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PHR / SPHR: Professional in Human Resources Certification Study Guide, 4th Edition

ISBN: 978-1-118-28917-4
648 pages
May 2012
PHR / SPHR: Professional in Human Resources Certification Study Guide, 4th Edition (111828917X) cover image
Updated edition of best-selling guide for PHR and SPHR candidates

The demand for qualified human resources professionals is on the rise. The new Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR) exams from the Human Resources Certification Institute (HRCI) reflect the evolving industry standards for determining competence in the field of HR. This new edition of the leading PHR/SPHR Study Guide reflects those changes. Serving as an ideal resource for HR professionals who are seeking to validate their skills and knowledge, this updated edition helps those professionals prepare for these challenging exams.

  • Features study tools that are designed to reinforce understanding of key functional areas
  • Provides access to bonus materials, including a practice exam for the PHR as well as one for the SPHR. Also includes flashcards and ancillary PDFs
  • Addresses key topics such as strategic management, workforce planning and employment, compensation and benefits, employee and labor relations, and Occupational Safety and Health Administration regulations

This new edition is must-have preparation for those looking to take the PHR or SPHR certification exams in order to strengthen their resume.

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Introduction xxi

Assessment Test xxviii

Chapter 1 Certifying Human Resource Professionals 1

The Human Resource Profession 2

Development of the Human Resource Body of Knowledge 3

Defining the Functional Areas of the BOK 5

Core Knowledge Requirements of the BOK 7

Certification Levels 8

Eligibility Requirements 10

Recertification 11

The Test 12

It’s Experiential and Federal 14

What the Questions Look Like 14

Preparing for the Exam 15

Taking the Exam 20

Summary 22

Chapter 2 Core Knowledge Requirements for HR Professionals 23

Needs Assessment and Analysis 25

Third-Party Contract Management 26

Communication Skills and Strategies 28

Employee Communication 28

Professional Communication 30

Documentation Requirements 30

Documenting Employment Actions 30

Documenting Performance Issues 30

Adult Learning Processes and Learning Styles 32

Motivation Concepts 34

Abraham Maslow: The Hierarchy of Needs (1954) 34

B. F. Skinner: Operant Conditioning (1957) 35

Frederick Herzberg: Motivation/Hygiene Theory (1959) 35

Douglas McGregor: Theory X and Theory Y (1960) 36

David McClelland: Acquired Needs Theory (1961) 36

J. Stacey Adams: Equity Theory (1963) 36

Victor Vroom: Expectancy Theory (1964) 37

Clayton Alderfer: ERG Theory (1969) 37

Leadership Concepts 38

Behavioral Theories 39

Situational Theories 39

Contingency Theories 41

Leadership Styles 42

Project Management Concepts 42

Diversity Concepts 44

Human Relations Concepts 46

HR Ethics and Professional Standards 46

Human Resource Technology 47

HRIS Systems 47

Qualitative and Quantitative Analysis 53

Data Collection 54

Analysis Tools 54

Qualitative Analysis 58

Metrics: Measuring Results 58

Change Management 60

Job Analysis and Description 61

Job Analysis 61

Job Descriptions 62

Employee Records Management 63

Interrelationships Among HR Activities 74

Organizational Structures 76

Environmental Scanning Concepts 79

Environmental Scanning Tools 80

Employee Attitude Assessment 83

Basic Budgeting and Accounting 84

Accounting 84

Budgeting 86

Risk Management 87

Summary 90

Exam Essentials 90

Review Questions 92

Chapter 3 Business Management and Strategy 97

Organizations 100

External Business Environment 100

Internal Business Operations 101

Strategy 108

Strategic Planning 109

Human Capital Management Plans 116

Strategic Management 119

Strategic Relationships 120

Corporate Responsibility 121

Change Management 124

Enterprise Risk Management 127

HR Technology 130

Legislative and Regulatory Processes 131

Legislative Process 131

Administrative Law 132

Lobbying 133

Corporate Governance 133

Organization Values and Ethics 134

Whistle-Blower Protection 138

Ethics Officers 140

HR Metrics: Measuring Results 141

Global Considerations 142

Summary 142

Exam Essentials 143

Review Questions 144

Chapter 4 Workforce Planning and Employment 149

Federal Employment Legislation 151

Civil Rights Legislation 152

Age Discrimination in Employment Act of 1967 154

Americans with Disabilities Act of 1990 156

Civil Rights Act of 1991 158

Genetic Information Nondiscrimination Act of 2008 160

Federal Contractors, Subcontractors, and Agencies 161

Annual EEO Survey 162

Affirmative Action Plans 166

Strategic Workforce Planning 168

Workforce Goals and Objectives 168

Job Analysis and Description 169

Qualified Employees 170

