Download PHR Certification Study Guide Solutions and more Study Guides, Projects, Research Finance in PDF only on Docsity!
1 / 31
PHR Certification Study Guide Solutions
1. Accounts Payable: Money an organization owes its vendors and suppliers.
2. Accounts Receivable: Money an organization's customers owe the organization.
3. Action Plans: Detailed steps a unit, department, or team will take in order to achieve short-term objectives.
4. Amendment: Modification or the Constitution or a law; modification may be either formal (written) or informal (unwritten).
5. Assets: Financial, physical, and sometimes intangible properties an organization owns.
6. Balance Sheet: Statement of a firm's financial position at a particular time.
7. Balanced scorecard: Measurement approach that provides an overall picture of an organization's perfor- mance as measured against
goals in finance, customers, internal business processes, and learning and growth.
8. Bill: Proposal presented to a legislative body for possible enactment as a law.
9. Break-even analysis: Analysis that shows point in time at which total revenue associated with a program is equal to the total cost of the
program.
10. Business Case: Description of an organizational challenge and possible alternative solutions, arguing for specific solution.
11. Capacity: To an operations department, the ability to yield output.
12. Cash flow statement: Record of how much cash is flowing into and out of an organization, including its sources or
destinations.
13. Centralization: Degree to which decision-making authority is restricted to higher levels of management in an organization.
14. Code of ethics: Principles of conduct within an organization that guide decision making and behavior.
2 / 31
15. Consumer price index: Measure of the average change over time in the prices paid by consumers for goods and services.
16. Control: To an operations department, an after-the-fact evaluation of a company's ability to meet its own specifications and its
customers' needs.
17. Correlation: Measure that indicates the relationship between two variables.
18. Cost-benefit analysis: Ratio of value created to cost of creating that value; allows management to determine the financial
impact particular activities and programs have on an organization's profitability.
19. Decentralization: Degree to which decision-making authority is given to lower levels in an organization's hierarchy.
20. Departmentalization: Way an organization groups jobs to coordinate work.
21. Divestiture: Sale by a company of an asset that is not performing well, that is not core to the company's business, or that is
worth more as a separate entity.
22. Divisional structure: Organizational structure in which segments ae separated by product, customer or market, or region.
23. Due diligence: Process of conducting an intensive investigation of an organization as one of the first steps in a pending merger
or acquisition.
24. Electronic Communications Privacy Act (ECPA): Act that makes it unlawful to intercept messages in
transmission, access stored information on electronic communication services, or disclose this information.
25. Enterprise management: Integrated processes and tools to allow information sharing and process management across
functions, sometimes even with external partners, such as suppliers.
26. Environmental scanning: Process that involves a systematic survey and interpretation of relevant data to identify external
opportunities and threats.
27. Equity: Amount of owners' or shareholders' portion of a business.
28. Ethics: System of moral principles and values that establish appropriate conduct.
4 / 31 efficient use of human capital to accomplish organizational goals.
43. Income statement: Statement comparing revenues, expenses, and profits over a specified period of time, usually a year or a
quarter.
44. Incremental budgeting: Form of budgeting in which the prior budget is the basis for allocation of funds.
45. Inventory: To an operations department, an organization's major asset after physical buildings and equip- ment.
46. Key performance indicators (KPIs): Quantifiable measures of performances used to gauge progress toward
strategic objectives or agreed standards of performance.
47. Liabilities: Organization's debts and other financial obligations.
48. Line units: Work groups that conduct the major business of an organization.
49. Long-term objectives: Specific results, to be accomplished in three to five years, that an organization seeks to achieve in
pursuing its mission.
50. Marketing: Process of planning, pricing, promoting, and distributing goods and services to satisfy organiza- tional objectives.
51. Matrix structure: Organizational structure that combines departmentalization by division and function to gain the benefits of
both.
52. Mean: Average score or value in a set of data.
53. Median: Middle point above and below which 50% of scores in a set of data lie.
54. Mergers and acquisitions (M&A): Combination of two separate firms either by their joining together as a relative equals
(merger) or by one acquiring the other (acquisition).
55. Mid-term objectives: Serve a purpose similar to short-term objectives but are completed in one to three years.
56. Mission statement: Specifies what the organization does, who its customers are, and the priorities it has set in pursuing its
work.
5 / 31
57. Mode: Value that occurs most frequently in a set of data.
58. Net profit margin: Ratio of net income (gross sales minus expenses and taxes) to net sales.
59. Normal distribution: Expected distribution given a random sampling across a large population.
60. Offshoring: Relocation of processes or functions from a 'home' country to another country.
61. Percentile: Specific point in a distribution of data that has a given percentage of cases below it.
62. Population: Group of persons or objects or a complete set of observations or measurements about which one whishes to draw
conclusions.
