BEHAVIORAL COMPETENCY CLUSTERS (50%)

Leadership (17%)
A company has experienced rapid growth over the past few years. As the company grew, the
organizational structure became more hierarchical, with many levels of supervision. However,
leadership worked hard to maintain an informal company culture supporting employees’ freedom and
flexibility. Although it is not outwardly encouraged, employees at all levels are free to engage in
romantic relationships if those relationships do not interfere with their work. Given the company’s rapid
growth, the CEO and the HR manager have concerns that there is an increasing potential for power
imbalances and conflicts of interest due to romantic relationships between subordinates and
supervisors. The company’s code of conduct includes a harassment policy but does not have an explicit
policy on romantic workplace relationships. The CEO calls a meeting with the leadership team and the
HR manager to discuss whether to institute policies governing romantic relationships between
supervisors and subordinates and gather suggestions on what those policies might look like. Leadership
is worried employees will not accept a policy that governs subordinate-supervisor romances since some
supervisors are currently engaged in consensual relationships with subordinates. How should the HR
manager respond? Inform the leadership team that the policy will be written with exceptions for current
subordinate-supervisor relationships. Tell the leadership team that HR will explain the benefits of the
policy to all employees before formally instituting the policy. Explain to the leadership team why
employee buy-in should not take precedence over protecting the company’s reputation. Indicate to the
leadership team that HR will look for opportunities to reassign one party in each subordinate-supervisor
relationship to avoid conflict. During the meeting, some members of the leadership team expressed that
the company does not need a policy governing romances between subordinates and supervisors. It is
pointless because there have been no problems with such relationships in the past. How should the HR
manager respond? Describe to the leadership team how a subordinate may feel pressured into agreeing
to a relationship out of fear of reprisal from the supervisor. Notify the leadership team that a policy
governing romantic relationships can be added to the existing harassment policy. Tell the leadership
team that subordinate-supervisor relationships can expose both parties to discrimination or sexual
harassment claims. Suggest the leadership team postpone the discussion until the next quarterly
planning meeting to give leaders time to consider the information. A manufacturing company has
concerns about the changes in their employees’ attitudes, lack of job satisfaction, and the increase in
turnover rate. To learn more, the company established a reporting channel where employees can
anonymously submit their feedback. The executive leadership team reviews all reports. Shortly after the
reporting channel went operational, one of the employees reported that the company was involved in
unethical practices, specifically biased hiring and discriminatory promotion practices. In addition, the
executive leadership team learned that a client had an unpleasant experience with one of their
employees. The client alleges that the employee made derogatory remarks regarding the client’s
background. The executive leadership team worries about these issues and becoming public knowledge.
The executive leadership team instructs the HR manager to investigate. The executive leadership team
also wants the HR manager to provide recommendations for improving the company’s recruiting
strategy and an action plan to streamline the promotion process. A manager tells the HR manager that
an employee’s persistent insubordination is due to cultural differences. Which action should the HR
manager take first? Meet with the employee in private to discuss the insubordinate and rude behavior.
Facilitate a meeting with the manager and employee to discuss their concerns. Advise the manager to
communicate more authoritatively with the employee. Ask the manager’s other employees about their
experiences with this manager. The HR manager realizes that voluntary turnover is higher in some
ethnic groups than others. Which approach should the HR manager take to develop an initiative on
inclusion that also addresses this turnover finding? Encourage employees to refer applicants to
underrepresented groups within the company. Advise managers to speak favorably about inclusion to
employees. Provide a training program with strategies for engaging in inclusive behaviors. Review exit
interview data to determine if there is evidence of discriminatory treatment. How should the HR
manager investigate the reports from the employee reporting channel? Analyze personnel records to
determine the hiring and promotion rates for each group. Survey all employees in the company on
demographic attributes. Review HR records for similar employee complaints from the past. Interview
employees on their observations of the company’s hiring practices. The following scenario accompanies
the next two items. The administrative assistant for a small, family-owned company recently retired. The
retired administrative assistant, along with several other employees, is a relative of the company’s
owners. The owners’son is currently being trained to lead the company after his parents retire. Rather
than search for a replacement for the retired administrative assistant, the owners decide to hire their
son’s wife, who has no prior experience. Shortly after the new administrative assistant begins, the HR
manager receives several employee complaints. The complaints state that the new administrative
assistant is dressing inappropriately and incorrectly filing or misplacing important documents. Some
employees state they have even received complaints from customers about the administrative
assistant’s clothing choices. The company does not have an employee handbook or policy manual, so
there is no dress code for the HR manager to enforce. The administrative assistant interacts with
customers daily, so the HR manager must resolve the issue. Which action should the HR manager take to
address the administrative assistant’s performance issues? Inform the administrative assistant of their
assignment to a performance improvement plan. Request the administrative assistant to be extra
careful when handling important documents. Meet privately with the administrative assistant to ensure
the administrative assistant is aware of the expectations and responsibilities of the position. Discuss the
complaints with the administrative assistant so that the administrative assistant is aware of the
problems. The owners’son becomes aware of the complaints and demands the HR manager share the
names of any family members who filed them. How should the HR manager respond? Explain to the
owners’son that the request could be perceived as inappropriate. Advise the owners’son that it is
inappropriate for HR to get involved in the family’s problems. Meet privately with the owners to explain
the situation and ask them to intervene. Ask the owners’son to explain why he wants to know who filed
the complaints.

Praise for Actualized Leadership “The Actualized Leader Profile is the most impactful leadership
assessment on the market today. If you take your results to heart and commit to personal development,
it will transform your leadership style and your life.”
Self-awareness is foundational for both leadership effectiveness and personal growth. Most of the time
we confuse self-awareness with knowing, and playing to, only our strengths. We usually try to ignore or
deny our negative qualities and instinctual reactions; that is why we often resort to blaming others or
defending our own limitations when under stress. Swiss psychologist Carl Jung referred to this common
reaction as the “shadow” and famously said that blaming our troubles on others instead of truly facing
ourselves condemns most of us to live our lives in the “fog of illusion.” Think of the shadow as the Mr. or
Mrs. Hyde that is the counterpoint to our very best or actualized self, our Dr. Jekyll. When we’re under
stress, tired, lonely, or “hangry”—or after a cocktail or two—our shadow is more likely to emerge, or
erupt. The good news is that you have a choice: you can either process and manage your shadow, or it
will process and manage you. The former is painful but necessary in order to reach your highest
potential. The latter is much easier because we don’t have to face ourselves and our shortcomings, but
ultimately, it’s much more disruptive as it usually results in a bad ending: a demotion, termination,
divorce, and the like. Jung’s concept of the shadow is crucial to the points I make in this book and also,
most importantly, to your ability to make the needed changes in your life (including the development of
true self-awareness) to transform and maximize your leadership potential. Without this recognition, it is
hard to chart a clear path forward because in a contest of wills, your shadow nearly always wins. It’s a
truth I had to learn the hard way. LEADERSHIP SHADOWS The term “leadership shadow” describes one
of the three fear-based reactions we have under stress. Based on the seminal work of Carl Jung and his
concept of the shadow, leadership shadows correspond to each of the three motive needs that drive our
style: Achiever—Fear of Failure; Affirmer—Fear of Rejection; Asserter—Fear of Betrayal. By assessing
your dominant motive need, the assessment included with this book (http://www.ALPFree.com) will
give you greater insight to both your style and your leadership shadow. In addition to this enhanced self-
awareness, strategies for identifying your leadership shadow triggers are provided to help you more
effectively manage your leadership shadow and, in doing so, actualize your highest potential. A Lesson in
Self-Awareness Dr. Jerry B. Harvey was one of the most insightful and enigmatic thinkers in the fields of
organizational behavior and management. Although he died in August 2015, twenty years ago he had a
profound impact on my life when I was a graduate student at The George Washington University (GW).
In fact, his theories, models, and frameworks (“musings” or “sermons” as he called them) still influence
me today. Anyone lucky enough to have known or worked with Jerry realized early on that he was a
walking contradiction. He was fiercely intelligent, but he spoke with a slow, deliberate, Texas drawl. He
was a “Bible-thumping Southern Baptist” (his words) but also irreverent as he examined spiritual issues
such as “The Organizational Dynamics of the Last Supper and Why Judas Was Not a Traitor” and made
the analogy between leading organizational change and passing gas, or “Tooting Your Own Horn,” in
church. Jerry referred to business organizations as “Phrog Farms,” yet he was in constant demand to
consult with business leaders and give keynote addresses. He often reminded us that when we get
stabbed in the back, “Our Fingerprints Are Usually on the Knife.” He claimed that it was immoral to give
someone objective feedback and more ethical to have “Prayers of Communication” with them. He
condemned the “Tragedy of the No-Nonsense Manager” and stated time and again that leadership
creates loneliness, which then leads to “anaclitic depression” and, if not remedied, a much shorter life.
He compared leaders who participate in reductions in force just for the sake of profits to Adolf
Eichmann, and he encouraged “Future Managers to Cheat” if that meant giving and receiving help.
Jerry’s classic book The Abilene Paradox is a dry, funny, and insightful reminder that it is our “inability to
manage agreement, not conflict, that is the single most pressing issue of modern organizations.” But
despite the apparent contradictions in his writing and professional relationships, there was love and
encouragement behind his approach, especially with his students. Jerry constantly reminded his
students to push outside their comfort zones, to think with more rigor, to write with greater precision,
and to have the courage to ask and seek the answers to big and often painful questions about life and its
purpose. I know of no other writer or professor so insightful and provocative. In a world of sound bites,
social media updates, and tweets, we need his existential musings and irreverent sermons now more
than ever. Dr. Harvey was my professor for the first time in 1996 when I began GW’s doctoral program
in Organizational Behavior and Development. As a freshly minted graduate with a master’s degree in
psychology and management, I was excited to continue my studies under the famed author of The
Abilene Paradox. My first class with Dr. Harvey on group dynamics was unlike any class I had ever taken
before. Students wrote poems, performed songs, and played musical instruments to illustrate their
understanding of the theoretical models of small group behavior and change dynamics. I was too
insecure at the time to do something so creative, so I decided to write a final paper about my divorce
and the dysfunction of dependency. I thought it was an excellent choice since the topic of dependency
had been the basis for Dr. Harvey’s dysfunctional dynamic explored in The Abilene Paradox. I worked
hard on the paper, and when I turned it in I was confident that I had done a respectable job of it. During
our last class, all the other students got their final project grades except me. Instead, he singled me out
for special attention. “William,” Dr. Harvey said as he stared at me over the top of his glasses. “Son,
you’re going to need to come see me for your grade.” To say I was shocked to be called out in front of
the whole class is more than an understatement! The next day I knocked on Dr. Harvey’s half-open
office door and peeked in. He had his back to me and was reading his Bible. Without looking up, he
pointed to an empty chair in front of his desk. I sat down and nervously fidgeted in the chair while
waiting for him to acknowledge me. Eventually, he closed the Bible, rubbed his eyes, and turned around
to look directly at me. “Well, William,” he said, “what do we need to talk about?” Clearing my throat, I
responded that I was there to talk about my paper. “Wrong,” he said. Surprised, I quickly reassessed the
meeting’s purpose and tried another response. “Well then,” I replied, “I must be here to talk about my
experience in the class, right?” This response brought both irritation and amusement. “Son,” he said,
“let me be very clear with you: I don’t give a shit about your experience in my class.” “We’re going to try
this one more time, William, before I fail you,” he told me. “Son, what are we here to talk about?” Now I
was nervous and, thinking I had nothing to lose, finally let my guard down and ventured another guess.

“I am here to talk about my divorce,” I replied. He grinned just a bit. “I’ll give you a B-on that response.
No, son, we’re here to talk about you,” he said, directly pointing a finger at me. “So, tell me, how the
hell did all of this happen?” I assumed “this” meant my divorce, so I repeated the details of it that I had
discussed in the paper. Essentially, I blamed my ex-wife for the divorce because she changed and
became too needy and dependent. Dr. Harvey listened intently, nodding occasionally and often
grimacing. When I finished with my sad tale, Dr. Harvey said he was very sorry. He also said he would be
praying for me and for my ex-wife. He was also ready to pray with me. “William,” he said, “I’ve got some
good news and bad news. The good news is that you made an A on the paper. It’s well researched,
thoughtful, and well written.” He said that I intellectually understood the dysfunction of dependency,
even well enough to teach it one day. Now I felt better, and it occurred to me (arrogantly of course) that
the real reason he’d invited me to his office was because he didn’t want to embarrass the other, mostly
older, students with this glowing feedback. But he quickly put an end to those fantasies. “But here’s bad
news. The bad news is that I’m giving you an F in life,” Dr. Harvey told me, skewering my ego. “Son, I am
of the professional opinion that the only thing more dysfunctional than a codependent, which is your
soon-to-beex-wife, is a prodependent, which is you. You created this dynamic. I bet you had to make
every decision. I suspect you had to solve every problem. I bet you had to have the last word in every
argument. And, I’d bet that you were always right. Now you want me to feel sorry for you, but I don’t.
Not at all. I feel sorry for her.” In the span of a few seconds I had gone from feeling proud and invincible
to feeling defeated and hopeless. Then he expressed in very direct, colorful language that he really
resented my coming into his office and trying to manipulate him into feeling sorry for me, telling me that
I was “in way over [my] head.” He was very angry and strongly suggested that I never, ever do that to
him again. Then he really schooled me. He said that if I truly wanted to learn something during my time
at GW—and, by the way, do the rest of the world a big favor—I should spend the next four or five years
figuring out how my own failings led to my divorce. His final words to me as I left his office were along
the lines of this: “William, I’m going to level with you; I doubt very seriously you’re going to graduate
from this program. You’ve gone through life never getting out of third gear, and you’ll never get past me
unless you’re in overdrive, assuming you even have an overdrive. “And, to make matters worse,” he
continued, “you have a South Carolina chip on your shoulder. That alone will make it virtually impossible
for you to be truly open and receptive to the prayers I plan to have with you. But, if you take the next
few years and figure out why the hell you did that to her, you’ll get your money’s worth from the
program whether you graduate or not.” With that parting shot, he turned his back and continued
reading his Bible. I spent the better part of that evening being angry, castigating the “great” Dr. Harvey. I
went out with a few friends for drinks and engaged them in a pity party. My friends sided with me, of
course, but deep down I knew that Dr. Harvey was right. The next morning, something transformational
happened as I finally admitted that what happened in my marriage was largely my fault and that many
had suffered because of my actions. It was a bitter pill to swallow, but I soon discovered that taking
personal responsibility allowed me to feel truly awake and engaged in my life for the first time.

