HRCI PHR Exam Questions

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1.

VEVRAA provides EEO and AA protection for whom?

  • Disabled veterans; recently separated veterans; active duty wartime or campaign badge veterans; or Armed Forces service medal veterans

  • All veterans

  • Veterans with disability ratings of 30 percent or more

  • Veterans of the Vietnam War

Correct answer: Disabled veterans; recently separated veterans; active duty wartime or campaign badge veterans; or Armed Forces service medal veterans

A veteran is a "protected veteran" under VEVRAA if he or she falls into one or more of the following categories: disabled veteran; recently separated veteran; active duty wartime or campaign badge veteran; or Armed Forces service medal veteran.

2.

Which act was created in 1972 and grants the authority to sue in federal courts to the EEOC if an agreement can't be reached?

  • EEOA

  • PDA

  • ADEA

  • ADA

Correct answer: EEOA

In 1972, the Equal Employment Opportunity Act (EEOA) was created and it grants authority to the EEOC to sue in federal courts if an agreement can't be reached between the EEOC and employers or employment agencies.

3.

Types of voluntary benefits commonly offered by employers include?

Select all that apply. There are 4 correct answers.

  • Deferred compensation

  • Health & welfare benefits

  • Work-life balance benefits

  • Nonforfeitable benefits

  • Union membership

Employers offer a variety of benefits to their employees in order to create a total compensation package competitive within the market, but also to support employee engagement and retention efforts. Types of benefits commonly offered to employees include:

  • Deferred compensation (i.e., qualified & nonqualified pension plans)
  • Health & welfare benefits (i.e., medical, dental, and vision insurance, life, disability, etc.)
  • Work-life balance benefits (i.e., vacation, sick leave, PTO, holidays, childcare, fitness, elder care, etc. )
  • Other voluntary benefits (i.e., relocation assistance, tuition assistance, student loan support, FSA's, adoption assistance, etc.)

4.

How can you use data from an organization's Applicant Tracking System (ATS) to calculate the adverse impact rule?

  • By examining the selection rates for job applicants from various demographic groups.

  • By comparing the promotion rates of employees from different racial backgrounds.

  • By analyzing the turnover rates among employees of different genders.

  • By comparing the average salaries of different demographic groups within the organization.

Correct answer: By examining the selection rates for job applicants from various demographic groups.

The adverse impact rule, also called the 4/5ths rule, is a federal guideline that identifies when discrimination has taken place in the hiring process. The metric analyzes the difference between the selection rates of people from protected classes and people not from protected classes.

The incorrect answers are unrelated to the adverse impact rule.

5.

Public companies are required by the SEC to disclose the full compensation for the:

  • Top five executives

  • Top three executives

  • Top eight executives

  • Top ten executives

Correct answer: Top five executives

The Securities Exchange Commission (SEC) require public companies to report full compensation for their top five executives on an annual basis.

6.

A corporation purchases enough stock of another corporation to gain a controlling interest. Which of the following is this an example of?

  • Acquisition

  • Merger

  • Friendly takeover

  • Neutral takeover

Correct answer: Acquisition

There are several structural changes affecting workforce populations. These changes include re-engineering, corporate restructuring, workforce expansion, workforce reduction, and mergers and acquisitions.

  • Corporate restructuring is the process of reorganizing the organization in an effort to streamline processes to reduce costs, increase production, or create efficiencies.
  • Workforce reductions, also known as reductions in force (RIFs), downsizing, or rightsizing, are used to decrease expenses by reducing the size of the workforce.
  • During a workforce expansion, a large number of employees enter an organization within a short period of time.
  • Re-engineering involves looking at the entire organization to simplify or eliminate unnecessary processes with the goal of increasing customer satisfaction through improvements in efficiency.
  • A merger occurs when two or more organizations are combined into a single entity with the goal of leveraging the assets of both into a more successful entity.
  • An acquisition occurs when one organization, generally a corporation, purchases or trades stock to gain controlling interest in another. Although acquisitions can be hostile, it is not always the case. A hostile takeover negatively affect employee morale.

7.

Which of the following best defines mental models?

  • Mental models describe the framework for which we view the world based on biases and assumptions

  • The ability of groups to openly communicate their ideas and develop them

  • The elevated level of proficiency and dedication to lifelong learning in a chosen field

  • The ability to identify patterns and forecast how changes will affect organizations

Correct answer: Mental models describe the framework for which we view the world based on biases and assumptions

Peter Senge identified five disciplines that support the organization's ability to achieve strategic goals, promote innovation and creative ideas, and encourage a culture of continuous learning. These disciplines are as follows:

  • Systems Thinking: The organization's or individual's ability to identify and isolate parts of an organizational process to forecast the impact that changes would have on the outcome.
  • Personal Mastery: Personal mastery is a set of specific principles and practices that enables a person to learn, create a personal vision, and view the world objectively.
  • Mental Models: Mental models describe the framework for which we view the world based on biases and assumptions.
  • Building a Shared Vision: Building a shared vision enables the organization to build a sense of commitment in order to plan for the future and develop strategies to get there.
  • Team Learning: Team learning happens when teams begin thinking and working together to achieve goals and develop ideas.

