HRCI aPHR Exam Questions

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121.

Which of the following statements best describes pay transparency in the workplace?

  • Pay transparency is when employees are given access to information about the compensation structure and salary ranges within their organization.

  • Pay transparency involves disclosing individual employee salaries to the public.

  • Pay transparency is the practice of setting fixed, non-negotiable salaries for all employees within an organization.

  • Pay transparency increases race-based discrimination in the workplace.

Correct answer: Pay transparency is when employees are given access to information about the compensation structure and salary ranges within their organization.

Pay transparency gives employees information about the pay structure at their organizations, and allows them to see how decisions are made and compensation is set.

Pay transparency has the impact of decreasing discrimination in the workplace because everyone is told the acceptable salary range and how advancing in their careers will allow them to earn more money.  If someone is being paid below the previously set range, they and their peers will be able to see that clearly. Pay transparency does not necessarily mean that information is shared with the public, but shared internally. Pay transparency does not mean that salaries are non-negotiable, but that there is an acceptable range that is disseminated to keep pay fair and standard according to the role's contribution to the company.

122.

Which of the following best describes the difference between direct and indirect compensation?

  • Direct compensation refers to monetary rewards provided to employees, while indirect compensation includes non-monetary benefits.

  • Direct compensation encompasses benefits such as healthcare and retirement plans, while indirect compensation includes base salary and bonuses.

  • Direct compensation is listed in the employee's offer letter, while indirect benefits are revealed once the person is fully employed.

  • Indirect compensation is given to employees through Professional Employment Organizations (PEOs) who share some legal responsibility with the primary employer.

Correct answer: Direct compensation refers to monetary rewards provided to employees, while indirect compensation includes non-monetary benefits.

Direct compensation includes forms of monetary rewards such as salary, bonuses, and merit-based pay. Indirect compensation is non-monetary and includes benefits such as healthcare, unemployment insurance, and 401(K) programs.

Both direct and indirect compensation may be listed in the employee's offer letter and agreed upon before the new hire begins their employment. Direct compensation may be given through PEOs and still be categorized as direct compensation. Healthcare and retirement plans are considered indirect compensation, while base salary and bonuses are considered direct compensation.

123.

Which of the following BEST defines social responsibility in a business context?

  • A company's commitment to conducting business in an ethical way and to improve society.

  • A company's responsibility to its customers and to provide high-quality products and services.

  • A company's focus on increasing market share and outperforming competitors.

  • A company's drive to create an environment of friendly and social interactions.

Correct answer: A company's commitment to conducting business in an ethical way and to improve society.

Social responsibility is when organizations set goals and make efforts to improve society and operate ethically.

The incorrect answers represent company goals and commitments but are not related to social responsibility per the definition.

124.

What is the main difference between goals and objectives?

  • Objectives are specific and measurable, while goals are broad

  • Goals are qualitative, while objectives are quantitative

  • Goals are internal and objectives are external

  • Goals are set by teams, while objectives are set by individuals

Correct answer: Objectives are specific and measurable, while goals are broad

Goals are most often broad statements of desired outcomes, often describing the overall direction or purpose of a project. Objectives are more specific, measurable, and often time-bound actions or milestones.

The incorrect answers do not reflect the differences between goals and objectives.

125.

A company needs to go through a reduction in force where they will terminate employees due to their financial situation. Which of the following is the closest synonym to a reduction in force?

  • Downsizing

  • Divestitures

  • Furlough

  • Offshoring

Correct answer: Downsizing

Downsizing happens when a company terminates part of its workforce to reduce payroll expenses.

Divestitures happen when companies are reducing investment in an area of their business. This may include downsizing, but also includes a range of activities including restructuring or changing the business model, so the best answer is downsizing. A furlough is a temporary leave of absence from work, often without pay. Furloughs are usually used by employers to reduce labor costs during difficult economic times without resorting to layoffs. Offshoring involves hiring people in different countries.

126.

A trainer decides it is too difficult to teach aging salespeople how to use new technology associated with their jobs. They provide additional support to the younger teams and instruct them to answer questions when older colleagues have trouble. Which of the following laws is most likely related to this scenario?