What are the characteristics of effective leadership training programs?171 One major study’s findings
suggest this: The best programs begin with a thorough needs analysis to determine tangible program
goals; mandatory participation in the program is as effective as voluntary participation; self-
administered programs are less effective than trainer-based programs; practice-based programs are
more effective than informationbased programs; providing feedback to trainees boosts the program’s
effectiveness; on-site programs (at the company’s facilities) are generally more effective than off-site
training programs; face-to-face leadership training programs are more effective than virtually based
programs; and leadership training is as effective for senior-level leaders as for lower-level ones.
Managing Organizational Change Programs With firms from AT&T and Comcast to Barnes & Noble and
Macy's being disrupted by digital competitors, reorganizations are increasingly familiar, but often fail.
McKinsey and Company surveyed 1,800 executives to identify why reorganizations fail. Top reasons
included employees resisting the changes, insufficient resources devoted to the effort, individual
productivity declining as employees become distracted, leaders resisting the changes, and the
organization chart changes but the people are still working the same. 172 In addition, clarity of purpose
is essential. For example, two change experts say that most major change programs (or
“transformations”) aim to achieve one of five basic purposes or “quests”: customer focus, nimbleness,
innovation, sustainability, or boosting global presence. 173 They found that when transformations fail,
it’s generally because those running them either neglect to clarify up front the program’s purpose/
quest, or pursue the wrong quest, or focus on multiple quests. In any case, companies often have little
choice but to change how they do things. For example, Microsoft changed its CEO a few years ago, then
reorganized, changed its strategy to include supplying hardware (tablets, etc.), and made other
personnel changes. As here, organizational change may impact a company’s strategy, culture, structure,
technologies, or the attitudes and skills of its employees. Again, the hardest part is often overcoming
employee resistance. Individuals, groups, and even entire organizations tend to resist change. They do
this because they’re accustomed to the usual way of doing things or because of perceived threats to
their influence, for instance.174 Lewin’s Change Process Psychologist Kurt Lewin formulated a model to
summarize the basic process for implementing a change with minimal resistance. To Lewin, all behavior
in organizations was a product of two kinds of forces: those striving to maintain the status quo and
those pushing for change. Implementing change thus means reducing the forces for the status quo or
building up the forces for change. Lewin’s process consists of three steps: 1. Unfreezing means reducing
the forces that are striving to maintain the status quo, usually by presenting a provocative problem or
event to get people to recognize the need for change and to search for new solutions. 2. Moving means
developing new behaviors, values, and attitudes. The manager may accomplish this through
organizational structure changes, through conventional training and development activities, and
sometimes through the other organizational development techniques (such as team building) we’ll
discuss later. 3. Refreezing means building in the reinforcement to make sure the organization doesn’t
slide back into its former ways of doing things—for instance, change the incentive system. In practice, to
deal with employee intransigence, some experts suggest that the manager use a process such as the
following to implement the change.175 To bring about a desired organizational change at work: 1.
Establish a sense of urgency. For example, present employees with a (fictitious) analyst’s report
describing the firm’s imminent demise. 2. Mobilize commitment through joint diagnoses of problems.
Create a task force to diagnose the problems facing the department or the company. This can help to
produce a shared understanding of what can and must be improved. 3. Create a guiding coalition. It’s
never easy to implement big changes alone. Therefore, create a “guiding coalition” of influential people.
They’ll act as missionaries and implementers. 4. Develop and communicate a shared vision of what you
see coming from the change. Keep the vision simple (for example, “We will be faster than anyone at
satisfying customer needs.”) 5. Help employees make the change. Eliminate impediments. For example,
do current policies or procedures make it difficult to act? Do intransigent managers discourage
employees from acting? 6. Aim first for attainable short-term accomplishments. Use the credibility from
these to make additional changes.177 7. Reinforce the new ways of doing things with changes to the
company’s systems and procedures. For example, use new appraisal systems and incentives to reinforce
the desired new behaviors. 8. Monitor and assess progress. In brief, this involves comparing the
company's progress with where it should be. Using Organizational Development Beyond this process,
there are many other ways to reduce resistance. Among the many suggestions here are that managers
impose rewards or sanctions that guide employee behaviors, explain why the change is needed,
negotiate with employees, give inspirational speeches, or ask employees to help design the change.178
Organizational development (OD) taps into the latter. Organizational development is a change process
through which employees formulate the change that’s required and implement it, often with the
assistance of trained consultants. OD has several distinguishing characteristics: 1. It usually involves
action research, which means collecting data about a group, department, or organization, and feeding
the information back to the employees so they can analyze it and develop hypotheses about what the
problems might be. 2. It applies behavioral science knowledge to improve the organization’s
effectiveness. 3. It changes the organization in a particular direction—toward empowerment, improved
problem solving, responsiveness, quality of work, and effectiveness. For example, according to experts
French and Bell, one OD method, teambuilding meetings, begins with the consultant interviewing each
of the group members and the leader before the meeting.179 They are asked what their problems are,
how they think the group functions, and what obstacles are keeping the group from performing better.
The consultant then categorizes the interview data into themes (such as “inadequate communications”)
and presents the themes to the group at the start of the meeting. The group ranks the themes in terms
of importance, and the most important ones become the agenda for the meeting. The group then
explores and discusses the issues, examines the underlying causes of the problems, and begins devising
solutions. Survey research is another of many OD options (see Table 8-2). It requires having employees,
usually throughout the organization, complete attitude surveys. The facilitator then uses those data as a
basis for problem analysis and action planning. Surveys are a convenient way to unfreeze a company’s
management and employees. They provide a comparative, graphic illustration of the fact that the
organization does have problems to solve.

Business (16.5%)
HR’s impact is both “inside out” (how the HR profession evolves and delivers its work to create impact)
and “outside in” (how the organizational and wider environment shape and determine how HR will
create its pivotal impact). The essays in Part One reflect the outside-in perspective. They describe the
future of organizations, business, and work, and the trends and forces that will shape it. Organization
and HR leaders will find tools to diagnose their particular future environment to identify the most
pivotal elements of these changes. Policymakers, investors, boards, workers, and other constituents will
find tools and ideas to fashion a more nuanced approach to mapping the emerging future context,
beyond platitudes or hyperbole that tends to suggest that one size fits all or offers choices between
extremes. John Boudreau begins by describing in the essay “Mapping Work in the Digital Economy:
Democratic, Technological, and Deconstructed” the five fundamental forces that the CHREATE teams
identified as driving future change: (1) Social and Organizational Reconfiguration, (2) All-Inclusive Global
Talent Market, (3) A Truly Connected World, (4) Exponential Technology Change, and (5) Human–
Automation Collaboration. He describes how the CHREATE teams depicted the effects of these trends on
the future work ecosystem, to producing a 2 x 2 ‘work evolution’ matrix that leaders can use to map the
evolution of their organization and the work ecosystem that will support it. The idea is to get beyond
hyperbole such as “The Gig Economy is the future of work,” or “Robots will replace workers,” and
instead take a more nuanced and sophisticated approach to connecting the future trends that will most
affect your organization to the work implications that are most vital for you to address. Greg Pryor in the
essay “Future States” describes the 2 x 2 ‘work evolution’ matrix and delves deeply into one quadrant:
the “‘Uber’-empowered” workplace, where both a highly “democratized” work ecosystem and highly
evolved technology combine. He describes how organizations and work in this future scenario must
reflect new approaches to technology-driven innovation, the worker experience, network-based
organizations, data and analytics, and global connectedness. He provides a call to action for leaders,
workers, and their constituents to develop their own future scenarios. The goal is not so much to predict
the future as to prepare for multiple future states. Next, in “The Disruptive Changes in the World of
Work That Are Driving Cultural Changes,” Deborah Barber describes how cultural changes will be driven
by the evolution of the future world of work. She says that the evolving strategic and work environment
will require organizations to win on new dimensions such as speed, agility, social mandates, worker
fulfillment, optimized talent sourcing, and boundaryless global collaboration, all riding on a wave of
enhanced analytics and data. She shows how this requires thinking differently about many fundamental
elements of the employment and work relationship, redefining things like employment brand,
performance, collaboration, authority, power, and engagement. In the end, she suggests that the
dimensions of seismic shifts in organization and work culture that leaders can use to consider how their
own organization culture must evolve. “A Vision of the Workplace in 2025: Doom or Boom?”—the wide-
ranging essay by Michael Grove, Chris Hood, Chiara Bersano, Eric Johnson, and Susan Stucky —offers a
historical perspective on prior fundamental forces of change such as “lean,” “agile,” “design thinking,”
and “robotics,” suggesting the importance of offering value, not just low cost. They describe a future
“Work Marketplace” characterized by a more transparent and fair exchange relationship between
workers and those who engage them that breaks free from traditional notions of head count and jobs.
Most fundamentally, the authors suggest an evolution from today’s cost-driven approach to work and
workers toward a more value-driven approach, which must be powered by more precise insights into
the value of work to organizational value creation, not just the costs of work. They show how this value-
versus-cost approach to the Work Marketplace can transform traditional approaches to create greater
organizational flexibility, transparency, IT management, creativity, diversity, and workforce quality. They
suggest this will require a fundamental mind shift by both workers and those who engage them, seeing
workers as individual and independent service providers, service to multiple customers rather than one
job, and a premium placed on adaptability. In “CHREATE Forces of Change,” Maria Forbes and Jodi
Starkman conclude this section of the book by integrating the Five Forces of Change and future trends
into a set of specific tools leaders can use to engage their employees, colleagues, and key constituents
to map their future position in this evolving new topography, and the most pivotal requirements to
evolve successfully. They reflect a theme embodied throughout these essays: Take the ideas of CHREATE
and make them tangible and practical. They distill the Five Forces of Change into a powerful “Learning
Map” and use the proven change-facilitation techniques of Root, Incorporated, to offer leaders a step-
by-step approach to engaging teams and constituents, and precisely identifying the impact of those
forces on their organization, what success will look like, the pivotal strategic gaps, and the means to
close those gaps. The future is not evenly distributed, and this tool kit demonstrates how you and your
team can identify its unique effects on your organization and what to do about it Organizations are
becoming more boundaryless, agile, global, and transparent than ever before—and will be even more so
in the future. Work and workers (yes, humans) will always be essential to organizations, but
organizations themselves will be more diverse, and work will be organized, structured, and done in new
ways, increasingly through arrangements outside of regular fulltime employment. How can leaders
navigate this new digital work ecosystem? How should your organization plan for the changes ahead?
Important clues are emerging from a unique consortium of human resource executives and other
leaders. They have gathered together through CHREATE (The Global Consortium to Reimagine HR,
Employment Alternatives, Talent, and the Enterprise) to map out how organizations must evolve to
meet future challenges, to identify pivotal initiatives to accelerate that evolution, and to design the
actions needed to make the future a reality. To help frame where the world of work is going, CHREATE
leaders identified Five Fundamental Forces driving change: Social and Organizational Reconfiguration:
Organizations will be increasingly transparent to stakeholders and more flexible, shifting toward more
power-balanced forms and more project-based relationships. Talent will engage on aligned purpose, not
just economics. Beyond traditional hierarchies and contracts, networks and social and external
collaborations will make leadership more horizontal, shared, and collective. An All-Inclusive Global
Talent Market: Women and nonwhite ethnicities are becoming talent majorities, and greater longevity is
increasing multigenerational workforces. Social policies support boundaryless work beyond traditional
full-time employment. Work and worker segmentation enable increasingly differentiated policies,
practices, work designs, pay, and benefits, and workers choose organizations based on the opinions of
socially connected peers and opinion leaders. A Truly Connected World: Work is increasingly virtual and
occurs anywhere and anytime, through mobile personal devices with global realtime communications.
Boundaryless work partnerships and networks augment capabilities and redefine careers, learning, and
workplace fairness and attractiveness. Exponential Technology Change: Robots, autonomous vehicles,
commoditized sensors, artificial intelligence, and the Internet of Things are reshaping the work
ecosystem, so that flexible, distributed, and transient workforces adapt to rapid business reinvention.
Organizations and workers balance long-term bets and flexibility under uncertainty by engaging
automation to adapt to frequent changes and rapid skills obsolescence. Human–Automation
Collaboration: Analytics, algorithms, big data, and artificial intelligence increasingly abolish work
previously performed by humans, but also create new work at the interface of humans and automation.
Organizations and workers conceive and design their work to optimize, rather than resist, this interface.
These trends are not affecting and will not affect all organizations equally, so it’s important for leaders
to understand where their organization is right now, where it’s going, and how their approaches to
strategy, organization, and talent will have to change to keep up. The CHREATE teams developed a
topography, based on the degree of the democratization of work (the impact on an organization of the
first three trends above) and the degree of technological empowerment (the impact of trends three,
four, and five on the organization) Current State: Work resembles today’s structure, with similar
technological connections and work arrangements, relying heavily on regular full-time employment. This
quadrant might include work where employees are colocated and the operations and workers are easily
accessible through physical connections. This could be because the work requires a specific time and
place (like hospice care), or where it is prohibitively expensive or illegal to connect workers to the cloud,
such as technical work in secure facilities, clean rooms, oil rigs, and retail locations. It could also occur
when such work arrangements are required by political, regulatory, or social norms. This quadrant is
more optimal where work is stable and traditional rewards and performance systems are adequate.
Today Turbocharged: Technology evolves, but management and workplace arrangements evolve more
slowly. Traditional work relationships are supported by faster, better, and cheaper technology and
systems, such as personal devices and cloud-based human resource information. This quadrant might
include call centers operated by traditional employees, but in remote locations or working from homes,
like Jet Blue. IBM’s “Watson” artificial intelligence collaborates with employed oncology physicians to
assist with research. Many of today’s HR technology products focus here, by automating traditional
employment systems and work relationships through devices and cloud-based learning, smartphone
apps, remote performance observation, and so forth. Work Reimagined: Here, new employment models
evolve to include platforms, projects, gigs, freelancers, contests, contracts, tours of duty, and part-
timers, but are largely supported by slower-evolving technology. We see this scenario today in freelance
platforms like UpWork, Tongal, and Gigwalk. It also involves innovations within employment systems,
such as including freelancers, contractors, and part-timers in organizations’ employment planning
systems, augmenting traditional recruitment systems to constantly track and communicate with passive
job seekers using existing social tools, or staging innovation contests using today’s social media
platforms. “Uber” Empowered: An accelerated cycle of technology advancement and more democratic
work arrangements fuel each other. New work and technology models include on-demand artificial
intelligence, extreme personalization, and secure and accessible cloud-based work repositories. These
repositories will reside outside any single employer and will provide a searchable location where work
and workers can be identified and matched using a common lexicon. They will contain worker
capabilities and qualifications, organization work requirements, constantly updated work histories,
knowledge and learning sources, and reward systems. IBM’s “Open Talent Marketplace” allows
managers to deconstruct work into short-cycle events and publicize those events to an internal and
external population of players. These players then use the platform to bid for work, form communities
to complete the work, and track their work history and capabilities, supported by common work
language that constantly evolves through a partnership between Watson-like artificial intelligence and
human judgment. All four quadrants will be a part of the work ecosystem for at least the next 10 years,
with organizations moving from one to another depending on the strength and timing of the Five Forces
of Change and their effect on the organization. One way to use the map is to apply it to your entire
organization, asking such questions as “Is there a better quadrant to be in?” or “Should we aspire to the
upper-right-hand quadrant?” However, your “organization” more likely has a topography that includes
many different pockets of work, each optimally fitting different quadrants. Your manufacturing work
might optimally reflect Current State. Your distribution work might optimally reflect Today
Turbocharged. Your professional staff and software development work might optimally reflect Work
Reimagined. And your highly creative and inventive work might optimally be “Uber” Empowered.
Deconstructing your organization may be the surest way to reveal the key patterns. How can you use
this map to navigate the evolving work ecosystem? Plot your current position on the map, then plot
your likely position in one to three years. Then ask, “Where can we create the greatest value (or mitigate
the greatest risk) by evolving from today to the future?” Taking a page from the book Beyond HR, you
can use the map to inform these questions at all levels of your strategy and work: In the late 1960s,
business strategist Arie de Geus, working for Royal Dutch Shell Oil, applied “scenario planning” to
minimize business risk and/or secure a “first mover” advantage by identifying the most probable and
high-impact future scenarios. For each scenario, de Geus and his team created key business responses
that could take advantage of, or mitigate the risk of, various scenarios. One of those scenarios was an
OPEC oil embargo, which in 1973 unfolded much as they envisioned. The team’s objective was not to
precisely predict and plan for the future and how they should respond, but instead to understand the
probable possibilities in order to improve their ability to identify, respond, and take advantage of the
unfolding future. As one of the few large oil companies with the foresight to envision this future state,
Royal Dutch Shell, through its strategists, had created a thoughtful plan that enabled the company to
respond much better than its competitors. In summer 2015, a community of human resource leaders
borrowed a page from de Geus’s playbook and looked into the future to identify the highly probable and
high-impact scenarios that would affect the world of human capital management over the next 10 years.
The community comprised some of the world’s most admired brands, stretching across industries with
leaders representing more than a million employees. Similar to Shell, the goal was not to precisely
predict and plan for 10 years into the future, but to better understand the probabilities and be prepared
to take advantage of emerging opportunities. Four Potential Future States To create the probable
scenarios, we reviewed thought-leading research on the major factors driving the future of work and
consolidated them into two significant, high-impact themes: Democratization of Work: A shift from the
highly controlled corporate/jobcentric paradigm toward a more agile and responsive view of commerce
focused on creating economic value by activating purpose-built networks to complete specific work. This
future is characterized by changing employment relationships that tend to be shorter in duration toward
a structure where companies are more intentional in the experiences they offer “employees” as part of
career value proposition. Technological Empowerment: Advances and innovations across the technology
spectrum such as machine learning, 3-D printing, mobile, robotics, wearables, and algorithmic analytics
will continue to transform the way we live and work. By considering the likelihood that these factors
would exist in the future on a simple low to high scale, four potential scenarios came into focus. While
they will likely differ by industry, geography, and organization maturity, the four possible future states
or scenarios we identified were: Current State: Consistent with its label, this scenario suggests that the
world of work in 2025 will look strikingly similar to today’s. In this scenario, an unprecedented yet
unlikely slowdown in the evolution of technology and/or management science keeps the world of work
the same as it is today, without any major evolutions over the next 10 years. This scenario could also be
the result of a major political, social, climatic, or economic catastrophe. Today Turbocharged: This
scenario suggests the continued evolution of technology fueling business evolution, but with limited
change to business or management models. It’s characterized by similar employment relationships to
today’s but delivered in faster, better, cheaper business paradigms that are turbocharged by new
technologies. Work Reimagined: This future is marked by the evolution of new business and
employment models without significant advances in technology. Current levels of connective technology
enable a type of “Corporate Arab Spring,” where people increasingly choose from a growing
marketplace of work and tasks along the lines of eLance, ODesk, and Fiver, but at a much larger scale.
“Uber” Empowered: This more extreme scenario suggests a virtuous and accelerated cycle of technology
and work democratization fueling each other to create the rapid evolution of new business and
employment models. Consistent with the way Uber disrupted the taxi industry, this scenario will
increasingly be characterized by an interdependent relationship of a person and company connected
through technology. An example of this type of scenario would be the emergence of the “outsourcing”
business model, which was fueled by advancements in computer networking that enabled globally
distributed yet connected work teams. In this future-state scenario we see a virtuous and synergistic
cycle of technology and the democratization of work enabling the rapid evolution of new business
models and employment relationships. These business models will increasingly be characterized by a
greater balance between the needs of the company and the needs of the individual. We expect this
future state to be increasingly described and driven by: Technology-Driven Innovation: Agility and
nimbleness will be a necessity as product and business life cycles need to be shortened. New business
capabilities emerging from the use of sensors, robots, mobile devices, autonomous equipment, big data,
3-D printing, artificial intelligence, clean energy, and cloud storage will challenge the need for
organizational agility and better talent management. “Employee” Experience: Organizations, especially
in talent-constrained industries, will need to increasingly present compelling career value propositions
to their network of “employees.” Far beyond perks and programs, organizations will need to consider all
aspects of the employee experience and offer challenging, purpose-driven work aligned to individual
needs and expectations. Rise of the Network-Based Organization: Corporate hierarchies will likely give
way to purpose-built networks that will increasingly take their place as legitimate and recognized
organization structures. The historical construct of jobs and roles will shift to a focus on work and tasks
that “employees” will configure into unique assignments. Crowdsourcing, expanded freelancing,
growing temporary and part-time work, and technologyenabled remote work will fundamentally
challenge conventional notions of how and where work gets done. Data and Analytics Change the Game:
The growing availability of “big data” (volume, velocity, variety) applied through predictive algorithms
will create new insights while facing increasing scrutiny related to privacy and sensitivity. New analytic
resources will increasingly distinguish the winning organizations from those that are unable to leverage
the value of sophisticated data analytics. Global Connectedness: Innovative solutions will be developed
by more diverse global teams. Greater consumer and company connectedness will blur the lines
between who actually works for the company as partners or contractors, and even customers will
become part of the product development and delivery ecosystem. Reducing Future Shock and Increasing
Agility Through our review of the underlying economic, social, and technological factors, we identified
scenarios that we believe are highly probable and would likely have a high impact on attracting,
engaging, and retaining organization talent. Consistent with de Geus’s work at Shell, our practical goal
was not to precisely predict the future, but to help business and HR leaders understand, plan, and take
advantage of these future states as they emerge.

