SANDRA M. REED SPHR

PHR® ANDSPHR®

Professional In Human Resources Certification

2018 EXAMS

Includes interactive online learning environment and study tools:

2 custom practice exams300 electronic flashcards

Searchable key term glossary

COMPLETESTUDY GUIDE

Fifth Edition

PHR® and SPHR®

Complete Study GuideFifth Edition

PHR® and SPHR®

Complete Study GuideProfessional in Human Resources

Certification 2018 Exams Fifth Edition

Sandra M. Reed

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TRADEMARKS: Wiley, the Wiley logo, and the Sybex logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates, in the United States and other countries, and may not be used without written permission. PHR and SPHR are registered trademarks of Human Resource Certification Institute, Inc. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product or vendor mentioned in this book.

10 9 8 7 6 5 4 3 2 1

To my husband Chris, whose three little words never fail to inspire me:

“Go for it.” To my children, Calvin and Clara, because the best part of me

will eternally be each of you. I am filled with love and gratitude for having

the three of you in my life.

AcknowledgmentsAny acknowledgment in the updating of this book must begin by recognizing the profes-sionalism and intellect of Anne Bogardus. Her thoroughness and attention to detail repre-sented in the previous editions of this work made writing these updates an absolute career highlight.

To the editors Kenyon Brown, Kelly Talbot, Elizabeth Welch, Pete Gaughan, and Christine O’Connor, thank you for your professionalism, encouragement, superior orga-nizational skills, insightful additions, and most importantly your patience as we updated the book not once but twice—it absolutely made for a better final product. To Pantelis Markou, I cannot describe the comfort level of having your expertise and conscientiousness as my technical editor. If I missed a critical element, I knew you would find it!

A book like this requires a great deal of time and thought, and the contributions from experts Dr. Erin Richard, Reut Schwartz-Hebron, Hector Alvarez, and Joanne Walters added different voices and critical perspectives to the exam content. I am in awe of and grateful for their contribution.

Finally, to the students, a brief mention of my own testing experience: I remember sitting in my hotel room the night before my SPHR exam, trying to cram in a few more details, desperate to figure out what I didn’t already know. It was around Christmas time, and my youngest child was just two years old. Feeling guilty for being away from my family and with my confidence at an all-time low, I wondered if I was really up for the challenge. Then, surrounded by my books and flashcards, I suddenly “got” it. The pieces starting fitting together, the processes had rationale, and the big picture came into clear focus. The next morning, I took a four-hour exam in just two hours and passed it on the first go-round. My excitement about being a part of this project is a reflection of that one “a-ha” moment, representing for me when HR crosses over from just being a job to an intelligent, strategic career choice. My hope is that with each pass through this material, you will get closer to your own enlightened moment when you suddenly just get it. Many thanks, and good luck in your career—this absolutely can happen for you!

About the AuthorSandra M. Reed, SPHR, has more than 20 years of experience in human resources, the last 15 of which have been spent in training and instruction. Her undergraduate degree is in industrial-organizational psychology, and she is a lifelong student of organizational leadership. Sandra is a certified practitioner of the MBTI personality assessment and is qualified to instruct the Leadership Training for Managers and Foundation for Success programs through Dale Carnegie. She obtained her PHR and her SPHR designations through the Human Resource Certification Institute and received her teaching credential in adult vocational education from California State University, San Bernardino. Sandra is the author of A Guide to the Human Resrouce Body of Knowledge (HRBoK™) and The PHR® and SPHR® Professional in Human Resources Certification Complete Practice Tests: 2018 Exams, both available through John Wiley & Sons. She has authored learning modules and case studies for the Society for Human Resource Management, focusing on educating the emerging workforce and future human resource professionals. She currently is the owner of Epoch Resources, a consulting firm located in the Central Valley of California that specializes in the unique HR needs of small businesses. Find her on the web at http://epochresources.com.

