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PHR®/SPHR®

Professional in Human Resources Certification

Study GuideThird Edition

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PHR®/SPHR®

Professional in Human Resources Certification

Study GuideThird Edition

Anne M. Bogardus, SPHR

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Acquisitions Editor: Jeff KellumDevelopment Editor: David ClarkTechnical Editors: Laura Owen and Tamra AguinaldoProduction Editor: Rachel McConlogueCopy Editor: Kim WimpsettProduction Manager: Tim TateVice President and Executive Group Publisher: Richard SwadleyVice President and Publisher: Neil EddeProject Manager 1: Laura Moss-HollisterAssociate Producer: Josh FrankQuality Control: Shawn PatrickBook Designers: Judy Fung and Bill GibsonCompositor: Craig Woods, Happenstance Type-O-RamaProofreader: Publication Services, Inc.Indexer: Ted LauxProject Coordinator, Cover: Lynsey StanfordCover Designer: Ryan Sneed

Copyright © 2009 by Wiley Publishing, Inc., Indianapolis, Indiana

Published simultaneously in Canada

ISBN: 978-0-470-43096-5

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: The publisher and the author make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situa-tion. This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If professional assistance is required, the services of a competent professional person should be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Web site may provide or recommendations it may make. Further, readers should be aware that Internet Web sites listed in this work may have changed or disappeared between when this work was written and when it is read.

For general information on our other products and services or to obtain technical support, please contact our Cus-tomer Care Department within the U.S. at (877) 762-2974, outside the U.S. at (317) 572-3993 or fax (317) 572-4002.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

Library of Congress Cataloging-in-Publication DataBogardus, Anne M. PHR/SPHR : Professional in Human Resources certification study guide / Anne Bogardus. — 3rd ed. p. cm. ISBN 978-0-470-43096-5 (paper/cd-rom) 1. Personnel management—Examinations—Study guides. 2. Personnel departments—Employees— Certification. I. Title. II. Title: Professional in Human Resources/Senior Professional in Human Resources. HF5549.B7583 2009 658.30076--dc22 2008052034

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. All other trade-marks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book.

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Dear Reader,

Thank you for choosing PHR/SPHR: Professional in Human Resources Certification Study Guide, Third Edition. This book is part of a family of premium-quality Sybex books, all of which are written by outstanding authors who combine practical experience with a gift for teaching.

Sybex was founded in 1976. More than thirty years later, we’re still committed to produc-ing consistently exceptional books. With each of our titles we’re working hard to set a new standard for the industry. From the paper we print on, to the authors we work with, our goal is to bring you the best books available.

I hope you see all that reflected in these pages. I’d be very interested to hear your comments and get your feedback on how we’re doing. Feel free to let me know what you think about this or any other Sybex book by sending me an email at nedde@wiley.com, or if you think you’ve found a technical error in this book, please visit http://sybex.custhelp.com. Cus-tomer feedback is critical to our efforts at Sybex.

Best regards,

Neil Edde Vice President and Publisher Sybex, an Imprint of Wiley

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For Kit, who taught me to love reading; to Bob, the best manager of people

I’ve ever known; and to both of them for their unwavering support and love.

—With love and gratitude

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AcknowledgmentsWriting a book is one of those romantic dreams that many people have, although usually it’s to write the great American novel or the next big blockbuster thriller and not a study guide, no matter how passionate the author is about the subject matter. I have learned that it is a lot harder to write a book than one would think, and the team at Wiley provided the encouragement and support that got me through the process. Working with this fantastic group of people gets better every time. Thanks to Jeff Kellum for arranging everything and getting the process going, thanks to David Clark for helping shape the book and for his patience, and thanks to Rachel McConlogue for making sure the final product was the best it could be. Thanks to all of you for your thoughtful comments and suggestions—I have enjoyed working with all the teams in the past, but, without doubt, you have made this the best experience to date. Thanks also to Kim Wimpsett, whose attention to detail was immensely helpful, and to Craig Woods and the group at Happenstance Type-O-Rama, who made the pages of this book so accessible. I am grateful for the level of professionalism and expertise that each of them brought to this project.

I am most grateful to the book’s technical editor, Laura Owen, JD, SPHR, GPHR, whose expertise and feedback were invaluable in clarifying my thoughts and improving the content. I am also indebted to Tamra Aguinaldo, PHR, whose experience in HR certification and professional development added greatly to the final product. Thanks to the students in my certification classes, especially those who put me on the spot by asking questions that I didn’t know the answers to—I learned so much from all of you! Special thanks to Gayle Holmlund, SPHR, for her encouragement and support.

