Professional in Human Resources (PHR) Certification Exam — Questions and Answers

Question 1: Which OSHA citation classification carries the most serious penalty for a deliberate violation?

Serious
Other-than-serious
De minimis
Willful (Correct answer)

Correct answer: Willful

A willful violation is committed intentionally or with plain indifference and carries the highest penalties.

Question 2: In the ADDIE instructional design model, which phase involves identifying the performance gap and learner characteristics?

Development
Implementation
Analysis (Correct answer)
Design

Correct answer: Analysis

The Analysis phase identifies the performance gap, target audience, and learning needs before design begins.

Question 3: Which of the following is the PRIMARY purpose of implementing a progressive discipline policy?

To reduce the administrative burden on managers when issuing discipline.
To ensure all policy violations are treated with identical consequences.
To give employees an opportunity to correct poor performance or behavior. (Correct answer)
To establish a clear and defensible record for termination.

Correct answer: To give employees an opportunity to correct poor performance or behavior.

The primary goal of a progressive discipline policy is corrective, not punitive. It is designed to notify an employee of a performance or conduct issue and provide them with a structured opportunity to improve before more severe disciplinary measures, such as termination, are implemented.

Question 4: Which document outlines the essential duties, responsibilities, and reporting relationships of a position?

Job description (Correct answer)
Org chart
Offer letter
Job specification

Correct answer: Job description

A job description details the duties, responsibilities, and reporting structure of a role.

Question 5: Under the FLSA, what is the primary requirement for an employee to qualify for the executive exemption?

Earning a salary above the threshold and primarily managing the enterprise or a department (Correct answer)
Working more than 40 hours per week regularly
Holding a job title containing the word 'manager'
Being paid on an hourly basis above minimum wage

Correct answer: Earning a salary above the threshold and primarily managing the enterprise or a department

The executive exemption requires meeting the salary basis/level test plus a duties test centered on managing and directing the work of others.

Question 6: What is the primary purpose of a Job Safety Analysis (JSA)?

To schedule shift rotations
To identify hazards associated with each step of a task (Correct answer)
To evaluate employee productivity
To set compensation levels

Correct answer: To identify hazards associated with each step of a task

A JSA breaks a job into steps to identify hazards and recommend controls.

Question 7: Which of the following is a key characteristic of a learning organization as described by Peter Senge?

Systems thinking (Correct answer)
Limited information sharing
Rigid hierarchy
Centralized decision-making

Correct answer: Systems thinking

Systems thinking is one of Senge's five disciplines of a learning organization.

Question 8: Point-factor job evaluation is an example of which type of evaluation method?

Market pricing
Classification
Ranking
Quantitative (Correct answer)

Correct answer: Quantitative

Point-factor assigns numeric points to compensable factors, making it a quantitative method.

Question 9: Which control is an example of an engineering control?

Rotating worker shifts
Posting warning signs
Installing machine guards (Correct answer)
Requiring safety glasses

Correct answer: Installing machine guards

Machine guards physically isolate the hazard, making them an engineering control.

Question 10: Time-to-fill measures the number of days from:

Offer letter to first paycheck
First interview to start date
Job requisition approval to offer acceptance (Correct answer)
Application receipt to rejection

Correct answer: Job requisition approval to offer acceptance

Time-to-fill tracks the elapsed days between opening a requisition and a candidate accepting the offer.

Question 11: Under the OSHA Hazard Communication Standard (HCS), what is the primary purpose of a Safety Data Sheet (SDS)?

To serve as a permit for transporting hazardous materials between facilities.
To report workplace injuries caused by chemical exposure to the insurance carrier.
To provide detailed information on chemical hazards and safe handling procedures. (Correct answer)
To document the cost and inventory of all chemicals used in the workplace.

Correct answer: To provide detailed information on chemical hazards and safe handling procedures.

The primary purpose of an SDS is to communicate comprehensive information about the hazards of a chemical and the protective measures to be taken. It is a critical component of the Hazard Communication Standard, ensuring that employees have the necessary information to work safely with hazardous substances.

Question 12: An organizations four stages are:

Formation, Growth, Maturity, Stagnation
Launch, Investment, Growth, Decline
Introduction, Growth, Maturity, Decline (Correct answer)
Startup, Investment, Growth, Sale

Correct answer: Introduction, Growth, Maturity, Decline

Organizations, much like products, typically progress through a life cycle characterized by four distinct stages: Introduction, Growth, Maturity, and Decline. In the Introduction stage, the organization is new and establishing itself. Growth involves rapid expansion, while Maturity sees stable operations and market share. Finally, Decline occurs when the organization faces decreasing demand or relevance, often necessitating strategic changes or eventual closure.

Question 13: Which benefit provides income replacement to employees who are injured on the job, regardless of fault?

Short-term disability
Social Security disability
Unemployment insurance
Workers' compensation (Correct answer)

Correct answer: Workers' compensation

Workers' compensation provides no-fault income and medical benefits for work-related injuries.

Question 14: An HR director is reviewing the company's safety protocols to ensure compliance. Which of the following is a mandatory component of an Emergency Action Plan (EAP) as required by OSHA?