63. Primary research: Involves data that is gathered firsthand for a specific evaluation.
64. Product: Whan an organization sells to make a profit.
65. Program evaluation and review technique (PERT) chart: Project management tool used to schedule,
organize, and coordinate tasks within a project.
66. Project: Series of tasks and activities that has a stated goal and objectives, a schedule with defined start and end dates, and a
budget that sets limits on the use of monetary and human resources.
67. Promotion: Techniques for communicating information about products to consumers.
68. Public comment period: Time allowed for the public to express its views and concerns regarding an action of a regulatory
agency.
69. Qualitative analysis: Based on research that supplies non-numeric data, for example, through the use of interviews, open-
ended survey questions, and other methods that gather attitudes, opinions, and feelings.
70. Quantitative analysis: Seeks to obtain easily quantifiable data on a limited number of measurement points.
71. Quorum: Number of members of an organization that have to be present before official business may be conducted.
7 / 31
83. Scheduling: To an operations department, the act of detailed planning; based upon incoming orders, order history, and forecasts of
future demand.
84. Secondary research: Uses data already gathered by others and reported in various sources.
85. Short-term objectives: Milestones that must be achieved, usually within six months to one year, in order to reach long-term
objectives.
86. Span of control: Refers to the number of individuals who report to a supervisor.
87. Staff units: Work groups that assist line units by providing specialized services, such as HR.
88. Standard deviation: Measure that indicates how much scores in a set of data are spread out around a mean or average.
89. Standards: For an operations department, provide the yardstick by which the amount and quality of output are measured.
90. Strategic business management: Processes and activities used to formulate HR objectives, prac- tices, and policies.
91. Strategic planning: Process that helps an organization focus on how to succeed in the future by evaluating the organization's
current status, where it would like to be, and how to get there.
92. Strategies: Provide the direction that enables an organization to achieve its long-term objectives.
93. Supply chain: Network that delivers products and services from raw materials to end customers through an engineered flow of
information, physical distribution, and cash.
94. SWOT analysis: Process for evaluating an organization's current strengths, weaknesses, opportunities, and threats.
95. Validity: Ability of an instrument to measure what it is intended to measure.
96. Values: Describe what is important to an organization, dictate employee behavior, and create the organization's culture.
8 / 31
97. Veto: Action of canceling or postponing a decision or bill.
98. Vision statement: Vivid, guiding image or an organization's desired future.
99. Zero-based budgeting: Form of budgeting that requires that expenditures be justified for each new period.
100. ADA Amendments Act (ADAAA): Amendments to Americans with Disabilities Act covering the definition of individuals
regarded as having a disability, mitigating measures, and other rules of construction to guide the analysis of what constitutes a disability.
101. Adverse impact: Occurs when the selection rate for an employment decision works to the disadvantage
of a protected class; also known as disparate impact.
102. Affirmative action (AA): Practice in which employers make ettorts to increase the presence of women, miniorities, covered
veterans, and disabled individuals in the workplace and take positive steps to correct their underutilization.
103. Affirmative action plans (AAPs): Written plans that outline an organization's programs, policies,
and procedures for proactively ensuring equal opportunity in all aspects of employment, such as recruiting, hiring, training, promoting, and compensating.
104. Age Discrimination in Employment Act (ADEA): Act that prohibits discrimination in employ-
ment for persons age 40 and over.
105. Albemarle Paper v. Moody: 1975 court ruling that items used to validate employment requirements must be job related.
106. Alternative staffing: Use of alternative recruiting sources and workers who are not regular employees; also know as flexible
staflng.
107. Amerians with Disabilities Act (ADA): Act that prohibits discrimination against a qualified individual with a
disability because of his/her disability.
108. Aptitude tests: Tests that measure the general ability or capacity to learn or acquire a new skill.
109. Assessment centers: Method of evaluating candidates using content-valid work samples of a job; typically for managerial
positions.
10 / 31
123. Construct validity: Extent to which a selection device measures the theoretical construct or trait (e.g., intelligence or
mechanical comprehension).
124. Constructive discharge: Occurs when an employer makes working conditions so intolerable that an employee has no choice
but to resign.
125. Consumer Credit Protection Act: Act that limits the amount of wages that can be garnished or withheld in any one
week by and employer to satisfy creditors.
126. Content validity: Degree to which an interview, test, or other selection device measures the knowledge, skills, abilities, or other
qualifications that are part of the job.
127. Corporate management compliance evaluation (CMCE): Evaluation designed to en- sure that qualified
minorities and women do not encounter artificial barriers to future advancement into mid-level and senior corporate management.