Special thanks to Debbie, Judy, Jeannette, KC, and Barb for encouraging me when it all seemed like too much to “get ’er done.” To my clients, from whom I learn more every day, thank you. Finally, thanks to my friends for their generosity of spirit, understanding, and patience while I finished this project—all of you are the best!

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About the AuthorAnne M. Bogardus, SPHR began her human resources career in compensation at a public multinational corporation, Castle & Cooke, owner of the Dole food brand, and later at First Nationwide Bank. Currently she is founder and principal of S.T.A.R. HR in northern California, which specializes in building human resource functions that serve strategic busi-ness needs. Her practice includes small to medium-sized businesses in a wide range of indus-tries including biotechnology, mortgage lending, high technology, public relations, retail, nonprofit, and construction. Ms. Bogardus is also the author of an introductory book for non-HR business professionals, Human Resource Jumpstart, also published by Wiley.

About the Technical EditorsLaura Owen’s career spans 30 years of providing strategic and day-to-day functional human resources leadership and direction at leading technology companies. An employment attorney with both senior and global human resource professional certifications (SPHR and GPHR), she is currently Vice President, Human Resources, for Spirent Communications, where she is leading change management initiatives including organizational design, new compensation plans, and an effective employee communications architecture. Ms. Owen has previously held executive-level positions managing global human resources for leading technology companies including Cisco Systems, Macrovision, and Credence. She earned a J.D., magna cum laude, degree from Santa Clara University School of Law and a B.S. in Personnel and Industrial Relations, magna cum laude, from San Francisco State University.

Tamra Aguinaldo, PHR, has a background in human resources and education and currently works as an HR consultant in Northern California. She has a Master of Arts degree in Educa-tion with an emphasis in Guidance Counseling. Prior to becoming a consultant, she was Direc-tor of Professional Development for the Northern California Human Resources Association in San Francisco.

HR is a dynamic profession requiring practitioners to keep up-to-date with current trends and changes to employment law. The PHR/SPHR exams are updated annually to reflect these trends and changes. For information updates between revisions of this study guide, log on to www.starhronline.com, and click PHR/SPHR Certification to view changes or ask questions about content.

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Contents at a GlanceIntroduction xxi

Assessment Test xxvii

Chapter 1 Certifying Human Resource Professionals 1

Chapter 2 Core Knowledge Requirements for HR Professionals 23

Chapter 3 Strategic Management 93

Chapter 4 Workforce Planning and Employment 139

Chapter 5 Human Resource Development 215

Chapter 6 Total Rewards 273

Chapter 7 Employee and Labor Relations 371

Chapter 8 Risk Management 433

Appendix A About the Companion CD 501

Appendix B Case Study 505

Appendix C Federal Employment Legislation and Case Law 519

Appendix D Resources 541

Glossary 549

Index 597

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ContentsIntroduction xxi

Assessment Test xxvii

Chapter 1 Certifying Human Resource Professionals 1

The Human Resource Profession 2Development of the Human Resource Body of Knowledge 3

Defining the Functional Areas of the BOK 5Core Knowledge Requirements of the BOK 6Certification Levels 7Eligibility Requirements 9Recertification 10

The Test 11It’s Experiential and Federal 12What the Questions Look Like 13Preparing for the Exam 14Taking the Exam 19

Summary 21

Chapter 2 Core Knowledge Requirements for HR Professionals 23

Needs Assessment and Analysis 25Third-Party Contract Management 26Communication Skills and Strategies 29

Employee Communication 29Professional Communication 30

Documentation Requirements 30Documenting Employment Actions 31Documenting Performance Issues 31

Adult Learning Processes 33Motivation Concepts 34

Abraham Maslow: The Hierarchy of Needs (1954) 34Fredrick Herzberg: Motivation/Hygiene Theory (1959) 34Douglas McGregor: Theory X and Theory Y (1960) 35Clayton Alderfer: ERG Theory (1969) 35David McClelland: Acquired Needs Theory (1961) 36J. Stacy Adams: Equity Theory (1963) 36Victor Vroom: Expectancy Theory (1964) 36B. F. Skinner: Operant Conditioning (1957) 37