The statutes that follow Section 16600 set forth a few exceptions to the rule against enforcing restrictive
covenants: An owner of a business who sells all of his or her ownership interest in the company, or who
sells all the assets of the business as well as its goodwill, may lawfully agree with the buyer to refrain
from carrying on a similar business within a specified geographical area in which the business sold had
been carried on. A partner in a partnership may agree that, upon leaving the partnership or the
partnership dissolving, he or she will not carry on a similar business within a specified geographical area
where the partnership business has been transacted, so long as any other partner continues to do
business there. A member of a limited liability company (LLC) may lawfully agree that, upon leaving the
LLC or the LLC dissolving, he or she will not carry on a similar business within a specified geographical
area where the LLC’s business has been transacted, so long as any other member of the LLC continues to
do business there. For these exceptions to apply, the sale price of the ownership interest sold must
reflect the sale of the respective portion of the goodwill of the business. Merely selling a few token
shares of a business to employees will not support enforcement of a noncompete agreement against
them when they leave and sell back their shares for a price that does not include the fractional value of
the goodwill of the business attributable to those shares. To reflect the value of goodwill, the shares
must be sold at their market value, not at their book value.

What Should Marcy Do? A Case Study on Framing Our heroine from the start of the chapter has a
recruiting issue. Marcy’s in charge of recruiting, which isn’t going great, but there’s lots of blame to go
around—in HR, but also in the line of business. Her HR and recruiting team are increasingly coming
under siege for being a SPOF 7 for lukewarm recruiting and business results. Marcy isn’t super-
interested in recruiting but knows she needs to get in front of it. Here’s what Marcy knows: Her HR shop
could be more focused on recruiting. She doesn’t have enough resources to recruit effectively. Another
part of the problem is that the managers she supports don’t always have a sense of urgency to get
positions filled. Recruiting is actually going okay in many areas, but she’s getting chopped up by people
who use her and her team as the reason they can’t succeed. Ready? Let’s give Marcy a framing plan: 8
STEP 1: Marcy goes on a “needs analysis” listening tour, primarily focused on meeting with leadership in
the areas with the biggest recruiting need (as well as her own boss). STEP 2: Marcy announces an
initiative to cut the number of open positions in half, confident that she’ll have the support of the
leaders she met with in Step 1. She names the initiative “Project Greenlight” and announces her plan via
email, ops meetings, and so on, and communicates it to all managers in the company/client group. STEP
3: Knowing she’s got a commitment from her boss that will allow her to succeed, Marcy develops three
reports designed to provide balanced updates (the good, the bad, and the ugly). But, just as importantly,
she’s proactively getting her message out and not letting people use her or her HR team as an excuse.
Note that Marcy still has to perform against the plan. Average managers allow others to frame their
performance, but good-to-great managers understand it’s all in their control and do great work,
accompanied by great framing that helps them control the narrative for themselves and their team.
Marcy Effectively Framed the Project and Put It on Autopilot Marcy is nobody’s victim these days.
Confident in her ability to get things done, she put herself on the line, communicated her plan, and
provided updates via a variety of communication strategies: email, meetings, one-on-ones, ops meeting
presentations, and so on. Just as importantly, she got the following benefits from framing: The framing
of the project and the reporting made Marcy treat the problem with more urgency and improved her
performance. The updates she provided made it harder for people to use her and her team as an
excuse. Because she got organized and overcommunicated, Marcy got new resources and budget spend
approved to address the issues to a greater degree. 9 Marcy continued to use the reporting structure
once the project was complete—to keep everyone honest and proactively show the work that was being
done on a weekly basis. Nobody talks about Marcy’s inability to recruit for the organization anymore.
Recruiting is now a priority for all to contribute to. Framing helped her win. The best managers become
their own PR firm when it comes to framing and controlling the narrative related to their work and the
work of their team members. Just do it. It’s good for you. Fire away, let’s get s**t done. You might not
expect an answer to your after-hours email. But you’ll be damned if you’re going to worry about how
people feel when you send late night or weekend emails. By the way, I support you getting things done.
Shine on, you crazy diamond. There’s a reason you’re in the seat you’re in. The bottom line is if no one is
sending after-hours emails, you probably don’t have much of a company. Don’t shoot the messenger,
because it’s true. “A” players aren’t held captive by broad, overarching calls for normal office hours. 2.
I’m not sending this now, it will be seen as anti-work-life balance. This manager has “seen the light”
related to work- life balance and is not sending the message out when they think of it, making a note to
send it out during normal business hours. Is this rationalization? Is this the most efficient path? I could
argue that many of these messages would be delayed by getting busy. In addition, managers who can
say they never send out after-hours emails probably aren’t—wait for it—working after hours! I could
also argue that managers who don’t work at least some after hours and weekends are on average
trailing from a total production/results perspective. Again, don’t kill the messenger. All things being
equal, a manager putting in fifty-five hours is going to outperform one who works only normal business
hours. 2 Hard facts from the salt mine of getting things done in high-pressure environments. 3. I’m
sending now but via Outlook’s send later tool, so people think I’m cranking it out in the morning. Ah!
The evolved manager related to after-hours emails. This manager says the following: “I’m here
dominating after hours, but I’m aware that culturally, people are starting to be criticized for work-life
balance signals with off-hours emails. I’m using ‘send later’ so people think my work day starts at 7:05
a.m.” 3 This manager works when they want to work and, if they don’t need the response immediately,
is winning the game of public opinion by timing messages to be more palatable. They’re still pushing the
team to get things done; they’re just showing that they are evolved, even if they wonder why others
don’t work the way they do. But let’s not forget the employee side of this after-hours email exchange.
You can talk about work-life balance all you want, but the reality on the employee side is that some
people are just built different —notes on which appear next.

Interpersonal (16.5%)
Interpersonal problems often undermine teamwork. Team training therefore typically includes
interpersonal skills training such as in listening, communicating, handling conflict, and negotiating.
Effective teams also require team management skills, for instance, in problem solving, meetings
management, consensus decision making, and team leadership. Many employers use team training to
build more cohesive management teams. Some use outdoor “adventure” training for this. This involves
taking the management team out into rugged terrain, perhaps to learn “survival” skills and thereby
foster trust and cooperation. App builder RealScout used the California Survival School for one program.
Coders, marketing executives, and others spent several days in the mountains surviving—building their
own shelters and learning to forage for food and start fires without matches. The reasonable
assumption is that the teamwork learned surviving in the field will carry over once the team is back in
the office.136 The accompanying HR Tools discussion shows how managers can create their own
training programs

The Need for Fairness So, due to either the supervisor’s ineptness or the appraisal method’s inherent
unfairness, many appraisals are unfair. The employees’ standards should be clear, employees should
understand the basis on which you’re going to appraise them, and the appraisal should be objective.73
Give the employee an opportunity to express his or her opinions. In practice, the quality of the
interpersonal relationship between the supervisor and employee will shape the appraisal’s impact.
Supervisors should be trained in both the technical and interpersonal aspects of appraising employees
and giving feedback.74 They should understand how to build trust, engage in continuous performance
conversations, diagnose and productively address performance issues, and deliver and react to feedback
constructively.75 To facilitate this, the employer should evaluate supervisors partly based on their
effectiveness in managing performance.76 Figure 9-10 lists best practices for ensuring fair appraisals.
Table 9-3 summarizes each appraisal method’s pros and cons

As one example, career-counseling expert John Holland says that personality (including values, motives,
and needs) is an important career choice determinant. For example, a person with a strong social
orientation might be attracted to careers that entail interpersonal rather than intellectual or physical
activities and to occupations such as social work. Holland found six basic personality types or
orientations. For a nominal fee, individuals can use his Self-Directed Search (SDS) test (available online
at www.self-directed-search.com) to assess their occupational orientations and preferred occupations.
The SDS has an excellent reputation, but one study of 24 no-cost online career assessment websites
concluded that they were easy to use but suffered from insufficient validation and confidentiality.
However, a number of online career assessment instruments such as Career Key (www.careerkey.org)
do reportedly provide validated information.7 O*NET offers a free online “My Next Move” occupations
and career assessment system (www.onetcenter.org/mynextmove. html). You will find other useful
career tools in the following two exercises, and in this chapter’s appendix.

