PHR and SPHR Professional in Human Resources Certification Complete Review Guide E-Book
James J. Galluzzo
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- Herausgeber: John Wiley & Sons
- Kategorie: Bildung
- Sprache: Englisch
Essential review for the PHR/SPHR exams, aligned with the updated HRBoK(TM) PHR/SPHR Professional in Human Resources Certification Review Guide is the ideal companion to the PHR/SPHR Study Guide, Fifth Edition, and PHR/SPHR Deluxe Study Guide, Second Edition. These self-study guides are intended for HR professionals seeking to validate their skills and knowledge acquired through years of practical experience, or for relative newcomers to the HR field looking to strengthen their resume. Organized by those areas of knowledge and practices specific and necessary to human resource management (HRM), this handy review guide covers tasks, processes, and strategies as detailed in the updated A Guide to the Human Resource Body of Knowledge(TM) (HRBoK(TM)), giving you clear guidance on what you need to know for the exams. You also get a year of FREE access to the Sybex online interactive learning environment and study tools, which feature flashcards, chapter tests, two bonus practice exams, and more. The review guide aligns with the HRCI test specifications, which detail the responsibilities and knowledge needed by today's HR professionals. Covers key functional areas in greater depth: HR students and professionals studying for the PHR/SPHR certification need a trusted resource to aid in their preparation--this review guide does that and more.
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PHR® and SPHR®
Human Resources Certification CompleteReview Guide
2018 Exams
James J. Galluzzo III, SPHR
Senior Acquisitions Editor: Kenyon Brown
Development Editor: James Compton
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Copyright © 2018 by John Wiley & Sons, Inc., Indianapolis, Indiana
Published by John Wiley & Sons, Inc. Indianapolis, Indiana
Published simultaneously in Canada
ISBN: 9781-119-42652-3ISBN: 978-1-119-42641-7 (ebk.)ISBN: 978-1-119-42667-7 (ebk.)
Manufactured in the United States of America
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TRADEMARKS: Wiley, the Wiley logo, and the Sybex logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates, in the United States and other countries, and may not be used without written permission. PHR and SPHR are registered trademarks of Human Resource Certification Institute, Inc. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product or vendor mentioned in this book.
To Melissa, Catharine, Kim, and Judy. Thank you for all your love and inspiration.
About the Author
James J. Galluzzo III, SPHR®, is a strategic human resources professional and leader with nearly 25 years of experience. He is a Senior Professional in Human Resources (SPHR) certified by the HR Certification Institute. He served as an Adjutant General's Corps officer in the United States Army, where he held several HR positions of increasing responsibility during his tenure, finally culminating as chief of leadership development for the 40,000 Army HR professionals around the world before his retirement in 2014.
He was instrumental in establishing the partnership between the HR Certification Institute and the Army to help military HR professionals seeking civilian credentials as they transitioned from service into civilian work. He is a former HR director of South Carolina's State Housing Finance and Development Authority and is currently the corporate HR director for John Harris Body Shops, an automotive collision repair company in South Carolina and Georgia.
J. earned a bachelor's degree in electrical engineering from Clarkson University and an MBA from National University in California. He continues to volunteer for projects that strengthen the HR profession.
You can reach J. through LinkedIn (linkedin.com/in/james-galluzzo-sphr-62b44a69).
Acknowledgments
The writing of a review guide, especially one of this scope, is not an individual achievement sport, and as such there are many individuals to whom I owe a great deal of thanks and acknowledgment for their contribution and support. First, the outstanding editors, Jim Compton and Katie Wisor, did a fantastic job in helping me bring out my best to present to the readers, along with all the other folks at Sybex and Wiley who made this book possible.
Additionally, I wish to thank Kenyon Brown, senior acquisitions editor, for giving me the opportunity to develop and write this review guide. I am also very fortunate that I had a chance meeting with Sandy Reed, SPHR, who thought to recommend me to Ken for this project.
As many HR professionals would agree, experience is the best teacher. To this, I thank the many leaders, soldiers, family members, and civilian professionals with whom I had the privilege to serve over a 20-year career in the United States Army and all the wonderful experiences and lessons I learned.
Enid Conner, Ron Frye, and Kim Pruitt, my fabulous HR team from SC Housing, and Claire Wessinger from John Harris Body Shops are the epitome of dedicated HR professionals who work tirelessly each day to meet the demands of the employees they serve. My transition to the civilian HR world would not have been successful or possible without their support and teamwork.
Finally, a great deal of thanks to my family, friends, and professional colleagues who encouraged me to complete this endeavor and for all their love and commitment over the years.
