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Professional in Human Resources (HRCI PHR) Practice Test

PHR exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

Number of Questions: 90 scored questions + 25 pretest questions (not scored)
Time Limit: 2 hours
Question Types: Multiple-choice- scenario-based- and knowledge-based questions
Passing Score: Scaled score of 500 (on a scale of 100 to 700)

- Business Management (20%)
- Talent Planning and Acquisition (16%)
- Learning and Development (10%)
- Total Rewards (15%)
- Employee and Labor Relations (39%)

Functional Area 01 | Business Management (20%)
Using information about the organization and business environment to reinforce expectations- influence decision making- and avoid risk.

Responsibilities:
- Interpret and apply information related to general business environment and industry best practices
- Reinforce the organizations core values- ethical and behavioral expectations through modeling- communication- and coaching
- Understand the role of cross-functional stakeholders in the organization and establish relationships to influence decision making
- Recommend and implement best practices to mitigate risk (for example: lawsuits- internal/ external threats)
- Determine the significance of data for recommending organizational strategies (for example: attrition rates- diversity in hiring- time to hire- time to fill- ROI- success of training) Knowledge of:
- Vision- mission- values- and structure of the organization
- Legislative and regulatory knowledge and procedures
- Corporate governance procedures and compliance
- Employee communications
- Ethical and professional standards
- Business elements of an organization (for example: other functions and departments- products- competition- customers- technology- demographics- culture- processes- safety and security)
- Existing HRIS- reporting tools- and other systems for effective data reporting and analysis
- Change management theory- methods- and application
- Risk management
- Qualitative and quantitative methods and tools for analytics
- Dealing with situations that are uncertain- unclear- or chaotic

Functional Area 02 | Talent Planning and Acquisition (16%)
Identifying- attracting- and employing talent while following all federal laws related to the hiring process.

Responsibilities:
- Understand federal laws and organizational policies to adhere to legal and ethical requirements in hiring (for example: Title VII- nepotism- disparate impact- FLSA- independent contractors)
- Develop and implement sourcing methods and techniques (for example: employee referrals- diversity groups- social media)
- Execute the talent acquisition lifecycle (for example: interviews- extending offers- background checks- negotiation).
Knowledge of:
- Applicable federal laws and regulations related to talent planning and acquisition activities
- Planning concepts and terms (for example: succession planning- forecasting)
- Current market situation and talent pool availability
- Staffing alternatives (for example: outsourcing- temporary employment)
- Interviewing and selection techniques- concepts- and terms
- Applicant tracking systems and/or methods
- Impact of total rewards on recruitment and retention
- Candidate/employee testing processes and procedures
- Verbal and written offers/contract techniques
- New hire employee orientation processes and procedures
- Internal workforce assessments (for example: skills testing- workforce demographics- analysis)
- Transition techniques for corporate restructuring- mergers and acquisitions- due diligence process- offshoring- and divestitures
- Metrics to assess past and future staffing effectiveness (for example: cost per hire- selection ratios- adverse impact)

Functional Area 03 | Learning and Development (10%)
Contributing to the organizations learning and development activities by implementing and evaluating programs- providing internal consultation- and providing data.

Responsibilities:
- Provide consultation to managers and employees on professional growth and development opportunities
- Implement and evaluate career development and training programs (for example: career pathing- management training- mentorship)
- Contribute to succession planning discussions with management by providing relevant data Knowledge of:
- Applicable federal laws and regulations related to learning and development activities
- Learning and development theories and applications
- Training program facilitation- techniques- and delivery
- Adult learning processes
- Instructional design principles and processes (for example: needs analysis- process flow mapping)
- Techniques to assess training program effectiveness- including use of applicable metrics
- Organizational development (OD) methods- motivation methods- and problem-solving techniques
- Task/process analysis
- Coaching and mentoring techniques
- Employee retention concepts and applications
- Techniques to encourage creativity and innovation

Functional Area 04 | Total Rewards (15%)
Implementing- promoting- and managing compensation and benefit programs in compliance with federal laws.

