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

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Table of Contents
Title Page
Copyright
Publisher's Note
Dedication
Acknowledgments
About the Authors
About the Technical Editors
Introduction
About Human Resource Certification
Why Become Certified?
How This Book Is Organized
How to Use This Book and the Additional Study Tools
Assessment Test
Answers to Assessment Test
Chapter 1: Certifying Human Resource Professionals
The Human Resource Profession
Development of the Human Resource Body of Knowledge
The Test

Summary
Chapter 2: Core Knowledge Requirements for HR
Professionals
Needs Assessment and Analysis
Third-Party Contract Management
Communication Skills and Strategies
Documentation Requirements
Adult Learning Processes and Learning Styles
Motivation Concepts
Leadership Concepts
Project Management Concepts
Diversity Concepts
Human Relations Concepts
HR Ethics and Professional Standards
Human Resource Technology
Qualitative and Quantitative Analysis
Change Management
Job Analysis and Description
Employee Records Management
Interrelationships Among HR Activities
Organizational Structures
Environmental Scanning Concepts
Employee Attitude Assessment
Basic Budgeting and Accounting
Risk Management
Summary
Exam Essentials
Review Questions

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Chapter 3: Business Management and Strategy
Organizations
Strategy
Strategic Management
Legislative and Regulatory Processes
Corporate Governance
HR Metrics: Measuring Results
Global Considerations
Summary
Exam Essentials
Review Questions
Chapter 4: Workforce Planning and Employment
Federal Employment Legislation
Strategic Workforce Planning
Staffing Programs
Organization Exit/Off-Boarding Processes
Metrics: Measuring Results
Global Considerations
Summary
Exam Essentials
Review Questions
Chapter 5: Human Resource Development
Federal Employment Legislation
Organization Development
Talent Management
Performance-Management Programs
Performance Appraisal

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Unique Employee Needs
Metrics: Measuring Results
Global Considerations
Summary
Exam Essentials
Review Questions
Chapter 6: Compensation and Benefits
Total Rewards Defined
Compensation
Benefits
Payroll
Communicating Compensation and Benefits Programs
Executive Compensation
Metrics: Measuring Results
Global Considerations
Summary
Exam Essentials
Review Questions
Chapter 7: Employee and Labor Relations
Federal Employment Legislation
Employee Relations
Dispute Resolution
Labor Relations
Union Organization
Union Avoidance Strategies
Metrics: Measuring Results
Global Considerations

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Summary
Exam Essentials
Review Questions
Chapter 8: Risk Management
Risk Identification
Risk Assessment
Risk Management
Metrics: Measuring Results
Global Considerations
Summary
Exam Essentials
Review Questions
Appendix A: Answers to Review Questions
Chapter 2: Core Knowledge Requirements for HR
Professionals
Chapter 3: Business Management and Strategy
Chapter 4: Workforce Planning and Employment
Chapter 5: Human Resource Development
Chapter 6: Compensation and Benefits
Chapter 7: Employee and Labor Relations
Chapter 8: Risk Management
Appendix B: Case Study: Where the Green Glass
Grows
The Company
The Customer
Exercises

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Answer Key and Additional Exercise
Appendix C: Federal Employment Legislation and
Case Law
Legislation and Case Law Summary
Additional Cases
Appendix D: Resources
Business Management and Strategy
Workforce Planning and Employment
Human Resource Development
Compensation and Benefits
Employee and Labor Relations
Risk Management
Appendix E: About the Additional Study Tools
Additional Study Tools
System Requirements
Using the Study Tools
Troubleshooting
Index
About the Additional Study Tools
Exam Objectives Map
Wiley End User License Agreement

