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Prepare for the updated 2024 PHR, PHRi and SPHR, SPHRi certification exams smarter and faster with this Sybex Study Guide
The newly revised sixth edition of the PHR, PHRi and SPHR, SPHRi Human Resources Certification Complete Study Guide: 2024 Exams is the ideal resource for HR professionals seeking to validate their skills and knowledge acquired through years of practical experience or for a relative newcomer to the HR field looking to strengthen their resume. The new edition of the bestselling PHR and SPHR Study Guide reflects the recently updated A Guide to the Human Resource Body of Knowledge-HRBoK-and is written to help you prepare for these challenging exams.
The Study Guide walks you through the seven key functional areas of the PHR/PHRi and five key functional areas of the SPHR/SPHRi that are covered in the exams, including business management and strategy, leadership, workforce planning, talent acquisition and talent management, learning and development, total rewards, employee engagement, employee and labor relations, and the most recently added, HR information management. You'll also find:
Perfect for aspiring and established human resources professionals preparing for the 2024 PHR, PHRi and SPHR, SPHRi certification exams, this Study Guide is also an essential volume for practicing HR professionals seeking to brush up on key, on-the-job skills they'll use each day.
ABOUT THE AUTHOR
Sandra M. Reed, SPHR, SHRM SCP is a leading expert in the certification of Human Resource Professionals. She is the bestselling author of the Big Book of HR Exam Practice Questions and the HRCI's Official Guide to the Human Resource Body of Knowledge. She is the founder of a business consulting group specializing in strategy and leadership development in small businesses.
Introduction xxvii
PHR/i Assessment Test xxxiv
Answers to PHR/i Assessment Test xlii
SPHR/i Assessment Test xlviii
Answers to SPHR/i Assessment Test lvi
Chapter 1 Certifying Human Resource Professionals 1
The Human Resource Profession 3
Development of the Human Resource Body of Knowledge 4
Professional in Human Resources (PHR) and
Professional in Human Resources International (PHRi) 6
Senior Professional in Human Resources (SPHR) and Senior Professional in Human Resources International (SPHRi) 8
Eligibility Requirements 10
Recertification 11
The Test 13
It's Experiential and Federal 14
What the Questions Look Like 15
Preparing for the Exam 16
Taking the Exam 20
Summary 24
Chapter 2 PHR | PHRi and SPHR | SPHRi Exams: Shared Competencies 25
Business Management and Leadership and Strategy 26
Mission, Vision, Values 27
Organizations 28
Organizational Design and Development 30
Organization Values and Ethics 31
Total Quality Management 34
Job Design 39
Company Culture 46
Change Management 48
Business Metrics 51
Risk Management 52
Risk Identification 52
Safety and Health Risks 53
Business Continuity Risks 55
Addressing Risks 58
Sexual Harassment 63
Workplace Investigations 66
Workforce Planning and Talent Acquisition 67
Workforce Analysis 68
Translating Organization Goals into Staffing Plans 69
Recruitment and Staffing Strategies 69
Other Legal and Regulatory Issues 70
Learning and Development and Talent Management 73
Career Management 73
Performance Management 81
Total Rewards 88
Job Evaluation 89
Job Pricing 90
Benchmarking 91
Salary Surveys 92
Employee Engagement 93
Theories of Motivation 93
High-Involvement Organizations 95
Communication Skills and Strategies 95
Summary 96
Exam Essentials 97
Review Questions 99
Chapter 3 PHR | PHRi Exam: Business Management 103
The General Business Environment 104
The Commercial Landscape 105
Cross-Functional Stakeholders 106
Human Resources' Role in Organizations 106
Operational Structure of Human Resource Departments 107
HR Service Delivery 108
HR Roles and Responsibilities 109
Human Resource Budgets 109
Enterprise Risk Management 111
HR Audits 112
Risk Management Techniques 113
Summary 115
Exam Essentials 116
Review Questions 117
Chapter 4 PHR | PHRi Exam: Workforce Planning and Talent Acquisition 123
Workforce Planning 124
The Talent Acquisition Lifecycle 125
Predicting Fit 125
