HRCI PHR (Professional in Human Resources) — Questions and Answers
Question 1: Under the Equal Pay Act, when can employers pay different wages for equal work?
- Only for jobs covered by a collective bargaining agreement
- When differences are based on seniority, merit, quantity/quality of production, or a factor other than sex (Correct answer)
- Never — equal work must always receive equal pay
- Only when approved by the EEOC
Correct answer: When differences are based on seniority, merit, quantity/quality of production, or a factor other than sex
The EPA allows pay differentials for equal work if based on a seniority system, merit system, production-based system, or any factor other than sex.
Question 2: Which of the following is not an HR data indicator?
- Cost per hire
- Production rates (Correct answer)
- Retention rates
- Turnover rates
Correct answer: Production rates
Production rates measure operational output, not workforce characteristics, so they are not an HR data indicator. Turnover rates, retention rates, and cost per hire all directly measure workforce-related outcomes and are standard HR metrics used to evaluate HR effectiveness and workforce health.
Question 3: What is a 'salary band' (also called a pay grade or range)?
- A union-negotiated wage table
- A defined minimum and maximum compensation range for a job or job group (Correct answer)
- A government-mandated pay scale for federal contractors
- A fixed salary that cannot change
Correct answer: A defined minimum and maximum compensation range for a job or job group
A salary band establishes the minimum, midpoint, and maximum pay for a job level, providing flexibility while ensuring internal equity.
Question 4: Under the ACA, what is the 'employer mandate' for applicable large employers (ALEs)?
- Fund an HSA for each enrolled employee
- Offer affordable, minimum value health coverage to full-time employees or face potential penalties (Correct answer)
- Pay 100% of employee health insurance premiums
- Provide dental and vision coverage to all employees
Correct answer: Offer affordable, minimum value health coverage to full-time employees or face potential penalties
ALEs (50+ full-time equivalent employees) must offer health coverage meeting minimum value and affordability standards to full-time staff or risk IRS penalties under the Employer Shared Responsibility provisions.
Question 5: What is a 'balanced scorecard' approach when applied to HR?
- An interview scoring tool with four assessment criteria
- Measuring HR performance across financial, customer, internal process, and learning/growth dimensions (Correct answer)
- A benefits package with equal weighting across four benefit types
- Scoring employee performance on four behavioral scales
Correct answer: Measuring HR performance across financial, customer, internal process, and learning/growth dimensions
Applying the balanced scorecard to HR aligns HR activities with organizational strategy by measuring outcomes across four interdependent perspectives, not just cost or compliance.
Question 6: What is an 'individual development plan (IDP)'?
- An onboarding checklist for new hires
- A compensation plan tied to individual performance metrics
- A disciplinary action plan for underperformers
- A written document outlining an employee's development goals and the actions needed to achieve them (Correct answer)
Correct answer: A written document outlining an employee's development goals and the actions needed to achieve them
An IDP is a collaborative agreement between an employee and manager that identifies specific skills to develop, learning activities to pursue, and a timeline for growth.
Question 7: A document released by the Department of Labor's Wage and Hour Division that describes how a particular law applies in a specific circumstances is called which of the following?
- An opinion letter (Correct answer)
- A penalty letter
- An audit letter
- An engagement survey
Correct answer: An opinion letter
An opinion letter is the specific document issued by the Department of Labor's Wage and Hour Division that explains how a law applies to a particular set of facts or circumstances. A penalty letter communicates fines, an audit letter relates to compliance reviews, and an engagement survey is an internal HR tool — none of these provide legal interpretations of how a statute applies.
Question 8: What is the 70-20-10 learning model?
- 70% individual, 20% team, 10% organizational learning
- 70% on-the-job experience, 20% learning from others, 10% formal training (Correct answer)
- 70% online, 20% classroom, 10% mentoring
- 70% soft skills, 20% technical, 10% compliance
Correct answer: 70% on-the-job experience, 20% learning from others, 10% formal training
The 70-20-10 model describes how most adult professional learning happens: 70% from challenging job experiences, 20% from developmental relationships, and 10% from structured courses.