The location of the company's financial records.
A list of all employees' home phone numbers.
A detailed business continuity strategy for supply chain disruptions.
Procedures for employees to report a fire or other emergency. (Correct answer)

Correct answer: Procedures for employees to report a fire or other emergency.

OSHA standard 29 CFR 1910.38 requires that a written EAP must include specific elements. Among these mandatory components are the procedures for reporting a fire or other emergency. While other elements might be useful for business purposes, they are not mandated by this specific OSHA standard for an EAP.

Question 15: A 'competency model' is primarily used in L&D to do what?

Track paid time off
Set the company's pay grades
Define the knowledge, skills, and behaviors needed for success in a role (Correct answer)
Schedule shift rotations

Correct answer: Define the knowledge, skills, and behaviors needed for success in a role

A competency model specifies the capabilities required for effective performance, guiding development efforts.

Question 16: What is the deadline for bringing a charge of discrimination with the Equal Employment Opportunity Commission (EEOC)?

30 days
180 days (Correct answer)
300 days
90 days

Correct answer: 180 days

Generally, an individual must file a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) within 180 days from the date of the alleged discriminatory act. This deadline is crucial for initiating the legal process. In states with a state or local agency that enforces a law prohibiting discrimination on the same basis, this deadline can be extended to 300 days, but the standard federal period is 180 days.

Question 17: In a defined contribution plan, the employer _ and the employee _ make an annual payment to the employee's retirement plan account.

must, must
may, may
may, must
must, may (Correct answer)

Correct answer: must, may

In a defined contribution plan, the employer "must" make an annual payment to the employee's retirement plan account, as this is the employer's contribution commitment. The employee, however, "may" also make contributions, as their participation is typically voluntary or elective. This structure defines the employer's obligation while allowing employee flexibility in saving for retirement.

Question 18: An employee requests FMLA leave. How many weeks of unpaid leave does the FMLA generally provide in a 12-month period?

12 weeks (Correct answer)
16 weeks
6 weeks
10 weeks

Correct answer: 12 weeks

The FMLA entitles eligible employees to up to 12 weeks of unpaid, job-protected leave per 12-month period.

Question 19: Paid time off, flexible scheduling, and remote work options fall under which total rewards component?

Direct compensation
Short-term incentives
Work-life effectiveness (Correct answer)
Equity compensation

Correct answer: Work-life effectiveness

Work-life effectiveness includes flexibility and time-off programs that support employee well-being.

Question 20: An 'individual development plan' (IDP) is primarily a tool to do what?

Document an employee's career goals and development actions (Correct answer)
Schedule company holidays
Track office supply orders
Calculate overtime pay

Correct answer: Document an employee's career goals and development actions

An IDP outlines an employee's goals and the specific actions to build skills and advance their career.

Question 21: What federal legislation defines sexual harassment as a form of discrimination?

Title VII - Civil Rights Act (Correct answer)
Equal Employment Opportunity Commission
Fair Labor Standards Act
American Disabilities Act

Correct answer: Title VII - Civil Rights Act

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, and national origin. The Supreme Court and the Equal Employment Opportunity Commission (EEOC) have interpreted 'sex' discrimination to include sexual harassment, making it illegal under this act.

Question 22: Adverse impact in selection is commonly evaluated using which guideline?

The four-fifths (80%) rule (Correct answer)
The bona fide occupational qualification
The ministerial exception
The de minimis standard

Correct answer: The four-fifths (80%) rule

The four-fifths rule flags potential adverse impact when a protected group's selection rate is below 80% of the highest group's rate.

Question 23: An employer brand most directly influences:

Product pricing strategy
A company's ability to attract and retain talent (Correct answer)
Shareholder dividend payments
The corporate tax rate

Correct answer: A company's ability to attract and retain talent

Employer branding shapes an organization's reputation as a place to work, affecting attraction and retention.

Question 24: An organization is conducting a systematic process to determine the gap between the skills its workforce currently possesses and the skills required to meet its strategic objectives. This process involves organizational, task, and individual analyses. What is this process called?

Succession planning
Training needs analysis (Correct answer)
Job evaluation
Performance appraisal

Correct answer: Training needs analysis

A training needs analysis (TNA) is a systematic process used to identify gaps between current and required employee skills to achieve organizational goals. It often includes analysis at the organizational, task (or job), and individual levels.

Question 25: Which interview bias occurs when an interviewer rates a candidate highly on all traits because of one positive characteristic?

Halo effect (Correct answer)
Stereotyping
Recency effect
Contrast effect

Correct answer: Halo effect

The halo effect lets one favorable trait inflate the rating of unrelated qualities.

Question 26: In the hierarchy of controls, which method is considered the most effective for reducing a hazard?

Personal protective equipment
Warning signs
Administrative controls
Elimination (Correct answer)

Correct answer: Elimination

Elimination removes the hazard entirely and is the most effective control.

Question 27: A regulation is a rule or order issued by a government agency which _______________ has the force or law.

