HRCI PHR Exam Questions

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21.

A company that is decreasing its workforce in order to improve its profit margins and be more efficient is engaging in:

  • Downsizing

  • Divestitures

  • Furloughs

  • Consolidation

Correct answer: Downsizing

A company that is decreasing its workforce in order to improve its profit margins and be more efficient is engaging in downsizing. Consolidation involves combining companies. Furloughs involve temporarily reducing the workforce, and divestitures involve selling property.

22.

Which clause within the collective bargaining agreement is also referred to as a "totality of agreement" clause?

  • Zipper clause

  • Agency shop clause

  • Closed shop clause

  • No strike/no lockout clause

Correct answer: Zipper clause

A collective bargaining agreement (CBA) is a contract governing the employment relationship for a specified period of time. The clauses contained in the CBA are reflective of the bargaining topics in individual companies. Some commonly found clauses include:

  • Wages, hours, terms, and conditions of employment
  • Union security clause
  • No strike/no lockout clause
  • Contract administration
  • Dues check-off
  • Zipper clause

A zipper clause is also called a totality of agreement clause. It is an agreement between both parties that anything not currently included in the agreement isn't part of it. Therefore, this prevents needing to reopen negotiations during the term of the contract.

23.

If the Professional in Human Resources were developing a salary survey, what percentage of the organization's jobs would they need to include in the survey in order to create a solid salary structure?

  • 65 to 70%

  • 75 to 80%

  • 90%

  • 50%

Correct answer: 65 to 70%

A salary survey helps organizations gather and evaluate compensation data in order to stay on trend with the current labor market statistics and also be sure their employees are being paid fairly. 65 to 70% of the organization's jobs would need to be included in the survey in order to create a solid salary structure.

24.

Common payroll deductions seen when administering payroll include:

Select all that apply. There are 3 correct answers.

  • Voluntary

  • Involuntary

  • Statutory

  • Wage garnishment

  • Mandatory

Understanding common deduction types is important for HR professionals. When processing payroll, there are three types of deductions commonly seen. This includes the following:

  • Voluntary deductions - Voluntary deductions are those deductions elected by employees. This includes health plan premiums (medical, dental, vision, employee 401k contributions, etc.
  • Statutory deductions - Statutory deductions are deductions that are required by law. This includes federal and state taxes, unemployment insurance (in some states), Social Security, Medicare, and disability insurance (in some states).
  • Involuntary deductions - Involuntary deductions are those that are mandated by a court order or tax levy. This includes child support garnishments and other debt-related garnishments.

25.

What is completed during the design phase of the ADDIE model?

Select all that apply. There are 3 correct answers.

  • Identify the audience

  • Develop content

  • Develop training objectives

  • Propose solutions 

  • Create training materials

The ADDIE model, developed in the 1970's, is the most well-known framework for designing instruction to improve human performance. ADDIE is an acronym representing the five stages of the instructional design process: Analysis, Design, Development, Implementation, and Evaluation.

  • The Analyze phase is the foundation for all other phases of instructional design. During this phase, you must define the problem, identify the source of the problem, and determine possible solutions.
  • The Design phase involves using the outputs from the Analyze phase to plan a strategy for developing the instruction. During this phase, you must outline how to reach the instructional goals determined during the Analyze phase and expand the instructional foundation.
  • The Development phase builds on both the Analyze and Design phases. The purpose of this phase is to generate the lesson plans and lesson materials. During this phase, you will develop the instruction and any supporting documentation/tools.
  • The Implementation phase refers to the actual delivery of the instruction, whether it's classroom-based, lab-based, or computer-based. The purpose of this phase is the effective and efficient delivery of instruction.
  • The evaluation phase measures the effectiveness and efficiency of the instruction. Evaluation should actually occur throughout the entire instructional design process - within phases, between phases, and after implementation.

26.

Human resource professionals must often decide how to compensate employees for their work. This is based on various factors; which of the following is not included?

  • Age

  • External value

  • Internal value

  • KSAs

Correct answer: Age

Human resource professionals must often decide how to compensate employees for their work which is based on external value, internal value, and KSA's. Age should never be a factor in determining compensation.

27.

Hank has been with his organization for 27 years and is a valued employee. Lately, his supervisor has noticed a decline in performance and suspects that it is a result of the new software program. Which development opportunity should Hank's supervisor consider offering?

  • Reverse mentorship

  • Job enlargement

  • Career development

  • Job design

Correct answer: Reverse mentorship

A mentor is someone who partners with another individual to help coach, teach, and train them in a specific area or areas. Typically mentors are more experienced and are able to provide guidance to the less experienced individual.