About the Technical EditorPantelis Markou is the senior vice president of human resources and administration for Mikimoto America and an adjunct professor of business psychology. With over 18 years of corporate experience in the fashion and jewelry industries, some of his specialties include business strategy, executive selection and coaching, leadership development, change man-agement, organizational design and restructuring, and cultural integration for mergers and acquisitions. In addition to his responsibilities in human resources, he oversees information technology, real estate, legal, and commercial insurance. Pantelis holds a BS in psychology from Brooklyn College, an MA in organizational psychology from Columbia University, and a PhD in business psychology from the Chicago School of Professional Psychology.

Contents at a GlanceIntroduction xxv

PHR Assessment Test xxxi

SPHR Assessment Test xxxvi

Chapter 1 Certifying Human Resource Professionals 1

Chapter 2 PHR Exam: Business Management 23

Chapter 3 PHR Exam: Talent Planning and Acquisition 67

Chapter 4 PHR Exam: Learning and Development 119

Chapter 5 PHR Exam: Total Rewards 171

Chapter 6 PHR Exam: Employee and Labor Relations 223

Chapter 7 SPHR Exam: Leadership and Strategy 337

Chapter 8 SPHR Exam: Talent Planning and Acquisition 379

Chapter 9 SPHR Exam: Learning and Development 403

Chapter 10 SPHR Exam: Total Rewards 421

Chapter 11 SPHR Exam: Employee Relations and Engagement 451

Appendix A Answers to Review Questions 487

Appendix B PHR® and SPHR® Case Studies 511

Appendix C Federal Employment Legislation and Case Law 521

Appendix D Resources 617

Appendix E Summarizing the Summaries: What Meta-Analyses Tell Us About Work Engagement 625

Appendix F Neuroscience Principles and Applications for HR Leaders 631

Index 643

Contents

Introduction xxv

PHR Assessment Test xxxi

SPHR Assessment Test xxxvi

Chapter 1 Certifying Human Resource Professionals 1

The Human Resource Profession 3Development of the Human Resource Body of Knowledge 4

Defining the Functional Areas of the BOK 6Professional in Human Resources (PHR) 6Senior Professional in Human Resources (SPHR) 8Eligibility Requirements 10Recertification 11

The Test 12It’s Experiential and Federal 14What the Questions Look Like 15Preparing for the Exam 16Taking the Exam 20

Summary 22

Chapter 2 PHR Exam: Business Management 23

Organizations 24External Business Environment 24Internal Business Operations 25

Mission, Vision, Values 31Corporate Governance 32

Organization Values and Ethics 33Ethics Officers 37Corporate Responsibility 37Whistle-Blower Protection 39

Enterprise Risk Management 42HR Audits 42Insurance Policies 43Employee Handbooks 43Litigation Statistics 43Other 45Legislative and Regulatory Processes 45Technology 47Workforce Analytics 48

xvi Contents

Qualitative and Quantitative Analysis 49Data Collection 50Analysis Tools 51Qualitative Analysis 54

Change Management 55HR Metrics: Measuring Results 58

Business Impact Measures 58Tactical Accountability Measures 59Building a Business Case 61

Summary 61Exam Essentials 62Review Questions 63

Chapter 3 PHR Exam: Talent Planning and Acquisition 67

Talent Planning 69Workforce Goals and Objectives 70

Job Analysis and Description 71Job Analysis 71Job Descriptions 72Qualified Employees 73Translating Organization Goals into Staffing Plans 78Labor Market Analysis 79

Staffing Programs 80Sourcing and Recruiting Candidates 80Candidate Selection Tools 88Employment Offers 104Post-Offer Employment Activities 106

Summary 111Exam Essentials 112Review Questions 113

Chapter 4 PHR Exam: Learning and Development 119

Organizational Development 120Strategic Interventions 121Techno-Structural Interventions 125Human Process Interventions 134Human Resource Management Interventions 137

Employee Training Programs 145Adult Learning Processes and Learning Styles 146Instructional Design Models 147Learning Management Systems 162