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xiv Contents

Training Techniques 38Leadership Concepts 38

Behavioral Theories 39Situational Theories 39Contingency Theories 40Leadership Styles 41

Project Management Concepts 42Diversity Concepts 43Human Relations Concepts 44HR Ethics and Professional Standards 45Human Resource Technology 46

HRIS Systems 46Qualitative and Quantitative Analysis 51

Data Collection 52Analysis Tools 52Qualitative Analysis 56Metrics and Measurement 56

Change Management 58Job Analysis and Description 58

Job Analysis 59Job Descriptions 59

Employee Records Management 61Interrelationships Among HR Activities 68Organizational Structures 70Environmental Scanning Concepts 74

Environmental Scanning Tools 74Employee Attitude Assessment 78Basic Budgeting and Accounting 78

Accounting 79Budgeting 80

Risk Management 82Summary 84Exam Essentials 84Key Terms 86Review Questions 88Answers to Review Questions 90

Chapter 3 Strategic Management 93

Organizations 96External Business Environment 96Internal Business Operations 97

Strategy 104Strategic Planning 105Human Capital Management Plans 111

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Contents xv

Strategic Management 113Strategic Relationships 115Change Management 116Enterprise Risk Management 119HR Technology 119

Legislative and Regulatory Processes 121Legislative Process 121Administrative Law 122Lobbying 123

Corporate Governance 123Organization Values and Ethics 124Whistle-Blower Protection 127Ethics Officers 129

HR Metrics: Measuring Results 130Global Considerations 131Summary 132Exam Essentials 133Key Terms 134Review Questions 135Answers to Review Questions 137

Chapter 4 Workforce Planning and Employment 139

Federal Employment Legislation 141Civil Rights Legislation 142Age Discrimination in Employment Act of 1967 145Americans with Disabilities Act of 1990 146Civil Rights Act of 1991 148Genetic Information Nondiscrimination Act of 2008 150Federal Contractors, Subcontractors, and Agencies 151Annual EEO Survey 152Affirmative Action Plans 156

Strategic Workforce Planning 158Workforce Goals and Objectives 158Job Analysis and Description 159Qualified Employees 160Translating Organization Goals into Staffing Plans 163Labor Market Analysis 165

Staffing Programs 166Sourcing and Recruiting Candidates 166Candidate Selection Tools 173Employment Offers 191Post-Offer Employment Activities 192

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xvi Contents

Organization Exit Processes 197Voluntary Exit Processes 197Involuntary Exit Processes 198

Metrics: Measuring Results 202Global Considerations 203Summary 205Exam Essentials 206Key Terms 208Review Questions 210Answers to Review Questions 213

Chapter 5 Human Resource Development 215

Federal Employment Legislation 217Copyright Act of 1976 218U. S. Patent Act 219

Organization Development 219Strategic Interventions 220Techno-Structural Interventions 224Human Process Interventions 231Human Resource Management Interventions 233

Talent Management 234Management Development 236

Employee Training Programs 237Analysis 239Design 241Development 245Implementation 248Evaluation 251

Performance Management Programs 252Performance Appraisal 253

Elements of Performance Appraisal 254Timing Performance Appraisals 254Performance Appraisal Methods 255Training Performance Evaluators 257

Unique Employee Needs 259Diversity Initiatives 261Flexible Work Arrangements 261Repatriation 261

Metrics: Measuring Results 262Global Considerations 263Summary 264Exam Essentials 264

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Contents xvii

Key Terms 266Review Questions 268Answers to Review Questions 270

Chapter 6 Total Rewards 273

Total Rewards Defined 275Total Rewards Philosophy 276Total Rewards Strategy 278Budgeting and Accounting for Total Rewards 279Fiduciary Responsibility 280

Compensation 281Federal Employment Legislation 283Types of Compensation 294Traditional Pay Structures 302

Benefits 313Involuntary Benefits 315Voluntary Benefits 331Federal Laws Regulating Voluntary Benefits 332

Payroll 351Payroll Systems 352Payroll Administration 352

Communicating TR Programs 355Executive Compensation 356

Stock Options 358Board of Directors/Outside Directors 360

Metrics: Measuring Results 362Global Considerations 362Summary 363Exam Essentials 363Key Terms 365Review Questions 367Answers to Review Questions 369

Chapter 7 Employee and Labor Relations 371

Federal Employment Legislation 373Common Law Doctrines 375Legal Statutes 377Employee Rights and Responsibilities 387