MANAGERIAL COMPETENCE Other people showed a strong motivation to become managers, and their
career experience enabled them to believe they had the skills and values required. A management
position of high responsibility is their ultimate goal. When pressed to explain why they believed they
had the skills necessary to gain such positions, many in Schein’s research sample answered that they
were qualified because of what they saw as their competencies in a combination of three areas: (1)
analytical competence (ability to identify, analyze, and solve problems under conditions of incomplete
information and uncertainty); (2) interpersonal competence (ability to influence, supervise, lead,
manipulate, and control people at all levels); and (3) emotional competence (the capacity to be
stimulated by emotional and interpersonal crises rather than exhausted or debilitated by them, and the
capacity to bear high levels of responsibility without becoming paralyzed)

The usual procedure blends these two: the analysts choose compensable factors and then develop short
class or grade descriptions that describe each class (or grade) in terms of the amount or level of the
factors in those jobs. For example, the U.S. government’s classification system uses eight compensable
factors: (1) difficulty and variety of work, (2) supervision received and exercised, (3) judgment exercised,
(4) originality required, (5) nature and purpose of interpersonal work relationships, (6) responsibility, (7)
experience, and (8) knowledge required. Based on these compensable factors, raters write a grade
definition like that in Figure 11-4. This one shows one grade description (for grade GS-7) for the federal
government’s pay grade system. Then the evaluation committee reviews all job descriptions and slots
each job into its appropriate grade, by comparing each job description to the rules in each grade
description. Thus, the federal government system classifies the positions automotive mechanic, welder,
electrician, and machinist in grade GS-10 Relationship Management is “the KSAOs needed to create and
maintain a network of professional contacts within and outside of the organization, to build and
maintain relationships, to work as an effective member of a team, and to manage conflict while
supporting the organization.” Whether formal or casual, strong positive interpersonal relationships can
have favorable impacts on employees and on the business. Healthy relationships instill a feeling of
belonging and team cohesion, which decrease turnover and boost organizational commitment. One
example of process analysis in a work environment is providing concurrent feedback to employees. If an
employee is working on a significant project or trying to sell to a big customer, a manager or HR
professional has a much higher chance of making a positive impact on the outcome if she coaches the
employee while the employee is working on the project. I am a strong advocate of coaching in the
workplace because I’ve seen it work, and I’ve seen its counterparts (such as relying on the annual
performance review for an opportunity to provide feedback) not work. I’ve added suggested reading
materials to the end of this book if you’d like to learn more about coaching now, but I promise you I will
cover coaching in detail in the interpersonal cluster of this series of books

When leader style/shadow and culture are linked together, the Actualized Performance Cycle is
complete. Figure 4.4 is a graphic illustration of the dynamic interplay between leader style and group
culture. As you will note, the leader style is listed from high level of directive activity to low. Achievers
have the highest level of directive activity and focus on the task at hand. Their tendency to micromanage
and stay involved with the details creates the lowest-performing group culture, Detached. Affirmers
follow next, with a high level of directive activity, but in this instance, it is usually focused more on the
interpersonal dynamics and human relations of the group. They tend to create Dramatic cultures, lower-
performing cultures that often lack candor where obvious problems are either ignored or swept under
the rug. The Asserter represents a moderate degree of directive activity, focused on both the task and
interpersonal relationships, but does not usually get into the details. Even though they often create a
Dependent culture where members may be afraid to take a risk or offer a competing perspective, this
work climate tends to perform at higher levels than either Detached or Dramatic. Finally, the Actualized
approach, whether Actualized Achiever, Actualized Affirmer, or Actualized Asserter, has the lowest level
of directive activity and is more effective at creating the space and runway necessary for a group to grow
and develop Achievers, those with a high need for achievement, are driven for success, improvement,
and accomplishment. These leaders are primarily concerned with expertise and competence; they are
detail-oriented, disciplined, focused, and well-organized. These individuals are also efficient, are rules-
oriented, and prefer consistency and predictability. Under stress, however, their leadership shadow—
Fear of Failure—is triggered and these same Achievers become narrow-minded, rigid micromanagers.
Affirmers, those with high affiliation needs, are warm and friendly. They focus more on interpersonal
relationships and harmony, and less on results and outcomes. These leaders are primarily concerned
with their connection to, and acceptance from, others; they are also loyal, trusting, and empathetic.
When stress triggers their leadership shadow—Fear of Rejection—these individuals become
overaccommodating, indecisive, and conflict-avoidant. As you might guess, this behavior often allows
others to take advantage of these leaders. Asserters, leaders with a high need for power, are candid,
decisive, and courageous risk-takers. They are often viewed as natural leaders who challenge the status
quo and drive results. Asserters are primarily concerned with control and are often skeptical and slow to
trust others. When stress triggers their leadership shadow—Fear of Betrayal—these individuals become
controlling, autocratic, and condescending, and they often manipulate or intimidate others to get their
way. Reading through the characteristics of Achievers, Affirmers, or Asserters, you’re likely to
immediately identify with one or more of the profiles. You should note this initial reaction to see how it
tracks with the comprehensive ALP assessment included with this book.
HR KNOWLEDGE DOMAINS (50%)
People (18%)

HR strategy begins with understanding the external and internal factors that influence the organization’s
ability to attract and maintain top talent. This involves environmental scanning, analyzing labor market
trends, benchmarking HR metrics, and aligning workforce planning with business forecasts. HR
professionals in a senior strategic role must engage in scenario planning and gap analysis to identify
current and future workforce needs. They must anticipate shifts in demand for skills, adapt to
technological advances, and position the organization to remain competitive in the talent marketplace.
Strategic HR management involves data-driven decision-making where analytics and key performance
indicators (KPIs) provide insights into the efficacy of HR programs. By leveraging workforce analytics, HR
leaders can make informed recommendations to senior leadership regarding headcount planning,
succession strategies, and budget allocations. Strategic alignment also requires HR to act as a
consultative partner to business units, providing guidance on how to best leverage people to achieve
business outcomes. This consultative approach demands that HR professionals understand the
organization’s value chain, competitive positioning, and growth objectives. In doing so, they become
essential contributors to strategic planning sessions, organizational design discussions, and change
management initiatives. Within the realm of talent acquisition, the emphasis is on creating a sustainable
pipeline of high-quality candidates while ensuring fairness, equity, and consistency in the recruitment
process. HR professionals must craft employer branding strategies that reflect the organization’s values,
culture, and employee value proposition. They should develop integrated talent attraction campaigns
using digital platforms, social media, and recruitment marketing tools to expand their reach and engage
passive candidates. Strategic sourcing techniques involve the use of artificial intelligence, predictive
analytics, and applicant tracking systems (ATS) to streamline and enhance the selection process. At a
senior level, HR professionals must partner with hiring managers to clarify role expectations, calibrate
candidate profiles, and establish structured interview protocols to mitigate bias and support diversity
hiring goals. Compliance with local, national, and international employment laws is crucial in talent
acquisition, especially for organizations with a global presence. Understanding labor regulations,
immigration policies, and anti-discrimination laws ensures that hiring practices remain legally defensible.
Moreover, senior HR leaders must continually monitor metrics such as time-to-fill, quality-of-hire, and
offer acceptance rates to assess the effectiveness of recruitment strategies and identify areas for
improvement. In times of organizational growth or contraction, HR must adjust recruitment strategies
accordingly, whether scaling up through talent pooling or implementing redeployment and
outplacement services to manage downsizing humanely and ethically.

Employee engagement and retention are central to sustaining organizational performance and driving
long-term success. Engagement is not merely about satisfaction but encompasses employees’ emotional
commitment, discretionary effort, and connection to organizational purpose. HR leaders must design
and implement engagement strategies that are responsive to employee feedback, aligned with
corporate values, and supported by leadership at all levels. Regular engagement surveys, pulse checks,
and stay interviews provide valuable insights into what motivates employees and where gaps exist.
Senior HR professionals analyze this data to shape programs that foster trust, recognition, inclusion, and
career development. Retention strategies must be proactive and personalized. Rather than relying solely
on exit interviews to identify why employees leave, effective HR leaders cultivate a culture of ongoing
dialogue and continuous feedback. They invest in career pathing, internal mobility programs, and
succession planning to signal long-term investment in employee growth. Recognizing the diversity of
employee needs and aspirations, HR must develop flexible policies that support work-life balance,
mental health, and individual well-being. Leadership development and manager effectiveness are also
critical levers for engagement and retention. HR must ensure that front-line and senior leaders are
equipped with the skills to coach, inspire, and support their teams effectively. Learning and
development (L&D) are essential to building organizational agility and resilience. A strategic L&D
function aligns learning initiatives with the organization’s competency model, strategic priorities, and
future skill requirements. Senior HR leaders must assess the current capabilities of the workforce,
identify skill gaps, and design development programs that address these needs through a variety of
modalities including formal training, experiential learning, peer learning, coaching, and mentoring.
Modern L&D strategies embrace digital learning platforms, microlearning, and just-in-time learning
solutions to provide employees with flexible, accessible, and relevant content. Leveraging data analytics,
HR can evaluate learning effectiveness and correlate learning investments with performance outcomes,
retention rates, and leadership readiness. At the strategic level, learning must be embedded in the
organization’s culture. HR leaders play a key role in fostering a growth mindset where continuous
improvement is valued and innovation is encouraged. This involves influencing leaders to model learning
behaviors, support team development, and allocate time and resources to learning activities. Talent
development is closely linked with succession planning, as HR must prepare high-potential employees
for future leadership roles. Creating development roadmaps, assessing readiness, and facilitating cross-
functional experiences contribute to building a robust leadership pipeline. Moreover, the global nature
of many businesses necessitates cross-cultural training, global leadership programs, and language
development to ensure effective collaboration across borders. Total rewards is a comprehensive
approach to employee compensation and benefits that goes beyond base salary. It includes variable pay,
incentives, benefits, recognition, work-life programs, and non-monetary rewards that contribute to the
overall employee experience. A strategic total rewards strategy ensures internal equity, external
competitiveness, and alignment with business objectives. HR leaders must conduct regular market
analyses and compensation benchmarking to stay competitive in talent markets while managing cost-
effectiveness. They must also understand the regulatory environment surrounding pay equity, minimum
wage, and benefits compliance to mitigate risk. Pay transparency, equity, and fairness have become
increasingly important in attracting and retaining talent. HR professionals must be able to communicate
compensation philosophy clearly and create structures that reward performance, align with
organizational values, and support DEI goals. Incentive plans should be designed to drive desired
behaviors and outcomes, whether through individual, team-based, or company-wide metrics. Benefits
offerings must be responsive to workforce demographics and needs. This includes health and wellness
programs, financial planning resources, parental leave, retirement planning, and flexible work
arrangements. Senior HR leaders must continually evaluate and evolve these offerings based on
employee feedback and emerging trends. Recognition programs also play a vital role in total rewards.
Formal and informal recognition, aligned with core values, can significantly enhance engagement and
morale. HR should foster a culture where appreciation is part of everyday interactions and where
contributions are acknowledged in meaningful and authentic ways. Additionally, the integration of
technology in total rewards management—such as HRIS systems, compensation management tools, and
benefits platforms—enables greater efficiency, transparency, and customization of employee offerings.
Ultimately, the “People” domain represents the core of HR’s contribution to organizational success. It
reflects the philosophy that people are not just resources but strategic assets whose capabilities,
engagement, and commitment drive innovation, customer satisfaction, and profitability. SHRM-SCP
certified professionals must not only manage these functions but elevate them, bringing a strategic lens
and business acumen to each decision. They must balance competing priorities, navigate complex
change, and advocate for policies that support both organizational imperatives and employee well-
being. HR professionals at the SHRM-SCP level are expected to demonstrate leadership, influence, and
ethical judgment in all areas of the People domain. They must be able to manage complex interpersonal
dynamics, resolve conflicts with empathy and objectivity, and coach leaders on how to foster inclusive,
high-performing teams. This requires emotional intelligence, cultural competence, and the ability to
adapt leadership styles to diverse contexts. They must champion fairness, challenge bias, and ensure
that the voice of the employee is heard at every level of the organization. The integration of technology
and digital tools continues to transform the People domain. From AI-powered recruitment systems to
personalized learning experiences and real-time engagement platforms, technology enables HR to
deliver more tailored, data-driven, and impactful solutions. However, with this comes the responsibility
to manage data privacy, cybersecurity, and ethical use of HR technology. SHRM-SCP leaders must
evaluate new tools with a critical eye, ensuring they align with the organization’s values, serve the
intended purpose, and do not inadvertently reinforce inequities or exclusions. Crisis management, too,
has become an increasingly important part of strategic HR leadership. Whether navigating economic
downturns, public health emergencies, or geopolitical disruptions, HR must be prepared to lead with
clarity, compassion, and agility. This includes scenario planning, continuity strategies, and
communication plans that keep employees informed, supported, and connected to purpose during
uncertain times. The pandemic, for example, underscored the need for flexible work policies, digital
collaboration tools, and employee wellness initiatives—changes that many organizations have now
embedded into their long-term strategy. At the end of the day, the People domain in the SHRM-SCP
exam challenges HR professionals to think holistically, act strategically, and lead ethically. It requires the
integration of business knowledge, human psychology, data analytics, and systems thinking to create
environments where people thrive and businesses succeed. It calls for courage to advocate for change,
wisdom to balance competing interests, and vision to anticipate the future of work. By mastering the
principles and practices in this domain, HR leaders become not just stewards of culture, but architects of
transformation.

Talentacquisition: Internal promotions do not require new talent acquisition efforts because the talent
already exists in the organization. There are often lower costs associated with posting an open position
for internal promotion, and the process of identifying talent requires fewer resources than recruiting a
new employee externally. In fact, an organization is more likely to spend less capital on talent
acquisition when promoting from within, so this response option doesn’t make sense. C.
Learninganddevelopment: Money that is spent on learning and development helps current employees
grow and enhance the skills necessary to perform their role well and prepare for their next role. It
makes sense to invest money into an employee to help them grow, and a newly promoted employee
may require extra developmental support as the employee gains the knowledge, skills, and abilities to
succeed at the higher level position. This answer makes sense. D. Onboarding: Onboarding occurs at the
beginning of the employee life cycle. Because this question asks about internal promotions, the
employee likely already went through the onboarding process. Based on this reasoning, this answer
does not make sense because there would be no onboarding necessary when conducting an internal
promotion By following this thinking, successful test takers correctly reasoned that C is the correct
answer. The most important key words or phrases were “more capital” and “promoting from within,”
and C aligned with this well Reasoning Through an SJI Example The process for reasoning through an SJI
is similar, although a bit more time-consuming because there is more to read and understand. Let’s see
how successful test takers approach answering this type of question. Remember, this is a real exam item
that is no longer used on either the SHRM-CP or SHRM-SCP exam, but it is representative of items on
current exams.
Organization data can be tracked in real time on employee engagement, motivation, branding, social
media communications, performance, costs of labor, and other areas to provide a deep understanding
of the organization’s culture and how well it is reinforcing the relationship with employees to help them
bring their best to executing their tasks. This data can also can be predictive, providing a solid platform
on which to make decisions and instilling the confidence that the decisions are right. Finally, having
these analytics provides capacity to react faster to any issues with the organization’s most important
asset, its people.
From moving beyond employee engagement to community engagement. This provides more
discretionary effort where an organization’s former employees or interim employees are part of a larger
community that is aligned with the organization and its purpose. Through developing and continually
nurturing these relationships, these members of the larger community will always be part of the
organization’s broader support network.

People analytics are beginning to influence how boards approach their organization’s talent issues. Take
employee engagement. Forward-looking boards could request a report on the results of the
engagement survey and follow-up actions. Information on the recruitment, separations, and retention
numbers could also be requested by the board.

In today’s terminology, this role would combine the skills and capabilities that we currently find in
employee engagement, organization/culture development, employment branding, and corporate social
responsibility In this role of Culture Architect and Community Activist we see a shift from a focus on
employee engagement and building the employment brand to melding the internal and external brands
of the company, thus bringing greater marketing skills into the HR repertoire of skills. We also see the
development of the Social Policy Advocate, which is an outgrowth of Public Relations, which has never
been an HR capability. But we need to consider the millennials and their strong social awareness. If we
are going to attract and retain this talent in the future, there will be a greater melding of companies
doing good as part of their internal and external facing brands to both attract customers and talent.
While in some companies Corporate Social Responsibility has fallen in the HR domain, we see this
growing in importance, and providing employees with purpose and meaning at work will become an
increasingly important aspect of becoming an employer of choice.

