PHR: Professional in Human Resources — Questions and Answers
Question 1: Under the Age Discrimination in Employment Act (ADEA), which employees are protected?
- Only employees over age 65
- Employees age 40 and older (Correct answer)
- All employees under age 40
- Employees between ages 18 and 65
Correct answer: Employees age 40 and older
The ADEA prohibits discrimination against employees and job applicants who are 40 years of age or older.
Question 2: What is the primary purpose of an Employee Assistance Program (EAP)?
- Managing performance reviews
- Offering confidential counseling and referral services for personal and work-related problems (Correct answer)
- Providing payroll advances
- Coordinating employee training schedules
Correct answer: Offering confidential counseling and referral services for personal and work-related problems
EAPs provide employees with confidential access to mental health, financial, legal, and other support services.
Question 3: What is 'management by objectives' (MBO)?
- A process where managers and employees jointly set goals, and performance is evaluated against those goals (Correct answer)
- A budgeting process for HR departments
- Managing only through written policies and objectives
- Setting objectives only at the senior management level
Correct answer: A process where managers and employees jointly set goals, and performance is evaluated against those goals
MBO is a performance management approach in which managers and employees collaboratively establish measurable objectives and evaluate performance against them.
Question 4: What is 'blended learning' in L&D?
- Cross-functional team training
- Training that covers multiple departments simultaneously
- Training for multilingual employees
- A training approach combining instructor-led and technology-based (e.g., eLearning) methods (Correct answer)
Correct answer: A training approach combining instructor-led and technology-based (e.g., eLearning) methods
Blended learning integrates face-to-face instruction with online or digital learning components to optimize engagement and effectiveness.
Question 5: What is 'employment at will' in the US?
- Employees may only be fired for cause
- Either party may end the employment relationship at any time for any lawful reason (Correct answer)
- An employer must provide 30 days notice before termination
- Employment contracts are required for all workers
Correct answer: Either party may end the employment relationship at any time for any lawful reason
Employment at will means either the employer or employee can end the relationship at any time for any legal reason without prior notice.
Question 6: What is the primary purpose of a job analysis in the recruiting process?
- To screen resumes
- To define job duties, responsibilities, and required qualifications (Correct answer)
- To conduct background checks
- To set the salary range
Correct answer: To define job duties, responsibilities, and required qualifications
A job analysis identifies and documents the duties, responsibilities, required skills, and working conditions for a specific role.
Question 7: What is 'employee engagement'?
- Attendance tracking systems
- The emotional commitment an employee has to their organization and its goals (Correct answer)
- Company social events
- The process of hiring new employees
Correct answer: The emotional commitment an employee has to their organization and its goals
Employee engagement refers to the level of enthusiasm, dedication, and commitment employees have toward their work and employer.
Question 8: Which federal agency enforces employment discrimination laws and investigates charges?
- Department of Labor (DOL)
- Office of Federal Contract Compliance Programs (OFCCP)
- National Labor Relations Board (NLRB)
- Equal Employment Opportunity Commission (EEOC) (Correct answer)
Correct answer: Equal Employment Opportunity Commission (EEOC)
The EEOC enforces federal laws prohibiting job discrimination and investigates charges filed by employees or job applicants.
Question 9: What does 'progressive discipline' involve?
- Only using verbal warnings
- Providing bonuses to improve behavior
- Terminating employees immediately for any violation
- A step-by-step corrective process with increasingly serious consequences (Correct answer)
Correct answer: A step-by-step corrective process with increasingly serious consequences
Progressive discipline escalates consequences (verbal warning → written warning → suspension → termination) to correct behavior while documenting performance issues.
Question 10: The concept of 'resistance to change' in OD is best managed by:
- Mandating change through policy without explanation
- Accelerating implementation so employees have less time to resist
- Replacing employees who resist with new hires
- Involving employees in the change process and addressing their concerns (Correct answer)
Correct answer: Involving employees in the change process and addressing their concerns
Participation and transparent communication give employees a voice, build ownership, and reduce fear — the most effective ways to minimize resistance.
Question 11: Which approach to conflict resolution involves a neutral third party helping parties reach their own agreement?