Never
Often (Correct answer)
Always
Rarely

Correct answer: Often

Regulations are rules or orders issued by government agencies to implement and enforce laws passed by legislative bodies. While they are not laws themselves, they often carry the force of law because they are authorized by statute and are legally binding on those they affect. However, they can be challenged in court or changed by the issuing agency, so the term 'often' reflects this nuanced legal standing.

Question 28: Which background-check practice must comply with the Fair Credit Reporting Act (FCRA)?

Calling a listed personal reference directly
Verifying a degree by phone with the school
Using a third-party consumer reporting agency (Correct answer)
Reviewing the candidate's public social media

Correct answer: Using a third-party consumer reporting agency

The FCRA governs background checks performed by third-party consumer reporting agencies, requiring disclosure and consent.

Question 29: Break even occurs when:

Total revenue equals total cost (Correct answer)
Net revenue equals net cost
Net profit equals total cost
Net profit equals net cost

Correct answer: Total revenue equals total cost

The break-even point is the level of sales at which total revenues equal total costs, meaning there is neither profit nor loss. At this point, the business has covered all its fixed and variable expenses. Understanding the break-even point is crucial for businesses to determine the minimum sales volume needed to avoid losses and to set pricing strategies.

Question 30: Which of the following offers an informal setting for a group of employees to meet with their manager in order to learn more about the company?

Brown-bag lunch program (Correct answer)
Department staff meetings
Word of mouth
Work team

Correct answer: Brown-bag lunch program

A brown-bag lunch program is an informal gathering where employees bring their own lunch and meet with a manager or executive. This setting encourages open dialogue, allows employees to ask questions directly, and learn more about the company in a relaxed, non-threatening environment. It fosters communication and provides a casual forum for information exchange that more formal meetings typically do not.

Question 31: As part of a marketing strategy, a restaurant launches a new happy-hour. The owner wants to know if the marketing helped sales a year later. Which form of strategic planning statistic can be used to compare sales from the prior year to the current year?

Return on investment
Gross profit margin (Correct answer)
Opportunity success rate
Innovation rate

Correct answer: Gross profit margin

Gross profit margin measures the percentage of revenue left after deducting the cost of goods sold. Comparing the gross profit margin year-over-year would directly show if the happy-hour marketing strategy led to an increase in profitable sales, thus indicating its effectiveness in improving the restaurant's financial performance.

Question 32: Exempt employees are _______________ the FLSA minimum wage and overtime pay requirements.

Not covered by
Included in
Conditionally excluded from (Correct answer)
Excluded from

Correct answer: Conditionally excluded from

Exempt employees are "conditionally excluded from" the Fair Labor Standards Act (FLSA) minimum wage and overtime pay requirements. This means they are not automatically excluded; rather, they must meet specific criteria related to their job duties (e.g., executive, administrative, professional) and typically be paid on a salary basis above a certain threshold. If these conditions are not met, they are considered non-exempt and are covered by FLSA provisions.

Question 33: Which sourcing strategy relies on current employees recommending candidates from their networks?

Job fair recruiting
Employee referral program (Correct answer)
Boomerang hiring
Campus recruiting

Correct answer: Employee referral program

Employee referral programs leverage existing staff networks and typically yield strong-quality, lower-cost hires.

Question 34: To qualify for special tax treatment, a health savings account (HSA) for a single person must have a deductible of at least _ and out-of-pocket limits of no more than _.

$2,400, $5,950
$2,400, $11,900
$1,200, $11,900
$1,200, $5,950 (Correct answer)

Correct answer: $1,200, $5,950

To qualify for special tax treatment, a Health Savings Account (HSA) must be paired with a High Deductible Health Plan (HDHP). For a single person (as per the 2012 IRS guidelines, which these numbers reflect), the HDHP deductible had to be at least $1,200, and the out-of-pocket maximum could not exceed $5,950. These thresholds ensure the plan meets the IRS definition of an HDHP.

Question 35: The 'halo effect' in performance appraisal occurs when a rater:

Allows one positive trait to positively influence ratings across all other dimensions (Correct answer)
Rates all employees in the middle of the scale to avoid conflict
Gives higher ratings at the end of the year than at midyear
Rates recent events more heavily than past performance

Correct answer: Allows one positive trait to positively influence ratings across all other dimensions

The halo effect is a cognitive bias where a single strong positive impression skews the rater's evaluation of all other performance dimensions upward.

Question 36: A recruiter is preparing for an interview with a candidate for a customer service manager position. The recruiter plans to ask, 'Tell me about a time you had to handle a difficult customer. What was the situation, what action did you take, and what was the result?' What type of interview question is this?

Unstructured
Stress
Situational
Behavioral (Correct answer)

Correct answer: Behavioral

This is a classic behavioral interview question. Behavioral questions are based on the premise that past behavior is the best predictor of future performance. They ask candidates to describe specific past experiences to demonstrate their skills and competencies. Situational questions, in contrast, pose hypothetical 'what would you do if' scenarios.

Question 37: What does the term 'span of control' refer to?

Number of employees a manager directly supervises (Correct answer)
Length of a project
Total company revenue
Range of pay grades

Correct answer: Number of employees a manager directly supervises

Span of control is the number of subordinates reporting directly to one manager.

Question 38: Which type of report shows data at a single point in time, like a current headcount?