8.

Which group incentive program is characterized by employees and management working together to grow business and then sharing the success?

  • Gainsharing

  • Improshare

  • Individual incentive

  • Scanlon plan

Correct answer: Gainsharing

Gainsharing is when employees and managers work together in order to grow business and exceed goals and then share the success and rewards together.

9.

An HR manager decides to implement a job attitude intervention as defined by Dr. Erin Richards. This manager creates a program where they collect feedback from employees and then seek to improve the three R's: recognition, respect, and resources. Which of the following types of interventions is this manager most likely performing?

  • Personal resource-building interventions

  • Job resource-building interventions

  • Health-promoting interventions

  • Leadership training interventions

Correct answer: Personal resource-building interventions

Personal resource-building interventions increase people's positivity in terms of their views of themselves, the future, and their resilience.

Job resource-building interventions give people more of what they need to do their jobs, such as evaluations, support, and autonomy. Health-promoting interventions focus on improving the health and resources of employees and their families. Leadership training interventions focus on uplifting and supporting managers so that they can then support and uplift their direct reports. Focusing more efforts on leaders improves the whole company because managers have a big impact on team performance.

10.

Human Resource Information Systems (HRISs) can assist HR leaders in generating reports for government agencies, as necessary. Which of the following agencies might organizations need to submit employment data to?

  • Equal Employment Opportunity Commission (EEOC)

  • Food and Drug Administration (FDA)

  • National Aeronautics and Space Administration (NASA)

  • Environmental Protection Agency (EPA)

Correct answer: Equal Employment Opportunity Commission (EEOC)

The Equal Employment Opportunity Commission (EEOC) requires some organizations to send reports containing employee demographics regularly. This can be done using an HRIS that captures employee data and collates it into reports that can be shared as required.

The incorrect answers represent government agencies that organizations may work with or be regulated by but that do not typically require access to employee demographics.

11.

The HR manager gathers information on the expected impact of a new training program on employee turnover. He researches external case studies, external customer reviews, internal employee feedback and internal lessons learned from implementing similar programs in the past. Based on his research, the HR Manager provides a prediction that the training will decrease turnover by at least 20% by the end of the year. He then decides to reduce next year's recruiting budget. The HR Manager was engaged in the process known as:

  • Forecasting

  • Strategic planning

  • SMART goals

  • Process-flow analysis

Correct answer: Forecasting

Forecasting is a planning tool that allows HR to make an educated guess about future business conditions and plan accordingly.

Strategic planning identifies the future direction of a company through the stages of analysis, development, implementation and evaluation. SMART goals are related to performance evaluation and are used to help a business meet its objectives. Process flow analysis assesses or maps business functions.

12.

Which of the following pieces of legislation enacted the requirement for employers to provide a pension plan?

  • There is no federal legislation requiring employers to provide pension plans

  • ERISA

  • VEVRAA

  • OWBPA

Correct answer: There is no federal legislation requiring employers to provide pension plans

ERISA, OASDI, nor OWBPA require employers to provide a pension plan for their employees, and there is no federal legislation that requires employers to offer a pension plan to employees.

13.

A leader going into an investor meeting needs to understand and be able to demonstrate whether more liquid assets are coming into the business or going out of the business. Which of the following reports is most likely to give this leader the information they need?

  • Statement of cash flows

  • Balance sheet

  • Income statement

  • Co-sourcing documentation

Correct answer: Statement of cash flows

Statement of cash flows shows the status of the organization's liquid assets (cash) and indicates whether money is coming into the organization quicker than it is leaving (positive cash flow) or vice-versa.

An income statement shows how net income equals sales minus expenses; it is a momentary picture of what the company is taking in. Income statements are often used to show leaders how their organizations are doing compared to previous time periods. A balance sheet is a financial document that contains information that shows how assets equal liabilities plus equity, also known as a signifier of organizational financial health. Co-sourcing is when two departments or teams work on the same project or function to strengthen the work.

14.

A whistleblower is an individual who makes an illegal activity complaint to whom?

  • A federal agency

  • The DOL specifically

  • The employer

  • The board of directors

Correct answer: A federal agency

A whistleblower is an employee who makes a complaint to a federal agency, claiming that illegal activity has occurred. Section 806 of the Sarbanes-Oxley Act (SOX) provides broad protection for employees who initiate reports of what they reasonably believe are company actions in violation of SEC regulations or federal securities laws.

Enforcement of whistleblower protections is delegated to the Occupational Safety and Health Administration (OSHA). OSHA prohibits employers from taking any adverse employment actions as a result of an employee providing, participating, or assisting in an investigations of mail, wire, bank, securities fraud, or violations of SEC regulations or other related federal laws. Adverse employment actions include laying off or terminating, demoting, blacklisting, denying benefits, failing to hire or rehire, intimidating, reassigning, reducing hours or pay, disciplining, or others.

