PHR Practice Test

Question 1

When you compare your company's return on investment to that of the competition, you'll see that it's a little lower. 
What is the most effective course of action?

Accepted Answer

Adjust the strategic plan to maximize the value of expenses.

Answer

A lower Return on Investment (ROI) suggests the company isn't generating sufficient profit relative to its investments compared to competitors. To improve ROI, a company can either increase revenue or decrease costs. Adjusting the strategic plan to maximize the value of expenses directly addresses the cost side, aiming to achieve more output for the same or less expenditure, thereby enhancing ROI.

Question 2

According to which motivation theory, employees are motivated by success, but they weigh the expected benefit 
against the effort required to accomplish it?

Accepted Answer

Vroom's expectancy theory

Answer

Vroom's expectancy theory posits that individuals are motivated when they believe their effort will lead to good performance, that good performance will be rewarded, and that these rewards are desirable. This directly aligns with the idea of employees weighing expected benefits against the effort required to achieve success.

Question 3

Which of the following is a SMART goal's element?

Accepted Answer

Action-oriented

Answer

SMART is an acronym for Specific, Measurable, Achievable, Relevant, and Time-bound. 'Action-oriented' aligns with the 'A' in SMART, emphasizing that goals should describe specific actions to be taken. This ensures goals are practical and guide concrete efforts.

Question 4

You want to build and maintain a strong sense of ethics inside an organization as an HR professional. 
One efficient method is to:

Accepted Answer

Establish a code of conduct

Answer

Establishing a code of conduct clearly outlines the expected ethical behaviors and standards for all employees within an organization. This provides a formal framework and guidance, which is crucial for building and maintaining a strong ethical culture. It offers actionable guidelines beyond a general ethics statement.

Question 5

What is the name given to an employee who files a complaint with a federal agency alleging that their employer
 has engaged in illegal activity?

Accepted Answer

Whistle-blower

Answer

A 'whistle-blower' is an individual who exposes information about illegal or unethical activities within a private or public organization. This term specifically describes an employee reporting an employer's illegal activity to an external federal agency.