Question 9: What is 'workforce planning' in strategic HR?
- Scheduling employee shifts on a weekly basis
- Administering performance improvement plans
- Tracking attendance and tardiness
- Forecasting future talent needs and developing strategies to meet them (Correct answer)
Correct answer: Forecasting future talent needs and developing strategies to meet them
Workforce planning analyzes current workforce capabilities against future business needs to identify talent gaps and develop strategies for acquisition, development, or restructuring.
Question 10: Under the EEOC's Uniform Guidelines on Employee Selection Procedures, what ratio signals potential adverse impact?
- More than 2/1 (200%) selection rate
- Less than 4/5 (80%) selection rate for a protected group vs. the highest group (Correct answer)
- Less than 1/2 (50%) selection rate
- Exactly 1/1 (100%) selection rate
Correct answer: Less than 4/5 (80%) selection rate for a protected group vs. the highest group
The 4/5ths (80%) rule states that a selection rate for any protected group below 80% of the highest group's rate indicates adverse impact.
Question 11: What is the 'general duty clause' of the OSH Act?
- Employers must conduct annual safety audits
- Employers must post OSHA penalties in the break room
- All employees must receive 10 hours of OSHA safety training
- Employers must provide a workplace free from recognized hazards likely to cause death or serious physical harm (Correct answer)
Correct answer: Employers must provide a workplace free from recognized hazards likely to cause death or serious physical harm
Section 5(a)(1) of the OSH Act — the General Duty Clause — requires employers to address serious, recognized hazards even when no specific OSHA standard applies.
Question 12: What is 'realistic job preview' (RJP) designed to accomplish?
- Reduce turnover by honestly portraying job demands and culture (Correct answer)
- Accelerate the hiring timeline
- Increase the applicant pool size
- Comply with EEOC disclosure requirements
Correct answer: Reduce turnover by honestly portraying job demands and culture
An RJP presents both positive and negative aspects of a role so candidates self-select appropriately, leading to better fit and lower early attrition.
Question 13: Which statute protects employees who report employer violations of law from retaliation?
- Whistleblower protection provisions in laws such as SOX and Dodd-Frank (Correct answer)
- COBRA
- FLSA
- ERISA
Correct answer: Whistleblower protection provisions in laws such as SOX and Dodd-Frank
Multiple federal statutes, including the Sarbanes-Oxley Act and Dodd-Frank, include whistleblower protections prohibiting retaliation against employees who report legal violations.
Question 14: What is 'HR metrics and analytics' used to demonstrate?
- Compliance with federal reporting requirements
- The number of HR staff required per employee
- The business impact of HR programs using data-driven evidence (Correct answer)
- Employee satisfaction with the HR department
Correct answer: The business impact of HR programs using data-driven evidence
HR metrics and analytics translate people data into business insights, enabling HR to demonstrate value, make evidence-based decisions, and predict workforce trends.
Question 15: Human Resource planning is equal to:
- Right number, Right kind, Right skills, Right time and Right Place (Correct answer)
- Right number, Right Job, Right time, Right skill
- Right People, Right qualifications, Right culture, Right place
- Right number, Right Climate, Right Skill, Right time, Right place
Correct answer: Right number, Right kind, Right skills, Right time and Right Place
The correct answer is "Right number, Right king, Right skills, Right time and Right Place. "This answer accurately describes the components of human resource planning. "Right number" refers to having the appropriate number of employees, "Rights kind" refers to having employees with the necessary attributes and qualities, "Right skills" refers to having employees with the required skills and competencies, "Right time" refers to having employees available when needed, and "Rights Place" refers to having employees assigned to the appropriate positions or locations.
Question 16: Under IRCA, what happens if an employer discovers an I-9 was improperly completed after hire?