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Senior Acquisitions Editor: Jeff Kellum
Development Editor: Kim Wimpsett
Technical Editors: Brenda Budke and Tamra Aguinaldo
Production Editor: Christine O'Connor
Copy Editor: Tiffany Taylor
Editorial Manager: Pete Gaughan
Production Manager: Tim Tate
Vice President and Executive Group Publisher: Richard Swadley
Vice President and Publisher: Neil Edde
Media Project Manager 1: Laura Moss-Hollister
Media Associate Producer: Shawn Patrick
Media Quality Assurance: Marilyn Hummel
Book Designers: Judy Fung and Bill Gibson
Proofreader: Josh Chase, Word One New York
Indexer: Robert Swanson
Project Coordinator, Cover: Katherine Crocker
Cover Designer: Ryan Sneed
Copyright © 2012 by John Wiley & Sons, Inc., Indianapolis, Indiana
Published simultaneously in Canada
ISBN: 978-1-118-28917-4
ISBN: 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 or
transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted under
Sections 107 or 108 of the 1976 United States Copyright Act, without either
the 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,
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Neither the publisher nor the author shall be liable for damages arising
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TRADEMARKS: 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, in
the United States and other countries, and may not be used without written
permission. PHR and SPHR are registered trademarks of Human Resource
Certification Institute. All other trademarks are the property of their
respective owners. John Wiley & Sons, Inc. is not associated with any
product or vendor mentioned in this book.

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

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Acknowledgments
Any acknowledgement in the updating of this book must begin by
recognizing the professionalism and intellect of Anne Bogardus. Her
thoroughness and attention to detail represented in the previous editions of
this 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 the
expanded version of this work — it absolutely made for a better final
product.
A book like this requires a great deal of time and thought, and nobody felt
that more than my clients, co-workers, and support staff who watched me
attempt to juggle it all. To TAGS, VWC, and my clients at SBDC, thank you
for allowing me a peek into your business, for letting me rattle your cage with
strategic “leaps,” for picking up the slack when I went underground, and for
supporting my crazy schedule—I quite literally could not have done it
without you.
Finally, to the students, a brief mention of my own testing experience: I
remember sitting in my hotel room the night before my SPHR exam, trying to
cram in a few more details, desperate to figure out what I didn't already
know. It was around Christmas time, and my youngest child was just 2 years
old. Feeling guilty for being away from my family and with my confidence at
an 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 pieces
starting fitting together, the processes had rationale, and the big picture came
into clear focus. The next morning, I took a 4-hour exam in just 2 hours and
passed it on the first go-round. My excitement about being a part of this
project is a reflection of that one “a-ha” moment, representing for me when
HR crosses over from just being a job to an intelligent, strategic career
choice. My hope is that with each pass through this material, you will get
closer to your own enlightened moment when suddenly, you just get it. Many
thanks, and good luck in your career—this absolutely can happen for you!

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About the Authors
Sandra M. Reed, SPHR, has more than 17 years of experience in human
resources, 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 and
risk-management functions of human resources, which evolved into a passion
for training through on-boarding and OSHA compliance activities. She
obtained her PHR and her SPHR designations through the Human Resource
Certification Institute and received her teaching credential in adult vocational
education from California State University, San Bernardino. As an
independent contractor, she has conducted onsite training for California State
University Stanislaus, University of the Pacific, the Small Business
Development Center of Stanislaus County, and private employers throughout
Northern California. She has authored learning modules and case studies for
the Society for Human Resource Management, focusing on educating the
emerging workforce and future human resource professionals. She currently
is owner of Epoch Resources, a consulting firm located in the Central Valley
of California that specializes in the unique HR needs of small businesses.
Find her on the Web at http://epochresources.com.
Anne M. Bogardus, SPHR, began her human resources career in
compensation at a public multinational corporation, Castle & Cooke, owner
of the Dole food brand, and later at First Nationwide Bank. She also founded
and was principal of S.T.A.R. HR in northern California, which specialized
in building human resource functions that serve strategic business needs. Her
practice included small to medium-sized businesses in a wide range of
industries including biotechnology, mortgage lending, high technology,
public relations, retail, nonprofit, and construction. Ms. Bogardus is also the
author of an introductory book for non-HR business professionals, Human
Resource Jumpstart, as well as the previous three editions of this book, all
published by John Wiley & Sons, Inc.
About the Technical Editors