Predictive model
Forecast report
Trend report
Snapshot report (Correct answer)

Correct answer: Snapshot report

A snapshot captures a static view of data as of a specific date.

Question 39: Which type of training simulates the actual work environment in a separate setting to avoid disrupting production?

Self-directed study
On-the-job training
Vestibule training (Correct answer)
Webinar training

Correct answer: Vestibule training

Vestibule training uses replicated equipment or settings away from the real workplace so learning does not disrupt operations.

Question 40: A human resources employee would be classified as a:

Line unit
Staff unit (Correct answer)
Business unit
Management unit

Correct answer: Staff unit

A human resources employee primarily provides specialized support, advice, and services to other departments and line managers within an organization. This advisory and indirect role, rather than direct production of goods or services, is the defining characteristic of a staff unit.

Question 41: An employee earns more than the maximum of their pay range due to a prior salary. What is this situation called?

Green circle rate
Compa-ratio of 1.0
Pay equity adjustment
Red circle rate (Correct answer)

Correct answer: Red circle rate

A red circle rate occurs when an employee's pay exceeds the maximum of the assigned range.

Question 42: An action plan is used when achieving _______________ objectives.

Short-term (Correct answer)
Company-wide
Medium-term
Long-term

Correct answer: Short-term

An action plan is a detailed roadmap outlining the specific steps, resources, and timelines required to achieve a particular goal. It is most effectively used for short-term objectives because these goals typically require immediate, concrete steps and clear accountability to ensure timely completion. For longer-term objectives, action plans might be broken down into smaller, sequential short-term plans.

Question 43: Span of control refers to:

The percentage of operations that are local vs. distributed
Employee sick time, vacation, and paid leave policies
The budgetary authority of a division head
The number of people who report to a supervisor (Correct answer)

Correct answer: The number of people who report to a supervisor

Span of control, also known as span of management, refers to the number of subordinates or employees that a manager or supervisor can effectively and efficiently direct. It is a key concept in organizational structure, influencing the number of management layers.

Question 44: Which OSHA inspection priority is ranked highest?

Programmed inspections
Employee complaints
Imminent danger situations (Correct answer)
Referrals

Correct answer: Imminent danger situations

Imminent danger situations receive the highest OSHA inspection priority.

Question 45: Why should HR limit access to compensation data within the HRIS?

To make reports harder to read
To slow down payroll
To increase data entry errors
To protect confidentiality and comply with privacy expectations (Correct answer)

Correct answer: To protect confidentiality and comply with privacy expectations

Restricting access to pay data preserves confidentiality and prevents misuse.

Question 46: An HR department has discovered that a manager has been accessing the personal files of their subordinates in the HRIS without any legitimate business reason. This action is a direct violation of which fundamental principle of information management?

Access control (Correct answer)
Data encryption
System integration
Data integrity

Correct answer: Access control

Access control is the security principle that restricts access to information and system functions to authorized users. The manager's actions represent a failure or breach of access control, as they accessed confidential data that was not necessary for their role. Data integrity relates to accuracy, integration to system connectivity, and encryption to data protection during storage or transmission.

Question 47: Which type of learning evaluation is conducted DURING program development to improve it?

Meta evaluation
Formative evaluation (Correct answer)
Summative evaluation
Confirmative evaluation

Correct answer: Formative evaluation

Formative evaluation occurs while a program is being developed to refine and improve it.

Question 48: An HR audit measures which of the following?

Hiring practices
HR programs & positions (Correct answer)
Retention practices
Regulatory compliance

Correct answer: HR programs & positions

An HR audit is a comprehensive review of an organization's human resources policies, procedures, documentation, and systems. Its primary purpose is to evaluate the effectiveness and efficiency of HR programs and positions, ensuring compliance with laws and regulations, identifying areas for improvement, and aligning HR practices with organizational goals. This includes assessing everything from recruitment to compensation and employee relations.

Question 49: Which standard governs employer-provided respirators and requires fit testing?

Respiratory Protection Standard (Correct answer)
Electrical Safety Standard
Walking-Working Surfaces Standard
Hazard Communication Standard

Correct answer: Respiratory Protection Standard

The Respiratory Protection Standard requires medical evaluation, fit testing, and training for respirator use.

Question 50: An L&D specialist has just finished the 'Analysis' phase of the ADDIE model for a new compliance training program. What is the MOST logical next step for the specialist to take?

Deliver the training to a pilot group of employees.
Create the training materials, such as presentations and handouts.
Measure the business impact of the training program.
Define learning objectives and select the appropriate media. (Correct answer)

Correct answer: Define learning objectives and select the appropriate media.

In the ADDIE model, the phase that follows 'Analysis' is 'Design'. The Design phase involves defining learning objectives, determining the instructional strategy, and selecting the delivery methods and media. Creating materials occurs in the 'Development' phase, and delivering the training is the 'Implementation' phase.

Question 51: What is a 'dashboard' in HR reporting?

A confidential personnel file
A visual display of key metrics for quick interpretation (Correct answer)
A printed annual report
A single spreadsheet cell

Correct answer: A visual display of key metrics for quick interpretation

Dashboards present key HR metrics visually for at-a-glance monitoring.

