PHR and SPHR Professional in Human Resources Certification Complete Study Guide (2019)

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Table of ContentsTitle PageCopyrightPublisher's NoteDedicationAcknowledgmentsAbout the AuthorsAbout the Technical EditorsIntroductionAbout Human Resource CertificationWhy Become Certified?How This Book Is OrganizedHow to Use This Book and the Additional Study ToolsAssessment TestAnswers to Assessment TestChapter 1: Certifying Human Resource ProfessionalsThe Human Resource ProfessionDevelopment of the Human Resource Body of KnowledgeThe Test

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SummaryChapter 2: Core Knowledge Requirements for HRProfessionalsNeeds Assessment and AnalysisThird-Party Contract ManagementCommunication Skills and StrategiesDocumentation RequirementsAdult Learning Processes and Learning StylesMotivation ConceptsLeadership ConceptsProject Management ConceptsDiversity ConceptsHuman Relations ConceptsHR Ethics and Professional StandardsHuman Resource TechnologyQualitative and Quantitative AnalysisChange ManagementJob Analysis and DescriptionEmployee Records ManagementInterrelationships Among HR ActivitiesOrganizational StructuresEnvironmental Scanning ConceptsEmployee Attitude AssessmentBasic Budgeting and AccountingRisk ManagementSummaryExam EssentialsReview Questions

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Chapter 3: Business Management and StrategyOrganizationsStrategyStrategic ManagementLegislative and Regulatory ProcessesCorporate GovernanceHR Metrics: Measuring ResultsGlobal ConsiderationsSummaryExam EssentialsReview QuestionsChapter 4: Workforce Planning and EmploymentFederal Employment LegislationStrategic Workforce PlanningStaffing ProgramsOrganization Exit/Off-Boarding ProcessesMetrics: Measuring ResultsGlobal ConsiderationsSummaryExam EssentialsReview QuestionsChapter 5: Human Resource DevelopmentFederal Employment LegislationOrganization DevelopmentTalent ManagementPerformance-Management ProgramsPerformance Appraisal

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Unique Employee NeedsMetrics: Measuring ResultsGlobal ConsiderationsSummaryExam EssentialsReview QuestionsChapter 6: Compensation and BenefitsTotal Rewards DefinedCompensationBenefitsPayrollCommunicating Compensation and Benefits ProgramsExecutive CompensationMetrics: Measuring ResultsGlobal ConsiderationsSummaryExam EssentialsReview QuestionsChapter 7: Employee and Labor RelationsFederal Employment LegislationEmployee RelationsDispute ResolutionLabor RelationsUnion OrganizationUnion Avoidance StrategiesMetrics: Measuring ResultsGlobal Considerations

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SummaryExam EssentialsReview QuestionsChapter 8: Risk ManagementRisk IdentificationRisk AssessmentRisk ManagementMetrics: Measuring ResultsGlobal ConsiderationsSummaryExam EssentialsReview QuestionsAppendix A: Answers to Review QuestionsChapter 2: Core Knowledge Requirements for HRProfessionalsChapter 3: Business Management and StrategyChapter 4: Workforce Planning and EmploymentChapter 5: Human Resource DevelopmentChapter 6: Compensation and BenefitsChapter 7: Employee and Labor RelationsChapter 8: Risk ManagementAppendix B: Case Study: Where the Green GlassGrowsThe CompanyThe CustomerExercises

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Answer Key and Additional ExerciseAppendix C: Federal Employment Legislation andCase LawLegislation and Case Law SummaryAdditional CasesAppendix D: ResourcesBusiness Management and StrategyWorkforce Planning and EmploymentHuman Resource DevelopmentCompensation and BenefitsEmployee and Labor RelationsRisk ManagementAppendix E: About the Additional Study ToolsAdditional Study ToolsSystem RequirementsUsing the Study ToolsTroubleshootingIndexAbout the Additional Study ToolsExam Objectives MapWiley End User License Agreement