Metrics: Measuring Results 164Summary 165

Contents xvii

Exam Essentials 165Review Questions 166

Chapter 5 PHR Exam: Total Rewards 171

Total Rewards Defined 172Budgeting and Accounting for Total Rewards 173

Salary Surveys 173Benchmarking 175

Compensation 175Types of Compensation 178Traditional Pay Structures 186

Benefits 196Involuntary Benefits 197Voluntary Benefits 198

Payroll 212Payroll Systems 212Payroll Administration 212

Communicating Compensation and Benefits Programs 215Metrics: Measuring Results 216Summary 217Exam Essentials 217Review Questions 219

Chapter 6 PHR Exam: Employee and Labor Relations 223

Human Relations 226Personality at Work 227Psychological Capital 228Motivational Concepts 228

Organization Climate and Culture 232Employee Engagement 234Employee Involvement Strategies 234Communicating with Employees 236Employee Feedback 238Positive Employee Relations Programs 240

Employee Rights and Responsibilities 242Workplace Policies and Procedures 243Records Management: The Life Cycle 245

Performance Management Programs 248Performance Appraisal 249Training Performance Evaluators 252Performance Improvement 255Workplace Behavior Issues 256

xviii Contents

Organization Exit/Off-Boarding Processes 259Voluntary Exit Processes 259Involuntary Exit Processes 260Tools for Dispute Resolution 265Arbitration 266Mediation 267Constructive Confrontation 268

Labor Relations 269Labor Laws and Organizations 269Employee Rights 271Union Organization 274

Risk Overview 281Risk Identification 282HR Tools to Identify and Assess Risk 283Risk Assessment 286Risk Management 302Managing Security Risks 309Managing Business Continuity Risks 320Managing Workplace Privacy Risks 323

Metrics: Measuring Results 326Summary 328Exam Essentials 329Review Questions 332

Chapter 7 SPHR Exam: Leadership and Strategy 337

Organizational Planning and Strategy 341Organizational Structures 341Shared Services and Outsourcing of HR Functions 342

Strategic Planning 345Basic Accounting and Budgeting 355

Strategic Management 358Strategic Relationships 359

Human Capital Management Plans 361Human Capital Projections 363

Service Delivery and Technology 364HRIS Systems 364

Project Management Concepts 370HR Data and Metrics 371Summary 372Exam Essentials 372Review Questions 374

Contents xix

Chapter 8 SPHR Exam: Talent Planning and Acquisition 379

Recruiting and Selection 381Person-to-Organization Fit 382Person-to-Job Fit 382Candidate Sourcing 384Labor Law Compliance 386

Strategic Workforce Planning 387Human Capital Management Plans 387Human Capital Projections 389The Impact of the Business Life Cycle 390Strategic Analysis 392Employee Retention and Engagement 393The Impact of Wages 394Building the Employer Brand 395

Metrics: Measuring Results 396Summary 397Exam Essentials 398Review Questions 399

Chapter 9 SPHR Exam: Learning and Development 403

Learning and Development Defined 406Strategic Learning and Development 406The Role of the Behavioral Sciences 408Succession Plans 411Integrated Talent Management 412Training as an Intervention Strategy 413Summary 414Exam Essentials 415Review Questions 416

Chapter 10 SPHR Exam: Total Rewards 421

Total Rewards Defined 422Fiduciary Responsibility 423Total Rewards Philosophy and Strategies 424

Competing in the Market 425Strategic Alignment 425Strategic Allocation 426Integrative Approach 427Job Analysis 428Job Evaluation and Pricing 429Collective Bargaining and Contract Costing 431

Basic Budgeting and Accounting 432Accounting 432Budgeting 434

xx Contents

Motivating and Retaining through Total Rewards 435Efficiency vs. Empathy Wages 436Other Studies 436Best Practices 437

Equity Compensation 438Executive Compensation 439Stock Options 441Board of Directors/Outside Directors 443

Benefits 443Summary 445Exam Essentials 445Review Questions 447

Chapter 11 SPHR Exam: Employee Relations and Engagement 451

Human Relations 453Motivation 454Job Attitudes 455Positive Employee Relations 456

