The #1 book for the leading HR certifications, aligned with the updated HRBoK™
PHR and SPHR certifications, offered by Human Resources Certification Institute (HRCI), have become the industry standard for determining competence in the field of human resources. Developed by working professionals, the PHR and SPHR credentials demonstrate that recipients are fully competent HR practitioners based on a standard set by workforce peers.
Offering insights into those areas of knowledge and practices specific and necessary to human resource management (HRM), this study guide covers tasks, processes, and strategies as detailed in the updated A Guide to the Human Resource Body of Knowledge™ (HRBoK™). The study guide breaks down the critical HR topics that you need to understand as you prepare for the exams.
PHR/SPHR Professional in Human Resources Certification Study Guide, Fifth Edition, is the ideal resource for HR professionals seeking to validate their skills and knowledge acquired through years of practical experience, as well as for a relative newcomer to the HR field looking to strengthen their resume. In this edition of the top-selling PHR/SPHR study guide, you’ll find a practical review of all topics covered on the exams, as well as study tools designed to reinforce understanding of key functional areas. Strengthen the skills you learn with a year of FREE access to the Sybex online learning environment, complete with flash cards and practice quizzes to prepare you for exam day.
• Business Management and Strategy
• Workforce Planning and Employment
• Compensation and Benefits
• Human Resource Development and more
If you’re preparing for these challenging exams, this is the trusted study guide that’ll help you perform your best.
Table of Contents
Introduction xxv
PHR Assessment Test xxxi
SPHR Assessment Test xxxvi
Chapter 1 Certifying Human Resource Professionals 1
The Human Resource Profession 3
Development of the Human Resource Body of Knowledge 4
Defining the Functional Areas of the BOK 6
Professional in Human Resources (PHR) 6
Senior Professional in Human Resources (SPHR) 8
Eligibility Requirements 10
Recertification 11
The Test 12
It’s Experiential and Federal 14
What the Questions Look Like 15
Preparing for the Exam 16
Taking the Exam 20
Summary 22
Chapter 2 PHR Exam: Business Management 23
Organizations 24
External Business Environment 24
Internal Business Operations 25
Mission, Vision, Values 31
Corporate Governance 32
Organization Values and Ethics 33
Ethics Officers 37
Corporate Responsibility 37
Whistle-Blower Protection 39
Enterprise Risk Management 42
HR Audits 42
Insurance Policies 43
Employee Handbooks 43
Litigation Statistics 43
Other 45
Legislative and Regulatory Processes 45
Technology 47
Workforce Analytics 48
Qualitative and Quantitative Analysis 49
Data Collection 50
Analysis Tools 51
Qualitative Analysis 54
Change Management 55
HR Metrics: Measuring Results 58
Business Impact Measures 58
Tactical Accountability Measures 59
Building a Business Case 61
Summary 61
Exam Essentials 62
Review Questions 63
Chapter 3 PHR Exam: Talent Planning and Acquisition 67
Talent Planning 69
Workforce Goals and Objectives 70
Job Analysis and Description 71
Job Analysis 71
Job Descriptions 72
Qualified Employees 73
Translating Organization Goals into Staffing Plans 78
Labor Market Analysis 79
Staffing Programs 80
Sourcing and Recruiting Candidates 80
Candidate Selection Tools 88
Employment Offers 104
Post-Offer Employment Activities 106
Summary 111
Exam Essentials 112
Review Questions 113
Chapter 4 PHR Exam: Learning and Development 119
Organizational Development 120
Strategic Interventions 121
Techno-Structural Interventions 125
Human Process Interventions 134
Human Resource Management Interventions 137
Employee Training Programs 145
Adult Learning Processes and Learning Styles 146
Instructional Design Models 147
Learning Management Systems 162
Metrics: Measuring Results 164
Summary 165
Exam Essentials 165
Review Questions 166
Chapter 5 PHR Exam: Total Rewards 171
Total Rewards Defined 172
Budgeting and Accounting for Total Rewards 173
Salary Surveys 173
Benchmarking 175
Compensation 175
Types of Compensation 178
Traditional Pay Structures 186
Benefits 196
Involuntary Benefits 197
Voluntary Benefits 198
Payroll 212
Payroll Systems 212
Payroll Administration 212
Communicating Compensation and Benefits Programs 215
Metrics: Measuring Results 216
Summary 217
Exam Essentials 217
Review Questions 219
Chapter 6 PHR Exam: Employee and Labor Relations 223
Human Relations 226
Personality at Work 227
Psychological Capital 228
Motivational Concepts 228
Organization Climate and Culture 232
