SHRMCP Exam 1

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1
Leadership theory that emphasizes a leader’s ability to inspire employees to embrace change; leaders encourage and motivate employees to innovate and seek out changes that can add value and growth to the organization.
Transformational leadership
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Category of leadership theories that states that leaders influence group members through certain behaviors; includes Blake-Mouton theory.
behavioral theory
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leadership theory that emphasizes a leader’s preference for order and structure; focuses on control and short-term planning.
Transactional leadership
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Power that is created when the leader can offer followers something they value in exchange for their commitment.
Reward power
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Power that is created when the leader can punish those who do not follow.
Coercive power
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Leadership theory that states that leaders are not appointed but emerge from the group, which chooses the leader based on interactions.
Emergent theory
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Power that is created when a leader is recognized as possessing great intelligence, insight, or experience.
Expert power
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Motivation theory that states that individuals are motivated by a desire to satisfy certain needs and that understanding these needs allows leaders to offer the right incentives and create the most motivational external environments; includes self-determination and theories of Maslow, Herzberg, and McClelland.
Needs theory
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Leadership theory in which the leaders’ goal is to serve the needs of their employees; emphasizes the sharing of power.
Servant leadership
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Power that is created by the force of the leader’s personality.
Reference power
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Theory that states that motivation can be increased by providing employees with goals against which they can assess their achievement.
Goal-setting theory
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Leadership approach in which the leader invites followers to collaborate and commits to acting by consensus.
Democratic leadership approach
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Theory that states that motivation is based on an employee’s sense of fairness; the individual compares their perceived value with that of others in similar roles and makes a calculation based on their inputs and outputs.
Equity theory
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Motivation theory that states that the way a person interprets the causes for past success or failure is related to the present level of motivation; includes theories of Heider and Weiner.
Attribution theory
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Leadership theory that states that leaders possess certain innate characteristics that followers do not possess (and probably cannot acquire), such as physical characteristics and personality traits.
Trait theory
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Power that is created formally, through a title or position in the hierarchy that is associated with the rights of leadership.
Legitimate power
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Motivation theories dealing with the amount of control in the workplace; motivation is seen as either absolutely irrelevant or absolutely critical.
Theory X/Theory Y
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Leadership approach in which the leader imposes a vision or solution on the team and demands that the team follow this directive.
Coercive leadership approach
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Factors that initiate, direct, and sustain human behavior over time.
Motivation
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Leadership theory that focuses on a two-way relationship between leaders and chosen employees; the leader mentors selected team members and gives them access to more information and resources in order to strengthen levels of trust and support.
Leader-member exchange theory
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Leadership approach in which the leader sets a model for high performance standards and challenges followers to meet these expectations.
Pacesetting leadership approach
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Category of leadership theories that states that leaders can flex their behaviors to meet the needs of unique situations, employing both task or directive behaviors and relationship or supportive behaviors; includes Hersey-Blanchard situational leadership, Fiedler’s contingency theory, and path-goal theory.
Situational theories
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Leadership approach in which the leader creates strong relationships with and inside the team; team members are motivated by loyalty.
Affiliative leadership approach
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Leadership approach in which the leader focuses on developing team members’ skills, believing that success comes from aligning the organization’s goals with employees’ personal and professional goals.
Coaching leadership approach
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Motivation theory that states that effort increases in relation to one’s confidence that the behavior will result in a positive outcome and reward; includes Vroom’s theory.
Expectancy theory
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Leadership approach in which the leader proposes a bold vision or solution and invites the team to join this challenge.
Authoritative leadership approach
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Treatment of personal information that has been disclosed to another person or organization.
Confidentiality
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Exchange of anything of value to gain greater influence or preference.
bribery
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Principles that guide decision making and behavior in an organization.
Code of conduct
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An individual’s right to freedom from intrusion (by viewing, monitoring, reading, etc.) into matters, actions, or information that is personal.
Privacy
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Extent to which an organization's agreements, dealings, information, practices, and transactions are open to disclosure and review by relevant persons.
Transparency
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Maintaining consistency between one’s values and one’s actions.
Integrity
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Ability to stay true to values and maintain integrity in both personal and professional lives and, from an organizational perspective, approach to forming and maintaining relationships with colleagues and others in the organization.
Authenticity
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Situation in which a person or organization may benefit from undue influence due to involvement in outside activities, relationships, or investments that conflict with or have an impact on the employment relationship or its outcomes.
Conflict of interest
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The similarities and differences between individuals, accounting for all aspects of one's personality and individual identity.
Diversity
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Additional workload that is generated for members of an underrepresented group due to their requested participation in DE&I efforts.
Cultural taxation
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Defensive behavior that occurs when an organization recruits a diverse workforce but, consciously or otherwise, promotes assimilation rather than inclusion.