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Brenda G. Budke is the executive director for Sierra HR Partners, Inc., an
HR consulting and outsourcing service located in Fresno, California. She is a
certified SPHR with over 20 years experience in the human resource field.
Prior to joining Sierra HR Partners, Brenda served as the human resources
manager for a national communications company, overseeing employment,
employee relations, and training. She is founder and dean of a corporate
university and has developed curriculum and presented performance-based
training at all levels. Ms. Budke holds a Bachelor of Science degree in
organizational behavior with a concentration in Human Resource
Management from the University of San Francisco. She currently serves on
the board of the Central California Employment Round Table (CCERT),
working in conjunction with DFEH to prevent harassment and discrimination
in the workplace; she is a member of the Society of Human Resource
Management (SHRM) and past-president of the Human Resource
Association of Central California (HRACC). Most recently she served as
deputy director for the California State Council for SHRM.
Tamra Aguinaldo has a background in human resources and education
and currently works as an HR consultant in Northern California. She has a
Master of Arts degree in Education with an emphasis in Guidance
Counseling. Prior to becoming a consultant, she was Director of Professional
Development for the Northern California Human Resources Association in
San Francisco.
HR is a dynamic profession requiring practitioners to keep up-to-date with current trends and
changes to employment law. The PHR/SPHR exams are updated annually to reflect these
trends and changes. For information about updates between revisions of this study guide, log
on to http://epochresources.com, and click PHR/SPHR Certification to view changes or ask
questions about content.

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Introduction
Congratulations on taking the first step toward achieving your Professional in
Human Resources (PHR) or Senior Professional in Human Resources
(SPHR) certification! The process you're embarking on is rewarding and
challenging, and as more than 100,000 of your fellow human resource
colleagues have already discovered, it's an excellent opportunity to explore
areas of HR management with which you may not work every day. In the
next few pages, you'll find some general information about HR certification,
some suggestions for using this book, information about what to expect in the
following chapters, and a discussion of the organizations involved in
certification.
Before we begin, a word about what you should already know. This study
guide was designed to serve as a refresher for experienced professionals who
have practiced for several years or have been educated in human resources.
We assume that those who are pursuing certification have the basic HR
knowledge that comes not only from education in human resources but also,
more importantly, from exempt-level experience. If your daily work is truly
generalist 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 you
specialize in one or two areas of HR, you probably have extensive experience
in 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 of
the functional areas of HR management to enable candidates in either
situation to find what they need to prepare themselves for successfully
completing the exam. More than 22,000 books related to human resources are
listed on Amazon.com alone, and there is obviously no way we can cover all
the aspects of HR in a single book. So, we've organized the information
around the test specifications (test specs) established by the Human Resource
Certification Institute (HRCI), the certifying body for our profession. We'll
talk more about the test specs in Chapter 1, “Certifying Human Resource
Professionals,” but for now, suffice it to say that the key to success on the
exam is a thorough understanding of and ability to apply the test specs when