Similarly, a reverse mentorship is a strategy used to support the older workforce with understanding new trends, such as technology, culture, social media, and others. The younger employee is paired with an older employee to help coach, teach, and train in these key areas. 

28.

If a manager is required to use a bell curve when writing performance appraisals, what comparison method is he using?

  • Forced ranking/forced distribution

  • Paired comparison

  • Ranked performance

  • Rating scale

Correct answer: Forced ranking/forced distribution

There are a number of methods for use when evaluating employee performance. Forced ranking/forced distribution is an example of a comparison method. The comparison methods uses ranking, paired comparison, and forced ranking/forced distribution to compare the performance of employees against one another. Forced ranking/forced distribution does this by requiring managers to rank employees according to the bell curve, with most employees being rated as average with a few outliers of high and low performers.

29.

Which instructional design model breaks down training content into manageable models and has an emphasis on being adaptive?

  • AGILE

  • ADDIE

  • SAM

  • LMS

Correct answer: AGILE

AGILE is an instructional design model that stands for align, get set, iterate and implement, leverage, and evaluate. The AGILE instructional design approach is a more project-oriented approach. AGILE instructional design is geared toward meeting the needs of today’s organizations to be “agile” and adaptive.

30.

What criteria is required to be met in order to qualify for an administrative exemption, in accordance with the Fair Labor Standards Act (FLSA)?

Select all that apply. There are 2 correct answers.

  • Discretion and independent judgment with matters of significance

  • Perform office or non-manual work

  • Perform manual work

  • Authority to hire or fire employees

  • Advanced knowledge in an administrative field of study

The Fair Labor Standards Act of 1938 (FLSA) is a federal law that establishes regulations related to compensation and payment to full-time and part-time employees in the private sector and in federal, state, and local governments. The areas regulated include the minimum wage, max hours and overtime, travel time, salary deductions, child labor, and others. 

Some employees may be exempt from the overtime and the minimum wage provisions of the act. Provided the employee meets the salary basis test (payment of at least $684 per week), there are several exemptions based on the duties performed by the employee. The types of exemptions available include an executive exemption, administrative exemption, professional exemption, highly compensated employee exemption, computer employee exemption, and outside sales exemption.

As it relates to the administrative exemption, the criteria required to qualify for this exemption are outlined below:

  • The employee must be compensated on a salary basis at a rate not less than $684 per week;
  • The employee‚Äôs primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer‚Äôs customers; and
  • The employee‚Äôs primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.

31.

Annual reports for employee benefit plans are required to be filed under what Act?

  • Employee Retirement Income Security Act (ERISA)

  • Consolidated Omnibus Budget Reconciliation Act (COBRA)

  • Health Insurance Portability and Accountability Act (HIPAA)

  • Fair Labor Standards Act (FLSA)

Correct answer: Employee Retirement Income Security Act (ERISA)

The Employee Retirement Income Security Act (ERISA) was created in order to protect employees and their benefits plans. ERISA requires employers to file reports on summary plan descriptions, annual reports, and participants benefit rights reports.

32.

Which Six Sigma team member is the one who is responsible for a particular process in the organization?

  • Process owner

  • Master black belt

  • Quality leader

  • Black belt

Correct answer: Process owner

All of the answer choices are structure levels of the Six Sigma team. The process owner is the correct answer since that is the team member responsible for the process being evaluated. They are the owner of the process within the organization.

All of the levels of the Six Sigma team are described as follows:

  • Quality Leader/Manager: The Quality Leader/Manager is responsible for remaining objective and focuses on the quality of the process and ensuring the goals are met. Typically this individual reports to the top leader within the organization, such as the CEO.
  • Master Black Belt: The Master Black Belt is responsible for ensuring the project stays on track and the DMAIC methodology is implemented within the project.
  • Process Owner: The Process Owners is the team member responsible for the process being evaluated. They are the owner of the process within the organization.
  • Black Belt: Black-belt's work continuously on supporting Six Sigma projects while coaching green-belts in an effort to enhance and improve their skills within the methodology.
  • Green Belt: Green-belts are those who have received the necessary training, and work on Six Sigma projects, but still maintain other roles within the organization.

33.

Which of the following is a common practice to evaluate appropriate pay level when a new job is created or an existing job undergoes changes?

  • Job pricing

  • Salary survey

  • Job evaluation

  • Classification

Correct answer: Job pricing

Job pricing is the practice of evaluating a new job or existing job to determine the appropriate pay level. Job pricing helps organizations keep their pay fair and competitive which ensures they are hiring and retaining valuable employees.

34.

Which of the following scenarios best exemplifies a high power distance culture according to Geert Hofstede's definition?