Question 52: A company hires temporary workers through a staffing agency during a seasonal peak. This is an example of:

Reduction in force
Contingent staffing (Correct answer)
Phased retirement
Job rotation

Correct answer: Contingent staffing

Contingent staffing uses temporary, contract, or agency workers to meet fluctuating labor needs.

Question 53: COBRA generally allows eligible employees to continue group health coverage for how long after a qualifying event like termination?

12 months
18 months (Correct answer)
36 months in all cases
6 months

Correct answer: 18 months

COBRA provides up to 18 months of continuation coverage for most qualifying events, with some extensions.

Question 54: Which concept describes HR's role as a contributor to organizational profitability and strategy?

Clerical support
Strategic business partner (Correct answer)
Outsourced vendor
Compliance gatekeeper only

Correct answer: Strategic business partner

As a strategic business partner, HR contributes directly to strategy and organizational results.

Question 55: What is the degree to which decision making authority is given to lower levels in an organization's hierarchy?

Zone of control
Delegation
Decentralization (Correct answer)
Scope of authority

Correct answer: Decentralization

Decentralization refers to the extent to which decision-making authority is distributed and pushed down to lower levels within an organization's hierarchy. This empowers employees at various levels to make decisions, contrasting with centralization where authority is concentrated at the top.

Question 56: Which leadership approach adjusts style based on follower readiness and the situation?

Situational leadership (Correct answer)
Transactional leadership
Autocratic leadership
Laissez-faire leadership

Correct answer: Situational leadership

Situational leadership theory holds that effective leaders adapt their style to follower maturity and context.

Question 57: To an operations department, what is the order of importance/value for the following assets?

Physical buildings, Equipment, Inventory (Correct answer)
Equipment, Inventory, Physical buildings
Inventory, Equipment, Physical buildings
Physical buildings, Inventory, Equipment

Correct answer: Physical buildings, Equipment, Inventory

For an operations department, the order of importance for assets generally reflects their foundational role and direct impact on production. Physical buildings provide the essential space and infrastructure for all operations. Equipment, such as machinery, is critical for the actual production processes within those buildings. Inventory, while important for fulfilling orders, is a more fluid asset that depends on the availability of the physical space and equipment to be processed and stored.

Question 58: Which of the following best describes a 'near miss' in safety management?

A recordable illness
A lost-time injury
A fatality on the job
An incident that could have caused harm but did not (Correct answer)

Correct answer: An incident that could have caused harm but did not

A near miss is an event that had the potential to cause injury or damage but did not.

Question 59: Which OSHA program protects employees from unexpected machine energization during maintenance?

Bloodborne Pathogens
Lockout/Tagout (Correct answer)
Respiratory Protection
Hearing Conservation

Correct answer: Lockout/Tagout

Lockout/Tagout procedures control hazardous energy during servicing and maintenance.

Question 60: A succession planning 9-box grid typically plots employees along which two dimensions?

Age and education
Performance and potential (Correct answer)
Department and location
Tenure and salary

Correct answer: Performance and potential

The 9-box grid assesses employees by current performance and future potential.

Question 61: A nonexempt employee's regular rate of pay for overtime must include which of the following?

Reimbursed expenses
Paid time off cash-outs
Discretionary holiday gifts
Nondiscretionary bonuses (Correct answer)

Correct answer: Nondiscretionary bonuses

Nondiscretionary bonuses must be included when calculating the regular rate for overtime.

Question 62: An organizations four stages are:

Startup, Investment, Growth, Sale
Formation, Growth, Maturity, Stagnation
Introduction, Growth, Maturity, Decline (Correct answer)
Launch, Investment, Growth, Decline

Correct answer: Introduction, Growth, Maturity, Decline

An organizations four stages are Introduction, Growth, Maturity, Decline (IGMD).

Question 63: A company is experiencing high turnover among new hires within the first six months. To improve retention, HR decides to implement a more robust program that includes formal orientation, introductions to key team members, and a 'buddy' system. This process is known as:

Sourcing
Onboarding (Correct answer)
Selection
Recruitment

Correct answer: Onboarding

Onboarding is the process of integrating a new employee into an organization and its culture. A well-structured onboarding program goes beyond basic orientation and aims to help new hires become productive and engaged members of the team, which is directly linked to higher retention rates.

Question 64: A company pays employees a flat amount per geographic area regardless of role. This best describes which pay strategy component?

Broadbanding
Pay compression
Geographic differential (Correct answer)
Red circle rate

Correct answer: Geographic differential

A geographic differential adjusts pay based on the cost of labor or living in a specific location.

Question 65: An HR manager is conducting an environmental scan as part of the strategic planning process. Which of the following is the primary purpose of this activity?

To evaluate the performance and skill sets of the current workforce.
To ensure compliance with the latest employment laws and regulations.
To develop the annual budget for the human resources department.
To identify external opportunities and threats that could impact the organization. (Correct answer)

Correct answer: To identify external opportunities and threats that could impact the organization.