The Employer Brand 126
Job Analysis and Descriptions 128
Recruiting 129
Internal Hiring 129
External Talent 132
Alternative Staffing Methods 136
Selection 139
Screening Tools 139
Screening Interviews 141
Negotiations and Employment Offers 153
Post-Offer Employment Activities 156
Employee Onboarding, Orientation, and Integration Programs 160
Summary 161
Exam Essentials 162
Review Questions 163
Chapter 5 PHR | PHRi Exam: Learning and Development 167
Organizational Development 168
Learning and Development Programs 169
Career Development 170
Employee Training Programs 171
Decentralized Team Training 172
Adult Learning Processes and Learning Styles 173
Instructional Design Models 174
Instructional Methods 188
Artificial Intelligence in Training 191
Learning Management Systems 192
Summary 194
Exam Essentials 194
Review Questions 196
Chapter 6 PHR | PHRi Exam: Total Rewards 201
Total Rewards Defined 203
Compensation 205
Types of Compensation 208
Traditional Pay Structures 217
Payroll 225
Payroll Systems 225
Payroll Administration 226
Benefits 229
Involuntary Benefits 230
Voluntary Benefits 231
Communicating Compensation and Benefits Programs 247
PHRi Only 248
Local vs. Federal Regulations 248
Benefits and Leave Preferences 249
Summary 250
Exam Essentials 250
Review Questions 252
Chapter 7 PHR | PHRi Exam: Employee Engagement 257
Employee Engagement Defined 259
The Workplace Value Proposition 261
Engagement and the Employee Lifecycle 262
Employee Involvement 264
Psychological Safety 265
Engaging Early- to Mid-Career Professionals 265
Performance Management 266
Career Growth 266
Performance Improvement 268
Summary 271
Exam Essentials 271
Review Questions 273
Chapter 8 PHR | PHRi Exam: Employee and Labor Relations 277
Employee and Labor Relations Defined 279
Employee and Labor Relations Programs 279
Diversity, Equity and Inclusion and Affirmative Action 281
Corporate Social Responsibility 283
Workplace Safety 285
Workers' Compensation Insurance 285
Workplace Violence 286
Substance Abuse 287
Return-to-Work Programs 289
Documentation 290
Company Policies, Procedures, and Rules 293
Employee Complaints 294
Alternative Dispute Methods 294
Workplace Investigations 295
Workplace Incivility and Counterproductive Work Behaviors 296
Positive Employee and Labor Relations Strategies 297
Summary 298
Exam Essentials 298
Review Questions 300
Chapter 9 PHR | PHRi Exam: HR Information Management 305
HR Information Management 306
HR Workflow 306
Human Resource Information Systems 308
Data Analytics 309
Trend Analysis 310
Data Storytelling and Reporting 310
Records Management: The Lifecycle 311
Establishing the Policy 311
Proper Disposal 313
Electronic Storage 313
Data Privacy and Security 314
Summary 316
Exam Essentials 317
Review Questions 318
Chapter 10 SPHR | SPHRi Exam: Leadership and Strategy 323
Corporate Strategy 326
Organizational Structures 327
Strategic Planning 328
Planning to Plan 329
Environmental Scanning Concepts 330
Strategy Formulation 334
Strategy Implementation 336
Strategy Evaluation 338
Business Plans 338
Human Capital Management Plans 339
Service Delivery Plans 341
Strategic Management 342
Enterprise Human Resource Management 343
Strategic Relationships 344
Risk Management 345
Change Management 347
Project Management 347
Diversity, Equity, and Inclusion (DEI) 348
Evidence-Based Decision Making 349
Business Metrics 351
Legal Analysis 351
Employment Policies and Practices 352
Business Expansion and Reduction 352
Business Intelligence 353
Budgets 356
Summary 358
Exam Essentials 358
Review Questions 360
Chapter 11 SPHR | SPHRi Exam: Workforce Planning and Talent Acquisition 365
Workforce Planning and Talent Acquisition Defined 366
Strategic Analysis 366
Workforce Goals and Objectives 367
Labor Market Analysis 368
Strategic Workforce Planning 369
Human Capital Management Plans 369
Human Capital Projections 371
The Impact of the Business Lifecycle 372
Workforce Expansion 373
Workforce Reduction 375
Strategic Recruiting and Selection 375
Building the Employer Brand 376
Job Analysis 377
Data Literacy 378
Managing Salary Expectations 380
Employee Integration 381
Integrating Virtual Teams 382
Global Integration 383
Summary 384