CONTENTS
About the Author
Acknowledgments
Introduction
Book Structure
How to Use This Book
Interactive Online Learning Environment and Test Bank
Overview of the HRCI
®
Credentials
Day of the Exam
Objective Map
Part I PHR
®
Chapter 1 Business Management
Required Knowledge
Responsibilities
Summary
Review Questions
Chapter 2 Talent Planning and Acquisition (PHR
®
Only)
Required Knowledge
Responsibilities
Summary
Review Questions
Chapter 3 Learning and Development (PHR
®
Only)
Required Knowledge
Responsibilities
Summary
Review Questions
Chapter 4 Total Rewards (PHR® Only)
Required Knowledge
Responsibilities
Summary
Review Questions
Chapter 5 Employee and Labor Relations
Required Knowledge
Responsibilities
Summary
Review Questions
Part II SPHR
®
Chapter 6 Leadership and Strategy
Required Knowledge
Responsibilities
Summary
Review Questions
Chapter 7 Talent Planning and Acquisition (SPHR
®
Only)
Required Knowledge
Responsibilities
Summary
Review Questions
Chapter 8 Learning and Development (SPHR
®
Only)
Required Knowledge
Responsibilities
Summary
Review Questions
Chapter 9 Total Rewards (SPHR
®
Only)
Required Knowledge
Responsibilities
Summary
Review Questions
Chapter 10 Employee Relations and Engagement
Required Knowledge
Responsibilities
Summary
Review Questions
Appendix Answers to Review Questions
Chapter 1: Business Management
Chapter 2: Talent Planning and Acquisition (PHR® Only)
Chapter 3: Learning and Development (PHR® Only)
Chapter 4: Total Rewards (PHR® Only)
Chapter 5: Employee and Labor Relations
Chapter 6: Leadership and Strategy
Chapter 7: Talent Planning and Acquisition (SPHR® Only)
Chapter 8: Learning and Development (SPHR® Only)
Chapter 9: Total Rewards (SPHR® Only)
Chapter 10: Employee Relations and Engagement
Index
Advert
End User License Agreement
List of Tables
Chapter 1
Table 1.1
Table 1.2
Chapter 2
Table 2.1
Table 2.2
Chapter 3
Table 3.1
Table 3.2
Chapter 4
Table 4.1
Table 4.2
Table 4.3
Chapter 5
Table 5.1
Table 5.2
Table 5.3
Table 5.4
Table 5.5
Chapter 6
Table 6.1
Table 6.2
Table 6.3
Table 6.4
Chapter 7
Table 7.1
Table 7.2
Chapter 8
Table 8.1
Table 8.2
Chapter 9
Table 9.1
Chapter 10
Table 10.1
Table 10.2
Table 10.3
Table 10.4
Table 10.5
List of Illustrations
Chapter 1
Figure 1.1 A hierarchical organizational structure
Figure 1.2 A matrix organizational structure
Figure 1.3 U.S. federal regulatory process
Figure 1.4 The risk table
Chapter 2
Figure 2.1 Bureau of Labor Statistics website
Figure 2.2 Cost-per-hire calculations
Figure 2.3 The talent acquisition life cycle
Chapter 3
Figure 3.1 Gagne’s nine events of instruction
Figure 3.2 Process flow map
Figure 3.3 Organizational development change theories
Figure 3.4 Maslow’s hierarchy of needs
Figure 3.5 Career development model
Figure 3.6 The nine-box model
Chapter 4
Figure 4.1 Comparative wages
Figure 4.2 Quantitative approach
Figure 4.3 Pay ranges in a company
Figure 4.4 Miscellaneous stock plans for executives
Chapter 5
Figure 5.1 The employee life cycle
Figure 5.2 Formal grievance process
Chapter 6
Figure 6.1 Phases of the strategic planning process
Figure 6.2 Hierarchical organizational structure
Figure 6.3 Matrix organizational structure
Figure 6.4 Implementation of a new service center
Figure 6.5 Nesting goals
Figure 6.6 Cost per hire
Figure 6.7 Turnover
Chapter 7
Figure 7.1 Bureau of Labor Statistics website
Figure 7.2 Cost-per-hire calculations
Figure 7.3 Business life cycle
Chapter 8
Figure 8.1 Gagne’s nine events of instruction
Figure 8.2 Process flow map
Figure 8.3 Organizational development change theories
Figure 8.4 Maslow’s hierarchy of needs
Figure 8.5 A bell curve
Figure 8.6 Needs assessment
Figure 8.7 Career development model
Figure 8.8 The nine-box model
Chapter 9
Figure 9.1 Comparative wages
Figure 9.2 Miscellaneous stock plans for executives
Figure 9.3 Quantitative approach
Figure 9.4 Pay ranges in a company
Figure 9.5 Pay range spread
Chapter 10
Figure 10.1 Contract negotiation
Figure 10.2 Formal grievance process
Guide
Cover
Table of Contents
Introduction
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Introduction
Congratulations on your choice to prepare and sit for the Professional in Human Resources (PHR®) or Senior Professional in Human Resources (SPHR®) exam. These accredited exams are the gold standard of HR credentialing and represent decades of professional rigor and stringent practice analysis study conducted by the HR Certification Institute (HRCI®). HR professionals who are working to earn these most recognized HR credentials will see changes in the areas of responsibility and knowledge that are the results of a 2017 detailed study of the current state of HR practice in the United States.
This book is meant for anyone seeking either the PHR® or SPHR® certification with the new exams based on the changes to the exam content outlines effective August 1, 2018. It is also an ideal review for any HR practitioner who wants to increase their knowledge and professional depth of HR practices. If you are preparing for other HRCI® exams in the PHR/SPHR family, this book may also be useful to review for additional context across the HR field of study for those exams.
This review guide has been designed to work along with the PHR and SPHR Human Resources Complete Certification Exam Study Guide, also from Sybex. The study guide provides more depth and review of the functional areas covered by the exam content outlines and more real-world examples. This review guide helps solidify the required experience- based knowledge to help you successfully prepare and pass the PHR® or SPHR® exam.
