM and HRCI exam study groups, he jumped in and took the SHRM-SCP exam to give you, the reader, a firsthand

review of the exam process.

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 selfdirected 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).