Employee Relations 388Organization Climate and Culture 388Employee Relations Programs 392Workplace Policies and Procedures 394Performance Improvement 396

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xviii Contents

Dispute Resolution 400ADR Methods 400

Labor Relations 404Labor Laws and Organizations 404Employee Rights 405

Union Organization 409What Can an Employer Do? 409The Organizing Process 410Collective Bargaining 416

Union Avoidance Strategies 422Metrics: Measuring Results 422Global Considerations 423Summary 424Exam Essentials 425Key Terms 426Review Questions 428Answers to Review Questions 430

Chapter 8 Risk Management 433

Risk Identification 435HR Tools to Identify and Assess Risk 435

Risk Assessment 439Assessing Legal Compliance Risks 439Assessing Safety and Health Risks 458Assessing Security Risks 467

Risk Management 472Managing Legal Compliance Risks 472Managing Safety and Health Risks 475Managing Security Risks 481Managing Business Continuity Risks 486Managing Workplace Privacy Risks 488

Metrics: Measuring Results 492Global Considerations 493Summary 494Exam Essentials 495Key Terms 496Review Questions 497Answers to Review Questions 499

Appendix A About the Companion CD 501

What You’ll Find on the CD 502Sybex Test Engine 502PDF of the Book 502

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Contents xix

Adobe Reader 502Electronic Flashcards 503

System Requirements 503Using the CD 503Troubleshooting 503

Customer Care 504

Appendix B Case Study 505

The Scenario 506Case Study Questions 509Case Study Answers 511

Appendix C Federal Employment Legislation and Case Law 519

Additional Cases 5301968: Rosenfeld v. Southern Pacific 5311969: Weeks v. Southern Bell Telephone Co. 5311973: McDonnell Douglas Corp. v. Green 5321978: Regents of California v. Bakke 5321979: United Steelworkers v. Weber 5331981: Texas Department of Community

Affairs v. Burdine 5331987: Johnson v. Santa Clara County

Transportation Agency 5341987: School Board of Nassau v. Arline 5341989: Martin v. Wilks 5351992: Electromation, Inc. v. NLRB 5361993: E. I. DuPont & Co. v. NLRB 5371993: St. Mary’s Honor Center v. Hicks 5381995: McKennon v. Nashville Banner Publishing Co. 5392001: Circuit City Stores v. Adams 539

Appendix D Resources 541

Strategic Management 543Books 543Professional Associations 543

Workforce Planning and Employment 544Books 544Professional Associations 544

Human Resource Development 544Books 545Professional Associations 545

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xx Contents

Total Rewards 545Books 545Professional Associations 546

Employee and Labor Relations 546Books 546Professional Associations 547

Risk Management 547Books 547Professional Associations 547

Glossary 549

Index 597

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IntroductionCongratulations on taking the first step toward achieving your Professional in Human Resources (PHR) or Senior Professional in Human Resources (SPHR) certification! The process you are embarking upon is rewarding and challenging, and as more than 96,000 of your fellow human resource colleagues have already discovered, it’s an excellent opportu-nity to explore areas of human resource management with which you may not work every day. In the next few pages, you will find some general information about human resource certification, some suggestions for using this book, information about what to expect in the following chapters, and a discussion of the organizations involved in certification.

Before we begin, a word about what you should already know. This study guide was designed to serve as a refresher for experienced professionals who have practiced HR for a minimum of two years. I assume that those who are pursuing certification have the basic HR knowledge that comes not only from education in human resources but also, more importantly, from exempt-level experience. If your daily work is truly generalist in nature, you likely have touched upon many of the topics I cover, but you may not have in-depth knowledge in all of them. Conversely, if you specialize in one or two areas of HR, you probably have extensive experience in those areas but may need to refresh your knowledge in other areas.

The goal of this study guide is to provide enough information about each of the func-tional areas of human resource management to enable candidates in either situation to find what they need to prepare themselves for successfully completing the exam. There are more than 22,000 books related to human resources listed on Amazon.com alone, and there is obviously no way I can cover all the aspects of HR in a single book. So, I’ve organized the information around the test specifications (test specs) established by the Human Resource Certification Institute (HRCI), the certifying body for our profession. I’ll talk more about the test specs in Chapter 1, “Certifying Human Resource Professionals,” but for now, suf-fice it to say that the key to success on the exam is a thorough understanding of and ability to apply the test specs when answering questions on the exams.