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Senior Acquisitions Editor: Jeff KellumDevelopment Editor: Kim WimpsettTechnical Editors: Brenda Budke and Tamra AguinaldoProduction Editor: Christine O'ConnorCopy Editor: Tiffany TaylorEditorial Manager: Pete GaughanProduction Manager: Tim TateVice President and Executive Group Publisher: Richard SwadleyVice President and Publisher: Neil EddeMedia Project Manager 1: Laura Moss-HollisterMedia Associate Producer: Shawn PatrickMedia Quality Assurance: Marilyn HummelBook Designers: Judy Fung and Bill GibsonProofreader: Josh Chase, Word One New YorkIndexer: Robert SwansonProject Coordinator, Cover: Katherine CrockerCover Designer: Ryan SneedCopyright © 2012 by John Wiley & Sons, Inc., Indianapolis, IndianaPublished simultaneously in CanadaISBN: 978-1-118-28917-4ISBN: 978-1-118-42430-8 (ebk.)ISBN: 978-1-118-33169-9 (ebk.)ISBN: 978-1-118-33501-7 (ebk.)No part of this publication may be reproduced, stored in a retrieval system ortransmitted in any form or by any means, electronic, mechanical,photocopying, recording, scanning or otherwise, except as permitted underSections 107 or 108 of the 1976 United States Copyright Act, without eitherthe prior written permission of the Publisher, or authorization through

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payment of the appropriate per-copy fee to the Copyright Clearance Center,222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to thePermissions Department, John Wiley & Sons, Inc., 111 River Street,Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online athttp://www.wiley.com/go/permissions.Limit of Liability/Disclaimer of Warranty: The publisher and the author makeno representations or warranties with respect to the accuracy or completenessof the contents of this work and specifically disclaim all warranties, includingwithout limitation warranties of fitness for a particular purpose. No warrantymay be created or extended by sales or promotional materials. The advice andstrategies contained herein may not be suitable for every situation. This workis sold with the understanding that the publisher is not engaged in renderinglegal, accounting, or other professional services. If professional assistance isrequired, the services of a competent professional person should be sought.Neither the publisher nor the author shall be liable for damages arisingherefrom. The fact that an organization or Web site is referred to in this workas a citation and/or a potential source of further information does not meanthat the author or the publisher endorses the information the organization orWeb site may provide or recommendations it may make. Further, readersshould be aware that Internet Web sites listed in this work may have changedor disappeared between when this work was written and when it is read.For general information on our other products and services or to obtaintechnical support, please contact our Customer Care Department within theU.S. at (877) 762-2974, outside the U.S. at (317) 572-3993 or fax (317) 572-4002.Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this bookmay not be included in e-books or in print-on-demand. If this book refers tomedia such as a CD or DVD that is not included in the version youpurchased, you may download this material at http://booksupport.wiley.com.For more information about Wiley products, visit www.wiley.com.Library of Congress Control Number:2012935365TRADEMARKS: Wiley, the Wiley logo, and the Sybex logo are trademarks

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or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates, inthe United States and other countries, and may not be used without writtenpermission. PHR and SPHR are registered trademarks of Human ResourceCertification Institute. All other trademarks are the property of theirrespective owners. John Wiley & Sons, Inc. is not associated with anyproduct or vendor mentioned in this book.

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Dear Reader,Thank you for choosing PHR/SPHR: Professional in Human ResourcesCertificationStudy Guide,Fourth Edition. This book is part of a family ofpremium-quality Sybex books, all of which are written by outstandingauthors who combine practical experience with a gift for teaching.Sybex was founded in 1976. More than 30 years later, we're still committedto producing consistently exceptional books. With each of our titles, we'reworking hard to set a new standard for the industry. From the paper we printon, to the authors we work with, our goal is to bring you the best booksavailable.I hope you see all that refl ected in these pages. I'd be very interested tohear your comments and get your feedback on how we're doing. Feel free tolet me know what you think about this or any other Sybex book by sendingme an email at nedde@wiley.com. If you think you've found a technical errorin this book, please visit http://sybex.custhelp.com. Customer feedback iscritical to our efforts at Sybex.

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To my husband Chris, whose three little words never fail to inspire me: “Gofor it.” To my children, Calvin and Clara, because the best part of me willeternally be each of you. I am filled with love and gratitude for having thethree of you in my life.