Environmental scanning is a key component of strategic planning that involves gathering and analyzing information about the external environment to identify potential opportunities and threats. This proactive process helps organizations anticipate market changes, shifts in technology, and other external factors to inform their strategy. While workforce evaluation, budgeting, and compliance are important HR functions, they are not the primary purpose of an environmental scan.

Question 66: Which budgeting method requires justifying all expenses from scratch each period?

Incremental budgeting
Zero-based budgeting (Correct answer)
Rolling budget
Flexible budgeting

Correct answer: Zero-based budgeting

Zero-based budgeting starts at zero and requires justification for every expense each cycle.

Question 67: Which metric divides total recruiting costs by the number of hires?

Cost-per-hire (Correct answer)
Time-to-fill
Quality of hire
Yield ratio

Correct answer: Cost-per-hire

Cost-per-hire totals internal and external recruiting expenses divided by the number of positions filled.

Question 68: What is the main purpose of a return-to-work program after a workplace injury?

To safely transition injured employees back to productive duty (Correct answer)
To reduce vacation accrual
To terminate injured employees
To avoid all medical treatment

Correct answer: To safely transition injured employees back to productive duty

Return-to-work programs help injured employees resume productive duty, often through modified work.

Question 69: Which federal agency is responsible for setting and enforcing workplace safety standards in the United States?

DOL Wage and Hour Division
EEOC
NLRB
OSHA (Correct answer)

Correct answer: OSHA

The Occupational Safety and Health Administration (OSHA) sets and enforces workplace safety and health standards.

Question 70: Under a drug-free workplace policy, when is reasonable suspicion testing typically justified?

On every employee monthly
Never, as it is illegal
When observable signs suggest impairment (Correct answer)
Only after a promotion

Correct answer: When observable signs suggest impairment

Reasonable suspicion testing is justified by observable signs or behaviors indicating impairment.

Question 71: A business continuity plan is primarily designed to do what?

Set marketing budgets
Calculate payroll taxes
Conduct exit interviews
Maintain or quickly resume critical operations after a disruption (Correct answer)

Correct answer: Maintain or quickly resume critical operations after a disruption

A business continuity plan ensures critical functions continue or resume quickly after a disruption.

Question 72: Quality of hire is best measured by:

The number of applications received
New-hire performance and retention over time (Correct answer)
The size of the signing bonus
The speed of the interview process

Correct answer: New-hire performance and retention over time

Quality of hire evaluates how well new employees perform and stay, reflecting recruiting effectiveness.

Question 73: Your company establishes a suggestion box where employees can anonymously submit ideas to executives and management. What is the best course of action for management to take in order for employees to recognize the program's value?

Organize the suggestions by type
Act quickly on the suggestions (Correct answer)
Share the suggestions with the entire organization
Discuss the suggestions

Correct answer: Act quickly on the suggestions

For an employee suggestion program to be effective and valued, employees need to see that their input leads to tangible actions and changes. Acting quickly on suggestions demonstrates that management takes employee ideas seriously and is responsive to feedback. This responsiveness builds trust, encourages continued participation, and reinforces the program's perceived value among employees.

Question 74: Which performance appraisal method collects feedback from a subordinate's supervisors, peers, direct reports, and sometimes customers?

Forced ranking
Management by Objectives (MBO)
Behaviorally Anchored Rating Scale (BARS)
360-degree feedback (Correct answer)

Correct answer: 360-degree feedback

360-degree feedback gathers input from multiple rater sources surrounding the employee—supervisors, peers, direct reports, and customers—providing a comprehensive performance view.

Question 75: Which law prohibits employment discrimination based on race, color, religion, sex, and national origin?

The Age Discrimination in Employment Act
Title VII of the Civil Rights Act of 1964 (Correct answer)
The Americans with Disabilities Act
The Equal Pay Act of 1963

Correct answer: Title VII of the Civil Rights Act of 1964

Title VII bars discrimination on the basis of race, color, religion, sex, and national origin in employment.

Question 76: Andragogy, as defined by Malcolm Knowles, primarily describes the principles of:

Group dynamics
Behavioral conditioning
Adult learning (Correct answer)
Child learning

Correct answer: Adult learning

Andragogy is Knowles's theory of how adults learn, emphasizing self-direction and experience.

Question 77: Behavioral interview questions are based on the premise that:

Past behavior predicts future performance (Correct answer)
Personality tests are unnecessary
Stress reveals real character
Hypothetical answers reveal true intent

Correct answer: Past behavior predicts future performance

Behavioral interviewing assumes how a candidate acted previously predicts how they will act in similar situations.

Question 78: Flextime is a work schedule that allows which of the following to vary?

Hours worked per week
Compensation
Job duties
Starting and ending times (Correct answer)

Correct answer: Starting and ending times

Flextime is a work schedule that requires employees to work an established number of hours per week but allows starting and ending times to vary.

Question 79: A non-exempt, hourly employee works 45 hours in a single workweek at a base rate of $20 per hour. During that week, they also earn a $100 non-discretionary performance bonus. According to the Fair Labor Standards Act (FLSA), what is the employee's approximate total compensation for that week?

