HRCI SPHR Exam Questions

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121.

What is the primary difference between mediation and arbitration?

  • Arbitration can be binding and mediation cannot

  • Mediation can be binding but arbitration cannot

  • Arbitration requires legal counsel

  • Mediation requires legal counsel

Correct answer: Arbitration can be binding and mediation cannot

Arbitration and mediation are both methods of dispute resolution that resolve conflicts without the expense of a lawsuit. Mediation is a process to resolve a grievance or conflict and is commonly used in the workplace. Mediation is lead by an independent third party, a mediator. Mediations are non binding and the goal to for two parties to come up with an agreeable solution to a conflict or dispute. 

Arbitration is a means of resolving conflicts, similar to the mediation process, but involves an arbitrator. This goal is to prevent further litigation. Unlike mediation, arbitration decisions may be binding. In binding arbitration, the parties agree prior to the arbitration to accept the arbitrator's decision as final. In nonbinding arbitration, either party may reject the decision and continue by filing a lawsuit.

122.

In which situation does constructive discharge occur?

  • When the employer makes the workplace so hostile the employee resigns

  • When a supervisor provides constructive criticism to employees to improve performance

  • When an employee provides constructive criticism

  • When employees in the construction field are discharged for the day

Correct answer: When the employer makes the workplace so hostile the employee resigns

Constructive discharge is defined as behavior by the employer, that creates a hostile work environment, with the goal of forcing an employee to resign. This can have serious implications for organizations, as in many states this gives the employee a cause for legal action against the employer. 

123.

If an employee is terminated due to gross misconduct, how long are they covered under COBRA?

  • 0 months

  • 18 months

  • 29 months

  • 36 months

Correct answer: 0 months

Employees who are terminated due to gross misconduct are not provided COBRA coverage.

Employees who reduce their hours, have been terminated from their jobs, or are eligible for SSA benefits have 18 months of COBRA coverage. Employees who have reduced their hours, or have been terminated from their position due to being disabled, have 29 months of COBRA coverage. Employees who have died, have gotten divorced or legally separated, or have a dependent that is no longer covered, have 36 months of COBRA coverage.

124.

What is occurring when an employer damages an individual's reputation in the community, which prevents them from being able to obtain employment or other benefits?

  • Defamation

  • Constructive discharge

  • Employment-at-will

  • Respondeat superior

Correct answer: Defamation

Defamation is defined as a false statement or action about other that damages an individual’s reputation. In an employment context, defamation could occur when an employer provides a false reference about a former employee which damages an individual's reputation in the community, and prevents them from being able to obtain other employment. 

Constructive discharge is defined as behavior by the employer, that creates a hostile work environment, with the goal of forcing an employee to resign. 

Respondeat superior is a common and civil law doctrine which defines that a principle is responsible for the actions of their agents. In this workplace, this means that employers are responsible for the actions and behaviors of their employees while performing the scope of their job duties. 

At-will employment is a common law doctrine that allows either party in employment to terminate the service, for any cause, good or bad, or without cause, and the other cannot complain in law. This doctrine is subject to several exceptions including contract exceptions, statutory exceptions, and public policy.

125.

Training implementation is the phase of training where all preceding work comes together for the presentation. The first step in implementation is to choose the training facility.

Which of the following types of training generally requires the least space?

  • Lecture

  • Simulation

  • Demonstration

  • Vestibule

Correct answer: Lecture

Passive training methods include lectures, presentations, and conferences, and involve little or no active participation from the learner(s). For that reason, these methods requires the least amount of space. More space is needed with training methods that require participants to take notes or practice work activities.

126.

Which type of insurance covers employees in the case of an accident but not illness?

  • AD&D Insurance

  • Short-Term Disability Insurance

  • PHO

  • HMO

Correct answer: AD&D Insurance

Accidental Death and Dismemberment (AD&D) insurance covers an employee and family members if an accident occurs that results in death or dismemberment, but it does not cover death from illness.

127.

Which of the following are true of auditory learners?

Select all that apply. There are 3 correct answers. 

  • They enjoy lectures

  • They process information by hearing

  • They can learn through asynchronous learning

  • They learn by demonstrating the task

Being able to identify learning styles is critical in learning and development. In general, the three types of learning styles include:

  • Auditory learners include learners who are able to learn more effectively by what they hear. This may include verbal discussions, lectures, recordings, etc.
  • Visual learners includes learners who are able to learn more effectively by what they see. This may include pictures, graphs, charts, diagrams, presentations, guides, etc.
  • Tactile/Kinesthetic learners are learners who are able to learn more effectively by doing. This may include interactive presentations, hands on skill development, role playing, etc.

128.

During an organizational development intervention, human resource leaders are often viewed as being:

  • Relationship managers

  • Objective decision-makers

  • Rule breakers

  • Loyal to the CEO

Correct answer: Relationship managers

HR professionals are tasked with building relationships throughout the organization and are often called on to bridge the communication gap,  build teams based on the strengths of individual members, and develop connections across the organization. By taking part as relationship builders and management partners, HR can help facilitate positive relationships between different sides of every matter during the change management process.

129.

Why is it important for HR to establish a policy on employee substance abuse?