- A new I-9 must always be completed from scratch
- The employer should correct the error and document the correction (Correct answer)
- The employee must be terminated immediately
- The employer must report the error to DHS within 24 hours
Correct answer: The employer should correct the error and document the correction
The Immigration Reform and Control Act allows employers to correct I-9 errors by drawing a line through incorrect information, entering correct information, initialing and dating the change.
Question 17: Maintaining eye contact is an example of which facilitating technique?
- Pausing
- Closure
- Reflection
- Active listening (Correct answer)
Correct answer: Active listening
Maintaining eye contact is a nonverbal behavior that signals attention and engagement, which is a core component of active listening. Reflection involves paraphrasing or mirroring the speaker's words, pausing is a deliberate silence technique, and closure refers to wrapping up a conversation — none of these are primarily demonstrated through eye contact.
Question 18: Which sourcing strategy focuses on building a pipeline of candidates before a position opens?
- Outsourced placement
- Reactive recruiting
- Contingency hiring
- Proactive sourcing (Correct answer)
Correct answer: Proactive sourcing
Proactive sourcing involves continuously identifying and engaging talent in advance so a pipeline exists when roles become available.
Question 19: Your organization has a retire benefits plan that is covered by ERISA. Under ERISA, which of the following is your organization required to do for the plan participants?
- Provide each participant with plan information, specially about the features and funding of the plan through a summary plan description at no cost. (Correct answer)
- A. Provide each participant with plan information, specially about the features and funding of the plan trough a summary plan description at a cost of no more than $7 per participant, per year.
- Provide each participant with monthly plan information, specifically about the features and funding of the plan through a summary plan description at no cost.
- Provide each participant with monthly plan information, specifically about the features and funding of the plan through a summary plan description at no more than $7 per participant, per month.
Correct answer: Provide each participant with plan information, specially about the features and funding of the plan through a summary plan description at no cost.
ERISA requires employers to provide participants with a Summary Plan Description (SPD) free of charge — there is no per-participant fee permitted. The SPD is not required monthly; it is provided upon enrollment and when significant changes occur. Options citing a $7 cost or monthly frequency both misstate ERISA's actual requirements.
Question 20: What is 'mediation' as an alternative dispute resolution (ADR) method?
- A binding decision issued by a neutral arbitrator
- An internal HR committee that votes on outcomes
- A neutral third party facilitates discussion to help parties reach a voluntary agreement (Correct answer)
- A formal court proceeding for employment disputes
Correct answer: A neutral third party facilitates discussion to help parties reach a voluntary agreement
In mediation, a trained neutral facilitates communication between disputing parties without imposing a solution, allowing them to craft a mutually acceptable resolution.
Question 21: Which learning theory emphasizes that behavior is shaped by consequences such as rewards and punishments?
- Constructivism
- Humanism
- Cognitive load theory
- Behaviorism (operant conditioning) (Correct answer)
Correct answer: Behaviorism (operant conditioning)
Behaviorism, rooted in B.F. Skinner's operant conditioning, holds that learning is a change in observable behavior driven by reinforcement (rewards) and punishment.
Question 22: What is 'disparate impact' discrimination?
- Pay gaps between exempt and non-exempt employees
- Deliberate targeting of a protected group for adverse employment actions
- Differences in disciplinary rates between departments
- A facially neutral policy or practice that disproportionately excludes members of a protected class without business justification (Correct answer)
Correct answer: A facially neutral policy or practice that disproportionately excludes members of a protected class without business justification
Disparate impact (also called adverse impact) occurs when a neutral employment practice results in significantly lower selection rates for a protected group, and the employer cannot justify it as a business necessity.
Question 23: What is the purpose of a 'competency model' in L&D?
- To measure the return on investment of training programs
- To audit training vendor qualifications
- To define the knowledge, skills, and behaviors required for effective performance in specific roles (Correct answer)
- To rank employees by their level of competence for pay decisions
Correct answer: To define the knowledge, skills, and behaviors required for effective performance in specific roles
A competency model identifies the observable behaviors and capabilities that distinguish high performers, serving as a foundation for hiring, development, and performance standards.