About Human Resource CertificationWhat exactly is human resource certification? Briefly, let’s just say that certification is a way of acknowledging individuals who have met the standard of competency established by HR practitioners as that which is necessary to be considered a fully competent HR profes-sional. To understand whether this book is for you, you’ll want to know why you should become certified and how the certification process works.

Who Certifies HR Professionals?Three organizations are involved in the certification of human resource professionals: the Human Resource Certification Institute (HRCI), the Society for Human Resource Manage-ment (SHRM), and the Professional Examination Service (PES).

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xxii Introduction

The Human Resource Certification InstituteHRCI is the certifying body for the human resource profession. It was formed by the Ameri-can Society of Personnel Administrators (ASPA) in 1972, when it was known as the ASPA Accreditation Institute (AAI). In its early stages, HRCI was financially dependent upon SHRM, but it is now financially independent. Both HRCI and SHRM have individual boards of directors that govern their operations. Although HRCI and SHRM have a long history of affiliation and mutual support, the certification process is a separate and distinct function of HRCI, and SHRM has no more control over or access to the certification process than does anyone else in the profession.

You can find HRCI’s organizational mission statement at www.hrci.org/AboutUs/MISVIS/.

The Society for Human Resource ManagementSHRM is the largest organization of human resource professionals in the world, represent-ing more than 235,000 members worldwide at the end of 2007. From its beginning in 1948 as the American Society for Personnel Administrators (ASPA), SHRM has been a leader in the endeavor to gain recognition for the human resource profession. Today’s certification program is a direct result of efforts by the first volunteer members of SHRM, who recognized the need for a defined body of knowledge and set about to develop it along with a certifica-tion process that evaluates the abilities of practitioners in the field.

Professional Examination ServicePES is a nonprofit organization that conducts license and credential examinations for a wide variety of professions, including psychology, pharmacy, real estate appraisal, and security management, among many others. PES maintains the database of test items developed by HRCI and is responsible for ensuring that applicants for the PHR and SPHR exams meet the eligibility requirements, administering and scoring the tests, and notifying candidates of the results. In 2005, PES conducted the most recent review of the body of knowledge, called a practice analysis study, to ensure the continued relevance of the credentialing pro-cess to current business practices.

I will refer to these organizations frequently in Chapter 1 as I discuss the body of knowledge and the certification process.

Why Become Certified?Over time, the certification offered by HRCI has become the industry standard for deter-mining competence in the field of human resources. There are many reasons that individuals may decide to seek professional certification. Let’s talk about just a few of them.

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Introduction xxiii

First, certification is an acknowledgement that you have met the standards of excellence determined by other HR professionals to be those that are necessary to be fully competent in the field. Because the standards are developed by working professionals, not just by those who teach and consult in the field, this credential demonstrates that you are a fully compe-tent HR practitioner based on a standard set by your peers.

Second, certification is a way to increase your marketability. In difficult economic times, when there is tough competition for jobs, certification provides an edge that can be advanta-geous in your job search. With an abundance of job seekers for a limited number of jobs, whatever you can do to set yourself apart from the crowd can give you the edge when potential employers are making the final hiring decision.

Third, those who spend the time to advance their own knowledge and achieve certification have demonstrated their ability to continue learning and growing as times and business needs change. A person who is willing and able to set a significant goal and do what is necessary to achieve it demonstrates characteristics that are in great demand in business today: results orientation, technical competence, commitment, and excellence.

Finally, certification enhances your credibility with co-workers and customers by demonstrating to the people you encounter during your workday that you have proven competence within the field.

Whether your reason for seeking certification falls into one of these categories or you are motivated to do so for some other reason, it can be a great opportunity to validate how much you already know about the practice of human resources as a profession.

How to Become CertifiedTo become a certified HR professional, you must pass either the PHR or SPHR exam, both of which have been developed by HRCI in a comprehensive process described in Chapter 1.

HRCI uses a computer-based testing (CBT) process during two time periods each year: between the beginning of May and the end of June, and from mid-November through mid-January. One advantage of the CBT process is that exam candidates know before they leave the testing center whether they are certified.

Each exam, PHR and SPHR, consists of 225 questions. Of these questions, 200 are scored to determine whether you pass the exam. The additional 25 questions are being “pretested” in order to determine their reliability and validity for inclusion in future test cycles. You can find a detailed discussion of how the questions are developed and scored in the HRCI PHR & SPHR Certification Handbook, which can be viewed and/or downloaded at the HRCI website (www.hrci.org), or you can request a hard copy from HRCI by calling (866) 898-4724. The handbook is an essential guide to all aspects of the exams and includes test dates, application deadlines, fee information, and answers to frequently asked questions about the certification process, as well as the full list of test specifications.