$1,000.00
$950.00
$1,050.00
$1,055.55 (Correct answer)

Correct answer: $1,055.55

The FLSA requires that non-discretionary bonuses be included when calculating the 'regular rate of pay' for overtime purposes. The calculation is: 1. Total straight-time pay = (45 hours × $20/hr) + $100 bonus = $1,000. 2. Regular rate of pay = $1,000 ÷ 45 hours = $22.22/hr. 3. Overtime premium = 5 hours × ($22.22/hr × 0.5) = $55.55. 4. Total compensation = $1,000 (straight-time) + $55.55 (overtime premium) = $1,055.55.

Question 80: Which of these employers does the Fair Labor Standards Act not cover?

A nursing home
An elementary school
A store with $250,000 in sales (Correct answer)
A local fire department

Correct answer: A store with $250,000 in sales

The Fair Labor Standards Act (FLSA) covers enterprises that have at least two employees and an annual dollar volume of sales or business done of $500,000 or more. A store with only $250,000 in sales falls below this enterprise coverage threshold. Therefore, it is not covered by the FLSA's minimum wage and overtime provisions, unless its employees are individually covered.

Question 81: Which compensation approach pays employees based on the market rate for similar jobs at other organizations?

External competitiveness (Correct answer)
Broadbanding
Pay compression
Internal equity

Correct answer: External competitiveness

External competitiveness sets pay relative to the going market rate for comparable jobs.

Question 82: An HR manager at a call center learns that employees are experiencing severe ergonomic strain from prolonged sitting in poorly designed chairs, a hazard for which no specific OSHA standard exists. However, the risk is well-recognized within the industry. If an employee is seriously injured as a result, under which provision could OSHA cite the employer?

The General Duty Clause (Correct answer)
The Whistleblower Protection Program
The Emergency Action Plan rule
The Hazard Communication Standard

Correct answer: The General Duty Clause

The General Duty Clause, Section 5(a)(1) of the OSH Act, requires employers to provide a workplace "free from recognized hazards that are causing or are likely to cause death or serious physical harm." It is used for enforcement when no specific OSHA standard applies to the recognized hazard, such as ergonomics in this scenario.

Question 83: The principle that employers have the right to hire, fire, demote, and promote whomever they choose for any reason is called:

Common-law
Implied contract
Just cause
Employment-at-will (Correct answer)

Correct answer: Employment-at-will

Employment-at-will is a common-law principle stating that employers have the right to hire, fire, demote, and promote whomever they choose for any reason unless there is a law or contract to the contrary and that employees have the right to quit a job at any time.

Question 84: Which metric measures the financial return generated relative to the cost of an HR initiative?

Headcount ratio
Turnover rate
Return on investment (ROI) (Correct answer)
Span of control

Correct answer: Return on investment (ROI)

ROI compares the gain from an initiative to its cost, expressed as a percentage.

Question 85: Which is a key benefit of employee self-service (ESS) modules in an HRIS?

It eliminates the need for managers
Employees update their own information, reducing HR administrative load (Correct answer)
It prevents employees from viewing pay stubs
It removes all data security requirements

Correct answer: Employees update their own information, reducing HR administrative load

ESS empowers employees to manage personal data, freeing HR from routine updates.

Question 86: Which pay-for-performance element provides a permanent increase to base pay based on individual results?

Spot bonus
Merit increase (Correct answer)
Gainsharing
Profit sharing

Correct answer: Merit increase

A merit increase permanently raises base pay according to individual performance.

Question 87: Which level of Kirkpatrick's evaluation model measures whether learners apply new skills back on the job?

Level 2 - Learning
Level 4 - Results
Level 3 - Behavior (Correct answer)
Level 1 - Reaction

Correct answer: Level 3 - Behavior

Level 3 (Behavior) assesses the transfer of learning to actual job performance.

Question 88: Change management models like Lewin's emphasize which three stages?

Hire, train, fire
Plan, do, stop
Start, pause, end
Unfreeze, change, refreeze (Correct answer)

Correct answer: Unfreeze, change, refreeze

Lewin's model describes unfreezing the status quo, making the change, then refreezing the new state.

Question 89: Outsourcing an HR function such as payroll is typically done to:

Reduce cost and focus on core activities (Correct answer)
Eliminate compliance entirely
Avoid all recordkeeping
Increase internal headcount

Correct answer: Reduce cost and focus on core activities

Organizations outsource functions like payroll to cut costs and concentrate on core work.

Question 90: Which of the following is the first step in the human resource strategic planning process?

Forecasting future human resource needs based on business goals.
Developing HR strategies to address workforce gaps.
Assessing the current workforce's skills, knowledge, and abilities. (Correct answer)
Conducting a gap analysis of the current and future workforce.

Correct answer: Assessing the current workforce's skills, knowledge, and abilities.

The strategic human resource planning process begins with a thorough assessment of the current workforce. This initial step involves creating an inventory of the skills, knowledge, and abilities of existing employees. This baseline understanding is essential before an organization can accurately forecast future needs, identify gaps, and develop effective strategies to address them.

Question 91: Which acronym identifies the four phases of strategic planning?

