2024 Edition

Human Resources Practice Test

Try this free PHR practice test to see what's on a certification exam for human resource professionals.

Certification as a human resources professional through the HR Certification Institute can enhance your career in human resources. Human resource professionals work in large multi-national corporations, small businesses, nonprofit organizations, academia and more. Certification demonstrates one's knowledge and skill in the field of human resources and can lead to job opportunities as well as better pay and promotion. There are five categories covered by the PHR certificaiton exam: Business Management, Talent Planning and Acquisition, Learning and Development, Total Rewards and Employee and Labor Relations. The exams have 175 multiple choice questions, of which 25 are unscored. Three hours is given to complete the exam.

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Business Management

1.	All of the following are appropriate purposes for an HR audit, except:
		a. Evaluate policies and processes
		b. Review documentation and records retention
		c. Ensure the organization is meeting legal requirements
		d. Termination of unsatisfactory employees
The purpose of an HR Audit is to provide an organizational review, which can be used in a strategic planning process. Though it may be an eventual outcome, the purpose does not include making immediate employment decisions. Incorrect answer. Please choose another answer.

2.	When comparing the business Return on Investment with that of the competition, you discover the ROI is a bit lower than the competitors. What is the best plan of action?
		a. Develop a new strategic plan for the business.
		b. Adjust the strategic plan to maximize the value of expenses.
		c. Compare the companies Return on Equity (ROE) with competitors.
		d. Adjust the strategic plan to increase investment.
The best plan of action in this circumstance is to adjust the strategic plan to maximize the value of expenses with the greatest return. Only develop a new strategic plan if the ROI is much lower than the competition. If the difference is not significant, only an adjustment is needed to ensure that financial resources expended receive the greatest return. Incorrect answer. Please choose another answer.

3.	Which motivation theory suggests employees are motivated by success, but consider the value of the expected reward against the effort required to achieve it?
		a.Vroom's expectancy theory
		b.McGregor's Theory X and Theory Y
		c.Maslow's hierarchy of need theory
		d.McClelland's acquired needs theory
There are three terms of Vroom's expectancy theory: Expectancy - whether an employee expects to achieve their goal; Instrumentality – whether an employee is confident in their ability for goal achievement; Valence – whether the value of the goal is equal to or more valuable than the effort to achieve it. Incorrect answer. Please choose another answer.

4.	As an HR professional, you want to establish and maintain a strong sense of ethics within an organization. One effective way is to:
		a. Ignore unethical behavior
		b. Establish a code of conduct
		c. Develop new recruitment procedures
		d. Write a corporate ethics statement
Establishing a policy and procedures manual, which expands on the "corporate value statement" and defines acceptable behavior, will give the organization a proper foundation for setting expectations of proper behavior and protocol in the organization. Regular HR Audits ensure that employees are following policy. Writing a corporate ethics statement without detailing a policy and procedures manual will not be an effective way to maintain ethics within the organization. Incorrect answer. Please choose another answer.

5.	Which of the following is one of the elements of a SMART goal?
		a. Technological
		b. Generally stated
		c. Action-oriented
		d. Intentionally imprecise
A SMART goal is specific, measurable, action-oriented, realistic and time-based. SMART goals are used for evaluating employee performance, by setting specific, measurable, action-oriented, realistic and time-based criteria that can be documented and recorded for review. Incorrect answer. Please choose another answer.

6.	There are many different types of organizations that people create to accomplish business goals. Which of the following forms of business organization provides the owners with protection from the debts and liabilities of the company?
		a. Corporation
		b. Partnership
		c. Sole Proprietorship
		d. All of the above
As long as certain formalities are followed, a corporate entity is a form of business ownership that protects the owners or shareholders from the liabilities and debts of the company. In other words, the owners cannot be sued for the debts of the company unless there are grounds to pierce the corporate veil, like fraud. This is also true of limited liability companies (LLC) that requires less formality in its management. Incorrect answer. Please choose another answer.

7.	A restaurant institutes a new happy-hour as a marketing campaign. A year later, the owner wants to know if sales have improved as a result of the campaign. Comparing sales from the previous year to the current year is an example of using which type of strategic planning metric?
		a. Gross profit margin
		b. Opportunity success rate
		c. Innovation rate
		d. Return on investment
The gross profit margin is total revenue for a certain period minus the cost of sales for that period divided by total revenue for that period. Comparing the gross profit margin for the two periods is helpful in determining if the new campaign is increasing sales or if a new strategy is needed. Incorrect answer. Please choose another answer.