Book Structure
This book has been laid out in a comprehensive and systematic way that follows the exam content outlines for the PHR® and SPHR® exams. The individual chapters cover distinct functional areas of human resources. The book has two parts. The first part consists of Chapters 1–5 and is designed to prepare individuals who want to sit for the Professional in Human Resources (PHR®) certification exam. The second part consists of Chapters 6–10 and is designed to prepare individuals who want to sit for the Senior Professional in Human Resources (SPHR®) certification exam. It is not necessary to review the entire book, as each part covers the necessary exam content outline for that particular exam.
Part One: PHR®
Business Management
Talent Planning and Acquisition
Learning and Development
Total Rewards
Employee and Labor Relations
Part Two: SPHR®
Leadership and Strategy
Talent Planning and Acquisition
Learning and Development
Total Rewards
Employee Relations and Engagement
While the exam content outlines list the responsibilities before the required knowledge, this review guide covers the knowledge first. The reasoning is that an HR practitioner cannot assume responsibilities and take proper action without first understanding the key knowledge for a particular area. Also, this book does not cover each responsibility or knowledge point in order in the chapter text but elects to group key concepts together as they would likely be handled by function in a professional HR setting. I have kept the numbering convention the same at the beginning of each chapter; so the responsibilities start at “1” for each new functional area, but the required knowledge continues from the previous chapter for both parts. I believe this structure will make it easy for you to learn the information in the shortest time with the highest possible retention.
How to Use This Book
Several learning tools are included in the book. These tools will help you retain vital exam content as well as prepare to sit for the actual exams.
Objective Map and Opening List of Objectives At the beginning of the book you’ll find a detailed exam objective map showing you where each of the exam objectives is covered. In addition, each chapter opens with a list of the exam objectives it covers. Use these resources to see exactly where each of the exam topics is covered.
Exam Essentials Each chapter includes a number of exam essentials. These are the key points that you should take from the chapter, identifying topics on which you should focus when preparing for the exam.
Chapter Review Questions To test your knowledge as you progress through the book, there are review questions at the end of each chapter. As you finish each chapter, answer the review questions and then check your answers—the correct answers appear in the appendix, “Answers to Review Questions.” You can go back to reread the section that deals with any question you got wrong to ensure that you answer correctly the next time you’re tested on the material.
Interactive Online Learning Environment and Test Bank
The interactive online learning environment that accompanies PHR® and SPHR® Human Resources Certification Complete Review Guide: 2018 Exams provides a test bank with study tools to help you prepare for the certification exam—and increase your chances of passing it the first time! The test bank includes the following:
Sample Tests All the questions in this book are provided, including the chapter tests that include the review questions at the end of each chapter. In addition, there are two practice exams (one each for the PHR® and SPHR®) that have a variety of question formats that match the newly structured exams as of the fall of 2018. Use these questions to test your knowledge of the review guide material. The online test bank runs on multiple devices.
Flashcards One set of questions is provided in digital flashcard format (a question followed by a single correct answer). You can use the flashcards to reinforce your learning and provide last-minute test prep before the exam.
Other Study Tools A glossary of key terms from this book and their definitions is available as a fully searchable PDF.
Go to www.wiley.com/go/sybextestprep to register and gain access to this interactive online learning environment and test bank with study tools.
Overview of the HRCI® Credentials
HRCI® has several credentials in the HR field that serve HR professionals in the United States and international settings. They range from entry-level credentials for people transitioning to or beginning a career in HR to credentials for senior HR professionals responsible for strategic HR decisions and functions within an organization.
For more than 40 years, HRCI® has used rigorous standards and evaluations of current HR practices, along with experts from the field, to develop and validate an HR body of knowledge that is wide ranging and the gold standard for HR professionals. From this body of knowledge, exam content outlines are created for each certification that serve as the foundation for exam questions for each certification exam. At the time of this publication, HRCI® offers eight credentials. Here’s a brief look at each:
Associate Professional in Human Resources (aPHR)TM HRCI’s Associate Professional in Human Resources™ (aPHR™) is the perfect certification to help you with your career growth and provide you with the confidence to launch into the HR profession. The aPHR is specifically designed for professionals who are just beginning their HR career journey and proves your knowledge of foundational human resources.
Eligibility Requirements To be eligible for the aPHR you must have a high school diploma or global equivalent. No HR experience is required since this is a knowledge-based credential.
Associate Professional in Human Resources—International (aPHRi)TM If you are new to HR and want to distinguish yourself in the field, the Associate Professional in Human Resources—International™ (aPHRi™) helps propel your career growth and provide you with the confidence to launch into the HR profession. HR professionals in the United States are not eligible for this exam.
Eligibility Requirements To be eligible for the aPHRi, you must have a high school diploma or global equivalent. No HR experience is required since this is a knowledge-based credential.
Professional in Human Resources (PHR)® This is the flagship HR credential from HRCI®. The most widely known certification, PHR demonstrates mastery of the technical and operational aspects of HR management, including U.S. laws and regulations. The PHR is for the HR professional who has experience with program implementation, has a tactical/logistical orientation, is accountable to another HR professional within the organization, and has responsibilities that focus on the HR department rather than the whole organization.