  • The Age Discrimination in Employment Act of 1967

  • Title VII of the Civil Rights Act of 1964

  • The Uniform Guidelines on Employee Selection Procedures of 1978

  • The Americans with Disabilities Act of 1990

Correct answer: The Age Discrimination in Employment Act of 1967

The Age Discrimination in Employment Act of 1967 prohibits employment discrimination based on age against individuals aged 40 or older.

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin. The Americans with Disabilities Act of 1990 protects the rights of people with disabilities in the areas of employment, public accommodations and services, and telecommunications. The Uniform Guidelines on Employee Selection Procedures of 1978 prevent discriminatory practices in the recruiting process. 

127.

An HR leader has received several complaints from managers at their company. They say the HR manager is great at bringing in new hires quickly and the new hires perform well, but they leave quickly which disrupts the team. Which of the following ways to measure hiring is this HR leader's recruiting program underperforming in?

  • Employee retention

  • Turnover cost

  • Time to fill

  • Quality of hire

Correct answer: Employee retention

Employee retention is a percentage of new hires retained for a designated period from their start date. While these employees perform well and are hired quickly, they leave soon after hire making this HR person's issue retention.

Turnover cost measures the rate of employees departing the business and typically includes unemployment insurance, the cost of training a replacement, and the cost of recruiting and hiring a replacement team member. Quality of hire is a measure of how effective a new hire is in a role. This type of measure could include a percentage of new hires promoted within a year, or the percentage of new hires still with the company 12 months from their date of hire. Time to fill is a measure of how long a position was open, and how long it took to get an employee to start work in the role.

128.

An employee reports a case of harassment and discrimination to their superiors. They include information about how they were treated differently from others, that the reason for this different treatment was because of a protected category, and they have identified their protected category. Their HR representative tells them their case looks good at first glance. Which of the following terms describes this HR person's assessment of the case?

  • Prima facie

  • Ad hoc

  • Per diem

  • Quid pro quo

Correct answer: Prima facie

Prima facie means good at first glance. When referring to written complaints, it means the person has presented a reasonable case that they may have been discriminated against because of their membership in a protected category, and there should be an investigation.

Ad hoc means done on a case-by-case basis. Per diem means per day. Quid pro quo means this for that.

129.

What is the main difference between gainsharing and profit sharing?

  • Gainsharing rewards improved productivity, profit sharing is based on a percentage of earnings.

  • Gainsharing focuses on cost savings where profit sharing pays based on increased productivity.

  • Gainsharing rewards employees based on individual performance, while profit sharing rewards employees based on company-wide financial performance.

  • Gainsharing is a variable pay system, while profit sharing is a fixed pay system.

Correct answer: Gainsharing rewards improved productivity, profit sharing is based on a percentage of earnings.

Gainsharing rewards improved productivity, so incentives are paid out based on the delta between historical performance and an improvement in a certain period. Profit sharing is based on a percentage of earnings, not a change or improvement.

Both gainsharing and profit sharing are based on company-wide performance. Cost savings are not a direct metric of gainsharing or profit sharing. Gainsharing and profit sharing are both variable systems based on organizational performance.

130.

Employers who go through a layoff may be required to send WARN Act notices. Which of the following BEST describes the WARN Act?

  • Requires employers to give advance notice of plant closings or mass layoffs.

  • Provides financial assistance to employees affected by layoffs.

  • Mandates employers to provide training programs for displaced workers.

  • Ensures employees receive severance pay following termination.

Correct answer: Requires employers to give advance notice of plant closings or mass layoffs.

The WARN Act applies to companies with over 100 employees and requires employers to give advanced warning of large layoffs or closures.

Financial assistance to employees affected by layoffs is provided through unemployment benefits. There are no federal laws that mandate employers provide training programs for displaced workers or ensure employees receive severance pay following termination.

131.

Which of the following groups of laws apply to all employers with one or more employees?

