HRCI PHR Exam Questions

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141.

Under visa classification, which type of visa is used for exchange visitors?

  • J-1

  • H-1B

  • H-2A

  • P-1

Correct answer: J-1

A J-1 visa is a non-immigrant visa issued by the United States to research scholars, professors and exchange visitors participating in programs that promote cultural exchange, especially to obtain medical or business training within the U.S. All applicants must meet eligibility criteria, English language requirements, and be sponsored either by a university, private sector or government program.

142.

An organization that is reviewing departments, processes, and key products in order to reduce redundancy is performing what workforce strategy?

  • Corporate restructuring

  • Re-engineering

  • Workforce expansion

  • Workforce reduction

Correct answer: Corporate restructuring

Corporate restructuring is the act of reviewing departments, processes, and key products in order to reduce redundancy and decrease debt.

143.

What is a hi-po?

  • An employee identified as having the potential to be a future leader of the organization

  • An employee with high production output

  • A high-potential investment

  • An employee who causes liability to the organization and requires safety development

Correct answer: An employee identified as having the potential to be a future leader of the organization

A hi-po is an abbreviation for "high-potential employee." An organization's HiPos are the individuals that have been identified as being potential leaders of the organization in the future. By identifying these individuals, the organization is able to provide them with the necessary training and development that will help prepare them to fill these roles. By using a variety of selection tools including testing, observation, and interviewing, these individuals can be identified.

144.

Which of the following is the middle point of pay for a specific job?

  • Salary midpoint

  • Wage band

  • Salary range

  • Job ranking

Correct answer: Salary midpoint

A salary midpoint is the middle point of pay for a specific job.

145.

Human Resource professionals can help organizations remain union free by:

Select all that apply. There are 4 correct answers. 

  • Promoting an open and inclusive work environment

  • Clearly communicate organizational goals and wins

  • Consistency in application of policies and procedures

  • Fair and impartial disciplinary processes

  • Terminate union promoters/members

  • Refuse to bargain with unions

In general, employers desire to remain union free. Organizations that meet the needs of employees without a union are more likely to remain that way. Strategies that can reduce the risk of union organization include the following:

  • An open and inclusive work environment
  • Clearly communicated organizational goals and wins
  • Consistency in application of policies and procedures
  • Fair and impartial disciplinary processes
  • Conflict resolution policies and processes that allows employees to be heard

Employers who treat their employees with respect, allow them to feel heard and valued are more likely to maintain a healthy work environment, which increases the chances employees will not seek to unionize. In the event employees attempt to unionize, employers may not interfere with unionization effort nor may they refuse to bargain once a union has been certified. Doing so would be considered an unfair labor practice.

146.

A human resources professional is employing an internal recruiting method where employees express interest in a job before it is posted. This type of recruitment is called:

  • Job bidding

  • Job posting

  • Job sharing

  • Job promotion

Correct answer: Job bidding

Job bidding allows employees to express interest in a job before it is even posted. This method allows HR professionals to review the employees' qualifications and create a success plan in advance.

147.

According to the Fair Labor Standards Act (FLSA), what is the minimum amount an exempt employee is allowed to be paid weekly?

  • $684

  • $455

  • $872

  • $478

Correct answer: $684

A salary is a rate of pay that is a predetermined amount and paid on a regular basis. The minimum amount of salary that an employee can be paid under FLSA is $684 per week.

148.

A payroll platform must be able to handle the complexities of processing an entire organization's compensation. Which of the following does not represent an involuntary deduction?

  • A contribution to a retirement savings account

  • A wage garnishment

  • A child support deduction

  • Unemployment insurance

Correct answer: A contribution to a retirement savings account

If their employer offers a program, employees have the choice of whether or not to contribute part of their disposable earnings into a retirement savings account.

Wage garnishments, child support, and unemployment are all mandatory and therefore involuntary deductions that are processed through payroll platforms.

149.

Jillian is working at a grocery store when her finger gets caught while she is closing her cash drawer. The accident occurred because she was distracted by a customer with a question. She requires stitches but can return to work the same day. Does an OSHA report need to be filed?

  • Yes, assuming the store is subject to OSHA compliance

  • Yes, all accidents at all workplaces must be reported to OSHA

  • No, because the injury was the employee's fault

  • No, because she was able to immediately return to work

Correct answer: Yes, assuming the store is subject to OSHA compliance

Since Jillian is working at a grocery store, it is a fairly safe assumption that she has at least ten co-workers. Unless the store in any other way is exempt from OSHA compliance, having eleven or more employees makes them subject to OSHA reporting requirements and therefore Jillian's injury must be reported. Read more about OSHA reporting requirements below.

OSHA requires the reporting of ALL recordable work-related injuries and illnesses. Recordable is defined as an injury or illness that results in one or more of the following: medical treatment beyond first aid, one or more days away from work, restricted work or transfer to another job, diagnosis of a significant injury or illness, loss of consciousness, or death.

150.

What is used to document a job's major functions or duties?

  • Job description

  • Job analysis

  • Job specification

  • Job determination

Correct answer: Job description

A job description describes in writing what an employees' work tasks are within the company.