Exam Essentials 384
Review Questions 386
Chapter 12 SPHR | SPHRi Exam: Talent Management 391
Learning Organizations 393
Workforce Development 394
Integrated Learning and Development 394
Strategic Alignment 395
Training as an Intervention Strategy 396
Performance Management Strategies 398
Succession Planning 399
Knowledge Management 400
Leadership Development 403
Employee Engagement 407
Engagement and Remote Work 407
Return-to-Work Strategies 410
Labor Relations 412
Labor Unions 413
Union Organization 413
Strikes 420
Unfair Labor Practices 421
Contract Enforcement 423
Duty of Successor Employers 424
Union Decertification 425
Union Deauthorization 425
Collective Bargaining 425
Collective-Bargaining Positions 426
Collective-Bargaining Strategies 427
Collective-Bargaining Subjects 427
Remaining Union-Free 428
Summary 429
Exam Essentials 430
Review Questions 432
Chapter 13 SPHR | SPHRi Exam: Total Rewards 437
Total Rewards Defined 438
Fiduciary Responsibility 438
Total Rewards Philosophy and Communicating Compensation Strategies 439
Competing in the Market 441
Strategic Alignment 442
Strategic Allocation 442
Integrative Approach 446
Job Analysis 446
Job Evaluation and Pricing 447
Collective Bargaining and Contract Costing 448
Motivating and Retaining Through Total Rewards 449
Efficiency vs. Empathy Wages 449
Other Studies 450
Best Practices 451
Equity Compensation 452
Executive Compensation 453
Stock Options 456
Board of Directors/Outside Directors 457
Benefits Strategies 457
Summary 457
Exam Essentials 458
Review Questions 460
Chapter 14 SPHR | SPHRi Exam: HR Information Management, Safety, and Security 465
HR Digitization 466
Digitizing HR Workflows 467
Human Resource Information Systems 467
Applicant Tracking Systems 470
Hiring Management Systems 471
Learning Management Systems 471
Employee Self-Service 473
Gamification 473
Service Delivery and Technology 474
Data Privacy 476
Legal and Regulatory Requirements 476
Date Governance and Security Policies 477
Data Protection Technology and Tools 479
Summary 480
Exam Essentials 481
Review Questions 482
Appendix A Answers to Review Questions 487
Chapter 2: PHR | PHRi and SPHR | SPHRi Exams: Shared Competencies 488
Chapter 3: PHR | PHRi Exam: Business Management 491
Chapter 4: PHR | PHRi Exam: Workforce Planning and Talent Acquisition 494
Chapter 5: PHR | PHRi Exam: Learning and Development 497
Chapter 6: PHR | PHRi Exam: Total Rewards 500
Chapter 7: PHR | PHRi Exam: Employee Engagement 503
Chapter 8: PHR | PHRi Exam: Employee and Labor Relations 506
Chapter 9: PHR | PHRi Exam: HR Information Management 510
Chapter 10: SPHR | SPHRi Exam: Leadership and Strategy 513
Chapter 11: SPHR | SPHRi Exam: Workforce Planning and Talent Acquisition 516
Chapter 12: SPHR | SPHRi Exam: Talent Management 520
Chapter 13: SPHR | SPHRi Exam: Total Rewards 523
Chapter 14: SPHR | SPHRi Exam: HR Information Management, Safety, and Security 525
Appendix B PHR | PHRi and SPHR | SPHRi Case Studies 531
Case Study 1: Human Resources Role in Preventing Workplace Violence 532
Questions 534
Answers 535
Case Study 2: Military Veterans in the Workplace 536
Questions 538
Answers 539
Appendix C Federal Employment Legislation and Case Law 541
Affirmative Action Plans (AAPs) 542
Executive Order 11246 AAP 543
VEVRAA AAP 544
Section 503, Individuals with Disabilities AAP 545
Age Discrimination in Employment Act of 1967 (ADEA) 546
Older Worker Benefit Protection Act Amendment to the ADEA 547
Americans with Disabilities Act of 1990 (ADA) and Amendments 547
Civil Rights Act of 1964 (Title VII) 549
Amendments to Title VII 550
Common Law Doctrines 552
Employment at Will 552
Duty of Good Faith and Fair Dealing 554
Promissory Estoppel 554
Fraudulent Misrepresentation 554
Respondeat Superior 554
Constructive Discharge 555
Defamation 555
Copyright Act of 1976 555
Davis-Bacon Act of 1931 556
Drug-Free Workplace Act of 1988 556
EEO Survey 557
Report Types 558
Race and Ethnicity Categories 559
Job Categories 559
Data Reporting 560
Employment Retirement Income Security Act of 1974 (ERISA) 560
Summary Plan Description (SPD) 561
Annual Reports 561
Participant Benefit Rights Reports 562
Employee Participation 562
Vesting 562