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AcknowledgmentsAnyacknowledgementintheupdatingofthisbookmustbeginbyrecognizingtheprofessionalismandintellectofAnneBogardus.Herthoroughness and attention to detail represented in the previous editions ofthis work made writing these updates an absolute career highlight.To the editors Jeff Kellum, Kim Wimpsett, Pete Gaughan, Brenda Budke,Christine O'Connor and Tim Tate, thank you for your professionalism,encouragement, superior organizational skills and insightful additions to theexpanded version of this work — it absolutely made for a better finalproduct.A book like this requires a great deal of time and thought, and nobody feltthat more than my clients, co-workers, and support staff who watched meattempt to juggle it all. To TAGS, VWC, and my clients at SBDC, thank youfor allowing me a peek into your business, for letting me rattle your cage withstrategic “leaps,” for picking up the slack when I went underground, and forsupporting my crazy schedule—I quite literally could not have done itwithout you.Finally, to the students, a brief mention of my own testing experience: Iremember sitting in my hotel room the night before my SPHR exam, trying tocram in a few more details, desperate to figure out what I didn't alreadyknow. It was around Christmas time, and my youngest child was just 2 yearsold. Feeling guilty for being away from my family and with my confidence atan all-time low, I wondered if I was really up for the challenge. Then,surrounded by my books and flashcards, I suddenly “got” it. The piecesstarting fitting together, the processes had rationale, and the big picture cameinto clear focus. The next morning, I took a 4-hour exam in just 2 hours andpassed it on the first go-round. My excitement about being a part of thisproject is a reflection of that one “a-ha” moment, representing for me whenHR crosses over from just being a job to an intelligent, strategic careerchoice. My hope is that with each pass through this material, you will getcloser to your own enlightened moment when suddenly, you just get it. Manythanks, and good luck in your career—this absolutely can happen for you!

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About the AuthorsSandra M. Reed, SPHR, has more than 17 years of experience in humanresources, the last ten of which have been spent in training and instruction.Prior to teaching, she spent much of her work career in the recruiting andrisk-management functions of human resources, which evolved into a passionfor training through on-boarding and OSHA compliance activities. Sheobtained her PHR and her SPHR designations through the Human ResourceCertification Institute and received her teaching credential in adult vocationaleducationfromCaliforniaStateUniversity,SanBernardino.Asanindependent contractor, she has conducted onsite training for California StateUniversityStanislaus,UniversityofthePacific,theSmallBusinessDevelopment Center of Stanislaus County, and private employers throughoutNorthern California. She has authored learning modules and case studies forthe Society for Human Resource Management, focusing on educating theemerging workforce and future human resource professionals. She currentlyis owner of Epoch Resources, a consulting firm located in the Central Valleyof California that specializes in the unique HR needs of small businesses.Find her on the Web at http://epochresources.com.AnneM.Bogardus,SPHR,beganherhumanresourcescareerincompensation at a public multinational corporation, Castle & Cooke, ownerof the Dole food brand, and later at First Nationwide Bank. She also foundedand was principal of S.T.A.R. HR in northern California, which specializedin building human resource functions that serve strategic business needs. Herpractice included small to medium-sized businesses in a wide range ofindustriesincludingbiotechnology,mortgagelending,hightechnology,public relations, retail, nonprofit, and construction. Ms. Bogardus is also theauthor of an introductory book for non-HR business professionals,HumanResource Jumpstart, as well as the previous three editions of this book, allpublished by John Wiley & Sons, Inc.About the Technical Editors

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Brenda G. Budkeis the executive director for Sierra HR Partners, Inc., anHR consulting and outsourcing service located in Fresno, California. She is acertified SPHR with over 20 years experience in the human resource field.Prior to joining Sierra HR Partners, Brenda served as the human resourcesmanager for a national communications company, overseeing employment,employee relations, and training. She is founder and dean of a corporateuniversity and has developed curriculum and presented performance-basedtraining at all levels. Ms. Budke holds a Bachelor of Science degree inorganizationalbehaviorwithaconcentrationinHumanResourceManagement from the University of San Francisco. She currently serves onthe board of the Central California Employment Round Table (CCERT),working in conjunction with DFEH to prevent harassment and discriminationin the workplace; she is a member of the Society of Human ResourceManagement(SHRM)andpast-presidentoftheHumanResourceAssociation of Central California (HRACC). Most recently she served asdeputy director for the California State Council for SHRM.Tamra Aguinaldohas a background in human resources and educationand currently works as an HR consultant in Northern California. She has aMasterofArtsdegreeinEducationwithanemphasisinGuidanceCounseling. Prior to becoming a consultant, she was Director of ProfessionalDevelopment for the Northern California Human Resources Association inSan Francisco.HR is a dynamic profession requiring practitioners to keep up-to-date with current trends andchanges to employment law. The PHR/SPHR exams are updated annually to reflect thesetrends and changes. For information about updates between revisions of this study guide, logon to http://epochresources.com, and click PHR/SPHR Certification to view changes or askquestions about content.