15.

A member of the Six Sigma team leads an accounting department and leads all initiatives in the business related to accounting. Which of the following components of the team structure is this person most likely in?

  • Process owner

  • Green belt

  • Master black belt

  • Champion

Correct answer: Process owner

In Six Sigma, process owners are responsible for all initiatives and processes associated with the function they work within.

Master black belts work closely with process owners on project implementation. Champions are typically in the executive function, and support initiatives within the organization from outside the projects themselves. Green belts work on quality initiatives and have received training in Six Sigma, but also have other jobs to fill out their work time.

16.

Liam is 47 years old and was turned down for a job as a police officer based on his age. Is this a violation of the Age Discrimination in Employment Act (ADEA)?

  • No, because state and local police officer jobs are provided ADEA exemption

  • Yes, because he is greater than 40 years of age

  • Yes, because under ADEA age discrimination is prohibited in all employment practices

  • No, because he is under age 65

Correct answer: No, because state and local police officer jobs are provided ADEA exemption

The act of hiring police officers is exempt from the Age Discrimination in Employment Act of 1967 (ADEA).

17.

Ergonomics studies workers and the link between their health and what workplace component?

  • Physical environment

  • Emotional support

  • Biological hazard exposure

  • Work-life balance

Correct answer: Physical environment

Ergonomics is the study of the physical workplace environment, how it is designed and used, and what impact it has on the people in the environment. A workplace with poor ergonomic design puts its employees at risk of developing a musculoskeletal disorder (MSD). Poor ergonomic design causes the worker to put unnecessary and/or repeated stress on various parts of the body. Common MSDs resulting from this stress include bursitis, carpal tunnel, and tendonitis. Other names that HR professionals may see MSDs referred to as include repetitive stress injuries (RSIs) and cumulative trauma injuries (CTIs).

18.

What was the major revelatory outcome of The Hawthorne Studies?

  • Employees showed more motivation and productivity when their leaders showed care for their work environment, and when they knew they were being watched.

  • It revealed the major impact of technological advancements on worker morale and satisfaction.

  • Employees responded well to financial incentives given to improve worker productivity.

  • Environmental factors such as lighting and temperature were shown to affect employee satisfaction.

Correct answer: Employees showed more motivation and productivity when their leaders showed care for their work environment, and when they knew they were being watched.

The Hawthorne Studies were a series of experiments conducted in the 1920s and 1930s that highlighted the significance of social and human factors in workplace productivity and employee motivation. Employees showed more motivation and productivity when their leaders showed care for their work environment, and when they knew they were being watched.

The intention of the study was to learn if lighting had an impact on the workers, but the researchers learned that whether they increased, decreased, or did nothing at all to the lights they saw improvements in motivation and productivity. This led them to understand that it was the care and attention that actually influenced and motivated the teams. The remaining incorrect answers are fabricated outcomes.

19.

The Fair Labor Standards Act (FLSA), which was enacted in 1938 and includes regulations regarding child labor laws and hazardous work, requires employers to keep accurate records of the dates of birth for employees younger than what age?

  • 19 years of age

  • 14 years of age

  • 21 years of age

  • 25 years of age

Correct answer: 19 years of age

The Fair Labor Standards Act (FLSA) was enacted in 1938 and expanded compensation practice regulations to cover virtually all employers in the United States. There are strict record-keeping requirements which include information identifying employees. This information includes name, address, and Social Security number, along with their birth date if they're younger than 19 years of age, their sex, and their occupation.

The FLSA includes child labor laws which exist to protect minor workers. Some of the regulations include that a child must be at least 16 years old to work in most nonfarm jobs and 18 to work in nonfarm jobs that have been identified as hazardous either in the law or by the Secretary of Labor. Additionally, regulations are in place to restrict the hours minors are allowed to work. To document compliance, accurate record-keeping is required for all minor workers.

20.

What are required components of an Executive Order 11246 affirmative action plan?

Select all that apply. There are 4 correct answers.

  • Organizational profile

  • Placement goals

  • Designation of responsibility

  • Job group analysis

  • Mission statement

  • Policy statement

The Executive Order prohibits federal contractors and federally‚Äêassisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. The Executive Order also requires Government contractors to take affirmative action to ensure that equal opportunity is provided in all aspects of their employment. Additionally, Executive Order 11246 prohibits federal contractors and subcontractors from, under certain circumstances, taking adverse employment actions against applicants and employees for asking about, discussing, or sharing information about their pay or the pay of their co‚Äêworkers.

Required components of an Executive Order 11246 AAP include: 

  • Organizational profile
  • Job group analysis
  • Placement of incumbents in job groups
  • Determining availability
  • Comparison of incumbency to availability
  • Placement goals
  • Designation of responsibility
  • Identification of problem areas
  • Action-orientated programs
  • Internal audit and reporting systems