128. Criterion-related validity: Refers to the link between a selection device and job performance.
129. Cultural noise: Failure to recognize responses of a candidate that are socially acceptable rather than factual.
130. Delphi technique: Forecasting technique that progressively collects information from a group without physically assembling
the contributors.
131. Directive interview: Type of interview in which interviewer poses specific questions to a candidate and keeps control.
132. Disability: Physical or mental impairment that substantially limits major life activities.
133. Disparate impact: Occurs when the selection rate for an employment decision works to the disadvantage of a protected class;
also known as adverse impact.
134. Disparate treatment: Occurs when protected classes are intentionally treated differently from other employees or are
evaluated by ditterent standards.
135. Ellerth v. Burlington Northern Industries: Court ruling that distinguished between supervisor harassment that
results in tangible employment action and supervisor harassment that does not.
11 / 31
136. Employee Polygraph Protection Act: Act that generally prevents employers engaged in or affecting interstate
commerce from using lie detector tests either for preemployment screening or during the course of employment, with certain exemptions.
137. Employment branding: Process of positioning an organization as an 'employer of choice' in the labor
market.
138. Employment contract: Agreement between an employer and an employee that explains the employ- ment relationship.
139. Employment offer: Makes the hiring decision official; should immediately follow the final decision to hire a candidate; formally
communicated through an otter letter.
140. Employment practices liability insurance (EPLI): Protects employer against claims by workers that
their legal rights as employees of the organization have been violated.
141. Employment-at-will: Common-law principle stating that employers have the right to hire, fire, demote, and promote whomever
they choose for any reason unless there is a law or contract to the contrary and employees have the right to quit a job at any time.
142. Essential functions: Primary job duties that a qualified individual must be able to perform, either with or
without accommodation; a function may be considered essential because it is required in a job or because it is highly specialized.
143. e-Verify: Internet-based verification system that allows employers to verify the employment eligibility of their
employees regardless of citizenship.
144. Executive search firms: External recruiting method; firms seek out candidates, usually for executive, managerial, or
professional positions.
145. Exit interview: Interview conducted when an employee is terminating with an organization in which employee is asked to
share views on selected issues.
146. Expatriates: Collective term for employees sent abroad to work in a country other than where they live.
147. Fair and Accurate Credit Transaction Act (FACT): Act that provides some relief to employers using third parties to
conduct workplace investigations.
13 / 31
160. Grutter v. Bollinger: Case in which Supreme Court held that University of Michigan's law school admission program
was sufficiently 'narrowly tailored' to consider race as a factor in admission decisions in order to achieve goal of diverse student body.
161. Harris v. Forklift Systems, Inc.: Court ruling that established 'reasonable person' standard in a
sexual harassment case.
162. Honesty/integrity tests: Measures of applicants' propensity toward undesirable behaviors such as lying, stealing,
taking drugs, or abusing alcohol.
163. Host - country nationals (HCNs): Employees working in their own countries; also known as local nationals.
14 / 31
164. Hostile environment harassment: Occurs when sexual or other discriminatory conduct is so severe and pervasive
that it interferes with an individual's performance; creates an intimidating, threatening, or humiliating work environment; or perpetuates a situation that attects the employee's psychological well-being.
165. Immigration and Nationality Act (INA): Fundamental body of US immigration law applying to all
employers; addresses employment eligibility and employment verification and defines the conditions for the temporary and permanent employment of aliens in the US.
166. Immigration Reform and Control Act (IRCA): Act that provides discrimination against job
applicants on the basis of national origin or citizenship; establishes penalties for hiring illegal aliens and requires employers to establish each employee's identity and eligibility to work.
167. Independent contractors: Self - employed individuals hired on a contract basis for specialized
services.
168. Inpatriates: Employees brought in from another country to work in the headquarters country for a specified period.
169. International assignee: All - encompassing term used to describe anyone on an international assign- ment.
170. Involuntary termination: When employers decide to discharge particular employees for cause (e.g., poor performance,
violations of employer policy).
171. Job: Collection of employee activities (tasks) and responsibilities.
172. Job analysis: Systematic study of jobs to determine what activities (tasks) and responsibilities they include, personal qualifications
necessary for performance, conditions under which work is performed, and reporting structure.
173. Job Applicant: According to EEO regulations, anyone who expresses an interest in employment, regardless of whether that person
16 / 31
187. McDonnell Douglas Corp. v. Green: Case that established criteria for disparate treatment.
188. McKennon v. Nashville Banner Publishing Co.: Case in which Supreme Court held that evidence of
misconduct acquired after the decision to terminate cannot free an employer from liability, even if the misconduct would have justified terminating the employee.
189. Meritor Savings Bank v. Vinson: Court ruling that first held that sexual harassment violates Title VII
of the Civil Rights Act of 1964 regardless of whether it is a quid pro quo or hostile environment harassment.