151.

Employers should be aware of the following pros and cons when deciding to implement an FSA program:

Select all that apply. There are 5 correct answers.

  • FSAs require increased education to employees

  • An employer may be required to cover funds used by employees who leave the organization regardless of how much they contributed

  • The administrative cost of the FSA plan

  • Decreased taxable salary for employees decreases other expenses (FICA, unemployment, workers compensation, etc.)

  • FSA plans must pass annual discrimination testing

  • Participation is required by all employees

Flexible Spending Accounts (FSAs) are benefit plans often offered to employees as a pretax deduction to pay for medical and dependent care expenses expected during the plan year. Generally, there are two types of FSAs: medical and dependent care accounts.

When considering whether or not to offer an FSA, employers should be aware of the pros and cons associated with offering the plan, which are outlined below: 

  • With medical care FSAs, there is an "at-risk" provision. The annual FSA election is available immediately at the start of the plan year. Employees may be reimbursed for funds prior to the funds being withheld from their paycheck. The "at-risk" means that an employer is responsible for reimbursement of all eligible expenses for the year, regardless of the actual contribution.
  • Additionally, employers must have a plan in place to educate employees about the "use it or lose it" feature of the FSAs. Oftentimes, employees aren't fully educated by the organization, which can lead to employee dissatisfaction.
  • Employers are responsible for payment of the administrative cost associated with the plan.
  • FSA plans must pass annual discrimination testing in order to maintain the tax benefits associated with the plans.
  • Decreased taxable salary income for employees, as a result of contributions to reimbursement accounts, results in decreased employer expenditures for FICA tax, unemployment insurance, workers‚Äô compensation, and other wage-based expenses.

152.

What three general categories are identified by the IRS as the categories organizations should evaluate when classifying an independent contractor versus employee?

Select all that apply. There are 3 correct answers.

  • Behavioral control

  • Financial control

  • Type of relationship

  • Personnel control

  • Management control

According to the IRS, the guidelines associated with the classification of an employee versus an independent contractor. The general rule is that an individual is an independent contractor if the employer has the right to control or direct only the result of the work, not what will be done and how it will be done. There are three general categories that help determine how to properly classify a worker: behavioral, financial, and relationship.

Behavioral control - A worker is an employee when the business has the right to direct and control the work performed by the worker, even if that right is not exercised. Behavioral control categories are:

  • Type of instructions given, such as when and where to work, what tools to use or where to purchase supplies and services. Receiving the types of instructions in these examples may indicate a worker is an employee.
  • Degree of instruction, more detailed instructions may indicate that the worker is an employee.  Less detailed instructions reflect less control, indicating that the worker is more likely an independent contractor.
  • Evaluation systems to measure the details of how the work is done points to an employee. Evaluation systems measuring just the end result point to either an independent contractor or an employee.
  • Training a worker on how to do the job, or periodic or on-going training about procedures and methods, is strong evidence that the worker is an employee. Independent contractors ordinarily use their own methods.

Financial control - Does the business have a right to direct or control the financial and business aspects of the worker's job? Consider:

  • Significant investment in the equipment the worker uses in working for someone else.
  • Unreimbursed expenses, independent contractors are more likely to incur unreimbursed expenses than employees.
  • Opportunity for profit or loss is often an indicator of an independent contractor.
  • Services available to the market. Independent contractors are generally free to seek out business opportunities.
  • Method of payment. An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time even when supplemented by a commission. However, independent contractors are most often paid for the job by a flat fee.

Relationship - The type of relationship depends upon how the worker and business perceive their interaction with one another. This includes:

  • Written contracts describe the relationship the parties intend to create. Although a contract stating the worker is an employee or an independent contractor is not sufficient to determine the worker‚Äôs status.
  • Benefits. Businesses providing employee-type benefits, such as insurance, a pension plan, vacation pay or sick pay have employees. Businesses generally do not grant these benefits to independent contractors.
  • The permanency of the relationship is important. An expectation that the relationship will continue indefinitely, rather than for a specific project or period, is generally seen as evidence that the intent was to create an employer-employee relationship.
  • Services provided which are a key activity of the business. The extent to which services performed by the worker are seen as a key aspect of the regular business of the company.

153.

Organizational development is a system for managing _______ in a way that is well planned, applied organization-wide and managed from the _______.

  • change; top down

  • HR processes; planning stage

  • SOPs; growth phase

  • risk; analysis

Correct answer: change; top down

Organizational development (OD) is a system for managing change in a way that is well planned, applied organization-wide and managed from the top down. OD also increases the health and effectiveness of an organization and uses behavioral science to plan interventions in an organization's processes.

154.

Organizational structures characterized by decentralized decision-making include: 

Select all that apply. There are 3 correct answers.

  • Product-based structure

  • Geographic structure

  • Divisional structure

  • Functional structure

Senior HR professionals must be able to align human resources with the strategic goals and plans of the organization. With that, it is critical for the organizational structure to align with the way the organization operates. Organizational structures allow for a flow of information throughout the organization. What is effective for one organization, might not be effective for another. Common structures that allow for decentralized decision making include:

  1. Product-based structure: The product-based structure aligns the organizational structure based on a specific product.
  2. Geographic structure: This structure is grouped based on a specific geographic location.
  3. Divisional structure: Similar to geographic structures, divisional structures are based on a specific division. This may include a geographic division, but also a division of the company.