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IntroductionCongratulations on taking the first step toward achieving your Professional inHumanResources(PHR)orSeniorProfessionalinHumanResources(SPHR) certification! The process you're embarking on is rewarding andchallenging, and as more than 100,000 of your fellow human resourcecolleagues have already discovered, it's an excellent opportunity to exploreareas of HR management with which you may not work every day. In thenext few pages, you'll find some general information about HR certification,some suggestions for using this book, information about what to expect in thefollowingchapters,andadiscussionoftheorganizationsinvolvedincertification.Before we begin, a word about what you should already know. This studyguide was designed to serve as a refresher for experienced professionals whohave practiced for several years or have been educated in human resources.We assume that those who are pursuing certification have the basic HRknowledge that comes not only from education in human resources but also,more importantly, from exempt-level experience. If your daily work is trulygeneralist in nature, you likely have touched on many of the topics I cover,but you may not have in-depth knowledge in all of them. Conversely, if youspecialize in one or two areas of HR, you probably have extensive experiencein those areas but may need to refresh your knowledge in other areas.The goal of this study guide is to provide enough information about each ofthe functional areas of HR management to enable candidates in eithersituation to find what they need to prepare themselves for successfullycompleting the exam. More than 22,000 books related to human resources arelisted on Amazon.com alone, and there is obviously no way we can cover allthe aspects of HR in a single book. So, we've organized the informationaround the test specifications (test specs) established by the Human ResourceCertification Institute (HRCI), the certifying body for our profession. We'lltalk more about the test specs in Chapter 1, “Certifying Human ResourceProfessionals,” but for now, suffice it to say that the key to success on theexam is a thorough understanding of and ability to apply the test specs when

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answering questions on the exams.About Human ResourceCertificationWhat exactlyishuman resource certification? Briefly, let's just say thatcertification is a way of acknowledging individuals who have met thestandard of competency established by HR practitioners as that which isnecessary to be considered a fully competent HR professional. To understandwhether this book is for you, you'll want to know why you should becomecertified and how the certification process works.Who Certifies HR Professionals?Three organizations are involved in the certification of HR professionals: theHuman Resource Certification Institute (HRCI), the Society for HumanResource Management (SHRM), and the Professional Examination Service(PES).The Human Resource Certification InstituteHRCI is the certifying body for the HR profession. It was formed by theAmerican Society of Personnel Administrators (ASPA) in 1972, when it wasknown as the ASPA Accreditation Institute (AAI). In its early stages, HRCIwas financially dependent on SHRM, but it's now financially independent.Both HRCI and SHRM have individual boards of directors that govern theiroperations. Although HRCI and SHRM have a long history of affiliation andmutual support, the certification process is a separate and distinct function ofHRCI, and SHRM has no more control over or access to the certificationprocess than does anyone else in the profession.You can find HRCI's organizational mission statement at www.hrci.org/Page.aspx?id=31&terms=mission.

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The Society for Human Resource ManagementSHRMisthelargestorganizationofHRprofessionalsintheworld,representing more than 250,000 members worldwide, with more than 900affiliated professional and student chapters. From its beginning in 1948 as theAmerican Society for Personnel Administrators (ASPA), SHRM has been aleader in the endeavor to gain recognition for the HR profession. Today'scertification program is a direct result of efforts by the first volunteermembersofSHRM,whorecognizedtheneedforadefinedbodyofknowledge and set about to develop it along with a certification process thatevaluates the abilities of practitioners in the field.Professional Examination ServicePESisanonprofitorganizationthatconductslicenseandcredentialexaminationsforawidevarietyofprofessions,includingpsychology,pharmacy, real-estate appraisal, security management, as well as humanresources. PES maintains the database of test items developed by HRCI andis responsible for ensuring that applicants for the PHR and SPHR exams meetthe eligibility requirements, administering and scoring the tests, and notifyingcandidates of the results. PES conducts apractice analysis studyto ensure thecontinued relevance of the credentialing process to current business practice.We'll refer to these organizations frequently in Chapter 1 as we discuss thebody of knowledge and the certification process.Why Become Certified?Over time, the certification offered by HRCI has become the industrystandard for determining competence in the field of human resources. Therearemanyreasonsthatindividualsmaydecidetoseekprofessionalcertification. Let's talk about just a few of them.First, certification is an acknowledgement that you have met the standardsof excellence determined by other HR professionals to be those that arenecessary to be fully competent in the field. Because the standards aredeveloped by working professionals, not just by those who teach and consultin the field, this credential demonstrates that you're a fully competent HR