Employee Engagement 234
Employee Involvement Strategies 234
Communicating with Employees 236
Employee Feedback 238
Positive Employee Relations Programs 240
Employee Rights and Responsibilities 242
Workplace Policies and Procedures 243
Records Management: The Life Cycle 245
Performance Management Programs 248
Performance Appraisal 249
Training Performance Evaluators 252
Performance Improvement 255
Workplace Behavior Issues 256
Organization Exit/Off-Boarding Processes 259
Voluntary Exit Processes 259
Involuntary Exit Processes 260
Tools for Dispute Resolution 265
Arbitration 266
Mediation 267
Constructive Confrontation 268
Labor Relations 269
Labor Laws and Organizations 269
Employee Rights 271
Union Organization 274
Risk Overview 281
Risk Identification 282
HR Tools to Identify and Assess Risk 283
Risk Assessment 286
Risk Management 302
Managing Security Risks 309
Managing Business Continuity Risks 320
Managing Workplace Privacy Risks 323
Metrics: Measuring Results 326
Summary 328
Exam Essentials 329
Review Questions 332
Chapter 7 SPHR Exam: Leadership and Strategy 337
Organizational Planning and Strategy 341
Organizational Structures 341
Shared Services and Outsourcing of HR Functions 342
Strategic Planning 345
Basic Accounting and Budgeting 355
Strategic Management 358
Strategic Relationships 359
Human Capital Management Plans 361
Human Capital Projections 363
Service Delivery and Technology 364
HRIS Systems 364
Project Management Concepts 370
HR Data and Metrics 371
Summary 372
Exam Essentials 372
Review Questions 374
Chapter 8 SPHR Exam: Talent Planning and Acquisition 379
Recruiting and Selection 381
Person-to-Organization Fit 382
Person-to-Job Fit 382
Candidate Sourcing 384
Labor Law Compliance 386
Strategic Workforce Planning 387
Human Capital Management Plans 387
Human Capital Projections 389
The Impact of the Business Life Cycle 390
Strategic Analysis 392
Employee Retention and Engagement 393
The Impact of Wages 394
Building the Employer Brand 395
Metrics: Measuring Results 396
Summary 397
Exam Essentials 398
Review Questions 399
Chapter 9 SPHR Exam: Learning and Development 403
Learning and Development Defined 406
Strategic Learning and Development 406
The Role of the Behavioral Sciences 408
Succession Plans 411
Integrated Talent Management 412
Training as an Intervention Strategy 413
Summary 414
Exam Essentials 415
Review Questions 416
Chapter 10 SPHR Exam: Total Rewards 421
Total Rewards Defined 422
Fiduciary Responsibility 423
Total Rewards Philosophy and Strategies 424
Competing in the Market 425
Strategic Alignment 425
Strategic Allocation 426
Integrative Approach 427
Job Analysis 428
Job Evaluation and Pricing 429
Collective Bargaining and Contract Costing 431
Basic Budgeting and Accounting 432
Accounting 432
Budgeting 434
Motivating and Retaining through Total Rewards 435
Efficiency vs. Empathy Wages 436
Other Studies 436
Best Practices 437
Equity Compensation 438
Executive Compensation 439
Stock Options 441
Board of Directors/Outside Directors 443
Benefits 443
Summary 445
Exam Essentials 445
Review Questions 447
Chapter 11 SPHR Exam: Employee Relations and Engagement 451
Human Relations 453
Motivation 454
Job Attitudes 455
Positive Employee Relations 456
Diversity and Inclusion 463
Generations at Work 464
Women in Leadership 464
Sexual Orientation and Gender Expression/Identity 465
Cultural Competence 466
Workplace Safety and Security 468
Crises in Leadership 468
Business Continuity 471
Internal Investigations 472
Labor Unions 473
Collective Bargaining 473
Remaining Union-Free 477
Metrics: Measuring Results 478
Summary 479
Exam Essentials 480
Review Questions 482
Appendix A Answers to Review Questions 487
Chapter 2: PHR Exam: Business Management 488
Chapter 3: PHR Exam: Talent Planning and Acquisition 490
Chapter 4: PHR Exam: Learning and Development 493
Chapter 5: PHR Exam: Total Rewards 495
Chapter 6: PHR Exam: Employee and Labor Relations 498
Chapter 7: SPHR Exam: Leadership and Strategy 500
Chapter 8: SPHR Exam: Talent Planning and Acquisition 502
Chapter 9: SPHR Exam: Learning and Development 504
Chapter 10: SPHR Exam: Total Rewards 506
Chapter 11: SPHR Exam: Employee Relations and Engagement 508
Appendix B PHR® and SPHR® Case Studies 511
Case Study 1: Human Resources Role in Preventing Workplace Violence 512
Questions 513
Answers 514
Case Study 2: Where the Green Glass Grows 514
The Company 515
The Customer 515
Exercises 516
Answers and Additional Exercises 518
Appendix C Federal Employment Legislation and Case Law 521
Affirmative Action Plans (AAPs) 522
Executive Order 11246 AAP 523
VEVRAA AAP 524
Section 503, Individuals with Disabilities AAP 526