155.

Which of the following is not part of the SMART goal model?

  • Sustainable

  • Action-Orientated

  • Measurable

  • Time-Based

Correct answer: Sustainable

The SMART goal model has been identified as the most common method for developing effective organizational goals. Goal that adhere to the SMART goal criteria include:

  • Specific: The goal must have a specific action
  • Measurable: The goal must be able to be measured to determine if the goal has been met
  • Action-Orientated: The goal must outline the steps that will be taken to achieve the goal
  • Realistic: The goal must be attainable. It should be enough to challenge the individual but not impossible
  • Time-Based: There must be a time frame established

156.

Samantha works in her organization's benefits office and is charged with managing the employee pension plan. Which of the following terms best describes her role?

  • Plan administrator 

  • Party in interest

  • Plan sponsor

  • Plan grantor

Correct answer: Plan administrator

Samantha would be considered her organization's plan administrator. As the title implies, a plan administrator manages the pension plan of the employees.

157.

A person has been working as an accountant for one year, but they have a hard time feeling motivated by the work. They prefer helping people more tangibly and are told by many of their close friends and family that they would be an excellent nurse. Which of the following categories from the RIASEC model, created by John Holland, is this person most likely in?

  • Social

  • Enterprising

  • Investigative

  • Realistic

Correct answer: Social

People who prefer and are motivated by using their people skills to help others are considered to be in the social category of the RIASEC model. The RIASEC model includes the following types of people: Realistic, Investigative, Artistic, Social, Enterprising, and Conventional.

Enterprising people are persuasive and use their people skills to make change. Investigative people excel in jobs where they work with theoretical models and real data. Realistic people are like accountants who use tangible skills. This person did not like being an accountant, so they are most likely not in the realistic category.

158.

During the hiring process, subtle biases can unintentionally influence the final impression an interviewer forms of a candidate, potentially impacting the selection process. Of the scenarios below, which one demonstrates nonverbal bias?

  • The interview started off smoothly, with the candidate answering questions in a thoughtful and engaging manner. However, the interviewer couldn't help but notice the candidate's persistent habit of glancing at their watch. As the interview continued, the watch-checking became increasingly distracting, pulling the interviewer's attention away from the candidate's responses.

  • During a busy day of interviewing candidates, you diligently used a rating system to evaluate each applicant. However, by the end of the day, you realized that nearly all candidates received similar scores, making it challenging to differentiate between them and make a hiring decision.

  • As an HR hiring manager, you noticed a colleague exhibiting bias during an interview with a female candidate who mentioned having young children. Despite the candidate's impressive qualifications and enthusiasm for the role, your colleague assumed that the candidate would prioritize her family over her career due to preconceived notions about women with children. This led your colleague to overlook the candidate's potential contributions.

  • You are interviewing a candidate for a paralegal position who previously worked as a bartender while attending school. Your past experience in a restaurant where bartenders were known for excessive drinking and partying leads you to question whether the candidate's background aligns with the culture of the law firm.

Correct answer: The interview started off smoothly, with the candidate answering questions in a thoughtful and engaging manner. However, the interviewer couldn't help but notice the candidate's persistent habit of glancing at their watch. As the interview continued, the watch-checking became increasingly distracting, pulling the interviewer's attention away from the candidate's responses.

An interviewer's judgment of a candidate's qualifications can be unfairly influenced by the candidate's body language, appearance, or eye contact. For example, a candidate who fidgets during the interview might be perceived as less qualified, even if their skills and experience are on par with other candidates.

One strategy to mitigate the impact of these biases is to conduct interviews with another person and then compare notes once the evaluation is finished. Focusing solely on a candidate's alignment with the job requirements or organizational culture, and documenting opinions accordingly, provides the strongest defense against accusations of interview bias.

The other answers are examples of different types of biases.

159.

What would a Professional in Human Resources request from the IRS before making changes to a benefit if they wanted to determine the tax implications of a financial change?

  • Private letter ruling

  • Tax determination

  • IRS result

  • Benefits decision

Correct answer: Private letter ruling

A private letter ruling is a request from the IRS in order to determine the tax implications of a financial change to a benefit plan.

160.

Sometimes management shuts down operations to keep the union from working. An example is when employees are engaging in a work slowdown. What is this typically called?

  • Lockout

  • Boycott

  • Ally doctrine

  • Double breasting

Correct answer: Lockout

A lockout occurs when management shuts down operations to keep the union from working. This may happen because of work slowdowns where it is costing management more to have employees working slowly and not producing the required productivity than it would be to shut down the operation.

Boycotts occur when a union and the employees work together against an employer to make their dissatisfaction with the employer's action known or to try and force the employer into recognizing the union or conceding to their demands. Boycotts can occur in several ways including ally doctrines, alter ego doctrines, double breasting, secondary boycotts, and straight-line operations.