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practitioner based on a standard set by your peers.Second, certification is a way to increase your marketability. In difficulteconomic times, when there is tough competition for jobs, certificationprovides an edge that can be advantageous in your job search. With anabundance of job seekers for a limited number of jobs, whatever you can doto set yourself apart from the crowd can give you the edge when potentialemployers are making the final hiring decision.Third, those who spend the time to advance their own knowledge andachieve certification have demonstrated their ability to continue learning andgrowing as times and business needs change. A person who is willing andabletosetasignificantgoalanddowhatisnecessarytoachieveitdemonstrates characteristics that are in great demand in business today:results orientation, technical competence, commitment, and excellence.Finally,certificationenhancesyourcredibilitywithco-workersandcustomersbydemonstratingtothepeopleyouencounterduringyourworkday that you have proven competence in the field.Whether your reason for seeking certification falls into one of thesecategories or you're motivated to do so for some other reason, it can be agreat opportunity to validate how much you already know about the practiceof human resources as a profession.How to Become CertifiedTo become a certified HR professional, you must pass either the PHR orSPHRexam,bothofwhichhavebeendevelopedbyHRCIinacomprehensive process described in Chapter 1.HRCI uses a computer-based testing (CBT) process during two timeperiods each year: between the beginning of May and the end of June, andfrommid-Novemberthroughmid-January.OneadvantageoftheCBTprocess is that exam candidates know before they leave the testing centerwhether they are certified.Each exam, PHR and SPHR, consists of 225 questions. Of these questions,200 are scored to determine whether you pass the exam. The additional 25questions are being “pretested” in order to determine their reliability andvalidity for inclusion in future test cycles. You can find a detailed discussion

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of how the questions are developed and scored in theHR CertificationInstitute's 2012 Certification Policies and Procedures Handbook, which canbe viewed and/or downloaded at the HRCI website (www.hrci.org), or youcanrequestahardcopyfromHRCIbycalling(866)898-4724.Thehandbook is an essential guide to all aspects of the exams and includes testdates, application deadlines, fee information, and answers to frequently askedquestions about the certification process, as well as the full list of testspecifications.Chapter1explainsingreaterdetailhowmuchandwhatkindsofexperience are required for each exam level and how the questions differ oneach level.

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How This Book Is OrganizedWe've talked a little about Chapter 1, which provides information aboutrequirements for certification and the testing process. Chapter 1 also providessome suggestions on the best ways to study for the exam.Chapter2,“CoreKnowledgeRequirementsforHRProfessionals,”provides a brief discussion of knowledge with implications in multiplefunctional areas. Reading this chapter first gives exam candidates a base forunderstanding topics covered in subsequent chapters.Chapters 3.1–8.1 get down to the specifics of each functional area anddiscuss the test specifications in detail. Each of these chapters consists of alist of objectives, an overview of the functional area, the federal employmentlaws applicable to that area, and a discussion of the test specs, including theappropriate court cases.We have also provided five appendices to facilitate your study. AppendixA, “Answers to Review Questions,” provides all of the answers to thequestions at the end of every chapter.Appendix B, “Case Study,” gives you an opportunity to pull informationfrom multiple functional areas to solve typical HR challenges in a fictitiouscompany.AppendixC,“FederalEmploymentLegislationandCaseLaw,”isachronological listing of the federal legislation appearing throughout the book,as well as significant court decisions with implications for human resources.Thisappendixalsoincludesadditionalcourtdecisionsthatwerenotdiscussed in the chapters but have significance for HR practice and withwhich you should be familiar, so be sure to review them. They are includedin a separate section of the appendix.Appendix D, “Resources,” is just that: a list of additional sources ofinformation about each of the functional areas of human resources.Appendix E, “About the Additional Study Tools,” provides a listing of allthe material you can find on the book's companion web site.Finally, we've included some additional study tools including the Sybextest engine, electronic flashcards, and a PDF of a glossary of terms: an