Eligibility Requirements To be eligible for the PHR, you must meet one of the following conditions for education and experience:
At least one year of experience in a professional-level HR position plus a master’s degree or higher
At least two years of experience in a professional-level HR position plus a bachelor’s degree
At least four years of experience in a professional-level HR position plus a high school diploma
Professional in Human Resources—California (PHRca)® The PHRca demonstrates mastery of the laws, regulations, and HR management practices unique to the state of California. The PHRca is for professionals who either practice in California or are responsible for human resource management in California. You do not have to be located in California to earn a PHRca. Many certification holders add the PHRca to their other HRCI credentials.
Eligibility Requirements To be eligible for the PHRca, you must meet one of the following conditions for education and experience:
At least one year of experience in a professional-level HR position plus a master’s degree or higher
At least two years of experience in a professional-level HR position plus a bachelor’s degree
At least four years of experience in a professional-level HR position plus a high school diploma
Professional in Human Resources—International (PHRi)® The PHRi (formerly the Human Resources Business Professional™, or HRBP™), for internationally based practitioners, validates professional-level competency, knowledge, and skills to help to propel your HR career forward. The PHRi demonstrates mastery of generally accepted technical and operational HR principles in a single international setting. HR professionals in the United States are not eligible for this exam.
Eligibility Requirements To be eligible for the PHRi, you must meet one of the following conditions for education and experience:
At least one year of experience in a professional-level HR position plus a master’s degree or global equivalent
At least two years of experience in a professional-level HR position plus a bachelor’s degree or global equivalent
At least four years of experience in a professional-level HR position plus a high school diploma or global equivalent
Senior Professional in Human Resources (SPHR)® This credential is widely recognized as the industry leader for senior HR professionals. The SPHR demonstrates mastery of the strategic and policy-making aspects of HR management as practiced in the United States. The credential is designed for big-picture thinkers responsible for planning rather than implementing HR policy. SPHR professionals are responsible for HR department goals, for breadth and depth of knowledge in all HR disciplines, and for understanding business issues beyond the HR function.
Eligibility Requirements To be eligible for the SPHR, you must meet one of the following conditions for education and experience:
At least four years of experience in a professional-level HR position plus a master’s degree or higher
At least five years of experience in a professional-level HR position plus a bachelor’s degree
At least seven years of experience in a professional-level HR position plus a high school diploma
Senior Professional in Human Resources—International (SPHRi)® The SPHRi (formerly the Human Resources Management Professional™, or HRMP™), for internationally based HR leaders, validates senior-level HR competency and mastery of generally accepted HR principles in strategy, policy development, and service delivery in a single international setting. The SPHRi requires documented knowledge of local employment laws. HR professionals in the United States are not eligible for this exam.
Eligibility Requirements To be eligible for the SPHRi, you must meet one of the following conditions for education and experience*:
At least four years of experience in a professional-level HR position plus a master’s degree or global equivalent
At least five years of experience in a professional-level HR position plus a bachelor’s degree or global equivalent
At least seven years of experience in a professional-level HR position plus a high school diploma or global equivalent
Global Professional in Human Resources (GPHR)® The GPHR demonstrates your expertise of multinational HR responsibilities, including strategies of globalization development of HR policies and initiatives that support organizational global growth. It shows you have the knowledge and skills needed to manage HR challenges in a global marketplace.
Eligibility Requirements To be eligible for the GPHR, you must meet one of the following conditions for education and experience:
Have at least two years of experience* in a global professional-level HR position
and
a master’s degree or higher
Have at least three years of experience* in a professional-level HR position (at least two in global HR)
and
a bachelor’s degree
Have at least four years of experience* in a professional-level HR position (at least two in global HR)
and
a high school diploma
*Note: Global HR experience is defined as having direct, cross-border HR responsibilities for two or more countries or regions.
For more information on credentials offered by the HR Certification Institute, visit https://www.hrci.org/our-programs/our-certifications.
Day of the Exam
After you gain the necessary prerequisites to sit for the exam, the PHR® or SPHR® exam serves as the final measure to earning your certification. You are already well ahead of the game in preparing for the exam when you purchase this book. Your commitment to the preparation will help you arrive with confidence on the day of the exam. Throughout the course of this book, you will find sections that offer tips on what to do on the day of the exam. While you are not allowed to take any materials or exam aids into the testing area, you are given scratch paper to work with during your exam. One important point to realize is that employment laws change constantly. Candidates are responsible for knowing the HR laws and regulations that are in effect at the time of their exam. Therefore, it may be helpful to jot some notes about any recent changes of major laws related to HR.
Additionally, be sure to follow all the basic-test taking advice, such as getting a good night’s sleep, eating a good breakfast, and going through breathing and focus exercises before the exam. Please consider the following items during the exam as well:
Take the time to read through each question slowly and completely. Fully understanding what is being asked in the question can contribute greatly to getting the right answer.
Don’t get stuck on any one question; you can mark an answer you are unsure of to return to later. However, remember not to leave it blank, just in case you run out of time and are unable to return to the answer.
Try not to overthink the question with personal experience. Some companies have different practices, and some may be, unknowingly, not following best practices. A question about how your company in particular does business may require a different answer than the generic correct rule or procedure.