- Mediation (Correct answer)
- Litigation
- Arbitration
- Negotiation
Correct answer: Mediation
Mediation uses a neutral facilitator to help disputing parties communicate and voluntarily reach a mutually acceptable resolution.
Question 12: What is 'halo effect' as a performance appraisal bias?
- Focusing only on recent performance rather than the full review period
- Giving better ratings to employees who work overtime
- Allowing one outstanding trait to positively influence ratings on all other dimensions (Correct answer)
- Rating all employees above average
Correct answer: Allowing one outstanding trait to positively influence ratings on all other dimensions
The halo effect occurs when a rater allows one positive characteristic to overly influence ratings of all other performance dimensions.
Question 13: What does the Fair Labor Standards Act (FLSA) establish?
- Workplace safety regulations
- Family and medical leave rights
- Anti-discrimination protections
- Minimum wage, overtime pay, and child labor standards (Correct answer)
Correct answer: Minimum wage, overtime pay, and child labor standards
The FLSA sets federal minimum wage, requires overtime pay at 1.5x for hours over 40 per week, and establishes child labor protections.
Question 14: Which federal law guarantees employees the right to organize, bargain collectively, and engage in concerted activities?
- National Labor Relations Act (NLRA) (Correct answer)
- FLSA
- FMLA
- Title VII
Correct answer: National Labor Relations Act (NLRA)
The NLRA (Wagner Act) protects employees' rights to organize unions and engage in collective bargaining.
Question 15: What is the purpose of a 'performance improvement plan' (PIP)?
- To document performance deficiencies and establish a structured plan with specific expectations and support for improvement (Correct answer)
- To conduct annual compensation reviews
- To identify training needs across the department
- To recognize top performers for advancement
Correct answer: To document performance deficiencies and establish a structured plan with specific expectations and support for improvement
A PIP formally identifies gaps between current and expected performance, sets clear goals, provides support resources, and establishes a timeframe for improvement.
Question 16: What is 'leniency bias' in performance ratings?
- The tendency to rate employees higher than their actual performance warrants (Correct answer)
- Rating all employees below average to appear objective
- Only giving ratings of 'meets expectations'
- Rating based on likability rather than output
Correct answer: The tendency to rate employees higher than their actual performance warrants
Leniency bias occurs when a rater consistently rates employees more favorably than their performance merits, often to avoid conflict.
Question 17: What is the purpose of an Applicant Tracking System (ATS)?
- To track employee vacation time
- To automate and manage the recruitment and hiring process (Correct answer)
- To calculate payroll deductions
- To monitor employee performance
Correct answer: To automate and manage the recruitment and hiring process
An ATS streamlines recruiting by managing job postings, collecting applications, and tracking candidates through the hiring pipeline.
Question 18: In OD, 'systems thinking' suggests that organizational problems should be viewed as:
- Isolated issues caused by individual performance failures
- Legal risks requiring compliance interventions
- Interconnected patterns within a larger whole (Correct answer)
- Purely financial challenges requiring cost-cutting
Correct answer: Interconnected patterns within a larger whole
Systems thinking recognizes that organizations are complex, interdependent systems where changes in one part affect all other parts.
Question 19: Under the ACA, what employer mandate applies to companies with 50+ full-time equivalent employees?
- Offer affordable minimum essential health coverage or face potential penalties (Correct answer)
- Match 401(k) contributions at 6%
- Provide a minimum wage above federal standards
- Provide paid parental leave
Correct answer: Offer affordable minimum essential health coverage or face potential penalties
The ACA's employer shared responsibility provision requires applicable large employers to offer affordable health coverage or pay an employer shared responsibility payment.
Question 20: Which payroll tax funds the federal unemployment insurance system?
- SUTA
- FICA
- FUTA (Correct answer)
- Medicare surtax
Correct answer: FUTA
The Federal Unemployment Tax Act (FUTA) funds the federal portion of the unemployment insurance system and is paid solely by employers.
Question 21: What is 'compa-ratio' in compensation management?
- The comparison of pay between competitors
- The ratio of benefits costs to salary costs
- An employee's actual pay divided by the midpoint of their pay range (Correct answer)
- The ratio of base pay to total compensation
Correct answer: An employee's actual pay divided by the midpoint of their pay range
Compa-ratio compares an employee's pay to the salary range midpoint, indicating where they fall relative to the market benchmark.