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alphabetical listing of all the key terms throughout the book with theircorresponding definitions.For up-to-the-minute updates please see www.epochresources.com; and for directions onwhere to get the study tools, visit www.sybex.com/go/phr4e.The Elements of a Study GuideYou'll see many recurring elements as you read this study guide. Here's adescription of some of those elements:Assessment TestAt the end of this introduction is an assessment test that you can use tocheck your readiness for the exam. Take this test before you start readingthe book; it will help you determine the areas on which you may need tobrush up. The answers to the assessment test questions appear on aseparate page after the last question of the test. Each answer includes anexplanation and a note telling you the chapter in which the materialappears.Objective Map and Opening List of ObjectivesOn the inside front cover of this book is a detailed exam-objective mapshowing you where each of the exam objectives is covered in this book.In addition, each chapter opens with a list of exam objectives that arecovered in that chapter. Use these to see exactly where each of the examtopics is covered.SummaryThe summary is a brief review of the chapter to sum up what wascovered.Exam EssentialsThe “Exam Essentials” section at the end of each chapter highlightstopics that could appear on one or both of the exams in some form.Although we obviously don't know exactly what will be included in aparticular exam, these sections reinforce significant concepts that are keytounderstandingthefunctionalareaandthetestspecsHRCIhas

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developed.Chapter Review QuestionsEach chapter includes 20 practice questions designed to measure yourknowledge of key ideas discussed in the chapter. After you finish eachchapter, answer the questions; if some of your answers are incorrect, it'san indication that you need to spend more time studying that topic. Theanswers to the practice questions can be found in Appendix A. Thechapter-review questions are designed to help you measure how muchinformation you retained from your reading and are different from thekinds of questions you'll see on the exam.The assessment test and chapter-review questions can also be taken via the Sybex test engine.The next section tells you where to get the additional study tools, including the test engine.Additional Study ToolsWe've included a number of additional study tools that can be found on thebook's companion site at www.sybex.com/go/phr4e. All of the following gearshould be loaded on your computer when you're studying for the test.The Sybex Test Preparation SoftwareThe test-preparation software helps prepare you to pass the PHR/SPHRexams. In this test engine, you'll find all the chapter-review and assessmentquestions from the book, plus two additional bonus practice exams thatappear exclusively on the test engine: one specifically for PHR candidatesand one for SPHR candidates. You can take the assessment test, test yourselfby chapter, or take the bonus practice exams.Just as on the certification exams, the practice exam questions draw on your experience as anHR professional. Be on the lookout for questions based on your everyday activities in HR andnot just on the material in thePHR/SPHR Study Guide.

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Electronic FlashcardsSybex's electronic flashcards include more than 200 PHR questions and morethan 200 SPHR questions designed to challenge you further for the PHR andSPHR exams. Between the review questions, practice exams, and flashcards,you'll have a wide variety of materials to help you prepare!Glossary of Terms in PDFSybex offers an exclusive glossary of terms in PDF format as part of theadditional study tools. Now you can review key terms on your computer or e-reader if you travel and don't want to carry a book or if you just like to readfrom the computer screen.You can get the additional study tools by visiting www.sybex.com/go/phr4e. Here, you'll getinstructions on how to download the files to your hard drive.

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How to Use This Book and theAdditional Study ToolsThis book has a number of features designed to guide your study efforts foreither the PHR or the SPHR certification exam. All of these features areintended to assist you in doing the most important thing you can do to passthe exam: understand and apply the test specs in answering questions. Thisbook helps you do that by listing the current test specs at the beginning ofeach chapter and by ensuring that each of them is fully discussed in thechapter.The practice questions at the end of each chapter and the practice examsincluded with the study tools (which can be found on the companion site atwww.sybex.com/go/phr4e) are designed to assist you in testing your retentionof the material you've read to make you aware of areas on which you shouldspend additional study time. We've provided web links and other resources toassistyouinmasteringareaswhereyoumayrequireadditionalstudymaterials. Here are some suggestions for using this book and study tools:Take the assessment test before you start reading the material. Thesequestions are designed to measure your knowledge and will lookdifferent from the questions you'll see on the exam. They will give youan idea of the areas on which you need to spend additional study time, aswell as those areas for which you may just need a brief refresher.Review the test specs at the beginning of each chapter before you startreading. Make sure you read the associated knowledge requirements intheHR Certification Institute's 2012 Certification Policies andProcedures Handbookbecause these may help you in your studyprocess. After you've read the chapter, review the requirements again tobe sure you understand and are able to apply them.Answer the review questions after you've read each chapter. If you missany of them, go back over the chapter and review the topic, or use one ofthe additional resources if you need more information.Make sure you understand the laws that apply to each functional area, theinformation covered in each of them, and to which companies or