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answering questions on the exams.
About Human Resource
Certification
What exactly is human resource certification? Briefly, let's just say that
certification is a way of acknowledging individuals who have met the
standard of competency established by HR practitioners as that which is
necessary to be considered a fully competent HR professional. To understand
whether this book is for you, you'll want to know why you should become
certified and how the certification process works.
Who Certifies HR Professionals?
Three organizations are involved in the certification of HR professionals: the
Human Resource Certification Institute (HRCI), the Society for Human
Resource Management (SHRM), and the Professional Examination Service
(PES).
The Human Resource Certification Institute
HRCI is the certifying body for the HR profession. It was formed by the
American Society of Personnel Administrators (ASPA) in 1972, when it was
known as the ASPA Accreditation Institute (AAI). In its early stages, HRCI
was financially dependent on SHRM, but it's now financially independent.
Both HRCI and SHRM have individual boards of directors that govern their
operations. Although HRCI and SHRM have a long history of affiliation and
mutual support, the certification process is a separate and distinct function of
HRCI, and SHRM has no more control over or access to the certification
process 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 Management
SHRM is the largest organization of HR professionals in the world,
representing more than 250,000 members worldwide, with more than 900
affiliated professional and student chapters. From its beginning in 1948 as the
American Society for Personnel Administrators (ASPA), SHRM has been a
leader in the endeavor to gain recognition for the HR profession. Today's
certification program is a direct result of efforts by the first volunteer
members of SHRM, who recognized the need for a defined body of
knowledge and set about to develop it along with a certification process that
evaluates the abilities of practitioners in the field.
Professional Examination Service
PES is a nonprofit organization that conducts license and credential
examinations for a wide variety of professions, including psychology,
pharmacy, real-estate appraisal, security management, as well as human
resources. PES maintains the database of test items developed by HRCI and
is responsible for ensuring that applicants for the PHR and SPHR exams meet
the eligibility requirements, administering and scoring the tests, and notifying
candidates of the results. PES conducts a practice analysis study to ensure the
continued relevance of the credentialing process to current business practice.
We'll refer to these organizations frequently in Chapter 1 as we discuss the
body of knowledge and the certification process.
Why Become Certified?
Over time, the certification offered by HRCI has become the industry
standard for determining competence in the field of human resources. There
are many reasons that individuals may decide to seek professional
certification. Let's talk about just a few of them.
First, certification is an acknowledgement that you have met the standards
of excellence determined by other HR professionals to be those that are
necessary to be fully competent in the field. Because the standards are
developed by working professionals, not just by those who teach and consult
in 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 difficult
economic times, when there is tough competition for jobs, certification
provides an edge that can be advantageous in your job search. With an
abundance of job seekers for a limited number of jobs, whatever you can do
to set yourself apart from the crowd can give you the edge when potential
employers are making the final hiring decision.
Third, those who spend the time to advance their own knowledge and
achieve certification have demonstrated their ability to continue learning and
growing as times and business needs change. A person who is willing and
able to set a significant goal and do what is necessary to achieve it
demonstrates characteristics that are in great demand in business today:
results orientation, technical competence, commitment, and excellence.
Finally, certification enhances your credibility with co-workers and
customers by demonstrating to the people you encounter during your
workday that you have proven competence in the field.
Whether your reason for seeking certification falls into one of these
categories or you're motivated to do so for some other reason, it can be a
great opportunity to validate how much you already know about the practice
of human resources as a profession.
How to Become Certified
To become a certified HR professional, you must pass either the PHR or
SPHR exam, both of which have been developed by HRCI in a
comprehensive process described in Chapter 1.
HRCI uses a computer-based testing (CBT) process during two time
periods each year: between the beginning of May and the end of June, and
from mid-November through mid-January. One advantage of the CBT
process is that exam candidates know before they leave the testing center
whether 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 25
questions are being “pretested” in order to determine their reliability and
validity 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 the HR Certification
Institute's 2012 Certification Policies and Procedures Handbook, which can
be viewed and/or downloaded at the HRCI website (www.hrci.org), or you
can request a hard copy from HRCI by calling (866) 898-4724. The
handbook is an essential guide to all aspects of the exams and includes test
dates, application deadlines, fee information, and answers to frequently asked
questions about the certification process, as well as the full list of test
specifications.
Chapter 1 explains in greater detail how much and what kinds of
experience are required for each exam level and how the questions differ on
each level.