Age Discrimination in Employment Act of 1967 (ADEA) 527
Older Worker Benefit Protection Act Amendment to the ADEA 528
Americans with Disabilities Act of 1990 (ADA) 529
Civil Rights Act of 1964 (Title VII) 530
Amendments to Title VII 531
Common Law Doctrines 533
Employment at Will 534
Duty of Good Faith and Fair Dealing 535
Promissory Estoppel 535
Fraudulent Misrepresentation 535
Respondeat Superior 536
Constructive Discharge 536
Defamation 536
Copyright Act of 1976 537
Davis-Bacon Act of 1931 537
Drug-Free Workplace Act of 1988 538
EEO Survey 538
Report Types 539
Race and Ethnicity Categories 540
Job Categories 540
Data Reporting 541
Employment Retirement Income Security Act of 1974 (ERISA) 541
Summary Plan Description (SPD) 542
Annual Reports 542
Participant Benefit Rights Reports 543
Employee Participation 543
Vesting 543
Benefit Accrual Requirements 544
Form and Payment of Benefits 544
Funding 545
Fiduciary Responsibility 545
Administration and Enforcement 545
Amendments to ERISA 545
Executive Orders 548
Fair Credit Reporting Act of 1970 (FCRA) 549
Fair Labor Standards Act of 1938 (FLSA) 550
Minimum Wage 551
Maximum Hours and Overtime 551
Exemption Status 554
Salary Deductions 556
Child Labor 558
Record Keeping 558
Penalties and Recovery of Back Wages 559
FLSA Amendments 560
Family and Medical Leave Act of 1993 (FMLA) 561
Designation of FMLA Leave 561
Failure to Designate in a Timely Manner 561
Waiver of Rights 562
Substitution of Paid Leave 562
Perfect Attendance Awards 562
Light Duty Assignments 562
Record-Keeping Requirements 562
Employers Covered 563
Notice Obligations 563
Employees Eligible for FMLA 565
Key Employee Exception 565
Employee Notice Requirement 566
Reasons for FMLA Leave 567
Medical Certification Process 569
Types of FMLA Leave 570
Calculating the FMLA Year 570
Tracking Reduced and Intermittent FMLA Leave 571
Ending FMLA Leave 571
FMLA Implications for Employers 572
Foreign Corrupt Practices Act of 1977 572
Genetic Information Nondiscrimination Act of 2008 (GINA) 573
Glass Ceiling Act of 1991 574
Societal Barriers 574
Internal Structural Barriers 574
Governmental Barriers 574
Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA) 575
Immigration Reform and Control Act of 1986 (IRCA) 575
E-Verify 576
Amendments to IRCA: Immigration Act of 1990 576
International Labour Organization (ILO) 578
International Trade Organizations 579
European Union (EU) 579
Mercosur 580
North American Free Trade Agreement (NAFTA) 580
Mine Safety and Health Act of 1977 (MSHA) 580
Occupational Safety and Health Act of 1970 (OSHA) 581
More Inspections 582
Emphasis on Safety Communication 582
Reporting of Injuries 583
Employer Responsibilities 583
Employer Rights 584
Employee Rights and Responsibilities 585
OSHA Enforcement 585
OSHA Record-Keeping Requirements 586
OSHA Assistance 588
Health and Safety Inspections 589
Organisation for Economic Co-operation and Development (OECD): Guidelines for Multinational Enterprises (MNEs) 593
Patient Protection and Affordable Care Act of 2010 (PPACA, ACA, Obamacare) 594
Pension Protection Act of 2006 (PPA) 595
Privacy Act of 1974 595
Rehabilitation Act of 1973, Sections 501, 503, and 505 596
Sarbanes-Oxley Act of 2002 (SOX) 596
Service Contract Act of 1965 (SCA) 596
Sexual Harassment 597
Hostile Work Environment Harassment 597
EEOC Guidelines for the Prevention of Sexual Harassment 599
Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) 600
Disabled Veterans 602
United States Patent Act of 1790 603
Wage Garnishment Law, Federal 603
Walsh-Healey Public Contracts Act of 1936 604
Worker Adjustment Retraining and Notification Act of 1988
(WARN) 604
Workers’ Compensation 605
Quick Reference Guide: Agencies, Court Cases, Terms, and Laws; General Record-Keeping Guidelines 606
Appendix D Resources 617
Business Management, Leadership, and Strategy 619
Books 619
Professional Associations 620
Talent Planning and Acquisition 620
Books 620
Professional Associations 620
Learning and Development 621
Books 621
Professional Associations 621
Total Rewards 621
Books 622
Professional Associations 622
Employee and Labor Relations and Engagement 622
Books 622
Professional Associations 623
Appendix E Summarizing the Summaries: What Meta-Analyses Tell Us About Work Engagement 625
Christian, Garza, and Slaughter, 2011 626
Maricutoiu, Sulea, and Iancu, 2017 627
Knight, Patterson, and Dawson, 2017 628
References 629
Appendix F Neuroscience Principles and Applications for HR Leaders 631
Introduction 632
The Principles 633
Principle 1: The Unlearning-Relearning Process 633
Principle 2: Redefining Resistance 635
Principle 3: Engaging Behavioral Change 638
Conclusion 640
Suggested Reading 640
Index 643