Chapter 1 explains in greater detail how much and what kinds of experience are required for each exam level and how the questions differ on each level.

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xxiv Introduction

How This Book Is OrganizedI’ve talked a little bit about Chapter 1, which provides information about requirements for certification and the testing process. Chapter 1 also provides some suggestions on the best ways to study for the exam.

Chapter 2, “Core Knowledge Requirements for HR Professionals,” provides a brief discus-sion of knowledge with implications in multiple functional areas. Reading this chapter first gives exam candidates a base for understanding topics covered in subsequent chapters.

Chapters 3–8 get down to the specifics of each functional area and discuss the test speci-fications in detail. Each of these chapters consists of a list of objectives, an overview of the functional area, the federal employment laws applicable to that area, and a discussion of the test specs, including the appropriate court cases.

I have also provided three appendices to facilitate your study. Appendix B, “Case Study,” gives you an opportunity to pull information from multiple functional areas to solve typical HR challenges in a fictitious company.

Appendix C, “Federal Employment Legislation and Case Law,” is a chronological listing of the federal legislation appearing throughout the book, as well as significant court decisions with implications for human resources. This appendix also includes additional court decisions that were not discussed in the chapters but have significance for HR practice and with which you should be familiar, so be sure to review them. They are included in a separate section of the appendix.

Appendix D, “Resources,” is just that: a list of additional sources of information about each of the functional areas of human resources.

Finally, I have included a glossary, an alphabetical listing of all the key terms throughout the book with their corresponding definitions.

The Elements of a Study GuideYou’ll see many recurring elements as you read this study guide. Here’s a description of some of those elements:

Summary The summary is a brief review of the chapter to sum up what was covered.

Exam essentials The “Exam Essentials” section at the end of each chapter highlights top-ics that could appear on one or both of the exams in some form. While I obviously do not know exactly what will be included in a particular exam, these sections reinforce signifi-cant concepts that are key to understanding the functional area and the test specs HRCI has developed.

Key terms Throughout each chapter, I’ve identified and defined key terms that exam can-didates will need to understand. These are listed at the end of the chapter and defined in the glossary at the end of the book.

Chapter review questions Each chapter includes ten practice questions designed to measure your knowledge of key ideas discussed in the chapter. After you finish each chapter, answer the questions; if some of your answers are incorrect, it’s an indication that you need to spend

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Introduction xxv

some more time studying that topic. The answers to the practice questions follow the last question in each chapter. The chapter review questions are designed to help you measure how much information you retained from your reading and are different from the kinds of questions you will see on the exam.

What’s on the CD?The CD provides some essential tools to help you with your preparation for the certification exam. All the following gear should be loaded on your computer when studying for the test.

The Sybex Test Preparation SoftwareThe test preparation software, made by experts at Sybex, helps prepare you to pass the PHR/SPHR exams. In this test engine, you will find all the review and assessment questions from the book, plus two additional bonus exams that appear exclusively on the CD. You can take the assessment test, test yourself by chapter, or take the bonus exams.

Just as on the certification exams, the bonus exam questions on the CD draw upon your experience as an HR professional. Be on the lookout for questions based upon your everyday activities in HR and not just on the material in the PHR/SPHR study guide.

Electronic Flashcards for PC and Palm DevicesSybex’s electronic flashcards include more than 200 PHR questions and more than 200 SPHR questions designed to challenge you further for the PHR and SPHR exams. Between the review questions, bonus exams, and flashcards, you’ll have a wide variety of materials to help you prepare!

PHR/SPHR Study Guide in PDFSybex offers the PHR/SPHR: Professional in Human Resources Certification Study Guide in PDF on the CD so you can read the book on your PC or laptop if you travel and don’t want to carry a book or if you just like to read from the computer screen. Acrobat Reader is also included on the CD.