Diversity and Inclusion 463Generations at Work 464Women in Leadership 464Sexual Orientation and Gender Expression/Identity 465Cultural Competence 466

Workplace Safety and Security 468Crises in Leadership 468Business Continuity 471Internal Investigations 472

Labor Unions 473Collective Bargaining 473Remaining Union-Free 477

Metrics: Measuring Results 478Summary 479Exam Essentials 480Review Questions 482

Appendix A Answers to Review Questions 487

Chapter 2: PHR Exam: Business Management 488Chapter 3: PHR Exam: Talent Planning and Acquisition 490Chapter 4: PHR Exam: Learning and Development 493Chapter 5: PHR Exam: Total Rewards 495Chapter 6: PHR Exam: Employee and Labor Relations 498Chapter 7: SPHR Exam: Leadership and Strategy 500Chapter 8: SPHR Exam: Talent Planning and Acquisition 502

Contents xxi

Chapter 9: SPHR Exam: Learning and Development 504Chapter 10: SPHR Exam: Total Rewards 506Chapter 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 513Answers 514

Case Study 2: Where the Green Glass Grows 514The Company 515The Customer 515Exercises  516Answers and Additional Exercises 518

Appendix C Federal Employment Legislation and Case Law 521

Affirmative Action Plans (AAPs) 522Executive Order 11246 AAP 523VEVRAA AAP 524Section 503, Individuals with Disabilities AAP 526

Age Discrimination in Employment Act of 1967 (ADEA) 527Older Worker Benefit Protection Act Amendment to

the ADEA 528Americans with Disabilities Act of 1990 (ADA) 529Civil Rights Act of 1964 (Title VII) 530

Amendments to Title VII 531Common Law Doctrines 533

Employment at Will 534Duty of Good Faith and Fair Dealing 535Promissory Estoppel 535Fraudulent Misrepresentation 535Respondeat Superior 536Constructive Discharge 536Defamation 536

Copyright Act of 1976 537Davis-Bacon Act of 1931 537Drug-Free Workplace Act of 1988 538EEO Survey 538

Report Types 539Race and Ethnicity Categories 540Job Categories 540Data Reporting 541

xxii Contents

Employment Retirement Income Security Act of 1974 (ERISA) 541Summary Plan Description (SPD) 542Annual Reports 542Participant Benefit Rights Reports 543Employee Participation 543Vesting 543Benefit Accrual Requirements 544Form and Payment of Benefits 544Funding 545Fiduciary Responsibility 545Administration and Enforcement 545Amendments to ERISA 545

Executive Orders 548Fair Credit Reporting Act of 1970 (FCRA) 549Fair Labor Standards Act of 1938 (FLSA) 550

Minimum Wage 551Maximum Hours and Overtime 551Exemption Status 554Salary Deductions 556Child Labor 558Record Keeping 558Penalties and Recovery of Back Wages 559FLSA Amendments 560

Family and Medical Leave Act of 1993 (FMLA) 561Designation of FMLA Leave 561Failure to Designate in a Timely Manner 561Waiver of Rights 562Substitution of Paid Leave 562Perfect Attendance Awards 562Light Duty Assignments 562Record-Keeping Requirements 562Employers Covered 563Notice Obligations 563Employees Eligible for FMLA 565Key Employee Exception 565Employee Notice Requirement 566Reasons for FMLA Leave 567Medical Certification Process 569Types of FMLA Leave 570Calculating the FMLA Year 570Tracking Reduced and Intermittent FMLA Leave 571Ending FMLA Leave 571FMLA Implications for Employers 572

Contents xxiii

Foreign Corrupt Practices Act of 1977 572Genetic Information Nondiscrimination Act of 2008 (GINA) 573Glass Ceiling Act of 1991 574

Societal Barriers 574Internal Structural Barriers 574Governmental Barriers 574

Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA) 575

Immigration Reform and Control Act of 1986 (IRCA) 575E-Verify 576Amendments to IRCA: Immigration Act of 1990 576