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How This Book Is Organized
We've talked a little about Chapter 1, which provides information about
requirements for certification and the testing process. Chapter 1 also provides
some suggestions on the best ways to study for the exam.
Chapter 2, “Core Knowledge Requirements for HR Professionals,”
provides a brief discussion of knowledge with implications in multiple
functional areas. Reading this chapter first gives exam candidates a base for
understanding topics covered in subsequent chapters.
Chapters 3.1–8.1 get down to the specifics of each functional area and
discuss the test specifications in detail. Each of these chapters consists of a
list of objectives, an overview of the functional area, the federal employment
laws applicable to that area, and a discussion of the test specs, including the
appropriate court cases.
We have also provided five appendices to facilitate your study. Appendix
A, “Answers to Review Questions,” provides all of the answers to the
questions at the end of every chapter.
Appendix B, “Case Study,” gives you an opportunity to pull information
from multiple functional areas to solve typical HR challenges in a fictitious
company.
Appendix C, “Federal Employment Legislation and Case Law,” is a
chronological listing of the federal legislation appearing throughout the book,
as well as significant court decisions with implications for human resources.
This appendix also includes additional court decisions that were not
discussed in the chapters but have significance for HR practice and with
which you should be familiar, so be sure to review them. They are included
in a separate section of the appendix.
Appendix D, “Resources,” is just that: a list of additional sources of
information about each of the functional areas of human resources.
Appendix E, “About the Additional Study Tools,” provides a listing of all
the material you can find on the book's companion web site.
Finally, we've included some additional study tools including the Sybex
test 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 their
corresponding definitions.
For up-to-the-minute updates please see www.epochresources.com; and for directions on
where to get the study tools, visit www.sybex.com/go/phr4e.
The Elements of a Study Guide
You'll see many recurring elements as you read this study guide. Here's a
description of some of those elements:
Assessment Test
At the end of this introduction is an assessment test that you can use to
check your readiness for the exam. Take this test before you start reading
the book; it will help you determine the areas on which you may need to
brush up. The answers to the assessment test questions appear on a
separate page after the last question of the test. Each answer includes an
explanation and a note telling you the chapter in which the material
appears.
Objective Map and Opening List of Objectives
On the inside front cover of this book is a detailed exam-objective map
showing you where each of the exam objectives is covered in this book.
In addition, each chapter opens with a list of exam objectives that are
covered in that chapter. Use these to see exactly where each of the exam
topics is covered.
Summary
The summary is a brief review of the chapter to sum up what was
covered.
Exam Essentials
The “Exam Essentials” section at the end of each chapter highlights
topics 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 a
particular exam, these sections reinforce significant concepts that are key
to understanding the functional area and the test specs HRCI has

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developed.
Chapter Review Questions
Each chapter includes 20 practice questions designed to measure your
knowledge of key ideas discussed in the chapter. After you finish each
chapter, answer the questions; if some of your answers are incorrect, it's
an indication that you need to spend more time studying that topic. The
answers to the practice questions can be found in Appendix A. The
chapter-review questions are designed to help you measure how much
information you retained from your reading and are different from the
kinds 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 Tools
We've included a number of additional study tools that can be found on the
book's companion site at www.sybex.com/go/phr4e. All of the following gear
should be loaded on your computer when you're studying for the test.
The Sybex Test Preparation Software
The test-preparation software helps prepare you to pass the PHR/SPHR
exams. In this test engine, you'll find all the chapter-review and assessment
questions from the book, plus two additional bonus practice exams that
appear exclusively on the test engine: one specifically for PHR candidates
and one for SPHR candidates. You can take the assessment test, test yourself
by chapter, or take the bonus practice exams.
Just as on the certification exams, the practice exam questions draw on your experience as an
HR professional. Be on the lookout for questions based on your everyday activities in HR and
not just on the material in the PHR/SPHR Study Guide.

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Electronic Flashcards
Sybex's electronic flashcards include more than 200 PHR questions and more
than 200 SPHR questions designed to challenge you further for the PHR and
SPHR 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 PDF
Sybex offers an exclusive glossary of terms in PDF format as part of the
additional 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 read
from the computer screen.
You can get the additional study tools by visiting www.sybex.com/go/phr4e. Here, you'll get
instructions on how to download the files to your hard drive.