8.	What term is assigned to an employee that makes a complaint about their employer to a federal agency claiming that illegal activity has occurred?
		a. Reporter
		b. Whistle-blower
		c. Evaluator
		d. Flag-waver
A whistle-blower describes a person who reports that their employer has participated in illegal activity. The Whistleblower Protection Act of 1989 protects federal employees who report illegal activity. The Office of Special Counsel investigates federal complaints. The Sarbanes Oxley (SOX) Act of 2002 protects employers of publicly traded companies and reports are filed with the Securities Exchange Commission (SEC). Incorrect answer. Please choose another answer.

Talent Planning and Acquisition

9.	Why are valid questions an important part of the interview process?
		a. To ensure the interview relates to the specific job.
		b. To ensure a potential employee fits in the organization.
		c. To ensure that the candidate is like the interviewer.
		d. To ensure the candidate has been successful in unrelated jobs.
Valid interview questions are job specific and ensure that answers demonstrate job-specific skills. Validity demonstrates a relationship between past performance and the interview process. Incorrect answer. Please choose another answer.

10.	What is the purpose of Executive Order 11246?
		a. Established overtime pay
		b. Established affirmative action
		c. Established the Fair Employment Practice Committee
		d. Abolished discrimination in the US Armed Forces
Executive Order 11246, signed by President Lyndon B. Johnson on September 24, 1965, established requirements for non-discriminatory practices in hiring and employment on the part of U.S. government contractors. It requires contractors to "take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin." Incorrect answer. Please choose another answer.

11.	Sexual harassment is a form of discrimination under what federal law?
		a. Equal Employment Opportunity Commission
		b. Fair Labor Standards Act
		c. American Disabilities Act
		d. Title VII - Civil Rights Act
Title VII of the Civil Rights Act prohibits discrimination based on race, color, religion, sex, or national origin. Incorrect answer. Please choose another answer.

12.	Before selecting an HRIS system, which of the following questions should be answered?
		a. How will the HRIS be used?
		b. Who will have access to the information?
		c. What information will be utilized by the HRIS?
		d. All of the above
An HRIS is a software system designed for tracking human resources data, such as, payroll, employee information, management and accounting. A needs analysis should be conducted and answers provided to the listed questions. Additionally, it should be understood whether the HRIS will be integrated with payroll or other systems and what kinds of reports will be produced. Incorrect answer. Please choose another answer.

13.	The EEO-1 (Employer Information Report) form is required to be filed by employers with 100 or more employees. When is the deadline for filing component 1 of the EEO-1 report?
		a. January 1
		b. September 30
		c. December 31
		d. May 31
The EEO-1 form is a federally required survey reporting wage and race data. Component 1, a report of race and gender, is required for all employers with over 100 employees and federal contractors with 50 or more employees and at least $50,000 in government contracts. The deadline to file component 1 of the EEO-1 is May 31st. Only, employers with over 100 employees are required to also complete component 2 form, due September 30. Incorrect answer. Please choose another answer.

Learning and Development

14.	Which style of learning is demonstrated by a hands-on experience?
		a. Auditory Learning
		b. Visual Learning
		c. Kinesthetic Learning
		d. Touch Learning
Kinesthetic learning is a learning style where understanding and comprehension best occur during physical activity. Auditory learners best learn by hearing instructions. Visual learners best learn by seeing instructions. "Touch Learning" is not a correct term for a style of learning. Incorrect answer. Please choose another answer.

15.	William is creating a manual for his department. On the cover of the manual he uses a picture of the equipment that he found on a website. You ask if he has permission to use the image. He tells you that the photo is from a website so it's in the public domain. Are photos and images from websites considered to be in the public domain?
		a. Yes, all images on the internet are in the public domain.
		b. No, images are protected by copyright laws.
		c. Yes, copyright does not apply to the internet.
		d. No, images are protected by creative rights.
Creative works that are not protected by intellectual property laws such as copyright and trademark protection are said to be in the public domain. Works become public when (1) the owner fails to acquire copyright or trademark protection because of a lack of filing or renewal of a copyright or trademark with the government; (2) the rights have expired; (3) the type of work may not be protectable and (4) the owner my intentionally allow public use. If an owner does have copyright or trademark protection, the work is not in the public domain and cannot be used without the permission of the owner. Websites sites have different policies on the use of its content. Some may offer the rights to use their images for payment, while others allow users to use their images for free. Incorrect answer. Please choose another answer.