International Labour Organization (ILO) 578International Trade Organizations 579

European Union (EU) 579Mercosur 580North American Free Trade Agreement (NAFTA) 580

Mine Safety and Health Act of 1977 (MSHA) 580Occupational Safety and Health Act of 1970 (OSHA) 581

More Inspections 582Emphasis on Safety Communication 582Reporting of Injuries 583Employer Responsibilities 583Employer Rights 584Employee Rights and Responsibilities 585OSHA Enforcement 585OSHA Record-Keeping Requirements 586OSHA Assistance 588Health 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) 595Privacy Act of 1974 595Rehabilitation Act of 1973, Sections 501, 503, and 505 596Sarbanes-Oxley Act of 2002 (SOX) 596Service Contract Act of 1965 (SCA) 596Sexual Harassment 597

Hostile Work Environment Harassment 597EEOC Guidelines for the Prevention of Sexual Harassment 599

Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) 600

Disabled Veterans 602United States Patent Act of 1790 603

xxiv Contents

Wage Garnishment Law, Federal 603Walsh-Healey Public Contracts Act of 1936 604Worker Adjustment Retraining and Notification Act of 1988

(WARN) 604Workers’ Compensation 605Quick Reference Guide: Agencies, Court Cases, Terms, and

Laws; General Record-Keeping Guidelines 606

Appendix D Resources 617

Business Management, Leadership, and Strategy 619Books 619Professional Associations 620

Talent Planning and Acquisition 620Books 620Professional Associations 620

Learning and Development 621Books 621Professional Associations  621

Total Rewards 621Books  622Professional Associations  622

Employee and Labor Relations and Engagement 622Books  622Professional Associations  623

Appendix E Summarizing the Summaries: What Meta-Analyses Tell Us About Work Engagement 625

Christian, Garza, and Slaughter, 2011 626Maricutoiu, Sulea, and Iancu, 2017 627Knight, Patterson, and Dawson, 2017 628References 629

Appendix F Neuroscience Principles and Applications for HR Leaders 631

Introduction 632The Principles 633

Principle 1: The Unlearning-Relearning Process 633Principle 2: Redefining Resistance 635Principle 3: Engaging Behavioral Change 638

Conclusion 640Suggested Reading 640

Index 643

IntroductionCongratulations on taking the first step toward achieving your Professional in Human Resources (PHR) or Senior Professional in Human Resources (SPHR) 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 cer-tification, 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 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 exempt-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.

Additionally, for SPHR candidates, there is an assumption that you have the benchmark knowledge that PHR candidates are learning. This means that there is likely opportunity within the PHR chapters for SPHR candidates to refresh their knowledge. These are refer-enced throughout the SPHR chapters where appropriate.

The goal of this study guide is to provide enough information about each of the func-tional 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.

About Human Resource CertificationWhat exactly is human resource certification? Briefly, certification is a way of acknowledg-ing 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 under-stand whether this book is for you, you’ll want to know why you should become certified and how the certification process works.

xxvi Introduction

Who Certifies HR Professionals? Two organizations are involved in the certifi cation of HR professionals: the Human Resource Certifi cation Institute (HRCI) and Pearson VUE.

The Human Resource Certification Institute HRCI is the certifying body for the HR profession. It was formed by the American Society of Personnel Administrators (ASPA) in 1972, when it was known as the ASPA Accreditation Institute (AAI). In its early stages, HRCI was fi nancially dependent on the Society for Human Resource Management (SHRM), but it’s now fi nancially independent. Both HRCI and SHRM have individual boards of directors that govern their operations. Although HRCI and SHRM have a long history of affi liation and mutual support, the certifi cation process is a separate and distinct function of HRCI.

  You can find HRCI’s organizational mission statement at www.hrci.org/about-hrci/overview/mission .

Pearson VUE Pearson VUE is a computer-based testing administrator headquartered in the United States with locations in the United Kingdom, Japan, Australia, India, Dubai, and China. More than 400 credential owners use their services to administer exams, including HRCI. Pearsonvue.com is where certifi cation seekers will register for their exam date and location.