How to Use This Book and CDThis book has a number of features designed to guide your study efforts for either the PHR or the SPHR certification exam. All of these features are intended to assist you in doing the most important thing you can do to pass the exam: understand and apply the test specs

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xxvi Introduction

in answering questions. This book helps you do that by listing the current test specs at the beginning of each chapter and by ensuring that each of them is fully discussed within the chapter. The practice questions at the end of each chapter and the practice exams on the CD are designed to assist you in testing your retention of the material you’ve read to make you aware of areas in which you should spend additional study time. I’ve provided web links and other resources to assist you in mastering areas where you may require additional study mate-rials. Here are some suggestions for using this book and CD:

Take the assessment test before you start reading the material. These questions are NN

designed to measure your knowledge and will look different from the questions you will see on the exam. They are designed to give you an idea of the areas in which you need to spend additional study time, as well as those areas in which you may just need a brief refresher.

Review the test specs at the beginning of each chapter before you start reading. Make NN

sure you read the associated knowledge requirements in HRCI’s PHR and SPHR Certi-fication Handbook because these may help you in your study process. After you’ve read the chapter, review them again to make sure you understand and are able to apply them.

Answer the review questions after you’ve read each chapter; if you missed any of them, NN

go back over the chapter and review the topic, or utilize one of the additional resources if you need more information.

Make sure you understand the laws that apply to each functional area, the information NN

covered in each of them, and to which companies or government agencies they apply.

Download the flashcards to your handheld device, and review them when you have a NN

few minutes during the day.

Take every opportunity to test yourself. In addition to the assessment test and review NN

questions, there are bonus exams on the CD. Take these exams without referring to the chapters, and see how well you’ve done—go back and review any topics you’ve missed until you fully understand and can apply the concepts.

Finally, find a study partner if possible. Studying for, and taking, the exam with someone else will make the process more enjoyable, and you’ll have someone to help you understand topics that are difficult for you. You’ll also be able to reinforce your own knowledge by help-ing your study partner in areas where they are weak.

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Assessment Test1. According to the WARN Act, an employer with 200 employees is required to provide 60 days’

notice of a mass layoff when:

A. The employer is seeking additional funding and will lay off 70 employees if the funding falls through.

B. A major client unexpectedly selects a new vendor for the company’s products and the company lays off 75 employees.

C. The employer lays off 5 employees a week for 3 months.

D. A flood requires that one of the plants be shut down for repairs and 55 employees are laid off.

2. An employee has come forward with an allegation of quid pro quo harassment by her supervi-sor. As the HR manager, you are responsible for investigating the complaint. The supervisor in question is someone with whom you have become quite friendly. In this case, who is the best person to conduct the investigation?

A. You

B. The corporate attorney

C. The direct manager of the accused supervisor

D. A third-party investigator

3. As of July 24, 2009, the federal minimum wage is set at:

A. $5.15 per hour

B. $7.25 per hour

C. $5.75 per hour

D. $6.55 per hour

4. During the union organizing process, how is the bargaining unit determined?

A. By the union organizers

B. Jointly, by the union and the employer

C. By the National Labor Relations Board

D. By the employees during the election

5. The motivation theory that suggests people are motivated by the reward they will receive when they succeed and that they weigh the value of the expected reward against the effort required to achieve it is known as:

A. Vroom’s Expectancy Theory

B. Adams’ Equity Theory

C. McClelland’s Acquired Needs Theory

D. McGregor’s Theory X and Theory Y

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xxviii Assessment Test

6. What is the most effective method of performance evaluation?

A. A field review process

B. A continuous feedback process

C. A forced ranking process

D. A behaviorally anchored rating scale process

7. Which of the following is an example of a nonqualified deferred compensation plan?

A. An excess deferral plan

B. A target benefit plan

C. A money purchase plan

D. A cash balance plan

8. Which of the following is an example of a passive training method?

A. Vestibule training

B. Demonstration

C. Distance learning

D. Self-study

9. What is the purpose of the OSHA consulting service?

A. Helps employers identify the OSHA standards that apply to their workplace

B. Fines employers for violating OSHA safety standards

C. Does not require compliance with OSHA standards

D. Acts as a one-time service

10. One purpose of a diversity initiative is to:

A. Increase workplace creativity

B. Increase the effectiveness of the workforce

C. Increase the organization’s ability to attract customers

D. All of the above

11. What is an employer’s responsibility when workplace conditions pose a threat to an unborn child?

A. Do nothing. It is up to employees to protect their unborn children.

B. Move the employee into a different job that does not pose a threat to the unborn child.

C. Advise the employee of the potential threat, and allow the employee to make the decision.

D. Allow only sterile employees to work in jobs that pose a threat to unborn children.

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