For more information from HRCI® on preparing for the exam, be sure you check out https://www.hrci.org/how-to-get-certified/taking-the-exam for more valuable resources.
Objective Map
Use the following summary of the PHR® and SPHR® Exam Content Outlines to find where each functional area and each specific topic is covered so you can focus on the areas you most need to review.
PHR® Exam Content Outline
The PHR® exam is created using the PHR® Exam Content Outline. Created by HR subject-matter experts in the field, it is a comprehensive outline of responsibilities of and knowledge needed by today’s HR professional. The outline is grouped into five functional areas. The following are the official PHR® exam objectives, as specified by HRCI®.
Business Management
The following responsibilities and knowledge make up the Business Management functional area and are covered in Chapter 1 of this book:
Responsibilities:
Interpret and apply information related to general business environment and industry best practices.
Reinforce the organization’s 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
Talent Planning and Acquisition
The following responsibilities and knowledge make up the Talent Planning and Acquisition functional area and are covered in Chapter 2 of this book:
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 life cycle (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 processes, offshoring, and divestitures
Metrics to assess past and future staffing effectiveness (for example: cost per hire, selection ratios, adverse impact)
Learning and Development
The following responsibilities and knowledge make up the Learning and Development functional area and are covered in Chapter 3 of this book:
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
Total Rewards
The following responsibilities and knowledge make up the Total Rewards functional area and are covered in Chapter 4 of this book:
Responsibilities:
Manage compensation-related information and support payroll issue resolution.
Implement and promote awareness of noncash 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
Noncash compensation
Methods to align and benchmark compensation and benefits
Benefits programs policies, processes, and analysis
Employee and Labor Relations
The following responsibilities and knowledge make up the Employee and Labor Relations functional area and are covered in Chapter 5 of this book:
Responsibilities:
Analyze functional effectiveness at each stage of the employee life cycle (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
SPHR® Exam Content Outline
The SPHR® exam is created using the SPHR® Exam Content Outline. Created by HR subject-matter experts in the field, it is a comprehensive outline of responsibilities of and knowledge needed by today’s Senior HR professional. Like the PHR®, the SPHR® outline is grouped into five functional areas. Three of the functional areas have the same heading but slightly different focus on the exam content outline. The following are the official SPHR® exam objectives, as specified by HRCI®.
Leadership and Strategy
The following responsibilities and knowledge make up the Leadership and Strategy functional area and are covered in Chapter 6 of this book:
Responsibilities:
Develop and execute HR plans that are aligned to the organization’s strategic plan (for example: HR strategic plans, budgets, business plans, service delivery plans, HRIS, technology).
Evaluate the applicability of federal laws and regulations to organizational strategy (for example: policies, programs, practices, business expansion/reduction).
Analyze and assess organizational practices that impact operations and people management to decide on the best available risk management strategy (for example: avoidance, mitigation, acceptance).
Interpret and use business metrics to assess and drive achievement of strategic goals and objectives (for example: key performance indicators, financial statements, budgets).
Design and evaluate HR data indicators to inform strategic actions within the organization (for example: turnover rates, cost per hire, retention rates).
Evaluate credibility and relevance of external information to make decisions and recommendations (for example: salary data, management trends, published surveys and studies, legal/regulatory analysis).
Contribute to the development of the organizational strategy and planning (for example: vision, mission, values, ethical conduct).
Develop and manage workplace practices that are aligned with the organization’s statements of vision, values, and ethics to shape and reinforce organizational culture.
Design and manage effective change strategies to align organizational performance with the organization’s strategic goals.
Establish and manage effective relationships with key stakeholders to influence organizational behavior and outcomes.
Knowledge of:
Vision, mission, and values of an organization and applicable legal and regulatory requirements
Strategic planning process
Management functions, including planning, organizing, directing, and controlling
Corporate governance procedures and compliance
Business elements of an organization (for example: products, competition, customers, technology, demographics, culture, processes, safety and security)
Third-party or vendor selection, contract negotiation, and management, including development of requests for proposals (RFPs)
Project management (for example: goals, timetables, deliverables, and procedures)
Technology to support HR activities
Budgeting, accounting, and financial concepts (for example: evaluating financial statements, budgets, accounting terms, and cost management)
Techniques and methods for organizational design (for example: outsourcing, shared services, organizational structures)
Methods of gathering data for strategic planning purposes (for example: Strengths, Weaknesses, Opportunities, and Threats [SWOT], and Political, Economic, Social, and Technological [PEST])
Qualitative and quantitative methods and tools used for analysis, interpretation, and decision-making purposes
Change management processes and techniques
Techniques for forecasting, planning, and predicting the impact of HR activities and programs across functional areas
Risk management
How to deal with situations that are uncertain, unclear, or chaotic
Talent Planning and Acquisition
The following responsibilities and knowledge make up the Talent Planning and Acquisition functional area and are covered in Chapter 7 of this book:
Responsibilities:
Evaluate and forecast organizational needs throughout the business cycle to create or develop workforce plans (for example: corporate restructuring, workforce expansion, or reduction).
Develop, monitor, and assess recruitment strategies to attract desired talent (for example: labor market analysis, compensation strategies, selection process, onboarding, sourcing and branding strategy).