190. Multiple linear regression: Statistical method that can be used to project future demand; more than one variable is utilized.
191. National origin: Refers to the country (including those that no longer exist) of one's birth or of one's ancestors' birth.
192. Negative emphasis: Type of interviewer bias that involves rejecting a candidate on the basis of a small amount of negative
information.
193. Nominal group technique: Group of individuals who meet face-to-face to forecast ideas and as- sumptions and
prioritize issues.
194. Nondirective interview: Type of interview in which interviewer asks open questions and provides general direction but
allows applicant to guide process.
195. Offer letter: Document that formally communicates the employment otter, making the hiring decision official.
196. Oncale v. Sundowner Offshore Service, Inc.: Court ruling that same-gender harassment is actionable under Title
VII.
197. Open question: Type of question that typically begins with what, where, why, when, or how.
198. Organizational display: Part of affirmative action plan that provides a graphical presentation of the organizational units,
including their interrelationships.
199. Organizational exit: Process of managing the way people leave an organization; also referred to as offboarding.
17 / 31
200. Organizational profile: Provides a numerical depiction of an establishment's staffing pattern to deter- mine if barriers to equal
employment opportunity exist within any organizational unit.
201. Organizational unit: Any discrete component of an organization in which there is a level of supervision responsible and
accountable for the selection, compensation, etc., of employees within the unit.
202. Outplacement: Systematic process by which a laid-ott or terminated employee is counseled in the tech- niques of career self-
appraisal and in securing a new job that is appropriate to his or her talents and needs.
203. Outsourcing: Flexible staffing option in which an independent organization with expertise in operating a specific function
contracts with an organization to assume full operational responsibility for the function.
204. Panel interview: Type of interview in which structured questions are spread across a group; individual who is most competent
in the relevant area usually asks the question.
205. Parent - country nationals (PCNs): Citizens of an organization's headquarters country who reside and work abroad with
the intent of returning to the home country.
206. Patterned interview: Type of interview in which interviewer asks each applicant questions that are from the same knowledge,
skill, or ability area; also called targeted interview.
207. Payrolling: When an organization needing help identifies specific people and refers them to a staflng firm, which employs them and
assigns them to work at the organization.
208. Pennsylvania State Police v. Suders: Case in which Supreme Court ruled on the use of the aflrmative defense in a
constructive discharge claim for an employer whose supervisors are charged with harassment.
209. PERM (Program Electronic Review Management): Streamlined process for obtaining labor certification
for foreign nationals seeking permanent residence through their employment.
210. Personality tests: Tests that measure person's social interaction skills and patterns of behavior.
211. Placement goals: Objectives or targets in an aflrmative action plan that are set when the percentage of minorities or women in
a job group is less than reasonably expected given their availability.
19 / 31 is performed to enable a qualified individual with a disability to be considered for the job and perform its essential functions.
224. Regents of the University of California v. Bakke: Court ruling that colleges and universities
could legitimately consider race as a factor in the admissions process.
225. Rehabilitation Act: Act that prohibits discrimination based on physical or mental disabilities.
226. Repatriates: Employees who have returned home from an international assignment.
227. Repetitive interview: Type of interview in which interviewer asks every applicant the same questions; also called a
structured interview.
228. Resume: Document prepared by job candidate (or professional hired by candidate) to highlight candidate's strengths and
experience
20 / 31
229. Retaliatory discharge: Result of an employer punishing an employee for engaging in activities protect- ed by the law (e.g., filing
a discrimination charge, opposing unlawful employer practices).
230. Retention: Ability to keep talented employees in an organization.
231. Ricci v. DeStefano: Supreme Court ruling that employers may violate Title VII when they engage in race-conscious decision
making to address adverse impact unless they can demonstrate a 'strong basis in evidence' that, had they not taken action, they would have been liable under a disparate impact theory.
232. School Board of Nassau v. Arline: Supreme Court ruling that persons with contagious diseases
could be covered by the Rehabilitation Act of 1973.
233. School-to-work programs: Allow organizations to partner with communities and schools to help develop the skilled
workforce they will need for the future.
234. Selection: Process of hiring the most suitable candidate for a vacant position.
235. Selection interview: Interview designed to probe areas of interest to interviewer in order to determine how well a job candidate
meets the needs of the organization.
236. Sexual harassment: Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual
nature.
237. Simple linear regression: Projection of future demand based on a past relationship; involves a single variable.
238. Simulations: Representations of real situations; give organizations the opportunity to speculate as to what would happen if certain
courses of action were pursued.
239. Situational interview: Type of interview in which interviewer asks questions designed to elicit stories and examples that
demonstrate the applicant's skills and qualifications.