  • The Clayton Act, The Consumer Protection Act, and The Employee Polygraph Protection Act

  • The Drug-Free Workplace Act, The Equal Employment Opportunity Act, and The Pregnancy Discrimination Act

  • The Clayton Act, The Equal Employment Opportunity Act, and The Employee Polygraph Protection Act

  • The Family and Medical Leave Act, The Mental Health Parity Act, and The Patient Protection and Affordable Care Act

Correct answer: The Clayton Act, The Consumer Protection Act, and The Employee Polygraph Protection Act

The Clayton Act, The Consumer Protection Act, and The Employee Polygraph Protection Act all go into effect for employers with one or more employees.

The Drug-Free Workplace Act, The Equal Employment Opportunity Act, and The Pregnancy Discrimination Act apply to companies with fifteen or more employees. The Family and Medical Leave Act, The Mental Health Parity Act, and The Patient Protection and Affordable Care Act apply to companies with fifty or more employees. The Worker Adjustment and Retraining Notification, The Civil Service Reform Act, and The Congressional Accountability Act all apply to employers with 100 or more employees.

132.

A hiring team interviews a candidate who is not qualified and unprofessional during their interview. They ask themselves how this person was even able to get an interview while missing so many key qualifications. The next person they interview is not 100% qualified and does okay in the interview, but the interview team gives them excellent ratings. Which of the following types of interview bias is this team MOST likely exhibiting?

  • Contrast effect

  • Similar-to-me error

  • Halo effect

  • Nonverbal bias

Correct answer: Contrast effect

The contrast effect is when a candidate is compared with another candidate, which can make them appear disproportionately strong or weak depending on the comparison candidate. 

Similar-to-me error is when an interviewer places emphasis on personal characteristics that they share with the candidate rather than on their qualification for the job. Nonverbal bias is when the interviewer places emphasis on a person's body language or mannerisms, such as nail biting. The halo effect occurs when an interviewer fixates on a single positive trait of a candidate, inflating the candidate's ratings across all areas, regardless of their actual proficiency in those areas.

133.

According to Kotter's Change Management Theory, what is the first step in the change process?

  • Create a sense of urgency

  • Form a strategic vision

  • Remove barriers

  • Generate short-term wins

Correct answer: Create a sense of urgency

The first step in Kotter's Change Management Theory is to create a sense of urgency. The agents of change explain to the team why the status quo is no longer serving the organization. 

Forming a strategic vision is the third step, in which the vision of the change is defined. Removing barriers is the fifth step, clearing the path for change to take place. Generating short-term wins is the sixth step. Celebrating quick wins reinforces the team's efforts and shows positive forward movement.

134.

Which level of Donald Kirkpatrick's Four Levels of Training Evaluation focuses on assessing the extent to which participants acquired the knowledge or skills that were taught in the training?

  • Level 2: Learning

  • Level 1: Reaction

  • Level 3: Behavior

  • Level 4: Results

Correct answer: Level 2: Learning

Level 2 of the model evaluates the learning outcomes of the training, assessing whether participants gained the knowledge and skills that were taught.

The four levels in Donald Kirkpatrick's system for evaluating training programs are reaction (whether the trainees liked the program), learning (whether the trainees learned what they were taught), behavior (whether the trainees changed their behavior), and results (how training impacted organizational goals).

135.

An HR leader is creating a safety program. They prepare the route that employees would take to physically remove themselves in the case of a hazard, and in case the primary route out of the building may not be accessible due to the hazard. Which of the following is this HR leader MOST likely working on?

  • Emergency evacuation

  • Safety inspection form

  • Emergency medical care

  • Health and safety monitoring

Correct answer: Emergency evacuation

An emergency evacuation route provides a plan for employees for how to leave the building, and alerts them to safe alternative regresses if the primary route is unavailable.

A safety inspection form contains information about risks rather than routes to escape hazards. Emergency medical care plans may be a part of a safety program related to the care of an employee who has had a medical event or injury. These plans could include information about removing injured employees from the building, but that would be a piece of the plan and not indicative of the evacuation this question describes. HR leaders can use the data they have access to, such as attendance records and self-reported issues, to monitor the health and safety of their teams. This is unrelated to egress routes.

