From the course: Introduction to the SHRM-CP Certification Exam

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Business acumen

Business acumen

From the course: Introduction to the SHRM-CP Certification Exam

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Business acumen

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- In 2016, the most frequent criticism of HR, was that HR leaders failed to understand how businesses operate. In order to overcome this perception, it's key for HR pros to demonstrate business acumen. The business acumen competency is one of three competencies that make up the business cluster of the SHRM-CP, which represents 18.5 percent of the questions on the test. The business acumen competency is defined as the ability to understand an organization's operations, functions and external environment. This competency also measures how you apply business tools and analysis to address HR initiatives that align with the company's strategic direction. Central to understanding business operations is getting clear on how a company creates value. Value is the end result of an organization meeting its strategic goals. During strategic planning, an organization's leaders discuss how value is created, how to increase value, and the critical activities needed to create value. Those activities…

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