Develop and evaluate strategies for engaging new employees and managing cultural integrations (for example: new employee acculturation, downsizing, restructuring, mergers and acquisitions, divestitures, global expansion).
Knowledge of:
Planning techniques (for example: succession planning, forecasting)
Talent management practices and techniques (for example: selecting and assessing employees)
Recruitment sources and strategies
Staffing alternatives (for example: outsourcing, temporary employment)
Interviewing and selection techniques and strategies
Impact of total rewards on recruitment and retention
Termination approaches and strategies
Employee engagement strategies
Employer marketing and branding techniques
Negotiation skills and techniques
Due diligence processes (for example: mergers and acquisitions, divestitures)
Transition techniques for corporate restructuring, mergers and acquisitions, offshoring, and divestitures
Methods to assess past and future staffing effectiveness (for example: cost per hire, selection ratios, adverse impact)
Learning and Development
The following responsibilities and knowledge make up the Learning and Development functional area and are covered in Chapter 8 of this book:
Responsibilities:
Develop and evaluate training strategies (for example: modes of delivery, timing, content) to increase individual and organizational effectiveness.
Analyze business needs to develop a succession plan for key roles (for example: identify talent, outline career progression, coaching and development) to promote business continuity.
Develop and evaluate employee retention strategies and practices (for example: assessing talent, developing career paths, managing job movement within the organization).
Knowledge of:
Training program design and development
Adult learning processes
Training and facilitation techniques
Instructional design principles and processes (for example: needs analysis, content chunking, process flow mapping)
Techniques to assess training program effectiveness, including use of applicable metrics
Career and leadership development theories and applications
Organizational development (OD) methods, motivation methods, and problem-solving techniques
Coaching and mentoring techniques
Effective communication skills and strategies (for example: presentation, collaboration, sensitivity)
Employee retention strategies
Techniques to encourage creativity and innovation
Total Rewards
The following responsibilities and knowledge make up the Total Rewards functional area and are covered in Chapter 9 of this book:
Responsibilities:
Analyze and evaluate compensation strategies (for example: philosophy, classification, direct, indirect, incentives, bonuses, equity, executive compensation) that attract, reward, and retain talent.
Analyze and evaluate benefit strategies (for example: health, welfare, retirement, recognition programs, work-life balance, wellness) that attract, reward, and retain talent.
Knowledge of:
Compensation strategies and philosophy
Job analysis and evaluation methods
Job pricing and pay structures
External labor markets and economic factors
Executive compensation methods
Noncash compensation methods
Benefits program strategies
Fiduciary responsibilities
Motivation concepts and applications
Benchmarking techniques
Employee Relations and Engagement
The following responsibilities and knowledge make up the Employee Relations and Engagement functional area and are covered in Chapter 10 of this book:
Responsibilities:
Design and evaluate strategies for employee satisfaction (for example: recognition, career path) and performance management (for example: performance evaluation, corrective action, coaching).
Analyze and evaluate strategies to promote diversity and inclusion.
Evaluate employee safety and security strategies (for example: emergency response plan, building access, data security/privacy).
Develop and evaluate labor strategies (for example: collective bargaining, grievance program, concerted activity, staying union free, strategically aligning with labor).
Knowledge of:
Strategies to facilitate positive employee relations
Methods for assessing employee attitudes, opinions, and satisfaction
Performance management strategies
Human relations concepts and applications
Ethical and professional standards
Diversity and inclusion concepts and applications
Occupational injury and illness prevention techniques
Workplace safety and security risks and strategies
Emergency response, business continuity, and disaster recovery strategies
Internal investigation, monitoring, and surveillance techniques
PART IPHR®
What This Part Covers
The first five chapters of this book are dedicated to the PHR® exam and cover all the topics and information needed to successfully sit for the exam. These chapters stand alone as the only content portion of the book needed. The second half of the book is not required reading if you intend to take the PHR® exam only. If you are undecided as to which exam you should take, you can compare the chapter outlines for the content differences. You will notice that certain material may overlap, but the level of focus is different, varying from the tactical day-to-day HR functions to the higher-level strategic HR practices.
Chapter 1Business Management
THE PHR® EXAM CONTENT FROM THE BUSINESS MANAGEMENT FUNCTIONAL AREA COVERED IN THIS CHAPTER CONSISTS OF THE FOLLOWING RESPONSIBILITIES AND KNOWLEDGE AREAS. RESPONSIBILITIES:
01 Interpret and apply information related to general business environment and industry best practices
02 Reinforce the organization’s core values, ethical and behavioral expectations through modeling, communication, and coaching
03 Understand the role of cross-functional stakeholders in the organization and establish relationships to influence decision making
04 Recommend and implement best practices to mitigate risk (for example: lawsuits, internal/external threats)
05 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)
IN ADDITION TO THE PRECEDING RESPONSIBILITIES, AN INDIVIDUAL TAKING THE PHR® EXAM SHOULD HAVE WORKING KNOWLEDGE OF THE FOLLOWING AREAS, USUALLY DERIVED THROUGH PRACTICAL EXPERIENCE:
01 Vision, mission, values, and structure of the organization
02 Legislative and regulatory knowledge and procedures
03 Corporate governance procedures and compliance
04 Employee communications
05 Ethical and professional standards
06 Business elements of an organization (for example: other functions and departments, products, competition, customers, technology, demographics, culture, processes, safety and security)
07 Existing HRIS, reporting tools, and other systems for effective data reporting and analysis
08 Change management theory, methods, and application
09 Risk management
10 Qualitative and quantitative methods and tools for analytics
11 Dealing with situations that are uncertain, unclear, or chaotic
This chapter looks at the important functions and roles that human resources (HR) professionals play in an organization with respect to the overall business environment. As a general rule, the HR team uses information about the organization and the business environment to reinforce expectations of stakeholders, influence decision makers, and avoid risk.