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government agencies they apply.Download the flashcards, and review them when you have a few minutesduring the day.Take every opportunity to test yourself. In addition to the assessment testand review questions, there are bonus practice exams. Take these examswithout referring to the chapters, and see how well you've done—goback and review any topics you've missed until you fully understand andcan apply the concepts.Finally, find a study partner if possible. Studying for, and taking, the examwith someone else will make the process more enjoyable, and you'll havesomeone to help you understand topics that are difficult for you. You'll alsobe able to reinforce your own knowledge by helping your study partner inareas where they are weak.

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Assessment Test1. According to the WARN Act, an employer with 200 employees is requiredto provide 60 days' notice of a mass layoff when which of the following istrue?A. The employer is seeking additional funding and will lay off 70employees if the funding falls through.B. A major client unexpectedly selects a new vendor for the company'sproducts, and the company lays off 75 employees.C. The employer lays off 5 employees a week for 3 months.D. A flood requires that one of the plants be shut down for repairs, and 55employees are laid off.2. An employee has come forward with an allegation of quid pro quoharassment by her supervisor. As the HR manager, you are responsible forinvestigating the complaint. The supervisor in question is someone withwhom you have become quite friendly. In this case, who is the best person toconduct the investigation?A. YouB. The corporate attorneyC. The direct manager of the accused supervisorD. A third-party investigator3. As of July 24, 2009, the federal minimum wage is set at which of thefollowing?A. $5.15 per hourB. $7.25 per hourC. $5.75 per hourD. $6.55 per hour4. During the union-organizing process, how is the bargaining unitdetermined?A. By the union organizersB. Jointly, by the union and the employer

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C. By the National Labor Relations BoardD. By the employees during the election5. The motivation theory that suggests people are motivated by the rewardthey will receive when they succeed and that they weigh the value of theexpected reward against the effort required to achieve it is known as what?A. Vroom's expectancy theoryB. Adams' equity theoryC. McClelland's acquired needs theoryD. McGregor's Theory X and Theory Y6. What is the most effective method of performance evaluation?A. A field-review processB. A continuous-feedback processC. A forced-ranking processD. A behaviorally anchored rating-scale process7. Which of the following is an example of a nonqualified deferred-compensation plan?A. An excess-deferral planB. A target-benefit planC. A money-purchase planD. A cash-balance plan8. Which of the following is an example of a passive training method?A. Vestibule trainingB. DemonstrationC. Distance learningD. Self-study9. What is the purpose of the OSHA consulting service?A. Helps employers identify the OSHA standards that apply to theirworkplaceB. Fines employers for violating OSHA safety standardsC. Does not require compliance with OSHA standardsD. Acts as a one-time service10. One purpose of a diversity initiative is to do what?

PHR and SPHR Professional in Human Resources Certification Complete Study Guide (2019) - Page 31 preview image

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A. Increase workplace creativityB. Increase the effectiveness of the workforceC. Increase the organization's ability to attract customersD. All of the above11. What is an employer's responsibility when workplace conditions pose athreat to an unborn child?A. Do nothing. It is up to employees to protect their unborn children.B. Move the employee into a different job that does not pose a threat to theunborn child.C. Advise the employee of the potential threat, and allow the employee tomake the decision.D. Allow only sterile employees to work in jobs that pose a threat tounborn children.12. What does the Health Insurance Portability and Accountability Act do?A. Prevents HR from investigating claims issuesB. Requires continuation of health benefitsC. Establishes EPO networksD. Limits preexisting condition restrictions13. The concept that recognizes that businesses are social organizations aswell as economic systems and that productivity is related to employee jobsatisfaction is known as what?A. Human resource managementB. Strategic managementC. Human relationsD. Human resource development14. Before selecting an HRIS system, which of the following questionsshould be answered?A. What information will be converted to the HRIS?B. Who will have access to the information stored in the HRIS?C. How will the HRIS be accessed?D. All of the above.15. The correlation coefficient is a statistical measurement that is useful forwhich of the following?

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