136.

Which of the following is not one of the five steps to completing a Hay plan for job evaluation?

  • Job classification

  • Create job evaluation boards

  • Revise all job descriptions

  • Design a compensation banding proposal

Correct answer: Job classification

Job classification is a separate type of evaluation process where roles are grouped together and given categories to help determine pay scale.

The five steps in the Hay plan are to train key representatives on the method, revise all job descriptions, create job evaluation boards, design a compensation banding proposal, and present the proposal to the board of directors (or equivalent).

137.

Which of the following lists contains only forms of direct compensation?

  • Bonuses, merit pay, differential pay

  • Social Security, profit sharing, healthcare

  • Merit pay, profit sharing, piece rate

  • Vacation time, unemployment insurance, base pay

Correct answer: Bonuses, merit pay, differential pay

Types of direct compensation include base pay, commissions, bonuses, merit pay, piece rate, differential pay, and cash awards. 

Indirect compensation includes Social Security, unemployment insurance, disability insurance, profit sharing, 401(k), healthcare, and vacation and sick leave.

138.

Which of the following BEST describes a key provision of the American Recovery and Reinvestment Act (ARRA) of 2009?

  • The ARRA allocated funding for infrastructure projects such as road construction and bridge repairs.

  • The ARRA expanded the statute of limitations for litigating cases of pay discrimination.

  • The ARRA prohibited federal funding for renewable energy projects and initiatives.

  • The ARRA mandated a tax increase on high-income individuals and corporations to fund social welfare programs.

Correct answer: The ARRA allocated funding for infrastructure projects such as road construction and bridge repairs.

The ARRA of 2009 was a stimulus package in response to the Great Recession that began in 2007 and was designed to employ people who had become unemployed because of the recession.

The statute of limitations for litigating cases of pay discrimination was expanded by the Lilly Ledbetter Act. The ARRA actually included some renewable energy projects rather than prohibiting them. The ARRA did not expand taxes on high-income individuals to pay for the program.

139.

Three small regional airlines have put together plans to combine into one larger company in order to compete with the large carriers. Which of the following types of restructuring are these airlines MOST likely to participate in?

  • Merger

  • Divestiture

  • Business continuity

  • Acquisition

Correct answer: Merger

A merger is when two or more companies are combined into one. Workforce restructuring often happens after a merger.

Divestiture is when a company reduces its resource allocation to an area of the business, often resulting in a reduction in force or layoffs. There is no mention of a reduction in resources going to any one of the airlines or parts of the business, so this is not a divestiture. Acquisition is when one organization buys another. There is no mention of the airlines purchasing one another, so this is not a case of acquisition.  Business continuity is how a company will operate after an emergency has occurred. These are plans in place so the heavy lifting of planning has been done under normal circumstances, and people know how to behave to support the team in an altered state.

140.

Which of the following statements accurately describes the scope of coverage provided by the Americans with Disabilities Act (ADA)?

  • The ADA applies to individuals with disabilities who are qualified to perform the essential functions of a job, with or without reasonable accommodations, and covers employers with 15 or more employees.

  • The ADA applies to all employers, regardless of the number of employees, and prohibits discrimination against individuals with disabilities in all aspects of employment, including recruitment, hiring, promotion, and termination.

  • The ADA provides protections for people who are permanently or temporarily physically disabled but does not apply to people with mental disabilities.

  • The ADA applies to companies with twenty or more employees and requires reasonable accommodations be applied only for people who report to a physical office.

Correct answer: The ADA applies to individuals with disabilities who are qualified to perform the essential functions of a job, with or without reasonable accommodations, and covers employers with 15 or more employees.

The ADA was signed into law in 1990 and amended in 2008. It includes definitions of disabled people with mental and physical limitations and provides protections against workplace discrimination. 

The ADA applies to mental and physical disabilities. There may be accommodations made for remote employees, not just employees who report in person. The law applies to companies with fifteen or more employees.