This function is tremendously important for HR professionals to master and understand. This portion is weighted as 20 percent of the PHR® exam. Often many HR professionals operate in smaller organizations as the sole subject-matter expert of the company and have a great deal of responsibility to support the key executives who rely on their experience and qualifications. HR professionals who understand and execute these responsibilities well will set themselves apart from their peers.
Required Knowledge
Smart people learn from their mistakes. Wise people learn from other people’s mistakes. Knowledge comes from either personal experience or the study of the experiences and lessons taught to us by others. HR professionals preparing for this exam must possess certain knowledge acquired from experience or study. In this chapter, the knowledge portion reviews business management practiced at the operational level of the organization, which includes topics such as corporate governance and procedures, employee communications, business elements, and the underlying mission, vision, and values of the company.
Mission, Vision, and Values
HR professionals must know the mission, vision, and values of the company. In many of their tasks discussed later in the chapter, they function as the champions, interpreters, or arbitrators of these concepts to the employees. The mission of the company is usually expressed as a short statement sentence describing the purpose of the company’s existence. It should be overarching and usually is an infinitive statement to do something. It answers the question, “Why?”
The vision of a company looks at the future and paints a vivid picture of what the organization will look like as it grows, develops, or changes over time. The vision considers where the organization is at present and describes where it wants to go. A vision must be able to be consistently repeated by employees to be effective. In other words, they are all able to describe the same picture. Vision statements should be simple to be effective and, in some instances, consist of only a phrase or a couple of words. Table 1.1 shows some mission and vision statements from familiar organizations.
TABLE 1.1Sample mission and vision statements
Statement
Company
“The Walt Disney Company’s objective is to be one of the world’s leading producers and providers of entertainment and information, using its portfolio of brands to differentiate its content, services and consumer products.”
https://thewaltdisneycompany.com/about/
Walt Disney Company
“As a leader in the global steel industry, we are dedicated to delivering high-quality products to our customers and building value for all of our stakeholders.”
https://www.ussteel.com
U.S. Steel
“Empower every person and organization on the planet to achieve more.”
https://www.microsoft.com/en-us/about/default.aspx
Microsoft
“The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.”
http://investors.southwest.com/our-company/purpose-vision-values-and-mission
Southwest Airlines
Values are the foundation of how a company is going to perform its mission and achieve its vision. From the HR perspective, a goal is to ensure that employee behaviors are aligned with the values of the organization. When behaviors are not aligned, the resulting issues and negative outcomes can impact performance management, employee relations, and HR development, all of which are reviewed in later chapters. Values must be communicated and modeled consistently throughout the organization to be effective. It is always the values that are practiced, not the ones that are written, that define how the organization conducts itself.
Types of Organizational Structures
Structure is essential for a company, and the HR professional must understand how a company is organized to perform critical tasks essential to operations. Often the HR professional must know the various departments or teams and how they are interconnected to establish policies over personnel transfers, evaluations, promotions, and other routine HR actions. Each organization is different, so there may be slight variations in how the organizational structure develops as a company expands. Knowing the choices that a company has about how to lead and control operations enables the HR professional to advise the corporate executives who are making structural decisions.
Two common approaches to organizational structure are the matrix and hierarchy methods. In a hierarchy, the structure resembles a pyramid. The chief decision-maker, such as a chief executive officer, president, or chairperson, is the ultimate head of the organization responsible for all actions and the accomplishment of the mission, vision, and values of the company. Below the organizational head might be division heads and then lower management and finally the teams of employees. In this kind of structure, there is a general stovepipe of information, and the flow tends to go up and down with little contact across. Figure 1.1 shows an example of an organizational hierarchy.
FIGURE 1.1 A hierarchical organizational structure
The other common structure is a matrix. This example is often shown as a series of groups or equal parts all sharing responsibilities for the execution of the company mission. In these environments, information can flow across as well as up and down. While it may seem that this would be a preferred method given the more open communication, it has its own unique challenges; there can be too much information sharing, as well as conflicting guidance based on different priorities or interpretations of the needs. Employees who work in a matrix environment must be more disciplined when resolving problems because their access means they can impact a far greater portion of the company with each decision. In Figure 1.2, you can see the differences in structure compared to the hierarchical organization shown in Figure 1.1.
FIGURE 1.2 A matrix organizational structure
Legislative and Regulatory Processes
HR professionals must know how laws and regulations are created to prepare an organization effectively for their implementation. Some laws or regulations can have wide impact on the operations of a company. For example, in 2016, the Department of Labor announced a major rule change to the administrative exemption to the overtime provision of the Fair Labor Standards Act (FLSA). This proposed rule change would have raised the minimum salary for exempted professionals significantly, thereby dramatically increasing the number of nonexempt workers in the United States. However, almost immediately several groups filed lawsuits in federal court, and an injunction was placed on the rule’s implementation. In that same year, the elections in November saw a change in political parties in the executive branch and a change in governing priorities, further delaying any changes to the rule. Without the knowledge of how and when an organization must follow rule changes and the legal and regulatory processes that accompany them, companies could go back and forth changing their employees’ status with respect to the exemption standard, creating confusion and costing money in added payroll costs.