Covering
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A feeling that one's success is due to luck, not hard work or skill; can lead individuals to feeling unfit for their current role.
Impostor syndrome
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Voluntary group for employees who share a particular diversity dimension (race, religion, ethnicity, sexual orientation, etc.); also known as affinity group or network group.
Employee resource group (ERG)
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Extent to which each person in an organization feels welcomed, respected, supported, and valued as a team member.
Inclusion
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Refers to a workforce that approaches problems using different conceptual thought approaches that may stem from atypical brain structure, for example, attention deficit disorder (ADD), attention-deficit/hyperactivity disorder (ADHD), and anything categorized as existing on the autism spectrum (autism spectrum disorder, or ASD).
Neurodiversity
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Ability to be sensitive to and understand one's own and others' emotions and impulses.
Emotional intelligence (EI)
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Process of developing mutually beneficial contacts through the exchange of information.
Networking
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Concept that proposes that any organization operates within a complex environment in which it affects and is affected by a variety of forces or stakeholders who all share in the value of the organization and its activities.
Stakeholder concept
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Process by which two or more parties work together to reach agreement on a matter.
Negotiation
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Process in which negotiators aim for mutual gain, emphasizing the need to focus on the problem instead of personal differences and on mutually beneficial outcomes.
Principled negotiation
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Nonverbals
Components of a message apart from its words. This could include physical gestures and posture and vocal tones, volume, and speed.
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Noise
In communication, any factor that can disrupt the sending and receipt of a message—for example, physical factors such as loud environments, cultural factors such as a distinctive accent, or cognitive factors such as the use of unfamiliar jargon.
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Framing
Process of constructing a message so that an audience sees communicated facts in a certain way and is persuaded to take a certain action.
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Active listening
Communication technique to increase the engagement between communicators and their audiences. It involves two-way communication and attention to nonverbal signs that indicate interest and reactions to the message and speaker.
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Due process
Concept that laws are enforced only through accepted, codified procedures.
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Culture
Basic beliefs, attitudes, values, behaviors, and customs shared and followed by members of a group, which give rise to the group's sense of identity.
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Common law
Legal system in which each case is considered in terms of how it relates to legal decisions that have already been made; evolves through judicial decisions over time.
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High-context cultures
Societies or groups characterized by complex, usually long-standing networks of relationships; members share a rich history of common experience, so the way they interact and interpret events is often not apparent to outsiders.
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Low-context cultures
Societies in which relationships have less history; individuals know each other less well and don't share a common database of experience, so communication must be very explicit.
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Jurisdiction
Right of a legal body to exert authority over a given geographical territory, subject matter, or persons or institutions.
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Rule of law
Concept that stipulates that no individual is beyond the reach of the law and that authority is exercised only in accordance with written and publicly disclosed laws.
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Cultural intelligence
Capacity to recognize, interpret, and behaviorally adapt to multicultural situations and contexts.
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Civil law
Legal system based on written codes (laws, rules, or regulations).
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Global mindset
Ability to take an international perspective, inclusive of other cultures' views.
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Business case
Presentation to management that establishes that a specific problem exists and argues for a proposed solution.
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Assets
Financial, physical, and sometimes intangible properties an organization owns.
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Accounts payable
Money an organization owes its vendors and suppliers.
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Income statement
Statement that reports revenues, expenses, and profits for a specified period of time, for example, quarterly or annually.
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Net profit margin
Ratio of net income (gross sales minus expenses and taxes) to net sales.
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Service-level agreement
Document that defines the output customers can expect.
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Balanced scorecard
Performance management tool that depicts an organization's overall performance, as measured against goals, lagging indicators, and leading indicators.
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Business intelligence
Ability to use information to gain a deeper understanding of an organization and make sound business decisions.
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Equity
Amount of owners' or shareholders' portion of a business.
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Analytical processing
Applications that can analyze data faster and in more ways than traditional relational databases, offering a multidimensional analysis of business data.
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Accounts receivable
Money an organization's customers owe the organization.
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Enterprise resource planning (ERP)
Business management software, usually a suite of integrated applications, that a company can use to collect, store, manage, and interpret data from many business activities.
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Cash flow statement
Statement of an organization's ability to meet its current and short-term obligations, showing incoming and outgoing cash and cash reserves in operations, investments, and financing.
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Liabilities
Organization's debts and other financial obligations.
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Gross profit margin
Ratio of gross profit to net sales.
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Balance sheet
Statement of an organization's financial position at a specific point in time, showing assets, liabilities, and shareholder equity.
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Value chain
The process by which an organization creates the product or service it offers to the customer.
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Value
The benefit created when an organization meets its strategic goals; measure of usefulness, worth, or importance.
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