  • An executive is paid a ratio of $1,000 to $1, meaning that for every $1 their median employee earns, they earn $1,000.

  • Employees address their managers by their first names, and decisions are made collaboratively in team meetings.

  • Employees address their managers using formal titles and defer to them for all major decisions.

  • There is a flat organizational structure with minimal hierarchy, and employees have direct access to top-level executives for feedback and discussions.

Correct answer: An executive is paid a ratio of $1,000 to $1, meaning that for every $1 their median employee earns, they earn $1,000.

According to Geert Hofstede, power distance refers to the ratio of executive pay to the median employees' pay at a company, showing a large difference in reward and power.

The remaining answers are not involved with power distance according to Geert Hofstede.

35.

Which of the following is an example of quid pro quo harassment?

  • A supervisor promises an employee a raise if she goes out on a few dates with him

  • A supervisor constantly massages an employee's shoulders while standing behind their desk chair

  • An employee is overly critical of a junior level employee's work quality

  • A supervisor gives preference to employees that belong to her religious organization

Correct answer: A supervisor promises an employee a raise if she goes out on a few dates with him

There are two forms of sexual harassment that must be prevented: quid pro quo and hostile work environment.

Quid pro quo: Legal term that means, in Latin, “this for that.” Quid pro quo harassment, therefore, occurs when a supervisor or manager asks for sexual favors in return for some type of favorable employment action.

Hostile work environment: Defined by the EEOC as one in which an individual or individuals are subjected to unwelcome verbal or physical conduct “when submission to or rejection of this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance, or creates an intimidating, hostile, or offensive work environment.”

36.

A high-involvement organization is characterized by what type of hierarchy?

  • Flat

  • Traditional

  • Matrix

  • Horizontal

Correct answer: Flat

A high-involvement organization, or “HIO,” is one that allows and encourages its employees to have a high level of involvement and to take personal accountability for their own work. In High-Involvement Organizations (HIOs), employees are given the flexibility to develop their work process, and are encouraged to take any necessary steps to achieve their goals. A high-involvement organization allows for continual feedback, creativity in organizational structure, flat reporting structures, and open communication. HIOs are often structured with a flat hierarchy, one that removes many of the levels of management found in traditional hierarchies.

37.

What does EAW mean?

  • Employment at will

  • Employee as would

  • Employment at work

  • Employee after working-hours

Correct answer: Employment at will

Employment at will (EAW) means both the employee and employer have the right to terminate their working relationship at any time without consequences. However, employees should still be treated fairly and within the confines of the law.

38.

Which of the following is not one of the seven race and ethnicity categories that employees are required to be reported under?

  • Native American (not Hispanic or Latino)

  • Two or more races (not Hispanic or Latino)

  • American Indian or Alaska Native (not Hispanic or Latino)

  • Native Hawaiian or other Pacific Islander (not Hispanic or Latino)

Correct answer: Native American (not Hispanic or Latino)

Working together, the EEOC and the OFCCP developed a reporting format designed to meet statistical reporting requirements for both agencies. This form is known as the EEO-1.

Race and ethnicity categories on EEO-1 are:

  • Hispanic or Latino
  • White
  • Black or African American
  • Native Hawaiian or Other Pacific Islander
  • Asian
  • American Indian or Alaska Native
  • Two or More Races (not Hispanic or Latino)

39.

The Fair Labor Standards Act (FLSA) established regulations impacting compensation and payment to employees. Of the below, what are areas regulated by the FLSA?

Select all that apply. There are 4 correct answers.

  • Salary deductions

  • Travel between job sites

  • On-call pay

  • Child labor

  • Paid time off

The Fair Labor Standards Act of 1938 (FLSA) is a federal law that establishes regulations related to compensation and payment to full-time and part-time employees in the private sector and in federal, state, and local governments. The areas regulated include:

  • Minimum wage
  • Max hours and overtime including waiting and on-call time
  • Rest and meal periods
  • Travel time
  • Lectures, meetings, and training time
  • Exempt status
  • Salary deductions
  • Recordkeeping related to compensation
  • Child labor

The FLSA does not require or regulate paid time off benefits.

40.

Who is responsible for electing members to a corporation's board of directors?

  • Shareholders

  • Management and employees

  • Current or previous board members

  • C-level management

Correct answer: Shareholders

One of the duties of corporate shareholders is to elect a board of directors. Since the shareholders are, for the most part, not involved in the daily business operations of the business, the board of directors exists to represent their interests to the members of senior management.

Within the board, there are two types of directors: inside and outside. An inside director is a person employed by the organizations, such as a company officer (CEO, CFO). An outside director is someone who isn't employed by the corporation and doesn't have operational responsibilities.