Responsibilities:
- Manage compensation-related information and support payroll issue resolution
- Implement and promote awareness of non-cash rewards (for example: paid volunteer time- tuition assistance- workplace amenities- and employee recognition programs)
- Implement benefit programs (for example: health plan- retirement plan- employee assistance plan- other insurance)
- Administer federally compliant compensation and benefit programs Knowledge of:
- Applicable federal laws and regulations related to total rewards
- Compensation policies- processes- and analysis
- Budgeting- payroll- and accounting practices related to compensation and benefits
- Job analysis and evaluation concepts and methods
- Job pricing and pay structures
- Non-cash compensation
- Methods to align and benchmark compensation and benefits
- Benefits programs policies- processes- and analysis

Functional Area 05 | Employee and Labor Relations (39%)
Manage- monitor- and/or promote legally compliant programs and policies that impact the employee experience throughout the employee lifecycle.

Responsibilities:
- Analyze functional effectiveness at each stage of the employee lifecycle (for example: hiring- onboarding- development- retention- exit process- alumni program) and identify alternate approaches as needed
- Collect- analyze- summarize- and communicate employee engagement data
- Understand organizational culture- theories- and practices; identify opportunities and make recommendations
- Understand and apply knowledge of programs- federal laws- and regulations to promote outreach- diversity and inclusion (for example: affirmative action- employee resource groups- community outreach- corporate responsibility)
- Implement and support workplace programs relative to health- safety- security- and privacy following federal laws and regulations (for example: OSHA- workers compensation- emergency response- workplace violence- substance abuse- legal postings)
- Promote organizational policies and procedures (for example: employee handbook- SOPs- time and attendance- expenses)
- Manage complaints or concerns involving employment practices- behavior- or working conditions- and escalate by providing information to appropriate stakeholders
- Promote techniques and tools for facilitating positive employee and labor relations with knowledge of applicable federal laws affecting union and nonunion workplaces (for example: dispute/conflict resolution- anti-discrimination policies- sexual harassment)
- Support and consult with management in performance management process (for example: employee reviews- promotions- recognition programs)
- Support performance activities (for example: coaching- performance improvement plans- involuntary separations) and employment activities (for example: job eliminations- reductions in force) by managing corresponding legal risks
Knowledge of:
- General employee relations activities and analysis (for example- conducting investigations- researching grievances- working conditions- reports- etc.)
- Applicable federal laws and procedures affecting employment- labor relations- safety- and security
- Human relations- culture and values concepts- and applications to employees and organizations
- Review and analysis process for assessing employee attitudes- opinions- and satisfaction
- Diversity and inclusion
- Recordkeeping requirements
- Occupational injury and illness prevention techniques
- Workplace safety and security risks
- Emergency response- business continuity- and disaster recovery process
- Internal investigation- monitoring- and surveillance techniques
- Data security and privacy
- The collective bargaining process- terms- and concepts (for example: contract negotiation- costing- administration)
- Performance management process- procedures- and analysis
- Termination approaches- concepts- and terms