16.	The system of management known as _________is exemplified by review processes to eliminate waste, encouraging teamwork and involving all members of the organization in meeting customer needs.
		a. Micromanagement
		b. Six Sigma
		c. Total Quality Management
		d. Strategic Management
Total Quality Management focuses on eliminating waste and encouraging teamwork to produce the best quality products and services. This management style was developed by the Navy in 1984 and based on the teachings of W. Edward Deming. After being adopted by the Federal government, it gained popularity among American corporations. Incorrect answer. Please choose another answer.

17.	According to Kirkpatrick's evaluation model, there are four types of training evaluation: reaction, learning, behavior and .
		a. Results
		b. Testing
		c. Objectives
		d. Summation
The following are the four types of training evaluation: Reaction: the participant's immediate thoughts and feelings following participation Learning: measurement of knowledge/skills gained by participants via demonstration or test Behavior: post training evaluation of how the participant preforms on the job or has changed behavior based on the training Results: Any monetary or performance-based reward that occurred as a result of attendance and participation in the training. Incorrect answer. Please choose another answer.

Compensation and Benefits

18.	Which of the following is an example of direct compensation?
		a. Vacation
		b. Bonus
		c. Mobile phone
		d. Health insurance
A bonus is a form of direct compensation. Direct compensation is a monetary reward for employment. Indirect compensation is a non-monetary reward and includes many benefits, like vacation, mobile phone, health insurance, and more. And also includes legally obligated benefits like payroll taxes, unemployment insurance, and worker's compensation. Incorrect answer. Please choose another answer.

19.	Your employer offers medical benefits to employees on military leave, but does not want to offer the same benefits to employees on maternity leave. This is a violation of _______.
		a. The Pregnancy Discrimination Act
		b. Fair Labor Standards Act
		c. Family Medical Leave Act
		d. Davis-Bacon Act
The Pregnancy Discrimination Act amended Title VII to prohibit discrimination on the basis of pregnancy. If benefits are offered to other staff on leave, the same benefits must be offered to those on leave for pregnancy-related conditions Incorrect answer. Please choose another answer.

20.	A non-exempt employee is attending a professional training outside of normal work hours, that is not specifically job related. The event will be documented on the employee's performance review, as certified training. Should the employee be paid for attending the training?
		a. No, it is not job related.
		b. No, it is outside of normal work hours.
		c. No, it was voluntary.
		d. Yes.
By documenting the attendance in a performance review the event would be considered a job requirement and would meet one of the four requirements for paid training. To be non-paid an event must be outside normal work hours, voluntary, not job related, and no other work is performed during the event. Incorrect answer. Please choose another answer.

21.	The local library offers an after-school position to a 15-year old working Monday, Wednesday and Thursday from 3:30 pm to 7:00 pm. Is this acceptable under the standards of the Fair Labor Standards Act (FLSA)?
		a. Yes, children under 16 can work up to 7:00 pm.
		b. No, children under 16 cannot work during the school week.
		c. Yes, children under 16 can work up to 18 hours during the school week.
		d. No, children under 16 cannot work more than 3 hours a day during the school week.
According to the Fair Labor Standards Act, children under the age of 16 are prohibited from working in any manufacturing or mining-related job, working during school hours, working more than 3 hours a day or 18 hours a week during a school week or 8 hours a day and 40 hours a week during a non-school week, and working before 7:00 am or past 7:00 pm during the school year or working before 7:00 am or past 9:00 pm during the summer. Incorrect answer. Please choose another answer.

22.	A nonexempt employee who regularly works M-F 8:00am-5:00pm travels for a conference on Sunday from 4:00pm to 6:00pm. How many hours should the employee be paid for the travel time?
		a. 0
		b. 1
		c. 2
		d. 3
The FLSA does not consider travel time outside of regular work hours to be payable. Travel is only eligible for pay during regular working hours (8:00am-5:00pm), including weekend days. Incorrect answer. Please choose another answer.