We’ll refer to these organizations frequently in Chapter 1 as we discuss the body of knowledge and the certifi cation process.

Why Become Certified? Over time, the certifi cation offered by HRCI has become the industry standard for deter-mining competence in the fi eld of human resources. There are many reasons that individu-als may decide to seek professional certifi cation. Let’s talk about just a few of them.

First, certifi cation 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 fi eld. Because the standards are developed by working professionals, not just by those who teach and consult in the fi eld, this credential demonstrates that you’re a fully compe-tent HR practitioner based on a standard set by your peers.

Second, certifi cation is a way to increase your marketability. In diffi cult economic times, when there is tough competition for jobs, certifi cation provides an edge that can be advantageous in your job search. With an abundance of job seekers for a limited number of

Introduction xxvii

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 profes-sional 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.

Third, those who spend the time to advance their own knowledge and achieve certifica-tion 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 nec-essary 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 co-workers and customers by dem-onstrating to the people you encounter during your workday that you have proven compe-tence 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.

How to Become CertifiedTo become a certified HR professional, you must pass either the PHR or SPHR exam, both of which have been developed by HRCI in a comprehensive process described in Chapter 1.

Each exam, PHR and SPHR, consists of 175 questions. Of these questions, 150 are scored to determine whether you pass the exam. The additional 25 questions are being “pretested” in order to determine their reliability and validity for inclusion in future test cycles. You can find a detailed discussion of how the questions are developed and scored in the HR Certification Institute’s 2019 Certification Policies and Procedures Handbook, which can be viewed and/or downloaded at the HRCI website (www.hrci.org). The hand-book 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 certifica-tion process, as well as the full list of test specifications.

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.

How This Book Is OrganizedWe’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.

xxviii Introduction

Chapters 2–6 get down to the specifics of each functional area of the PHR exam. Chapters 7–11 dive into SPHR exam content. Each of these chapters consists of a list of responsibilities and knowledge requirements for its 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 chapter.

Appendix B, “PHR and SPHR Case Studies,” gives you an opportunity to pull information from multiple functional areas to solve typical HR challenges in a fictitious company.

Appendix C, “Federal Employment Legislation and Case Law,” is a listing of the federal legislation as well as significant court decisions with implications for human resources.

Appendix D, “Resources,” is just that: a list of additional sources of information about each of the functional areas of human resources.

Appendix E, “Summarizing the Summaries: What Meta-Analyses Tell Us About Work Engagement,” and Appendix F, “Neuroscience Principles and Applications for HR Leaders,” provide further insights from leading experts in the field.

Finally, we’ve provided additional study tools, including sample tests, electronic flash-cards, and a glossary of terms (an alphabetical listing of key HR terms with their corre-sponding definitions).

The Elements of a Study GuideYou’ll see many recurring elements as you read this study guide. Here’s a description of some of those elements:

Assessment Test At the end of this introduction is an assessment test that you can use to check your readiness for the exam. Take this test before you start reading the book; it will help you determine the areas on which you may need to brush up. The answers to the assessment test questions appear separately after the last question of the test. Each answer includes an explanation and a note telling you the chapter in which the material appears.

Summary The summary is a brief review of the chapter to sum up what was covered.

Exam Essentials The “Exam Essentials” section at the end of each chapter highlights topics that could appear on one or both of the exams in some form. Although we obvi-ously don’t know exactly what will be included in a particular exam, these sections rein-force significant concepts that are key to understanding the functional area and the test specs HRCI has developed.

Review Questions Each chapter includes 20 practice questions designed to measure your knowledge of key ideas discussed in the chapter. After you finish each chapter, answer the questions; if some of your answers are incorrect, it’s an indication that you need to spend more time studying that topic. The answers to the practice questions can be found in Appendix A. The chapter review questions are designed to help you measure how much information you retained from your reading and are different from the kinds of questions you’ll see on the exam.