Benefit Accrual Requirements 563
Form and Payment of Benefits 563
Funding 564
Fiduciary Responsibility 564
Safe Harbor Provisions 564
Administration and Enforcement 564
Amendments to ERISA 565
Executive Orders 567
Fair Credit Reporting Act of 1970 (FCRA) 568
Fair Labor Standards Act of 1938 (FLSA) 569
Minimum Wage 570
Maximum Hours and Overtime 570
Exemption Status 573
Salary Deductions 575
Actual Practice 576
Safe Harbor 576
Child Labor 576
Recordkeeping 577
Penalties and Recovery of Back Wages 578
FLSA Amendments 578
Family and Medical Leave Act of 1993 (FMLA) 580
Designation of FMLA Leave 580
Failure to Designate in a Timely Manner 580
Waiver of Rights 581
Substitution of Paid Leave 581
Perfect Attendance Awards 581
Light-Duty Assignments 581
Recordkeeping Requirements 581
Employers Covered 582
Notice Obligations 583
Employees Eligible for FMLA 584
Key Employee Exception 584
Employee Notice Requirement 585
Foreign Corrupt Practices Act of 1977 591
Genetic Information Nondiscrimination Act of 2008 (GINA) 592
Glass Ceiling Act of 1991 592
Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA) 593
Immigration Reform and Control Act of 1986 (IRCA) 594
International Labour Organization (ILO) 597
International Trade Organizations 597
Mine Safety and Health Act of 1977 (MSHA) 598
Occupational Safety and Health Act of 1970 (OSHA) 598
Organisation for Economic Co-operation and Development (OECD): Guidelines for Multinational Enterprises (MNEs) 610
Patient Protection and Affordable Care Act of 2010 (PPACA, ACA, Obamacare) 611
Pension Protection Act of 2006 (PPA) 612
Privacy Act of 1974 612
Rehabilitation Act of 1973, Sections 501, 503, and 505 613
Sarbanes-Oxley Act of 2002 (SOX) 613
Service Contract Act of 1965 (SCA) 614
Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) 614
United States-Mexico-Canada Agreement (USMCA) 617
United States Patent Act of 1790 617
Wage Garnishment Law, Federal 618
Walsh-Healey Public Contracts Act of 1936 618
Worker Adjustment Retraining and Notification Act of 1988 (WARN) 618
Workers' Compensation 619
Quick Reference Guide: Agencies, Court Cases, Terms, and Laws; General Recordkeeping Guidelines 620
Appendix D Resources 633
Business Management, Leadership, and Strategy 635
Books 635
Professional Associations 635
Workforce Planning and Talent Acquisition 636
Books 636
Professional Associations 636
Learning and Development 636
Professional Associations 637
Total Rewards 637
Books 637
Employee Engagement 637
Books 638
Professional Associations 638
Employee and Labor Relations 638
Global Human Resource Management 639
Books 639
Professional Associations 639
HR Information Management, Safety and Security 639
Professional Associations 640
Appendix E Summarizing the Summaries: What Meta-Analyses Tell Us About Work Engagement 641
Christian, Garza, and Slaughter, 2011 642
Maricutoiu, Sulea, and Iancu, 2017 643
Knight, Patterson, and Dawson, 2017 644
References 645
Appendix F Neuroscience Principles and Applications for HR Leaders 647
Introduction 648
The Principles 649
Principle 1: The Unlearning-Relearning Process 649
Principle 2: Redefining Resistance 651
Principle 3: Engaging Behavioral Change 654
Conclusion 656
Suggested Reading 656
Index 659
Congratulations on taking the first step toward achieving your Professional in Human Resources (PHR), Professional in Human Resources International (PHRi), or Senior Professional in Human Resources (SPHR) or Senior Professional in Human Resources International (SPHRi) certification! The process you're embarking on is rewarding and challenging, and as more than 500,000 of your fellow human resource colleagues in more than 100 countries have already discovered, it's an excellent opportunity to explore areas of HR management with which you may not work every day. In the next few pages, you'll find some general information about HR 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 for several years or who have been educated in human resources. We 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 professional-level experience. If your daily work is truly generalist in nature, you likely have touched on 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.