Translating Organization Goals into Staffing Plans 174

Labor Market Analysis 176

Staffing Programs 177

Sourcing and Recruiting Candidates 177

Candidate Selection Tools 185

Employment Offers 202

Post-offer Employment Activities 204

Organization Exit/Off-Boarding Processes 209

Voluntary Exit Processes 209

Involuntary Exit Processes 210

Records Management: The Life Cycle 214

Metrics: Measuring Results 216

Global Considerations 217

Exam Essentials 220

Review Questions 222

Chapter 5 Human Resource Development 227

Federal Employment Legislation 229

Copyright Act of 1976 229

U.S. Patent Act 230

Organization Development 230

Strategic Interventions 231

Techno-Structural Interventions 236

Human Process Interventions 243

Human Resource Management Interventions 245

Talent Management 246

Management Development 250

Leadership Development 251

Employee Training Programs 251

Performance-Management Programs 267

Performance Appraisal 268

Elements of Performance Appraisal 269

Timing Performance Appraisals 269

Performance-Appraisal Methods 270

Training Performance Evaluators 272

Unique Employee Needs 274

Diversity Initiatives 276

Flexible Work Arrangements 276

Repatriation 276

Metrics: Measuring Results 277

Global Considerations 278

Summary 279

Exam Essentials 280

Review Questions 281

Chapter 6 Compensation and Benefits 285

Total Rewards Defined 287

Compensation and Benefits Philosophy 288

Compensation Strategy 291

Budgeting and Accounting for Total Rewards 292

Fiduciary Responsibility 293

Compensation 293

Federal Employment Legislation 296

Types of Compensation 307

Traditional Pay Structures 315

Benefits 325

Involuntary Benefits 327

Voluntary Benefits 343

Payroll 364

Payroll Systems 364

Payroll Administration 365

Communicating Compensation and Benefits Programs 369

Executive Compensation 369

Stock Options 372

Board of Directors/Outside Directors 374

Metrics: Measuring Results 375

Global Considerations 376

Summary 376

Exam Essentials 377

Review Questions 378

Chapter 7 Employee and Labor Relations 383

Federal Employment Legislation 385

Common-law Doctrines 387

Legal Statutes 390

Employee Rights and Responsibilities 399

Employee Relations 400

Organization Climate and Culture 400

Employee Relations Programs 404

Workplace Policies and Procedures 407

Performance Improvement 409

Dispute Resolution 415

Arbitration 415

Mediation 416

Constructive Confrontation 418

Labor Relations 418

Labor Laws and Organizations 419

Employee Rights 420

Union Organization 424

What Can an Employer Do? 424

The Organizing Process 425

Collective Bargaining 431

Union Avoidance Strategies 437

Metrics: Measuring Results 438

Global Considerations 439

Summary 440

Exam Essentials 440

Review Questions 442

Chapter 8 Risk Management 447

Risk Identification 449

HR Tools to Identify and Assess Risk 450

Risk Assessment 453

Assessing Legal Compliance Risks 453

Assessing Safety and Health Risks 473

Assessing Security Risks 481

Risk Management 486

Managing Legal Compliance Risks 486

Managing Safety and Health Risks 489

Managing Security Risks 495

Managing Business Continuity Risks 501

Managing Workplace Privacy Risks 504

Metrics: Measuring Results 507

Global Considerations 509

Summary 510

Exam Essentials 510

Review Questions 511

Appendix A Answers to Review Questions 515

Chapter 2: Core Knowledge Requirements for HR Professionals 516

Chapter 3: Business Management and Strategy 518

Chapter 4: Workforce Planning and Employment 521

Chapter 5: Human Resource Development 523

Chapter 6: Compensation and Benefits 526

Chapter 7: Employee and Labor Relations 528

Chapter 8: Risk Management 531

Appendix B Case Study: Where the Green Glass Grows 535

The Company 536

The Customer 537

Exercises 537

Answer Key and Additional Exercise 539

Appendix C Federal Employment Legislation and Case Law 543

Legislation and Case Law Summary 544

Additional Cases 554

1968: Rosenfeld v. Southern Pacific 554

1969: Weeks v. Southern Bell Telephone Co. 555

1973: McDonnell Douglas Corp. v. Green 556

1978: Regents of California v. Bakke 556

1979: United Steelworkers v. Weber 557

1981: Texas Department of Community Affairs v. Burdine 557

1987: Johnson v. Santa Clara County Transportation Agency 558

1987: School Board of Nassau v. Arline 558

1989: Martin v. Wilks 559

1992: Electromation, Inc. v. NLRB 560

1993: E. I. DuPont & Co. v. NLRB 561

1993: St. Mary’s Honor Center v. Hicks 562

1995: McKennon v. Nashville Banner Publishing Co. 563

2001: Circuit City Stores v. Adams 563

Appendix D Resources 565

Business Management and Strategy 567

Books 567

Professional Associations 567

Workforce Planning and Employment 568

Books 568

Professional Associations 568

Human Resource Development 569

Books 569

Professional Associations 569

Compensation and Benefits 570

Books 570

Professional Associations 570