Figure 1.3 highlights the regulatory process. It starts with a proposed rule or rule change by the executive agency tasked by law with establishing those rules. For example, the Department of Labor establishes rules related to the Fair Labor Standards Act. Next, the proposed rule will have a public comment period. This period is the time during which groups and individuals impacted by the rule can submit concerns or recommend changes to the rule and offer insight as to how the new standard would impact them. Finally, all the submissions are reviewed, and, if necessary, changes are made before the final rule is published. The final rule will have an effective date when all organizations subject to the rule must be in compliance. Knowing how the Department of Labor issues a rule change, and the period of time that is allowed to adopt the changes into practice within your organization, will allow you to prepare key leaders, change policies and procedures, and inform employees to facilitate the changes to the organization effectively.
FIGURE 1.3 U.S. federal regulatory process
HR functions within the realm of regulations. Since the late 1800s our modern HR practices can be tied to laws in the United States and globally that protect workers, establish working conditions, create rules for corporate governance, and perform other such functions that will be discussed throughout this book. It is imperative that as an HR professional you understand not just that rules change but how and when.
It is also important to know that from state to state and locally there may be differences in rules and laws that impact a company, especially one that operates in multiple locations. Laws in states that mandate minimum wages to be higher than the federal minimum are just one of a myriad of examples that affect HR operations. These concepts will be discussed further in other chapters.
Ethical and Professional Standards
HR professionals have access to a wide variety of sensitive and personal information in the conduct of their jobs. An HR professional must maintain the highest ethical and professional standards. The HR Certification Institute certification process requires all applicants to adhere to a code of ethics to maintain their credential. In general, HR professionals must not use their position and privilege for their own personal benefit. They must strive to protect sensitive HR-related information about others in the organization and avoid conflicts of interest. Those holding the PHR® must acknowledge the ethical and professional responsibilities in these six areas:
Professional responsibility
Professional development
Ethical leadership
Fairness and justice
Conflicts of interest
Use of information
I recommend that any applicant preparing for the certification exam review the code of ethics and professional responsibility at https://www.hrci.org/docs/default-source/web-files/code-of-ethical-and-professional-responsibility(1)-pdf.pdf.
Corporate Governance and Compliance
The knowledge of rules and regulations an HR professional needs also includes corporate governance procedures and compliance. HR professionals are responsible for knowing current reporting requirements with respect to laws such as the Sarbanes-Oxley Act.
The Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002, or SOX, was enacted following several public corporate and accounting scandals that occurred in the early 2000s. It set standards of corporate governance, oversight, auditing independence, and enhanced financial disclosure. To review the law, you can visit www.sec.gov/about/laws/soa2002.pdf.
Corporate governance procedures vary based on the type of company (private, public, not-for-profit) and the number of employees. In addition to federal statutes, the organization may be subject to state provisions depending on which states the company does business in. Also, international corporations have added compliance requirements throughout the globe, especially throughout Europe and Asia.
These are elements of corporate governance to review:
Board composition and election of officers
Corporate responsibility statements and ethics
Conflict-of-interest policies and procedures
Internal and external auditing practices
Financial disclosure statements
Whistleblower protection
An organization’s HR department should have working knowledge of the activities surrounding these elements and the input that is required. For example, it is not necessary to know how to do a full audit of the organization. However, HR professionals will provide documents such as payroll records and personnel files to verify or validate parts of the audited reports. HR professionals must know how their functional activities are tied to others within the organization.
Business Elements
The functional areas that form the core of a company are called business elements. Operations, sales, marketing, finance, information technology, and procurement all work together, along with human resources, to drive business processes and achieve the company’s goals. While it is not a requirement to perform their functions, HR professionals who understand how the other elements operate will have a decided advantage over their peers. A 2016 survey conducted by the HR Certification Institute, available at https://www.hrci.org/about-hrci/why-choose-hrci, shows why corporate executives value HR professionals who possess this knowledge and how it impacts a company.
Operations
Operations is the part of the organization that delivers the product or services to the consumer. It is the profit center of the company and is the purpose of the organization’s existence. All other elements of the company support the operations and daily activities of this division. The chief operating officer (COO) is the C-suite executive tasked with overseeing this element that ensures the day-to-day execution of the plans and vision of the company’s leadership team.
Operations will track production, quality, conversion rates, materials, and other resources used in producing a good or service. Managers will be the most technically knowledgeable in the company and along with the workers are the largest division.
Sales
The sales team is responsible for identifying, attracting, and retaining customers that demand the goods or services the company produces. They coordinate heavily with operations so that the total production meets the demands to ensure a steady flow. They forecast demand and study trends to determine which product or service will be needed and when. The sales team is usually the external face of the company and is sometimes also referred to as business development, especially when the role of sales is to find new customers. This division is also responsible for handling any concerns or complaints by these external business partners that are buying the goods.