Currently, most corporate HR teams have no central means of accessing all the disparate aspects of
information that can create a true picture of corporate readiness, operating on the information they
have within their own division. Lack of this larger connection of information that truly impacts corporate
performance and profitability means few HR organizations have a holistic picture of what is working and
what must be done to ensure immediate and future success. It stands to reason that as we shift to
running HR like a business, we must be prepared to stand in the position of strategic business leader,
and that involves a great need for diagnostic information from all aspects of data, starting with customer
satisfaction and branding performance all the way to employee engagement and turnover information.
This aggregation of information will allow HR a world view of where things are working, where they
aren’t, and how those are inextricably intertwined.
The Capacity Framework is one example of proprietary decision-making tools and accompanying
software systems that allow for the aggregation of this data, and for HR business leaders to use as a
means of providing solutions large and small for the strategic business leadership of the company. It
allows HR to act as business owners, explaining the corporate significance of capacity-driven decisions
such as acquisition and downsizing, but it can also predict potential pitfalls, such as downturns in market
performance or retention issues. In short, it helps the CEO of HR sit as part of the strategic business
leadership of a company and provide solutions that will protect, provide, and effectively manage
corporate capacity. Currently, the Capacity Framework has very few competitors or peer examples, but
it does suggest a future trend in this direction. Oracle’s HCM Business Analytics has the greatest
similarities, as it provides comparable agility to help HR leaders make similar decisions, but does not
have the decision-making framework attached to help HR leaders make sense of the various reports. In
addition, it only combines internal enterprise system information, whereas the Capacity Framework also
takes into consideration other external sources of data and research information for a more well-
rounded view of corporate performance from the inside out. According to a PwC study, only 4 percent
of companies have been able to utilize “predictive analytics” when it comes to workforce data. The
Capacity Framework utilizes workforce data, but speaks to a much larger set of data points from all
aspects of corporate performance, both internal and external. While workforce analytics are exceedingly
important, it’s crucial to understand the other internal and external impacts on the workforce. Market
performance, customer feedback, external sales, and market perception of the brand are only some of
the impactful points that can derail or trouble the workforce. Little to none of that information shows up
on internal reports, much less is constantly aggregated within one data warehouse. The Capacity
Framework has already proved successful. An international energy market top performer recently
deployed it to assess corporate alignment around a new company direction. After gathering thousands
of data points that included market interviews, employee surveys, focus group data, and external
information, the Capacity Framework determined that the company needed to address tremendous
communication gaps and perceived blockages to an even flow of information from the C-suite down
through the ranks. Upon further investigation, execution of corporate strategy was found to be a
universal weakness, from the board throughout the corporation. While everyone separately believed
the initial strategy was a good one, no clear direction was perceived, and had the Capacity Framework
not been deployed, the company could have been in danger of collapsing from lack of readiness. The
Changing Workforce: Workers want more independence and fulfillment, while executives want the best
talent and most value from their efforts. The millennials (and a growing number of members of
Generation X) now expect to have more independence and flexibility, to self-manage, and to have
opportunities to optimize their skills and develop their expertise. They also want to be more
empowered, have opportunities to influence decisions being made, and gain more control over their
work. Companies are discovering that they must adapt to these new workers’ expectations if they want
to ensure the growth in their employees’ level of motivation, satisfaction, and retention. This means
more transparency, deconstruction of hierarchies, and social reconfiguration. The Optimization of Talent
Pools and Service: The shared work-force revolution is the biggest disruptive force in the way work gets
done since the industrial revolution. Traditional methods of managing jobs and head count are no longer
relevant in aligning the right talent to the right work. The rapid growth of the interim workforce is also
happening, offering more than 300 platforms for people services; a company can quickly source and
place people on specific projects, products, or solutions that require the key skills they offer. This shift
toward quickly placing people with the key skills required on specific projects, rather than locking them
in specific roles, means a company can rapidly source internally or externally the right talent with the
right skills to execute necessary micro-tasks, significantly increasing speed of delivery

Organization (18%)

Nonprofit religious corporations and associations are not generally covered by California’s anti-
discrimination laws. They are still covered by federal law, however, except with respect to the
employment of individuals of a particular religion to perform work connected with the religious
organization’s activities. A religious nonprofit corporation that operates an educational institution may
restrict employment to members of that religion, but the institution is subject to the laws prohibiting
other forms of discrimination. A Catholic school may require that all of its teachers be Catholic and that
they adhere to the teachings of the Catholic Church. Such a school would not be free to discriminate
based on race, however. Hospitals that are operated by religious organizations but that provide services
to persons of other faiths are subject to the laws against discrimination, with the exception of
employment of executives and of pastoralcare personnel or others who perform religious duties at the
hospital Former employees sometimes claim the employer’s representatives defamed them,
particularly when reasons for termination of employment are communicated to other employees or to
persons outside the organization. California law includes an anti-blacklisting statute that prohibits an
employer from making a misrepresentation designed to prevent a former employee from obtaining a
new job. Employers are expressly permitted, however, upon a request for a reference on a former
employee, to provide a truthful statement concerning the circumstances of the employee’s termination
or resignation. Current or former employees may also invoke California’s common law actions for
slander and libel. Slander is a false and unprivileged oral statement that, among other things, tends
directly to injure a person in his or her trade or business or which causes actual damages. Libel is a false
and unprivileged written statement that tends to injure a person in his or her occupation. For both
slander and libel the statements must be of fact, not of opinion. Truth is an absolute defense to claims
for defamation, but the burden of proof is on the employer. Therefore, it is important, when providing a
reason for terminating an employee, to provide no more than what you can objectively prove. For
example, when money is missing for which an employee was responsible, the employee should be
terminated for loss of funds while in his or her custody, not for stealing. An employee terminated for an
altercation with another employee should be terminated for engaging in a fight with a co-worker, not
for assault and battery It is not unlawful for a former employee to solicit at-will employees of the
former employer to leave their employment. An employee may be prohibited contractually, however,
from recruiting employees of the employer for a reasonable period of time after termination of
employment. California courts will enforce such an agreement so long as it is designed to protect some
legitimate business interest of the employer. To help ensure enforcement, that interest should be stated
in the agreement; for example, “The company has invested substantial time, expense, and effort in
assembling and retaining its present employees.” A limit of no more than two years should be placed on
this nonrecruiting obligation. Note that a nonrecruitment provision will not be violated simply because
an employee leaves and goes to work at the same company as the former employee. Evidence that the
former employee actively encouraged the employee to leave would have to be shown to enforce this
provision. Finally, whereas an employee may agree with his or her employer not to recruit the
employer’s employees after leaving, one employer may not agree with another employer to refrain from
hiring or employing one another’s employees, as such a “no-raiding” agreement would violate Business
and Professions Code Section 16600. Assignment of Interest in Inventions An employee may be required
to assign to his or her employer all interest in any inventions (a) that are made with the employer’s
equipment, supplies, facilities, trade secrets, or time; (b) that relate, at the time of conception or of
reduction to practice, to the business of the employer or the employer’s research and development
activity; (c) that result from any work performed by the employee for the employer; or (d) that were
made by the employee using the employer’s trade secrets after termination of employment with the
employer. The employee should additionally be required to disclose to the employer all inventions that
the employee makes during his or her employment with the employer, as well as all patent applications
filed by the employee during employment or within a reasonable period of time after termination. The
assignment of inventions provision must reference Labor Code Section 2870, a copy of which should be
attached to the agreement. The Section 2870 reference should state that the employee is not required
to assign to the employer any invention for which no equipment, supplies, facilities, or trade secrets of
the employer were used; that was developed entirely on the employee’s own time; that does not relate
to the business of the employer or the employer’s actual or demonstrably anticipated research or
development; and that does not result from any work performed by the employee for the employer. No
Prior Agreements or Restrictions An employee may be required to disclose any existing agreements or
restrictions with any prior employers that might prevent the employee from performing his or her duties
as an employee of the current employer. Though a noncompete agreement with a prior employer would
not be enforceable in California, it is important to know whether a new employee is bound by a
nondisclosure or nonsolicitation agreement with a prior employer that might be violated by the
employee in the current job. The confidentiality agreement should require disclosure of all such
agreements and restrictions. It should also state that the employee has returned all property, trade
secrets, and confidential information belonging to others and is not in possession of any such items, as
well as an acknowledgment by the employee that he or she is not permitted to use trade secrets or
confidential information of any prior employer in the current job. The agreement may further contain
indemnification language under which the employee agrees to indemnify and defend the employer
against all claims by third parties as a result of the employee’s failure to disclose prior agreements or
restrictions or the employee’s use of a prior employer’s trade secrets or confidential information in the
current employment. The federal Defend Trade Secrets Act (DTSA) provides protection for
whistleblowers who divulge a trade secret in the course of reporting a violation of law to a federal, state
or local government official or to an attorney. The DTSA also requires an employer to provide notice to
an employee in any contract or agreement governing the use of a trade secret or other confidential
information that the employee will be immune from criminal and civil liability for the disclosure of a
trade secret that either: Is made in confidence to a law enforcement or government official, or an
attorney, solely for the purpose of reporting or investigating a suspected violation of any law. Is made in
a complaint or other document filed under seal in a lawsuit or other legal proceeding. This notice must
be included in any agreement executed after the date the DTSA was enacted (May 11, 2016), and failure
to include it will prevent an employer from obtaining punitive damages and attorneys’ fees in a
successful lawsuit for misappropriation of trade secrets under the DTSA. This notice must be provided in
the agreement itself or via a cross-reference to a policy document provided to the employee that sets
forth the employer’s reporting policy for a suspected violation of law. 11.6 Hiring Employees of a
Competitor There are no legal restrictions against hiring at-will employees of a competitor, unless such
hiring is done via unlawful methods such as the use of fraudulent or deceptive means, or use of the
competitor’s trade secrets or confidential information. An example of the latter would be the use of a
confidential list of a competitor’s employee salaries to lure away the competitor’s employees by offering
them more money. In addition, an employer that hires employees from a competitor with knowledge
that those employees are presently under an unexpired contract for a specific term may be liable for
tortious interference with contract. In industries in which such contracts are common, employers should
therefore inquire of prospective hires whether they presently are under contract with their current
employers. CHAPTER 12. Employment Discrimination California law prohibits employers of five or more
employees from discriminating against applicants or employees on the basis of: Race or color. National
origin or ancestry. Age. Sex. Sexual orientation. Gender, gender identity, or gender expression. Religion.
Physical or mental disability. Medical condition. Genetic information. Marital status. Military or veteran
status. The bar on discrimination applies to hiring, selection for training leading to employment,
termination of employment, compensation, benefits, and other terms and conditions of employment.
More than just “ultimate acts” such as demotion or termination are subject to the discrimination laws;
there must be a substantial adverse change to the employee’s working conditions. Minor acts or events
that merely anger or upset an employee are generally not unlawful. Note that California’s prohibition
against discrimination applies to unpaid interns and volunteers too. The California Constitution also
prohibits discrimination based on sex, race, creed, color, or national or ethnic origin. Employers may be
sued for constitutional violations as well, and there is no minimum number of employees required for
the California Constitution to apply. There are three types of employment discrimination. The first is
when there is direct evidence of discrimination. An example is when an employer terminates a pregnant
employee, telling her, “This job is too dangerous for a pregnant woman.” Direct evidence cases are rare.
The second type of discrimination case involves disparate treatment. This occurs when an employee is
treated differently on account of a protected classification. It does not require intentional bias on the
part of the employer; a showing of inconsistent treatment of similarly situated employees is usually
enough. The employer may defend such a claim by showing either that the employee was not in fact
treated differently or that there was a legitimate and nondiscriminatory reason for the inconsistent
treatment. The employee may still succeed in proving discrimination if he or she can show that the
employer’s explanation was pretext, that is, that the employer’s explanation was not true. For this
reason it is essential that you give the true reason for taking adverse action against an employee or
applicant. Often employers will give another reason to avoid a confrontation or to protect the person’s
feelings. An example is calling a termination for poor performance a “layoff.” It is not a layoff if you hire
someone to replace the terminated employee, and if the employee learns that she has been replaced
following a layoff, she is likely to be able to establish pretext. Examples of disparate treatment may
include: Giving one employee who fails a drug test a “last chance” while firing another employee of a
different race for failing a drug test. Firing an employee for failing to meet his or her sales quota when
other employees of different ethnicities have missed their quotas and not been fired. Suspending a
female employee for an insubordinate outburst toward a supervisor when a male employee received
only a warning for similar conduct. To prevail in a disparate treatment lawsuit the plaintiff must prove
that his or her protected status was a substantial motivating factor in the employer’s decision to
terminate the employee or take other adverse action against him or her. You need not be prejudiced or
a bigot to be sued for discrimination. You merely need to treat similar employees differently when one
of them is in a protected category. The third type of discrimination is disparate impact. This occurs when
a seemingly neutral practice has a harsher impact on a protected classification of employees. Once such
a harsher impact is shown (usually via statistics), the employer may defend the practice by showing that
it is related to the job and consistent with business necessity. The employee may still succeed in proving
discrimination, however, if he or she can show that a less discriminatory alternative exists. Examples of
disparate impact may include: A blanket policy of not hiring job applicants with criminal convictions
regardless of the relevance of the conviction to the job. A requirement that applicants have a high
school diploma or a college degree for a job when a diploma or degree is not necessary for the
employee to perform the job. Aside from these general considerations, specific rules apply to
discrimination based on certain protected classifications. These are addressed in the remainder of this
chapter. 12.1 Age Federal and state age discrimination laws cover persons who are age 40 and older. It
is not illegal to favor older workers over younger workers, and a requirement that employees be at least
18 years of age is lawful. Employers must be careful in hiring not to express a preference only for
younger applicants. You should not state a preference for a “recent graduate,” for example, and
applicants should not be asked their date of high school graduation. You may, however, state that a job
is “entry level” or that “no experience is required.” Age discrimination claims often arise in reductions in
force. California law provides that use of salary as a criterion for selecting employees for layoff may
amount to age discrimination if older workers are adversely affected as a group. When selecting
employees to be laid off, therefore, do not use compensation as a selection criterion. Nor should you
use an employee’s proximity to likely retirement as a criterion for layoff because this is an age-related
factor. A mandatory retirement age is not permitted for most jobs. The exceptions are the following:
Firefighters and police officers over the age of 55 may be required to retire at such age as is established
by a bona fide state or local government retirement policy. Employees who have worked in an executive
capacity for at least two years before retirement and who will receive an annual retirement benefit of at
least $44,000 may be required to retire at age 65. An employer may lawfully offer voluntary retirement
incentives to employees or groups of employees so long as there are no adverse consequences for
employees who choose not to retire. Employees who elect such an incentive should be required to sign
a release of claims that is compliant with the Older Workers Benefit Protection Act (see Section 18.2).
12.2 Disability and Medical Condition California law prohibits discrimination based on physical or mental
disability. This topic is covered separately in Chapter 14. California law also prohibits discrimination
based on “medical condition,” but not all medical conditions are covered. Rather, only cancer and
genetic characteristics are covered by this prohibition. 12.3 Gender Gender, as defined in California’s
anti-discrimination law, includes a person’s gender identity and gender expression. Gender identity
means a person’s identification as male, female, a gender different than the person’s sex at birth, or
transgender. Gender expression means a person’s gender-related appearance and behavior whether or
not stereotypically associated with the person’s sex assigned at birth. Transgender refers to a person
whose gender identity differs from the person’s sex at birth. A transgender person may or may not
identify as transsexual, and no surgery or hormone treatments are required in California for an
employee to qualify as transgender. California law protects transgender applicants and employees from
discrimination in employment. Transgender employees are also protected from harassment based on
their gender identity or gender expression. Exclusion or segregation of transgender persons cannot be
justified by “customer preference” or other employees’ religious objections. A transgender employee
should be addressed by his or her chosen name and pronoun (that is, “he” or “she”). You can require
evidence of a legal name change before changing an employee’s official employment record, however.
California courts offer a streamlined name-change procedure where the change is the result of a gender
transition. Where a transgender employee has changed names, you can also require proof of a name
change with the Social Security Administration before changing payroll records. Which Restroom?
Although previously there was some confusion over which restroom a transgender employee should
use, federal and state law is now clear that employees must be allowed to use restrooms, locker rooms
and changing rooms that correspond to their gender identity. Objections by other employees to a
transgender employee’s use of their restroom or locker room is not a valid basis for prohibiting such
use. Of course, you may discipline any employee, transgender or not, for misconduct in restrooms or
locker rooms. All single-occupancy restrooms must be identified as “all gender” and be universally
accessible. Single-occupancy restrooms are those with no more than one water closet and one urinal,
and with a locking mechanism controlled by the user. While you may make a unisex restroom available
for transgender employees, you may not require its use. in any enterprise the concept of organization
encompasses far more than simply a chart of reporting lines; it represents the overarching architecture
through which mission, strategy, culture, processes, and people converge to produce value. At its
essence, organizational design asks how work should be divided, grouped, and coordinated so that goals
are achieved efficiently and effectively. Early in the process, senior leaders and HR strategists collaborate
closely to translate the business strategy into structural choices. They must weigh options along a
continuum from mechanistic configurations, which emphasize formal hierarchy, rigid procedures, and
centralized authority, to organic models characterized by fluid communication, decentralized decision
making, and adaptive teams. The choice is never purely one or the other; most organizations employ a
hybrid approach that balances standardization where scale and consistency matter with flexibility where
innovation and responsiveness are paramount.