Question 22: What is the primary purpose of an exit interview?
- To complete Form I-9 reverification
- To gather honest feedback from departing employees to improve organizational practices (Correct answer)
- To calculate final paycheck amounts
- To negotiate a final salary payment
Correct answer: To gather honest feedback from departing employees to improve organizational practices
Exit interviews collect candid insights from departing employees about workplace culture, management, and conditions that may inform retention strategies.
Question 23: Which statement best describes 'organizational climate' as distinct from 'organizational culture'?
- Climate refers to physical workspace design while culture refers to remote work policies
- Climate refers to deep-seated values while culture refers to current perceptions
- Climate refers to employees' perceptions of the work environment while culture is the deeper underlying values and beliefs (Correct answer)
- Climate and culture are interchangeable terms in OD
Correct answer: Climate refers to employees' perceptions of the work environment while culture is the deeper underlying values and beliefs
Organizational climate is a surface-level reflection of how employees currently perceive the workplace, while culture is the deeper, more stable set of shared values and assumptions.
Question 24: Which interviewing technique asks candidates to describe how they handled a specific past situation?
- Stress interviewing
- Behavioral interviewing (Correct answer)
- Case interviewing
- Situational interviewing
Correct answer: Behavioral interviewing
Behavioral interviewing uses past behavior as a predictor of future performance by asking candidates to recount specific experiences.
Question 25: What is 'at-will employment' exception based on 'implied contract'?
- When a written employment contract exists
- When employer statements in handbooks or verbal promises create a reasonable expectation of continued employment (Correct answer)
- When an employee is a union member
- When an employee has worked over 5 years
Correct answer: When employer statements in handbooks or verbal promises create a reasonable expectation of continued employment
Courts may find an implied contract exception when employer language in handbooks, policies, or verbal promises suggests job security.
Question 26: What does 'organizational culture' refer to in HR?
- The shared values, beliefs, behaviors, and norms that shape how work gets done in an organization (Correct answer)
- The physical office environment
- The company's financial performance
- The employee benefits package
Correct answer: The shared values, beliefs, behaviors, and norms that shape how work gets done in an organization
Organizational culture encompasses the shared assumptions, values, and practices that define how people behave within an organization.
Question 27: What is 'duty of good faith and fair dealing' as an exception to at-will employment?
- Requirement to offer written warnings before termination
- Requirement to provide severance pay
- Prohibition against terminating employees for bad-faith or malicious reasons (Correct answer)
- Mandate to provide two weeks' notice
Correct answer: Prohibition against terminating employees for bad-faith or malicious reasons
The implied covenant of good faith and fair dealing prevents employers from terminating employees in bad faith or with malicious intent.
Question 28: The FMLA (Family and Medical Leave Act) provides eligible employees up to how many weeks of unpaid leave per year?
- 8 weeks
- 16 weeks
- 6 weeks
- 12 weeks (Correct answer)
Correct answer: 12 weeks
FMLA entitles eligible employees to up to 12 weeks of unpaid, job-protected leave per year for qualifying family or medical reasons.
Question 29: What is a 'cafeteria plan' (Section 125 plan) in employee benefits?
- An employer-provided meal subsidy program
- A retirement savings vehicle
- A flexible benefits plan allowing employees to choose among pretax benefit options (Correct answer)
- A healthcare reimbursement account
Correct answer: A flexible benefits plan allowing employees to choose among pretax benefit options
A Section 125 cafeteria plan lets employees select from a menu of pretax benefit options, allowing customization of their benefits package.
Question 30: Under the WARN Act, employers with 100+ employees must provide how many days' advance notice of mass layoffs?
- 30 days
- 60 days (Correct answer)
- 90 days
- 14 days
Correct answer: 60 days
The Worker Adjustment and Retraining Notification (WARN) Act requires 60 days' advance written notice before mass layoffs or plant closings.
PHR: Professional in Human Resources
The PHR certification from HRCI validates mastery of the technical and operational aspects of HR management, covering employment law, talent acquisition, compensation, employee relations, and organizational development.
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