FDIE (Correct answer)
FDEI
FEDI
EFDI

Correct answer: FDIE

The acronym FDIE represents the four sequential phases of strategic planning: Formulation, Development, Implementation, and Evaluation. This structured approach ensures that strategies are well-conceived, put into action, and continuously assessed for their effectiveness.

Question 92: What is the primary goal of an ergonomics program in the workplace?

To standardize pay grades
To reduce musculoskeletal disorders by fitting tasks to workers (Correct answer)
To eliminate all rest breaks
To increase work hours

Correct answer: To reduce musculoskeletal disorders by fitting tasks to workers

Ergonomics fits the job to the worker to reduce musculoskeletal disorders.

Question 93: A continuous improvement cycle commonly used in business is:

Buy-Sell-Hold
Hire-Fire-Repeat
Plan-Do-Check-Act (PDCA) (Correct answer)
Start-Stop-Continue only

Correct answer: Plan-Do-Check-Act (PDCA)

The PDCA cycle drives continuous improvement through planning, doing, checking, and acting.

Question 94: An HR manager is drafting a new policy regarding employee use of company computers and email. To minimize legal risk related to privacy, which element is MOST essential to include in the policy?

A guarantee that personal emails will not be read by management.
A clause stating that all employee data entered into company systems is considered confidential.
A clear statement that employees have no reasonable expectation of privacy when using company systems. (Correct answer)
A list of all websites that are blocked by the company's firewall.

Correct answer: A clear statement that employees have no reasonable expectation of privacy when using company systems.

The most critical legal protection for an employer monitoring electronic communications is to eliminate any expectation of privacy. By clearly stating in a policy that company systems are for business purposes and that employees should have no expectation of privacy, the company establishes its right to monitor activity to protect its assets and ensure productivity.

Question 95: Which of the following BEST describes a key difference between a gainsharing plan and a profit-sharing plan?

Gainsharing is a legally required program for manufacturing companies, while profit-sharing is always discretionary.
Gainsharing plans provide employees with company stock, whereas profit-sharing plans provide cash bonuses.
Gainsharing plans reward individual performance, while profit-sharing plans reward only team performance.
Gainsharing payouts are based on operational improvements in a group or department, while profit-sharing payouts are based on overall company profitability. (Correct answer)

Correct answer: Gainsharing payouts are based on operational improvements in a group or department, while profit-sharing payouts are based on overall company profitability.

The primary distinction lies in the performance metrics used. Gainsharing rewards teams or groups for specific, measurable improvements in operational areas they can control, such as productivity or cost savings. Profit-sharing, conversely, is tied to the broader financial success of the entire organization (i.e., its profits).

Question 96: A manufacturing plant identifies that a specific piece of machinery generates noise levels that exceed OSHA's permissible exposure limits. As an initial measure, the company provides all affected employees with high-quality earplugs. According to the hierarchy of controls, this action is an example of:

Administrative controls
Elimination
Engineering controls
Personal Protective Equipment (PPE) (Correct answer)

Correct answer: Personal Protective Equipment (PPE)

The hierarchy of controls ranks risk mitigation strategies from most to least effective. Providing earplugs is an example of Personal Protective Equipment (PPE), which is considered the last line of defense because it relies on the employee to use it correctly and does not remove the hazard itself. More effective controls would include elimination (removing the machine), substitution (replacing it with a quieter one), or engineering controls (enclosing the machine to reduce noise).

Question 97: What is adverse impact in employment selection?

A neutral practice that disproportionately excludes a protected group (Correct answer)
An employee grievance
A positive hiring outcome
Intentional discrimination against an individual

Correct answer: A neutral practice that disproportionately excludes a protected group

Adverse impact occurs when a facially neutral practice disproportionately screens out members of a protected group.

Question 98: Personal protective equipment is generally considered which type of control measure?

An elimination control
A substitution control
An engineering control
The last line of defense (Correct answer)

Correct answer: The last line of defense

PPE is the least effective control and is used as a last line of defense.

Question 99: A point-of-service plan (POS) is a type of managed care plan that is a hybrid of which of the following types of plans?

HMO and PPO (Correct answer)
PPO and IRA
HMO and HSA
HSA and PPO

Correct answer: HMO and PPO

A Point-of-Service (POS) plan is a type of managed care health insurance plan that combines features of both Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). Like an HMO, it typically requires a primary care physician (PCP) referral for specialists and offers lower costs for in-network providers. However, like a PPO, it also allows members to go out-of-network for care, albeit at a higher cost.

Question 100: An employee experiences a qualifying event. This will impact his or her:

Eligibility for additional paid leave
Compensation
Eligibility for retirement
Group health care coverage (Correct answer)

Correct answer: Group health care coverage

A "qualifying event" is a term used in the context of COBRA (Consolidated Omnibus Budget Reconciliation Act) that triggers an employee's or their family's right to continue group health care coverage. Examples include termination of employment, reduction in hours, divorce, or death of the employee. These events allow individuals to maintain their health benefits for a limited period, typically at their own expense.

Professional in Human Resources (PHR) Certification Exam

The PHR certification validates foundational knowledge and practical application of HR principles, focusing on operational and technical aspects of HR management.

100

Questions

120 min

Time Limit

70%

To Pass

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