Underlying the design effort is an analysis of environmental contingencies. Companies operating in

stable, predictable markets often derive benefits from clearly defined roles and tightly controlled
workflows, whereas those in turbulent or rapidly changing sectors require nimble structures that foster
experimentation and cross‐functional collaboration. This insight emerges from contingency theory,
which asserts that there is no one best way to organize; optimal design depends on factors such as
technology, competitive intensity, regulatory constraints, and the pace of market change. Effective HR
leaders therefore invest time in environmental scanning and scenario planning, exploring how shifts in
customer preferences, digital disruption, or geopolitical risk could demand new organizational forms.

A second cornerstone of organizational effectiveness involves alignment: ensuring that structure,

culture, and human behavior are all oriented toward common objectives. Strategic alignment begins
with clarifying core values and desired cultural attributes, then translating these into tangible elements
such as decision‐making protocols, reward systems, and internal communication channels. In practice,
HR works alongside senior managers to craft a shared narrative that unites all members of the
workforce around a compelling mission and clear strategic priorities. When employees see how their
individual roles contribute to broader goals, they are more likely to exercise initiative and act in concert
with colleagues, reinforcing cohesion and purpose across the enterprise.

While many organizations default to pyramidal hierarchies, alternative models often prove superior in
dynamic contexts. Matrix structures, for example, overlay functional expertise with project ‐based
teams, allowing for resource sharing and intensive collaboration on strategic initiatives. Similarly,
network organizations leverage partnerships and alliances to extend capabilities and enter new markets
without the burden of additional fixed overhead. More radical still are holacracies and other self‐
management systems that dispense with traditional managerial roles altogether, instead empowering
circles of employees to govern themselves according to predefined rules. Though difficult to implement
wholesale, such approaches can be introduced incrementally through pilot teams or departments,
enabling organizations to learn and adapt without disruption.

Some trends are expanding equal employment’s impact, while others are forming new headwinds. In
terms of the former, the U.S. Supreme Court held that the Federal Defence of Marriage Act’s exclusion
of state-sanctioned, same-sex marriages was unconstitutional.61 The Department of Labor (DOL) then
held that under the Employee B A S E K NOWLED G E FIGURE 2-2 ADA Guidelines for Managers and
Employers • Do not deny a job to a disabled individual if the person is qualified and able to perform the
essential job functions. • Make a reasonable accommodation unless doing so would result in undue
hardship. • Know what you can ask applicants. In general, you may not make preemployment inquiries
about a person’s disability before making an offer. However, you may ask questions about the person’s
ability to perform essential job functions. • Itemize essential job functions on the job descriptions. In
virtually any ADA legal action, a central question will be, what are the essential functions of the job? •
Do not allow misconduct or erratic performance (including absences and tardiness), even if that
behavior is linked to the disability. M02_DESS2780_16_SE_C02.indd 39 19/10/2018 14:53 40 PART 1 •
INTRODUCTION Retirement Income Security Act (ERISA), “The term ‘spouse’ will be read to refer to any
individuals who are lawfully married under any state law, including those . . . who are [now] domiciled in
a state that doesn’t recognize such marriages.”62 In 2014, thenPresident Obama signed an executive
order barring federal contractors from discriminating against lesbian, gay, bisexual, and transgender
employees, for instance in benefits.63 In 2017, a federal appeals court ruled that the Title VII ban on sex
discrimination means employers cannot discriminate against lesbian and gay workers.64 Several states
require that employers permit people who don’t identify with either the male or female gender to check
off a third, “non-binary” classification.65 The DOL passed regulations requiring that federal contractors
employ a minimum (7%) of disabled workers or face penalties, possibly including loss of their
contracts.66 Recent decisions may produce headwinds. The U.S. Supreme Court upheld a Michigan
constitutional amendment banning affirmative action in admissions to the state’s public universities.
This may allow voters in other states to eliminate affirmative action-based admissions to their public
universities.67 And in two other decisions, the Court made it more difficult for someone to bring a
retaliation claim against an employer; it also more strictly defined “supervisor,” reducing the likelihood
someone could show that an employer was responsible for a “supervisor’s” harassing behavior.68 With
its stated goal of reducing regulations, the Republican administration could be less supportive of EEO
regulations (and regulations in general). In 2017, Attorney General Sessions said religious organizations
could employ only people whose beliefs are consistent with the companies’ religious principles.69 Table
2-1 summarizes selected equal employment opportunity laws, actions, executive orders, and agency
guidelines. Sexual Harassment The past few years have witnessed a dramatic increase in accusations and
admissions of sexual harassment.70 Under Title VII, sexual harassment generally refers to harassment
on the basis of sex when such conduct has the purpose or effect of substantially interfering with a
person’s work performance or creating an intimidating, hostile, or offensive work environment. In one
recent year, the EEOC received 11,717 sexual harassment charges, about 15% of which were filed by
men.71 (The U.S. Supreme Court held, in Oncale v. Sundowner Offshore Services Inc., that same-sex
sexual harassment is also actionable under Title VII.72) One study found “women experienced more
sexual harassment than men, minorities experienced more ethnic harassment than whites, and minority
women experience more harassment overall than majority men, minority men, and majority women.”73
In late 2017 the EEOC updated its sexual harassment guidelines.74 Under EEOC guidelines, employers
have an affirmative duty to maintain workplaces free of sexual harassment and intimidation. CRA 1991
permits victims of intentional discrimination, including sexual harassment, to have jury trials and to
collect compensatory damages for pain and suffering and punitive damages, where the employer acted
with “malice or reckless indifference” to the person’s rights.75 The Federal Violence Against Women Act
of 1994 further provides that a person “who commits a crime of violence motivated by gender and thus
deprives another” of her rights shall be liable to the party injured. WHAT IS SEXUAL HARASSMENT?
EEOC guidelines define sexual harassment as unwelcome sexual advances, requests for sexual favors,
and other verbal or physical conduct of a sexual nature that takes place under any of the following
conditions: 1. Submission to such conduct is made either explicitly or implicitly a term or condition of an
individual’s employment. 2. Submission to or rejection of such conduct by an individual is used as the
basis for employment decisions affecting such individual. 3. Such conduct has the purpose or effect of
unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or
offensive work environment The process of redesigning an organization rarely occurs in isolation; it is
interwoven with change management and communication planning. When HR leaders propose new
reporting relationships or team structures, they must anticipate not only the technical shifts but also the
emotional response of employees. Resistance often stems from uncertainty about new expectations,
perceived loss of status, or concerns over skill obsolescence. To mitigate these risks, HR collaborates
with internal communications to develop transparent messaging, offers training and coaching for new
roles, and establishes feedback loops that allow employees to voice concerns and suggest refinements.
By involving stakeholders early and demonstrating how changes support both business objectives and
individual career growth, the organization can navigate transitions more smoothly.
Another essential dimension of organization is governance. Rules and processes that define how
decisions are made, who holds accountability for outcomes, and what metrics will be used to measure
success form the backbone of a healthy operating system. Governance frameworks range from formal
boards and steering committees to more informal councils and working groups. HR’s role involves
clarifying charters, ensuring diversity of voices in key forums, and monitoring compliance with
governance standards. By reinforcing accountability and transparency, strong governance minimizes
ambiguity and builds trust among employees, leadership, and external stakeholders such as investors or
regulators.

Finally, organizations are living systems that evolve over time. Culture, strategy, and structure are
mutually reinforcing, yet each can shift independently as new leaders arrive, product lines expand, or
market conditions change. HR practitioners must therefore view design as an ongoing capability rather
than a one‐time project. Institutionalizing regular reviews of organizational performance, conducting
pulse surveys on employee experience, and tracking leading indicators such as internal talent mobility or
innovation metrics empower the organization to detect misalignments early and recalibrate. Continuous
improvement mindsets and agile practices—whether borrowed from software development or
operational excellence initiatives—enable companies to respond dynamically to emerging needs while
preserving the coherence of their core identity. the discipline of organization on the SHRM-SCP exam is
not merely a matter of boxes and lines on an org chart. It embodies a strategic synthesis of structure,
culture, governance, and adaptability, all orchestrated to translate vision into action. Senior HR
professionals serve as architects and stewards of this complex ecosystem, guiding leaders through
design choices that optimize performance, foster employee engagement, and sustain competitive
advantage across the lifecycle of the business. Employee & Labor Relations Definition: Employee &
Labor Relations refers to any dealings between the organization and its employees regarding the terms
and conditions of employment. ADDRESSED IN THIS BOOK IN KEY CONCEPTS: CHAPTER(S): • Approaches
to retaliation prevention. • Approaches to union-organization relations (e.g., collective bargaining,
contract negotiation, contract administration process). • Causes of and methods for preventing and
addressing strikes, boycotts and work stoppages. • Disciplinary procedures and approaches. •
Employment rights, standards and concepts (e.g., labor rights, living wage and fair wage concepts,
standard workday), according to the International Labor Organization (• Techniques for disciplinary
investigations. • Techniques for grievance and complaint resolution. • Types and development of
compliance and ethics programs (e.g., design, implementation, performance measures). • Types and
structures of organized labor (e.g., unions, works councils, trade union federations, other employee
collectives). • Types of alternative dispute resolution (ADR) (e.g., mediation, arbitration) and their
advantages and disadvantages. • Unfair labor practices, according to the ILO. • Unionization
approaches, methods and management (e.g., acceptance, avoidance strategies) One reason the ALP
Framework is so powerful is its direct connection to a wellknown, evidence-based approach to
understanding human behavior known as cognitive behavioral therapy (CBT). It is an approach that is
widely used in a variety of clinical and non-clinical applications to improve performance and increase
personal satisfaction and individual happiness. CBT is especially effective in treating anxiety and mood
disorders. All three cycles of the leadership shadow, Fear of Failure (Achiever), Fear of Rejection
(Affirmer), and Fear of Betrayal (Asserter), align with the methodologies associated with this CBT model.
To completely understand the importance of the CBT connection and the way it is used to analyze our
behavioral patterns, here is a personal example taken from a very ordinary set of circumstances
involving international travel with a colleague. A few years ago, I was traveling back from France with a
colleague. He and I had co-facilitated a well-received training event, and as a result he was relaxed and
looking forward to reading a personal development book someone had recommended. I was not so
relaxed and as a recovering Asserter with a high need for control (at the time), I was upset, worried, and
anxious about getting home for a variety of personal and professional reasons. Then, the all too familiar
happened: an announcement that our flight had been delayed, followed by another one that the flight
had been canceled. Of course, chaos ensued as we joined hundreds of other passengers charging the
airline’s customer service desk to reschedule their flights. While we waited in the predictably lengthy
line to reschedule, my colleague seemed unconcerned and not at all put off by the delay or
inconvenience. He was calm and even jovial as he talked about how much he had enjoyed cofacilitating
our event and how much he had learned. Of course, I was not a happy camper and spent the time
worrying over my to-do list and all that wouldn’t get done, even dwelling on the potential repercussions
of not relieving my parents from taking care of my dog. As it turned out, all the sound and fury on my
part was completely wasted energy since we easily caught another flight, and the delay and
inconvenience were minimal. I share this example to illustrate the wisdom in the quote from Epictetus.
Clearly, my colleague had a more productive approach at the time. However, the story is a somewhat
embarrassing episode of impatience on my part. It shows how two people can interpret the same
situation differently and experience vastly different emotions. Behavioral and mental health
professionals use the CBT framework to help their clients reframe events and setbacks, and to
understand how their reactions impact relationships with colleagues, friends, and family members. This
reframing helps build self-awareness and the ability to assess the rationality or validity of the approach
we’ve taken. Once such awareness is achieved, CBT allows us to replace these irrational/incorrect
thoughts with more rational/correct responses. The CBT model also closely aligns with the widely
recognized concept of emotional intelligence (EI or EQ), an area of study that has been exhaustively
documented in books, seminars, and workshops. EI is important because it clearly shows the multiple
intelligences that people possess, and in the context of this book this is what makes EI important to
leadership effectiveness. However, here is one caveat about the connection between CBT and EI. I
believe behavior is triggered first by a thought, which subsequently triggers an emotional response that
is either a less-than-optimal or outright-dysfunctional behavioral response. To truly develop your full
potential as a leader (see Part IV for the Transformational Journey), the first step is to become aware of
those thoughts so that you can “meet” them and ultimately integrate them into a full understanding of
your own leadership shadow. This thought to behavior dynamic is why the Leadership Shadow Cycle
begins with the most common thoughts associated with each style before illustrating the emotions likely
triggered by the thought and, finally, to the resulting behaviors. Understanding your thoughts and the
limiting beliefs that trigger negative emotions is the only pathway to gaining control of your leadership
shadow. Otherwise your emotions will control and manage you, which is not a viable leadership option.
With this bit of background as context and explanation, here is a deeper dive into some practical
applications and how the Leadership Shadow Cycle impacts leadership effectiveness. This cycle includes
the following: Fear of Failure Fear of Rejection Fear of Betrayal The Dark Side of Achievement: Fear of
Failure Achievers desire perfection and have an underlying belief that their way is best. They often
struggle with a sense of not feeling worthy and therefore focus on their accomplishments to prove their
worth to the world and themselves. Unfortunately, the irrational thoughts that underlie the Fear of
Failure Shadow trigger the emotions and behaviors that, over time, almost guarantee that Achievers will
fail. Below is a summary of some of the thoughts, emotions, and behaviors that fuel this leadership
shadow. Table 4.1. The Fear of Failure Leadership Cycle Irrational Thoughts Unfounded Feelings Self-
defeating Behaviors I have to always be perfect. Inadequate Becoming obsessive and nitpicky. No one
else can do this as well as I can. Frustration Being overly critical and micromanaging. I am not enough
without my accomplishments. Shame Taking on too many projects, or staying over-scheduled. The Dark
Side of Affiliation: Fear of Rejection Affirmers desire connection to, and approval from, others. They
have an underlying belief that relationships are paramount and separation or rejection from others must
be avoided at all costs. They often struggle with not feeling wanted unless they are helping others.
Unfortunately, the irrational thoughts that underlie the Fear of Rejection Shadow trigger the emotions
and behaviors that, over time, guarantee they will experience the rejection and separation they are
desperately trying to avoid. Below is a summary of some of the thoughts, emotions, and behaviors that
fuel this leadership shadow. Table 4.2. The Fear of Rejection Leadership Shadow Cycle Irrational
Thoughts Unfounded Feelings Self-defeating Behaviors I cannot be alone. Insecure Staying in unhealthy
relationships. The needs of others are more important than my own. Insignificant Ignoring your own
needs and being overly accommodating. I should not anger others. Weak Allowing others to take
advantage of you. The Dark Side of Power: Fear of Betrayal Asserters are natural leaders who crave
power and like to be in control. They have an underlying belief that the world is not safe and that
resources are scarce. They often have a very strong zero-sum mentality, meaning that if someone else
wins then they, by default, lose because theirs is a world of scarcity, not abundance. They have difficulty
trusting others and fear vulnerability, often waiting to be betrayed. Unfortunately, the irrational
thoughts that underlie the Fear of Betrayal Shadow trigger the emotions and behaviors that, over time,
guarantee that they will experience the sense of betrayal and loss they are trying to avoid. Below is a
summary of some of the thoughts, emotions, and behaviors that fuel this leadership shadow. Table 4.3.
The Fear of Betrayal Leadership Shadow Cycle Irrational Thoughts Unfounded Feelings Self-defeating
Behaviors I have to always be in charge. Control Constantly maneuvering for more control and power.
People cannot be trusted. Skeptical Rarely putting your guard down or expressing vulnerability. I am
“right.” Arrogance Being outspoken, autocratic, and sarcastic. A Framework for Group Culture Thus far
we have focused specifically on you and your leadership style. The rest of this chapter examines the
critical linkage between your leadership style and culture. As noted earlier, a leader’s style and shadow
impact the effectiveness and productivity of direct reports, but also may seriously damage teams,
departments, and divisions within an organization. At the end of this chapter, the importance of this link
will be clearly made when I introduce the Actualized Performance Cycle. But first, some more
background. The behavioral psychodynamics that underpin the leadership effectiveness approach taken
in this book are based largely on the work of psychoanalyst Wilfred Bion, arguably the most influential
group dynamics theorist. Here is a brief overview of Wilfred Bion’s theory of group behavior and team
dynamics, which makes explicit the connection between style and culture. Bion, who served in the
British army during the First World War and in the Royal Army Medical Corps as a psychiatrist during
World War II, created the first cohesive framework for group development and performance that
follows the psychodynamic tradition. Later in his career, Bion conducted pioneering research into
human potential and group dynamics at The Tavistock Institute of Human Relations, a nonprofit
established in 1947 and dedicated to applying psychoanalytic and open systems concepts to group and
organizational life. Bion (1961) professed that participation in group life is mandated by the nature of
our existence as human beings and is absolutely essential “to lead a full life.” He defined a group as
three or more people who share the same mental set. Physical presence is not necessary to meet Bion’s
definition of a group—only a shared mental set. A shared mental set refers to a common link for the
group members, such as a challenge, problem, activity, or shared memory. Think of it this way: a group
of strangers riding in an elevator, each getting off on different floors, shares a very close physical
proximity but is not a group because there is no shared mental set. If the elevator gets stuck between
floors, then a shared mental set—how do we escape?—emerges and the occupants become a group
under Bion’s definition. The Two Modes of Group Behavior It’s important to appreciate that there are
always two modes of group behavior operating simultaneously: (1) a conscious work group behavior;
and (2) an unconscious basic assumption group behavior. The first work group behavior is the official,
overt mode of behaviors focused on completing or solving the group’s task or problem. This first group
is grounded by reality and is therefore capable of containing the group’s basic assumptions, fantasies,
and anxiety about a situation or event. As you’ll see in the Actualized Performance Cycle, the Dynamic
dimension represents the work group aspect of group culture. The second mode of group behavior
includes behaviors that are based on the irrational fears and unconscious emotional needs of the group
members. The manifestations of these fears and needs are known as Basic Assumption States (BAMS).
There are three distinct types: Fight/Flight, Pairing, and Dependency. Each of these types creates a
specific group culture (Detached, Dramatic, and Dependent); again, concepts I will address later in this
chapte