Employee and Labor Relations

23.	Your organization starts a suggestion box for employees to present anonymous suggestions to executives and management. What is the best action for management to take for employees to see the value in the program?
		a. Act quickly on the suggestions
		b. Discuss the suggestions
		c. Share the suggestions with the entire organization
		d. Organize the suggestions by type
Suggestions must be acted on quickly for employees to see true value in the program. While it does provide value to discuss the suggestions, and sharing the suggestions would provide an opportunity for organizational input, employees need to see management making changes based on the suggestions. Answer a is the best answer. Incorrect answer. Please choose another answer.

24.	During the union-organizing process, how is the bargaining unit determined?
		a. By the union
		b. By the employees
		c. By the National Labor Relations Board
		d. By the union and employees
The NLRB is an independent federal agency created to enforce the National Labor Relations Act. It is the agency's responsibility to protect employee's rights to organize and to be represented by a labor union in the collective bargaining process. A bargaining unit is a group of employees represented by a labor union and protected by a collective bargaining agreement. Incorrect answer. Please choose another answer.

25.	When conducting a risk assessment, what category of disaster includes terrorism, war and arson?
		a. Equipment and System failure
		b. Environmental disasters
		c. Organized or deliberate disruption
		d. Security threat
When conducting a risk assessment, the first step is to identify the potential threats, which fall under specific categories: Environmental (natural disaster), Organized or deliberate disruption (terrorism, war, arson), Loss of utiilites or services (electrical power failure, public utility failure, communication services breakdown), Equipment or system failure (internal power failure, production line failure, equipment failure), Security threat (leak of sensitive information, loss of records or data, cyber crime), Supplementary emergency situations (workplace violence, public transportation disruption, health and safety hazard). Incorrect answer. Please choose another answer.

26.	Which of the following is true of a hostile work environment?
		a. Only a supervisor can create a hostile work environment.
		b. A hostile work environment may arise when an employee witnesses the harassment of a co-worker.
		c. It only takes a single occurrence of harassment to create a hostile work environment.
		d. Employers are protected from claims of harassment by an employment policy against discrimination.
A hostile work environment may arise when an employee witnesses the continuous harassment of another employee. A hostile work environment can be created by any person in the workplace including vendors, customers or visitors. One occurrence of harassment does not meet the requirement for hostile work environment. Incorrect answer. Please choose another answer.

27.	What is the time limit for filing a charge of discrimination with the EEOC?
		a. 30 days
		b. 300 days
		c. 180 days
		d. 90 days
Individuals must file a claim within 180 days of the alleged violation. In some cases, the limit may be extended to 300 days if the charge is covered by state or local anti-discrimination law. Incorrect answer. Please choose another answer.

28.	There are three types of barriers in the glass ceiling concept that may prevent women and minorities from reaching senior level positions in an organization. Which barrier is related to corporate practices and recruiting?
		a. Internal structural barriers
		b. Societal barriers
		c. Educational barriers
		d. Governmental barriers
Internal structural barriers are management, recruitment and corporate practices that limit the opportunities for employment growth for minorities and women. For example, companies that more often recruit from within, will have a smaller and less diverse pool of candidates. Societal barriers include limited educational opportunities and biases related to gender, race and ethnicity. Government barriers include inconsistent enforcement of equal opportunity. Incorrect answer. Please choose another answer.

29.	Which of the following provides an informal setting for a group of employees to meet with their manager to learn more about the company?
		a. Department staff meetings
		b. Brown-bag lunch program
		c. Word of mouth
		d. Work team
It is important to offer a variety of opportunities for staff and management to meet. An informal setting like a brown bag lunch can provide a more comfortable setting for employees to share more about themselves and what's going on in the company. Incorrect answer. Please choose another answer.

30.	A panel of arbitrators chosen by the parties involved in a particular dispute for the sole purpose of handling that specific dispute is known as:
		a. Permanent arbitrator
		b. Ad hoc arbitrator
		c. Compulsory arbitrator
		d. Arbitrator tribunal
An arbitrator tribunal or tripartite arbitration panel consist of three arbitrators who are chosen for the sole purpose of handling a specific dispute. Incorrect answer. Please choose another answer.

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