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Professional in Human Resources (HRCI PHR)
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Question: 983
A firm is conducting a comprehensive review of its employee benefits offerings under ERISA. Which of
the following practices should be prioritized to ensure compliance?
A. Ensuring that all benefits are offered without exception to all employees.
B. Limiting employee contributions to the minimum required by law.
C. Providing participants with a summary plan description (SPD) that outlines plan details.
D. Offering benefits only to full-time employees to reduce costs.
Answer: C
Explanation: Providing participants with a summary plan description (SPD) is a requirement under
ERISA, ensuring that employees are informed about their benefits and rights.
Question: 984
A company is trying to align individual employee goals with its strategic objectives. Which of the
following practices would be most effective in ensuring that employees understand how their
contributions impact the organization's success?
A. Implementing a continuous feedback system
B. Conducting annual performance reviews
C. Creating a detailed employee handbook
D. Holding quarterly town hall meetings
Answer: A
Explanation: A continuous feedback system allows for ongoing dialogue about individual contributions
and how they align with strategic objectives, fostering greater clarity and engagement.
Question: 985
In the context of Corporate Governance, which of the following best describes the primary responsibility
of the board of directors?
A. Day-to-day management of the company
B. Setting the strategic direction and oversight of management
C. Ensuring compliance with financial regulations
D. Directly engaging with customers and suppliers
Answer: B
Explanation: The board of directors is responsible for setting the strategic direction of the company and
providing oversight to ensure that management acts in the best interest of shareholders and stakeholders.
Question: 986
An HR professional is tasked with implementing a new data privacy policy in compliance with
regulations. Which of the following actions is essential to ensuring the effectiveness of this policy?
A. Providing employees with access to all employee records
B. Disallowing any data sharing between departments
C. Limiting data access to HR personnel only
D. Conducting regular training on data privacy best practices
Answer: D
Explanation: Conducting regular training on data privacy best practices is essential to ensuring that all
employees understand the policy and their responsibilities regarding data protection.
Question: 987
A company is implementing a new employee development program focused on leadership skills. What is
the most important factor to consider when designing this program?
A. The cost of the program
B. The popularity of the training vendor
C. The duration of the training sessions
D. Alignment with the organization's strategic goals and values
Answer: D
Explanation: Ensuring alignment with the organization's strategic goals and values is crucial when
designing a leadership development program, as it ensures that the skills taught are relevant and
beneficial to the company�s future.
Question: 988
A company�s board is discussing its Corporate Governance practices. What is the primary purpose of
establishing an independent audit committee?
A. To manage employee grievances
B. To oversee financial reporting and compliance
C. To enhance marketing strategies
D. To limit board member terms
Answer: B
Explanation: The primary purpose of an independent audit committee is to oversee financial reporting
and ensure compliance with relevant laws and regulations, enhancing transparency and accountability.
Question: 989
An HR manager needs to calculate overtime pay for an employee earning $1,200 biweekly. If the
employee works 50 hours during the pay period, what is the overtime pay for the additional 10 hours
worked, assuming the overtime rate is 1.5 times the regular rate?
A. $180
B. $225
C. $320
D. $400
Answer: B
Explanation: Regular pay for 80 hours = $1,200. Hourly rate = $1,200 / 80 = $15. Overtime rate = $15 *
1.5 = $22.50. Overtime pay for 10 hours = $22.50 * 10 = $225.
Question: 990
A company reviews its KPIs and finds that employee engagement scores have dropped from 85% to 70%
over the past year. To what extent has employee engagement declined?
A. 10%
B. 15%
C. 20%
D. 25%
Answer: C
Explanation: The decline in employee engagement is calculated as (85% - 70%) = 15%. The percentage
decline from the original score is (15% / 85%) x 100 = 17.65%, approximately 20% when rounded.
Question: 991
An HR director is implementing a competency-based performance management system. What is the most
important aspect to ensure the system's success?
A. Engaging employees in the development of competencies
B. Standardizing competencies across all departments
C. Focusing solely on technical skills
D. Conducting annual reviews only
Answer: A
Explanation: Engaging employees in the development of competencies ensures that the system is relevant
and accepted, leading to greater buy-in and effectiveness in performance management.
Question: 992
A company is exploring ways to enhance its corporate social responsibility (CSR) initiatives to improve
its brand reputation. Which of the following strategies would most likely yield positive public
perception?
A. Conducting CSR activities only during company events.
B. Limiting CSR efforts to compliance with legal requirements.
C. Engaging in partnerships with reputable non-profit organizations.
D. Focusing solely on internal employee programs without community involvement.
Answer: C