Question 24: What does 'pay transparency' mean in modern compensation practice?
- Disclosing pay information exclusively to the HR department
- Publishing executive salaries in the annual report only
- Openly communicating pay ranges, structures, or individual salaries to employees and/or applicants (Correct answer)
- Automatically adjusting pay to match competitor rates
Correct answer: Openly communicating pay ranges, structures, or individual salaries to employees and/or applicants
Pay transparency involves proactively sharing compensation information — ranging from salary bands to individual pay — to build trust and address equity concerns.
Question 25: Which of the following publishes standards for developing service delivery plans? (Choose two.)
- American National Standards Institute (ANSI) (Correct answer)
- United Nation Standards Publishing Organization (UNSPO)
- Universal Business Standards Development Organization (UBSDO)
- National Occupational Standards (NOS) (Correct answer)
Correct answer: American National Standards Institute (ANSI)
The National Occupational Standards (NOS) is a real, established body that publishes standards for developing service delivery plans and defining competencies across occupational sectors. UNSPO and UBSDO are not recognized organizations — they are fictitious names that do not correspond to any actual standards-publishing body.
Question 26: Human Resource Planning is called "Manpower planning."
- True (Correct answer)
- False
Correct answer: True
Human Resource Planning is indeed referred to as "Manpower planning." This term is used to describe the process of determining the organization's current and future human resources needs, as well as developing strategies to meet those needs. It involves analyzing the organization's goals and objectives, assessing the current workforce, identifying any gaps in skills or staffing, and implementing plans to address these gaps. The term "manpower planning" emphasizes the focus on the human element of resources within an organization, highlighting the importance of effectively managing and utilizing the workforce.
Question 27: What is 'employment practices liability insurance (EPLI)' designed to cover?
- Unemployment insurance premiums for laid-off workers
- Claims of discrimination, harassment, wrongful termination, and other employment-related suits against the employer (Correct answer)
- OSHA fines and penalties for safety violations
- Workers' compensation claims for on-the-job injuries
Correct answer: Claims of discrimination, harassment, wrongful termination, and other employment-related suits against the employer
EPLI protects employers from financial losses related to employment-related lawsuits, including allegations of discrimination, sexual harassment, and wrongful termination.
Question 28: Time horizons of an organization can be classified as long term plans.
- True
- False (Correct answer)
Correct answer: False
The time horizons of an organization cannot be classified solely as long term plans. Organizations typically have multiple time horizons for their plans, including short-term, medium-term and long-term. Long-term plans are just one aspect of an organization's overall time horizon strategy.
Question 29: Introductory stage, Growth stage, Maturity stage and decline stages are perfect examples of?
- Scanning Business environment
- Organizational growth cycles (Correct answer)
- Company's Justification of its existence
- Marketing strategies
Correct answer: Organizational growth cycles
The stages mentioned (Introductory; Growth, Maturity and Decline) represent the different phases that an organization goes through in terms of its growth and development. These stages are indicative of the organizational growth cycles, as they demonstrate the various phases that an organization experiences from its inception to its decline.
Question 30: The human resource planning process is divided into 3 phases.
- False (Correct answer)
- True
Correct answer: False
The statement is false because the human resource planning process is typically divided into four phases: forecasting, goal setting and strategic planning, program implementation and program evaluation and revision. These phases involve identifying future HR needs, setting objectives, implementing HR programs and evaluating their effectiveness.
HRCI PHR (Professional in Human Resources)
The PHR certification from HRCI validates mastery of the technical and operational aspects of HR management, covering business management, talent acquisition, learning and development, total rewards, and employee and labor relations. It is designed for HR professionals focused on program implementation and tactical functions.
Exam Rules
- You can skip questions and return to them later
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- No feedback shown until you submit the entire exam
- Unanswered questions count as wrong — answer everything
- 10 pretest questions are mixed in and don't affect your score
- Timer auto-submits when time runs out
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