Workplace (14%)
SHRM is a member-driven catalyst for creating better workplaces where people and businesses thrive
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advocate, and thought leader on issues and innovations impacting today’s evolving workplaces. With
nearly 340,000 members in 180 countries, SHRM touches the lives of more than 362 million workers and
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has been applied for and is on file with the Library of Congress SHRM hopes you will embrace
certification as a critical step in a lifelong commitment to knowing, doing, learning, and growing as an HR
professional. Your commitment to your own growth and development helps you create a better
workplace and a better world. In this book, we provide tools to guide you on your journey toward
success on the SHRM-CP or SHRM-SCP certification exam. We recommend you leverage these resources
to succeed. This study guide Provides an easy-to-use roadmap to help understand the design and
development of the SHRM exams and exam items therein with expert tips— for understanding the
SHRM-developed materials, studying best practices, practicing with prior SHRM test items, and
managing pretest anxiety so you can perform at your best on exam day; Covers everything you need to
know about the exams, including exam construction, subject matter expert-developed content, exam
structure in relation to the SHRM BASK, eligibility requirements, exam administration, in person versus
remote proctoring, scoring, results, other SHRM learning resources, and more; Features interviews with
experts and tips from real test takers on preparing for the exam and reducing test anxiety; Shows how
to create a study plan based on your individual learning style and proven strategies for effective
studying; Highlights how to practice taking the exam and how to best use the included 50-question
practice-item sets; Includes ready-to-use tools, templates, and worksheets to guide study and practice
plans; and Supplies detailed learning and study resources, including a summary of the terms and
acronyms commonly used on the exam. We also include special features that help you focus, organize,
and plan your study time before taking the exam. These include Quotes, stories, and advice from former
test takers; Key point summaries, infographics, and additional information highlighted for quick
reference; Activities, including self-assessments and reflection tools; and Examples to illustrate core
concepts. Obtaining SHRM certification is a huge achievement, but your journey is only just beginning.
The field of HR is an ever-changing landscape that we all must adapt to and influence to continue serving
our partners, stakeholders, and organizations. With that comes additional learning and opportunity to
gain further mastery of HR knowledge and refine your skillset to use what you know to behave
competently in the workplace as an HR leader. Once you earn the SHRM-CP or SHRM-SCP credential,
recertifying every three years becomes the next critical step toward your continued learning, growth,
and competence as an HR professional—and SHRM will continue to work with you as your lifelong HR
career partner. Our hope is to prepare you to take either the SHRM-CP or SHRM-SCP exam so you feel
confident that you have given yourself the best possible chance of passing. If you would like additional
access to prior SHRM-CP or SHRM-SCP exam items for practice, check out the SHRM-CP Workbook or
SHRM-SCP Workbook—each serves as a deeper dive into the SHRM BASK, and each has seventy
additional practice items. We look forward to becoming and remaining a trusted partner in your career
journey and we welcome the opportunity to support you as you learn, grow, know, and contribute to
your workplace, develop as a professional, and advance the HR profession through those contributions.
With SHRM certification awaiting you on the next step on your journey, we wish you success on the
exam. Safety in the world—inside and outside of work—should be a given. You should be safe in the
workplace and not have to deal with BS, whether it’s dealing with COVID, personal safety, or just not
getting tied up with non-work-related conversations that make you feel at risk because you’re not in the
cool clique, etc. I want people to feel safe outside of work as well, but that’s a complicated post that
transcends the scope of this work mission statement. Every employee and candidate deserves an
environment/experience that provides maximum opportunity to all, regardless of race, gender,
orientation, and any other identifier. A couple of things here: I’m no expert in what’s required to put all
on equal footing as they grow up and matriculate in our imperfect world (yes, that means outside the
USA as well), so I’ll leave that to the experts. I’m open to a lot of things. I believe a proactive approach is
needed, but note I’ll never be a proponent of messaging that seeks to divide us instead of bring us
together. We need everyone in the tent to get to where we need to be. That’s it. That’s my personal
mission statement that guides my view of leadership and managing talent in today’s world. If you’ve
ever felt rudderless or at risk as a manager of people, I’d encourage you to develop your own mission
statement for talent in these troubled times we live in. You don’t even have to share it. Simply putting
what’s most important to you will help you stay grounded in times of uncertainty. 1. “The Things We
Think and Do Not Say” from Jerry Maguire is a must-read for any renaissance leader. Google and enjoy.
2. Reese Bobby’s career-day appearance in his son’s classroom could be a leadership book on its own,
complete with an image of his beverage of choice (Laughing Clown Malt Liquor) on the cove We look
forward to becoming and remaining a trusted partner in your career journey and we welcome the
opportunity to support you as you learn, grow, know, and contribute to your workplace, develop as a
professional, and advance the HR profession through those contributions. With SHRM certification
awaiting you on the next step on your journey, we wish you success on the exam. The SHRM BASK
includes one functional area that covers US employment laws and regulations—residing in the
Workplace HR Expertise functional area. However, questions in this functional area do not appear on
exams for examinees who reside and take an exam outside of the United States. If you reside and take
your exam outside of the United States, you will still have the same number of scored and nonscored
items on your exam—134 questions; however, all questions from the US Employment Law and
Regulations functional area will be removed and replaced with items from other sections of the SHRM
BASK that are globally applicable. There are no changes to the questions on the exams that fall under
the nine behavioral competencies and 13 remaining functional areas. In contrast, situational judgment
items (SJIs) are scenario-based question sets (numbering two to three questions per scenario) that
present realistic situations that are likely to occur in workplaces throughout the world and are similar to
what many HR professionals have likely experienced during their careers. Based on the scenario
presented, SJIs ask test takers to consider the problem presented in the question within the context of
the situation, and then select the best or most effective course of action to take from the available
response options. Like knowledge items, each SJI has four response options from which to choose.
However, SJIs test decision-making and judgment skills—not application of knowledge. SJIs allow you to
use what you know from experiences in your day-to-day professional life to show you know how to
make competent judgments and decisions. Therefore, the response options range from the most
effective to the least effective course of action. QUICK TIP Keep in mind, when approaching knowledge
items, there is one correct response and three incorrect responses. When approaching situational
judgment items, each response option exists on a range of effective to ineffective behaviors. You will
select the response option that you assess to be the most effective course of action to take, given the
options presented. When selecting your answer, consider that more than one of the possible responses
might be effective, but only one will be the best or most effective course of action based on the situation
and the decision of the panel of SHRM-certified HR professionals. It is important to note that SJIs do not
test your company’s approach, your own approach, or your industry’s approach. Nor do they test how to
follow specific laws or HR policies. They test what competent behavior looks like in action as defined by
the proficiency indicators in the SHRM BASK for each of the nine behavioral competencies. There are 54
SJIs on the SHRM exams. HR professionals from many countries around the world provide the raw
material for situational judgment items in the form of critical incident documentation. Critical incidents
are drawn from real-life situations that are likely to be common occurrences in workplaces in every
country across the world. HR professionals also provide the action they took to solve or overcome the
situation, along with multiple alternative courses of action that could have been taken. Possible actions
range from very effective to very ineffective. These become the basis for the response options. Figure
2.3 depicts the entire SJI development process HR professionals from many countries around the world
provide the raw material for situational judgment items in the form of critical incident documentation.
Critical incidents are drawn from real-life situations that are likely to be common occurrences in
workplaces in every country across the world. HR professionals also provide the action they took to
solve or overcome the situation, along with multiple alternative courses of action that could have been
taken. Possible actions range from very effective to very ineffective. These become the basis for the
response options. Figure 2.3 depicts the entire SJI development process Study groups are particularly
helpful to prepare for answering SJIs when group members work together to explore critical incidents in
their own workplaces. Here’s how: Ask each member to present a critical incident that happened
recently at work. For each incident, the group discusses. What happened, what HR issues (such as
compensation or ethics) were involved, and what challenges the incident posed. What to consider when
addressing the challenges, such as who was involved, time pressures, possible results of action or
inaction, and so forth. What best practice would have been in the given situation. (Hint: Use the
proficiency indicators in the SHRM BASK to help determine this!) Tips for Making the Most of Study
Group Time Choose group members who are studying for the same test, either the SHRM-CP or SHRM-
SCP. Keep the group to a manageable size—three to five people is ideal. Have a specific agenda for each
meeting that shows the topics to be covered, time allotted for each topic, who will bring what, and so
on. Use assignments to encourage everyone to participate. For example, ask everyone to come prepared
to explain or teach one topic to the others. Limit socializing to the first and last five minutes of the
meeting. Another option is to discuss study pain points for the first five minutes and study pain points
resolutions for the last five minutes. Schedule regular meetings, and try to schedule them for the same
days and times. Choose a place that is free of distractions and where you are unlikely to be interrupted.
For each meeting, choose a moderator who will step in as needed to keep the meeting on track and
make sure everyone has a chance to participate. If needed, set time limits to keep one person from
dominating discussions. Close each meeting by having everyone mention something they learned.
Before the end of each meeting, set up the agenda and choose the moderator for the next one.
Between meetings, use email or text to ask the other members questions that come up as you study.
After each meeting, list the topics you do not fully know and understand and adjust your study plan as
needed. About two to three weeks after your exam, you will receive an email from SHRM about your
official SHRM-CP or SHRM-SCP score report. An electronic copy of your official score report will be
posted in your SHRM portal account. This report includes your scaled score (from 120 to 200), as well as
feedback on how well you scored on the three knowledge domains (people, organization, and
workplace) and three competency clusters (interpersonal, leadership, and business). You can use this
information to plan professional activities that support your learning and earn credits toward your
recertification. If you did not pass the exam, you can use this information to refocus your study plan to
retake the SHRM-CP or SHRM-SCP exam in a future testing window. You Passed! Your SHRM-Certified
Certificate and Digital Badge A soft copy of your new SHRM certification certificate will also be posted in
your SHRM portal account with your official results report. You will also receive an email from Credly
issuing your digital badge. You must accept the digital badge in order to share it on social media, such as
on LinkedIn. You Passed! Maintain Your Certification through Recertification Achieving certification sets
you on the path to continuous learning and career development. Maintaining your certification helps
you keep your knowledge, skills, and abilities relevant. To maintain your certification, you can either
retest or earn sixty professional development credits (PDCs) within each three-year period. Recertifying
by earning PDCs is the most popular option. Credits are awarded for your study, your experience, and
your contributions in three categories: education, profession, and your organization. There are more
than 110,000 opportunities with over 3,100 providers to earn PDCs, including attending events,
volunteering, completing major work projects, and reading books. You can also earn recertification by
retaking the certification exam. Although you can earn all sixty credits by attending virtual or in-person
professional development programs, many certified professionals also choose to document a major
work project completed and endorsed by their supervisor to earn up to thirty PDCs. You can also earn up
to thirty PDCs in the advance your profession category. This includes things like completing a survey,
making a presentation, or publishing an article or book chapter. When you are planning your
recertification strategy, don’t overlook the importance of volunteering. Serving in a volunteer leadership
role or even as a volunteer supporting SHRM item-writing activities for future exams is an important way
to supplement your professional development education and earn PDCs. Visit the SHRM recertification
page online to learn more about recertification and other types of activities that qualify for PDCs. The
second factor that impacts group culture is the context or big-picture challenges (macroenvironment, in
academic speak) facing the group. For instance, is the business growing and expanding, or is it
contracting? Are technology and the global environment driving innovation, or are they making the
company’s products and services obsolete? In addition to these big-picture factors, contemporary issues
such as global competition, rapid advances in technology, and generational differences in the workplace
impact group culture beyond the individual personality differences of group members. Here is an
example of how the macroenvironment can impact group culture. Consider a corporate board as our
group and the impact that shareholder activism can have on board culture. Activist shareholders are
more prevalent today than ever before and many want a direct line to the CEO and management team
to express concerns, provide advice, and influence the activities of the organization. While this situation
is undoubtedly more disruptive for the management team, it does impact the dynamics of the board
and, as a result, the board culture. As described in The Director’s Manual (Browning and Sparks, 2016),
activist shareholders may demand a seat on the board, which leads to a much deeper level of
engagement, not only with the management team but also with the board itself. They often have goals
that may be shorter-term in nature and perhaps inconsistent with the longer-term vision held by the
board. In the worst case, this type of scenario can be very disruptive to the culture and dynamics of the
board by severely damaging open, honest dialogue in the board room and creating tension among board
members, resulting in a Detached board culture. In the best circumstances, however, over time the
activist comes to better understand the organization’s longer-term strategy and the existing board
comes to understand the activist shareholder’s views as well. Impact of Leader Style on Culture A leader
with low self-actualization is more reactive, less resilient, and much more likely to manifest their
leadership shadow when under stress, which adversely impacts the group’s culture and performance.
Again, the full range of how leader style affects culture is discussed later in the context of the Leadership
Performance Cycle. For now, it is critical to understand that each leadership style creates and fosters a
unique group culture. As previously discussed, each of the four distinct leadership styles is associated
with a dominant motive (behavioral) need of the leader: Achiever (achievement need) Affirmer
(affiliation need) Asserter (power need) Actualized (self-actualization need; a moderator of the
leadership shadows associated with the other three styles) Three of these four leadership styles—
Achiever, Affirmer, and Asserter—create less-than-optimal cultures and directly impact communication,
problem solving, decision-making, and, ultimately, group member engagement. A more selfactualized
leader, whether an Actualized Achiever, Actualized Affirmer, or Actualized Asserter, is more effective at