Explanation: Engaging in partnerships with reputable non-profit organizations demonstrates a
commitment to broader social issues and can significantly enhance public perception of the company�s
CSR efforts.
Question: 993
A company aims to implement a coaching program and estimates that every coach can effectively mentor
4 employees simultaneously. If the organization plans to coach 32 employees, how many coaches are
needed?
A. 8
B. 7
C. 6
D. 10
Answer: A
Explanation: To determine the number of coaches needed, divide the total number of employees by the
number of employees each coach can mentor: 32 / 4 = 8 coaches.
Question: 994
A manufacturing company is implementing a new cafeteria plan to enhance its employee benefits. Which
of the following is a potential drawback of cafeteria plans that HR should consider?
A. Employees have more choices, which may lead to dissatisfaction.
B. They can lead to increased administrative costs and complexity.
C. All benefits must be equally valued by all employees.
D. They are less flexible than traditional benefits packages.
Answer: B
Explanation: Cafeteria plans can introduce increased administrative costs and complexity due to the need
to track multiple benefit selections and ensure compliance with regulations.
Question: 995
As part of a strategic workforce planning initiative, an HR team identifies a need for more diverse talent
in leadership roles. What is the most effective approach to achieve this goal?
A. Setting specific diversity hiring targets for leadership positions
B. Implementing a blind recruitment process
C. Offering diversity training for all employees
D. Conducting focus groups with minority employees
Answer: A
Explanation: Setting specific diversity hiring targets holds the organization accountable and focuses
efforts on increasing diverse representation in leadership roles.
Question: 996
A company is analyzing the effectiveness of its training programs using the Kirkpatrick model. If the
training has a reaction score of 85%, a learning score of 70%, and a behavior score of 60%, what is the
next logical step in the evaluation?
A. Assess the training's results on organizational performance
B. Conduct a cost-benefit analysis
C. Revise the training content immediately
D. Gather feedback from the trainers
Answer: A
Explanation: The next logical step is to assess the training's results on organizational performance (Level
4), as this provides insight into the overall impact of the training on business objectives.
Question: 997
A company is faced with legal challenges regarding its pay equity practices. The HR manager is tasked
with reviewing the current compensation structure. Which of the following methods would best help
identify potential pay disparities?
A. Conducting a job analysis to reassess job descriptions and requirements.
B. Surveying employees about their perceptions of pay fairness.
C. Implementing a pay raise for all employees to equalize compensation.
D. Performing a statistical analysis of salaries across similar roles, controlling for experience and
performance.
Answer: D
Explanation: Performing a statistical analysis of salaries across similar roles while controlling for relevant
factors provides a clear view of potential pay disparities, allowing for informed corrective actions.
Question: 998
Which of the following is a potential consequence of a poorly conducted performance appraisal?
A. Improved employee morale
B. Enhanced communication between employees and managers
C. Clear understanding of job expectations
D. Increased employee disengagement and turnover
Answer: D
Explanation: A poorly conducted performance appraisal can lead to increased employee disengagement
and turnover, as employees may feel undervalued or misjudged.
Question: 999
A accurate review of the company�s exit interview process reveals that many employees feel their feedback
is not taken seriously. What should HR do to enhance the effectiveness of exit interviews?
A. Eliminate the process to save time
B. Conduct interviews in a group setting
C. Regularly analyze and report on feedback trends
D. Limit exit interviews to only managerial positions
Answer: C
Explanation: Regularly analyzing and reporting on feedback trends allows the organization to take
actionable steps based on employee input, enhancing the process's effectiveness and credibility.
Question: 1000
An organization is reviewing its ethics training program to align with the HRCI Code of Ethics. Which
of the following courses should be included to promote ethical behavior in the workplace?
A. Strategies for maximizing profits
B. Conflict resolution and reporting mechanisms
C. Guidelines for managing employee relations
D. Techniques for reducing employee turnover
Answer: B
Explanation: Including conflict resolution and reporting mechanisms in the ethics training program
promotes ethical behavior and provides employees with the tools to handle ethical dilemmas
appropriately.
Question: 1001
A company is facing an impending strike due to unresolved collective bargaining negotiations. To
prevent the strike, what is the most effective strategy for management to pursue?
A. Ignore the union's demands and wait for the strike
B. Threaten to replace striking workers
C. Engage in mediation with a neutral third party
D. Offer a one-time bonus to all employees
Answer: C
Explanation: Engaging in mediation with a neutral third party is an effective strategy to resolve disputes
without escalating to a strike, demonstrating a commitment to finding a mutual agreement.
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Professional in Human Resources (HRCI PHR) Practice Test

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