In 2024, the Human Resource Certification Institute combined the exam content outlines for the PHR and PHR, international exams, and the SPHR, SPHR international exams. This book references them as follows:
Any differences between the U.S. and international exams are called out in each chapter.
Additionally, for SPHR and SPHRi candidates, there is an assumption that you have the benchmark knowledge that PHR and PHRi candidates are learning. This means that there is likely opportunity within the PHR/i chapters for SPHR/i candidates to refresh their knowledge.
The goal of this study guide is to provide enough information about each of the functional areas of HR management to enable candidates in either situation to find what they need to prepare themselves for successfully completing the exam. More than 50,000 books related to human resources are listed on Amazon.com alone, and there is obviously no way we can cover all the aspects of HR in a single book. So, we've organized the information around the exam content outline (ECO) established by the Human Resource Certification Institute (HRCI®), the certifying body for our profession. We'll talk more about the content outline in Chapter 1, "Certifying Human Resource Professionals," but for now, suffice 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.
What exactly is human resource certification? Briefly, 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 professional. To understand whether this book is for you, you'll want to know why you should become certified and how the certification process works.
Two organizations are involved in the certification of HR professionals: the Human Resource Certification Institute (HRCI) and Pearson VUE.
HRCI is the certifying body for the HR profession. It was formed by the American Society for Personnel Administration (ASPA) in 1972, when it was known as the ASPA Accreditation Institute (AAI). In its early stages, HRCI was financially dependent on the Society for Human Resource Management (SHRM), but it's 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.
You can find HRCI's organizational mission statement at www-dev.hrci.org/about-hrci/who-we-are.
www-dev.hrci.org/about-hrci/who-we-are
Pearson VUE is a computer-based testing administrator headquartered in the United States with locations in 180 countries, including the United Kingdom, Japan, Australia, India, Dubai, and China. More than 400 credential owners use their services to administer exams, including HRCI. https://home.pearsonvue.com is where certification seekers will register for their exam date and location.
https://home.pearsonvue.com
We'll refer to these organizations frequently in Chapter 1 as we discuss the body of knowledge and the certification process.
Over time, the certification offered by HRCI has become the industry standard for determining 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.
First, certification is an acknowledgment 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're a fully competent 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 advantageous 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. Additionally, a 2018 Payscale survey found that certified HR professionals rank the HRCI exams as #1 of all professional exams and that they are the most valuable. The survey also noted that "We found that for the most part, having an HR certification is beneficial from a pay perspective and a career advancement perspective." See the full survey results at www.payscale.com/data/hr-certifications-pay.
www.payscale.com/data/hr-certifications-pay
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 coworkers and customers by demonstrating to the people you encounter during your workday that you have proven competence in the field.
Whether your reason for seeking certification falls into one of these categories or you're 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.
To become a certified HR professional, you must pass either the PHR/i or the SPHR/i exam, both of which have been developed by HRCI in a comprehensive process described in Chapter 1.
Each exam has a different number of scored exam items and passing thresholds. You can find a detailed discussion of how the questions are developed and scored in the HR Certification Institute's Certification Policies and Procedures Handbook, which can be viewed and/or downloaded at the HRCI website (www.hrci.org). 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.
www.hrci.org
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.
We've talked a little 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.
There are also several areas of foundational knowledge that HR professionals should understand at any stage of their career. These topics are covered in Chapter 2, "Shared Competencies." This chapter is a must-read, regardless of which exam you choose to sit for.
Chapters 3 through 9 get down to the specifics of each functional area of the PHR/i exams. Chapters 10 through 14 dive into SPHR/i exam content. Each of these chapters consists of a list of responsibilities (exam objectives) for each functional area. We have also provided appendices to facilitate your study.
Appendix A, "Answers to Review Questions," provides all of the answers to the questions at the end of every...
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