creating and sustaining a Dynamic group culture. The Detached Culture—Achiever Leadership Style The
sad irony is that Achievers, individuals who have a very high need for achievement, create a Detached,
low-performing culture. Because of their need for absolute perfection, Achievers sweat every detail and
micromanage their teams. This is a common dynamic in work group settings. As a result, the culture
created is grounded in emotions of anger and apathy, and detachment is the resulting impact on the
group. Group members express anger either aggressively, with open conflict and personal attacks, or
passively by disengaging psychologically or physically. Psychological disengagement manifests when the
group becomes more interested in their mobile phones, iPads, or what’s for lunch than in the purpose of
the meeting. Physical disengagement occurs when group members habitually arrive late, leave early, or
miss meetings altogether. Whether the anger is expressed actively or passively, members in a Detached
culture are not optimally positioned for candid discussions, healthy debate, and rational decision-
making. Characteristics of the Detached Group Culture Patterns of Behavior: Disagreement, dissent,
open conflict, and tardiness. Norms: Members are distracted and disengaged, members and the leader
should be challenged. Values: People are lazy and need to be carefully supervised and managed; anger
and apathy. Basic Assumptions: There is an enemy, either from within or outside the group, which must
be fought. The Dramatic Culture—Affirmer Leadership Style The Dramatic culture is created and
sustained by Affirmer leaders who are primarily motivated by a need for affiliation, and are focused on
maintaining warm, harmonious interpersonal relationships. To contrast this culture to that of the
Achiever, imagine the extreme end of the spectrum from the Detached culture. Replace anger with
kindness, rudeness with politeness, and despair with hope. While this group culture might sound more
appealing, the result is the same degree of poor decision-making and group member disengagement.
These leaders need to be accepted and approved by the group at all costs. To this end, the group norm
is one of politeness and friendliness to the extreme. Difficult or uncomfortable discussions are avoided
or tabled for offline conversations that rarely occur. Although warm and personally supportive, the
Dramatic culture lacks collegial candor and frankness. Members often selfcensor to avoid breaking the
group norm of politeness and agreement. This culture is grounded in unrealistic hope for the future,
which often spirals down to frustration and despair. Because candor and conflict are often avoided,
group members often leave meetings feeling frustrated and exasperated with the lack of progress or
action. Characteristics of the Dramatic Group Culture Patterns of Behavior: Warm, friendly, and very
social; problems are swept under the rug. Norms: Politeness, empathy, and accommodating the social
needs of group members. Values: Trusting and hope for a better future, but frustration that can lead to
despair is beneath the surface of warmth due to poorly optimized productivity or the enforcement of
equitable performance standards. Basic Assumptions: Relationships with others are paramount and
expectations for a brighter future will soon be realized. The Dependent Culture—Asserter Leadership
Style It stands to reason that most business leaders have a great need for power and thus exhibit the
Asserter leadership style. The resulting Dependent culture is grounded in fear and anxiety and exists
only with the collusion of a leader that encourages dependency. Whether in Fortune 500 companies or
nonprofit organizations, research has shown that this Asserter leadership style is the most common
culture in Corporate America (Harvey, 1988; Sparks, 2002). Characteristics of the Dependent Group
Culture Patterns of Behavior: Compliance, appeals to the leader for direction, lack of accountability.
Norms: The leader knows best, play it safe and don’t take risks, and don’t ever disagree with the leader
(especially in public). Values: Obedience to the leader, reliance on his or her direction, asking for help is
expected. Basic Assumptions: The group lacks sufficient maturity and expertise to operate without the
ongoing support and guidance of the leader. The Dynamic Culture—Actualized Leadership Style Group
members are realistic, engaged, passionate, and collaborative. This culture is not without some conflict
as members care deeply about their roles and purpose, but conflict is openly discussed and managed
effectively. There is a collegial candor atmosphere where people speak their minds openly and
respectfully, and group members are encouraged to take risks, challenge the status quo, and support
each other. Characteristics of the Dynamic Group Culture Patterns of Behavior: High levels of
engagement, collegial candor, and passion. Norms: Members trust each other, mutual accountability,
creativity, and innovation. Values: People are basically trustworthy and do not need to be managed.
Basic Assumptions: People can be trusted and we live in a world of abundance. The Actualized
Performance Cycle When leader style/shadow and culture are linked together, the Actualized
Performance Cycle is complete. Figure 4.4 is a graphic illustration of the dynamic interplay between
leader style and group culture. As you will note, the leader style is listed from high level of directive
activity to low. Achievers have the highest level of directive activity and focus on the task at hand. Their
tendency to micromanage and stay involved with the details creates the lowest-performing group
culture, Detached. Affirmers follow next, with a high level of directive activity, but in this instance, it is
usually focused more on the interpersonal dynamics and human relations of the group. They tend to
create Dramatic cultures, lower-performing cultures that often lack candor where obvious problems are
either ignored or swept under the rug. The Asserter represents a moderate degree of directive activity,
focused on both the task and interpersonal relationships, but does not usually get into the details. Even
though they often create a Dependent culture where members may be afraid to take a risk or offer a
competing perspective, this work climate tends to perform at higher levels than either Detached or
Dramatic. Finally, the Actualized approach, whether Actualized Achiever, Actualized Affirmer, or
Actualized Asserter, has the lowest level of directive activity and is more effective at creating the space
and runway necessary for a group to grow and develop Another way to experience flow is to add
complexity and novelty to your work environment. That may mean you take on another project,
volunteer to take part in a cross-functional assignment, or mentor a junior colleague. There are also
simple, almost mundane, ways available to add novelty to your job. For example, you might have lunch
with a different group of people or change your commute to work. It does not have to be a major
change: the point is to break habitual patterns and create a focused mindset for the day. Another
technique is engaging all your senses in the workplace. For example, the pleasant aromas emitted by a
diffuser may help encourage flow when you’re engaged in an important and challenging activity. Author
and researcher Dr. Pierce Howard says he lights a candle in his office when he is engaged in writing to
both stimulate his creativity and create a tranquil environment. Moreover, the scent of the candle
serves as a do not disturb signal to his colleagues—which helps stave off distractions. Here’s a recap of
specific steps you can take to increase the likelihood that flow will find you and provide meaning and
purpose to your life: Disconnect from others and from social media. Choose a task, project, or activity
that you truly care about. Gradually increase the complexity, or difficulty, to surpass your current skill
level. Increase your sense of awareness and focus. Heighten your senses, including smell and hearing.
Individuals who are more self-actualized experience flow more often. In fact, Maslow stated that flow
was so inspiring that it was payoff enough for becoming self-actualized. We all have access to flow, and
it is my hope that the suggested strategies and steps outlined in this section will help you create the
conditions for it to find you State the specific situation (the effect) and place it at the head of the fish.
Create bones for your fish that are the subject areas of the causes. For example, you may have the
subject areas of policies/legal, people, workplace environment, and external environment. Now ask why
each of these subject areas could be causing the problem and fill in the causes that fall under each
subject. Some subjects may not have any causes, but you may find that the subjects require you to think
through and identify causes that you might not have initially considered. To encourage input from
everyone in the room, ask questions and have participants write down their answers on a sticky note. At
the end of the silent brainstorm for all four subjects (or however many subjects you have on your fish),
ask people to go up to the fish you’ve drawn and place their sticky notes under the appropriate subject.
After a short break, you can facilitate a discussion about the causes that people have identified. Remind
people that there are no stupid ideas! Process Analysis A process analysis takes place when you analyze
the situation during the project. Think of a basketball coach during a game: Does he wait until halftime
to talk to his players? No! He calls a time out or a play from the sidelines as he analyzes the other team
during the course of the game. If he waited until halftime or the end of the game, it would be too late to
make a correction to achieve the optimal outcome (in this case, winning the game). One example of
process analysis in a work environment is providing concurrent feedback to employees. If an employee
is working on a significant project or trying to sell to a big customer, a manager or HR professional has a
much higher chance of making a positive impact on the outcome if she coaches the employee while the
employee is working on the project. I am a strong advocate of coaching in the workplace because I’ve
seen it work, and I’ve seen its counterparts (such as relying on the annual performance review for an
opportunity to provide feedback) not work. I’ve added suggested reading materials to the end of this
book if you’d like to learn more about coaching now, but I promise you I will cover coaching in detail in
the interpersonal cluster of this series of books. In a critical evaluation situation, process analysis is
important in every step. In fact, one might argue that consistently asking open-ended questions as a way
of evaluating each step is a key component of critical evaluation. You will likely create questions that are
customized to your situation, but here are generic questions you can ask as you continually analyze your
process: What is working well? What effect will this path/solution have on our stakeholders? What are
the long-term consequences of this path/solution? How will this solution affect our culture? How does
this solution align with our corporate values and mission? Summative Assessment Whereas a formative
assessment takes place before and during the formation of a project, a summative assessment is a
summary of a project and takes place after it is completed or implemented. One of the most common
summative assessments we see in the work environment is in training programs; attendees often
evaluate the trainer and the content after completing the training. You might also consider that the
traditional annual review is a summative assessment. One of the prime reasons a summative
assessment is important is to help the organization gain a clear understanding of the return on
investment (ROI) of a project. Metrics can help you here. For example, I once created (through a lengthy
critical evaluation process, of course!) a new onboarding program for a small business. I worked with the
senior executive team to create a clearly defined outcome and then looked at the company’s current
offering and compared it with what the team wanted (also known as a gap analysis). I set up metrics on
the HR dashboard to track progress, including turnover and quality of hire. To capture data for my
quality-of-hire metric, I added a survey for the new hire after two weeks and another survey after 90
days. Each of these surveys was a summative assessment, but you can see that the two-week survey and
the 90- day survey might have solicited varying results. The emotional high of a new job and all the
attention we gave the new hire might have influenced the two-week survey, while the 90-day survey
was better at assessing the “stickiness” factor of the new onboarding program. They are both important
in measuring effectiveness of the program, but the 90-day survey is likely a better indicator of the
program’s ROI. (See Developing Business Acumen for a detailed discussion on ROI and metrics.) Data
Visualization Tools They say a picture is worth a thousand words. In today’s business vernacular, putting
data into a picture as a means to explain complex information is called data visualization. Sometimes we
can gather more information from a chart or graph than we can from looking at numbers individually.
Graphs and charts can be great tools to help you sort out the data, but they are also effective when
trying to tell a story to your management team. Using the data points below, let’s walk through some
graphs seen in the business environment. Many complex approaches to data visualization have emerged
in the past 10 years, but for decades HR professionals have widely used several charts and graphs. Some
of the most common are: Pie chart. A visual representation of the information that makes up 100
percent of the data set. Histogram. A visual representation of data. Using the data in Table 2.2, the 12
salaries depicted in a histogram chart can be seen in Table 3.1. Trend chart. A visual representation of a
trend analysis, or one variable in relation to time. One way HR could use a trend analysis is to determine
if voluntary turnovers traditionally happen more during a certain time of year. HR could do a trend
analysis using turnover data over the past five years to visually see if there is a trend, and then place the
data in a trend chart when presenting to senior managers. Bell curve. A visual representation of the
normal distribution of a set of data. It got its name because, well, it looks like a bell. Scatter diagram. A
visual representation of a regression analysis, which is a method that answers the question: Does a
relationship exist between these two variables? The terms scatter diagram and regression analysis
sound scarier than they are. They are best used when trying to determine a not-so-obvious relationship
between two things. For example, you have a manager who is adamant that salaries across the
organization are highest for those who have the longest tenure. Among the national origin
discrimination issues that arise today are those that involve rules on language use. California law
provides that an employer may not limit or prohibit use of any language in the workplace unless: The
language restriction is justified by business necessity. Employees are notified of the time and
circumstances when the language restriction applies and the consequences for violating that language
restriction. “Business necessity” for purposes of this law means that the language restriction is necessary
for the safe and efficient operation of the business, that the language restriction fulfills the purpose it is
supposed to serve, and that no alternative exists that would have a lesser discriminatory impact. You
may not discriminate against an applicant or employee whose accent makes him or her difficult to
understand unless the ability to speak clearly in English is necessary for the job. For example, a front
desk clerk at a hotel may be required to speak and understand English clearly because his or her failure
to do so could lead to guest service problems and potential safety issues. A housekeeper at the same
hotel, by contrast, would not have to speak and understand English clearly to do his or her job,
particularly if the employee and his or her supervisor are fluent in the same language. California
additionally has several laws protecting undocumented immigrants. These include a prohibition against
requiring an applicant or employee to present a driver’s license, unless possession of a driver’s license is
required by law or required by the employer for a lawful reason. For example, applicants for a position
involving driving of vehicles may be required to show a valid driver’s license. New hires may also be
required to produce a driver’s license (or other acceptable forms of identification) in the course of
completing the Form I-9. An employer may not, however, discriminate against an applicant or employee
based on that person having the type of California driver’s license issued to undocumented immigrants.
California law also prohibits an employer from taking adverse action against an employee who updates
his or her personal information based on a lawful change of name, Social Security number, or federal
employment authorization document. It is not clear whether this new law would protect an employee
who initially submitted a fake Social Security card or work permit but then later submitted a genuine
document, but this seems to be its intent. California law cannot and does not force employers to employ
persons lacking the proper documents, however. New hires who cannot produce the required
documents for completion of the Form I-9 should be terminated. Employees whose documents expire
and are not renewed, or whose documents are found to be forged or fraudulent, should also be
terminated. The discovery after an employee has filed an employment lawsuit that such employee had
false immigration documents will not serve as a basis for having the lawsuit dismissed