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How to Use This Book and the
Additional Study Tools
This book has a number of features designed to guide your study efforts for
either the PHR or the SPHR certification exam. All of these features are
intended to assist you in doing the most important thing you can do to pass
the exam: understand and apply the test specs in answering questions. This
book helps you do that by listing the current test specs at the beginning of
each chapter and by ensuring that each of them is fully discussed in the
chapter.
The practice questions at the end of each chapter and the practice exams
included with the study tools (which can be found on the companion site at
www.sybex.com/go/phr4e) are designed to assist you in testing your retention
of the material you've read to make you aware of areas on which you should
spend additional study time. We've provided web links and other resources to
assist you in mastering areas where you may require additional study
materials. Here are some suggestions for using this book and study tools:
Take the assessment test before you start reading the material. These
questions are designed to measure your knowledge and will look
different from the questions you'll see on the exam. They will give you
an idea of the areas on which you need to spend additional study time, as
well as those areas for which you may just need a brief refresher.
Review the test specs at the beginning of each chapter before you start
reading. Make sure you read the associated knowledge requirements in
the HR Certification Institute's 2012 Certification Policies and
Procedures Handbook because these may help you in your study
process. After you've read the chapter, review the requirements again to
be sure you understand and are able to apply them.
Answer the review questions after you've read each chapter. If you miss
any of them, go back over the chapter and review the topic, or use one of
the additional resources if you need more information.
Make sure you understand the laws that apply to each functional area, the
information 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 minutes
during the day.
Take every opportunity to test yourself. In addition to the assessment test
and review questions, there are bonus practice exams. Take these exams
without referring to the chapters, and see how well you've done—go
back and review any topics you've missed until you fully understand and
can apply the concepts.
Finally, find a study partner if possible. Studying for, and taking, the exam
with someone else will make the process more enjoyable, and you'll have
someone to help you understand topics that are difficult for you. You'll also
be able to reinforce your own knowledge by helping your study partner in
areas where they are weak.

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Assessment Test
1. According to the WARN Act, an employer with 200 employees is required
to provide 60 days' notice of a mass layoff when which of the following is
true?
A. The employer is seeking additional funding and will lay off 70
employees if the funding falls through.
B. A major client unexpectedly selects a new vendor for the company's
products, 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 55
employees are laid off.
2. An employee has come forward with an allegation of quid pro quo
harassment by her supervisor. As the HR manager, you are responsible for
investigating the complaint. The supervisor in question is someone with
whom you have become quite friendly. In this case, who is the best person to
conduct the investigation?
A. You
B. The corporate attorney
C. The direct manager of the accused supervisor
D. A third-party investigator
3. As of July 24, 2009, the federal minimum wage is set at which of the
following?
A. $5.15 per hour
B. $7.25 per hour
C. $5.75 per hour
D. $6.55 per hour
4. During the union-organizing process, how is the bargaining unit
determined?
A. By the union organizers
B. Jointly, by the union and the employer

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C. By the National Labor Relations Board
D. By the employees during the election
5. The motivation theory that suggests people are motivated by the reward
they will receive when they succeed and that they weigh the value of the
expected reward against the effort required to achieve it is known as what?
A. Vroom's expectancy theory
B. Adams' equity theory
C. McClelland's acquired needs theory
D. McGregor's Theory X and Theory Y
6. What is the most effective method of performance evaluation?
A. A field-review process
B. A continuous-feedback process
C. A forced-ranking process
D. A behaviorally anchored rating-scale process
7. Which of the following is an example of a nonqualified deferred-
compensation plan?
A. An excess-deferral plan
B. A target-benefit plan
C. A money-purchase plan
D. A cash-balance plan
8. Which of the following is an example of a passive training method?
A. Vestibule training
B. Demonstration
C. Distance learning
D. Self-study
9. What is the purpose of the OSHA consulting service?
A. Helps employers identify the OSHA standards that apply to their
workplace
B. Fines employers for violating OSHA safety standards
C. Does not require compliance with OSHA standards
D. Acts as a one-time service
10. One purpose of a diversity initiative is to do what?

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A. Increase workplace creativity
B. Increase the effectiveness of the workforce
C. Increase the organization's ability to attract customers
D. All of the above
11. What is an employer's responsibility when workplace conditions pose a
threat 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 the
unborn child.
C. Advise the employee of the potential threat, and allow the employee to
make the decision.
D. Allow only sterile employees to work in jobs that pose a threat to
unborn children.
12. What does the Health Insurance Portability and Accountability Act do?
A. Prevents HR from investigating claims issues
B. Requires continuation of health benefits
C. Establishes EPO networks
D. Limits preexisting condition restrictions
13. The concept that recognizes that businesses are social organizations as
well as economic systems and that productivity is related to employee job
satisfaction is known as what?
A. Human resource management
B. Strategic management
C. Human relations
D. Human resource development
14. Before selecting an HRIS system, which of the following questions
should 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 for
which of the following?

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

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