Employee and Labor Relations 570

Books 570

Professional Associations 571

Risk Management 571

Books 571

Professional Associations 572

Appendix E About the Additional Study Tools 573

Additional Study Tools 574

Sybex Test Engine 574

Electronic Flashcards 574

PDF of Glossary of Terms 574

Adobe Reader 574

System Requirements 575

Using the Study Tools 575

Troubleshooting 575

Customer Care 576

Index 577

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Sandra M. Reed, PHR, SPHR, is the owner of Epoch Resources, a consulting firm specializing in the unique HR needs of small businesses. Sandra has authored learning modules and case studies for the Society for Human Resource Management. Anne M. Bogardus worked with growing biotech, high-technology, and public relations organizations at the manager and director levels. She is the author of Human Resources JumpStart and the previous editions of PHR/SPHR Professional in Human Resources Certification Study Guide. Technical Editor Brenda G. Budke, SPHR, directs an HR consulting firm in Fresno, California. She is founder and Dean of a corporate university, and is past president of the Human Resource Association of Central California (HRACC).

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Do you think you've discovered an error in this book? Please check the list of errata below to see if we've already addressed the error. If not, please submit the error via our Errata Form. We will attempt to verify your error; if you're right, we will post a correction below.

ChapterPageDetailsDatePrint Run
Introduction xxxiii Text correction: Error in Option for Assessment Test Question 34
Option D should read: "State employment agencies must give preference to Vietnam veterans for positions lasting 3 days or fewer."
The correct answer and explanation on page xliv are correct as written.
12/31/13
Introduction xlvi-xlvii Text correction: Error in Answers to Assessment Test, Question 57
B, "Quantitative analysis", is the correct answer. However, the explanation reverses the terms "qualitative" and "quantitative". The first two sentences of the explanation should read:

"Quantitative analysis is a form of research that uses mathematical models such as correlation, correlation coefficient, and measures of central tendency to provide solutions to problems. Qualitative analysis is a more subjective measurement tool that relies less on numbers and more on judgmental forecasts (A),..."
7/17/13
4 163 Text correction: Annual EEO Survey
The second main bullet point, "All federal contractors or subcontractors with more than 50 but less than 100 employees, which" should read

"All federal contractors or subcontractors with more than 50 employees, which"
5/18/12 1st
6 331 Text correction: Error regarding Family and Medical Leave Act
In the first bullet point near the bottom of the page, the parenthetical "26 months for military caregiver leave" should read:
"26 workweeks for military caregiver leave"
1/14/13 1st
6 380 Text correction: Errors in Review Question 10
The question should read: "A summary plan description is required for which of the following?" Answer D should read "Group Health Plans".

The correct answer given and the explanation remain correct.
10/25/12 1st
8 447 Text correction: Chapter objective incorrectly identified as SPHR only
The icon in the margin by the chapter objective Develop/select and implement/administer occupational injury and illness prevention programs indicating that it is for the SPHR Exam only is incorrect. The icon should indicate that the item is for the PHR Exam only.
10/19/12 1st
8 490 Text correction: Injury and Illness Prevention Programs incorrectly identified as SPHR only
The icon in the margin by the heading Injury and Illness Prevention Programs indicating that it is for the SPHR Exam only is incorrect. The icon should indicate that the item is for the PHR Exam only.
8/29
Appendix A 523 Text correction: Error in Answer to Chapter 4 Review Question 15
The first full sentence on the page, "The Rehabilitation Act of 1973 prohibits discrimination against veterans of the US armed services..."
should read:
"The Rehabilitation Act of 1973 prohibits discrimination against individuals with disabilities..."
1/10/13 1st
Appendix A 528 Text correction: Incorrect answer given for Chapter 6 Review Question 19
The correct answer is C, not B.

The explanation should read:
"Both intrinsic and extrinsic rewards can be in the form of nonmonetary compensation. External factors that influence job performance such as working with a talented group of peers or under pleasant working conditions is defined as an extrinsic reward (C). Internal factors that influence job satisfaction such as pride in a job well done are considered intrinsic rewards (B). Monetary compensation (A) is one component of a total rewards system."
5/25/12 1st
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