  • To clearly state the company policy, the consequences, and how employees can get help

  • To prevent employees from trying illegal drugs

  • Because other organizations have a policy

  • It is mandatory for all companies to have such a policy

Correct answer: To clearly state the company policy, the consequences, and how employees can get help

The organization must state in writing that they have zero tolerance for substance abuse at work, what will happen if an employee is caught in this behavior, and what rehabilitation services are available to employees who need help quitting.

130.

What law was passed in 1993 and set the max deduction from executive pay at 1 million dollars? Select the correct acronym.

  • OBRA

  • ERISA

  • WPDA

  • REA

Correct answer: OBRA

The Welfare and Pension Disclosure Act (WPDA) of 1958 was the first attempt by Congress to exercise some control over private pension plans. WPDA required the administrators of health insurance, pension, and supplemental unemployment insurance plans to file their financial reports and plan descriptions with the Department of Labor.

The Retirement Equity Act (REA) of 1984 lowered age limits for participation and vesting in pension plans. It also required written approval from a spouse if the participant didn't want to provide survivor benefits in the plan and placed restrictions on the conditions that could be placed on survivor benefits.

The Omnibus Budget Reconciliation Act (OBRA) of 1993 capped executive pay, required health plans to honor qualified medical child support orders, and required that group health plans provide coverage for dependent adopted children of employees.

The Employment Retirement Income Security Act (ERISA) requires employers to provide plan participants with annual reports on their retirement and welfare program benefits. It also sets standards for employee participation, vesting, benefit accrual, type and payment of benefits, funding, fiduciary responsibility and includes provisions for administration and enforcement.

131.

Which of the following is not an indicator that employees may be organizing a union campaign?

  • Absences drop significantly in a short period for no apparent reason

  • Employees are congregating in unlikely places but scatter when the manager tries to join

  • A group of employees antagonistically questions the manager about benefits

  • A supervisor sees someone writing down the license numbers of employee cars

Correct answer: Absences drop significantly in a short period for no apparent reason

If an employer is concerned that employees may be organizing a union, there are behavioral signs they can watch for which will serve as indicators. Some of these include:

  • Groups of employees begin to congregate
  • Employee behavior during meal and rest periods changes noticeably
  • Absenteeism increases significantly for no obvious reason.
  • Employees begin to challenge supervisors or managers about benefits and employment practices
  • Former employees or newcomers approach employees outside of the workplace (e.g., parking lot or public entrances)Former employees or newcomers approach employees outside of the workplace (e.g., parking lot or public entrances)
  • License plates are being documented

132.

Which element of performance appraisals involves using changes to the strategic plan and supervisors goals and objectives to plan employee goals?

  • Goal setting

  • Supervisor assessment

  • Assessment from others

  • Development Goals

Correct answer: Goal setting

Each of the answer choices is one of the elements of a performance appraisal. The correct answer is goal setting because this is the part of a performance appraisal during which the employee's goals are planned. Changes to the strategic plan and the supervisor's goals and objectives are used to plan these goals. It is important that the employee is able to participate in the part of the process as it will facilitate their commitment to goal achievement.

133.

Stacey receives an injunction forbidding her from operating the outdoor thermal spa she just ordered online. Which of the following statements is true?

  • Injunctions are court ordered and legally binding

  • Injunctions are court ordered but not legally binding

  • This injunction is not legally binding 

  • Stacey is not required to comply, because injunctions only apply to labor organizations

Correct answer: Injunctions are court ordered and legally binding

Injunctions are court orders that either requires or forbids an action from being performed. Although it was first used against a labor union and its initial intention was the ending of strikes, injunctions have found themselves a permanent fixture throughout the U.S. legal system.

134.

What is the potential penalty for employers who willfully violate FLSA child-labor protections?

  • Criminal prosecution and up to $10,000 per violation

  • Criminal prosecution and $50,000 per violation

  • Criminal prosecution and $25,000 per violation

  • $10,000 per violation

Correct answer: Criminal prosecution and up to $10,000 per violation

Willful violations of the Fair Labor Standards Act, inclusive of all of its provisions, can result in a penalty of criminal prosecution and a fine of up to $10,000 per violation. A second violation could result in imprisonment and additional civil penalties of $1100 per violation. 

In 2008, the Genetic Information Nondiscrimination Act (GINA) amended FLSA by increasing the maximum fines for violations of child labor laws from $10,000 to $50,000 when the violation resulted in death or serious injury to minor.

135.

Disposable earnings are what is left in an employee's paycheck after which deductions have been made?

  • Statutory (i.e., legally mandated)

  • Statutory and Involuntary

  • Statutory, Involuntary, and Voluntary 

  • Involuntary (i.e., wage garnishments)

Correct answer: Statutory

Statutory deductions are paycheck deductions mandated by law and taken from an employee's gross earnings. Once these mandated taxes have been taken, the remaining amount left in the paycheck is known as disposable earnings. Then involuntary deductions such as child support garnishments and tax levies are taken out, followed by voluntary deductions like 401(k) contributions and health insurance premiums. Lastly, any other voluntary deductions, such as donations to charity, would be taken out.

136.

Which type of classroom configuration would be the least effective for a workshop that requires collaboration on the part of the participants?

  • Theater style

  • U-shaped

  • Boardroom style

  • Chevron style

Correct answer: Theater style

Theater style is a style in which all of the participants face the front of the classroom. It does not facilitate collaboration and instead puts all the focus on the instructor.

All of the other styles listed have the potential for learner interaction and collaboration.

137.

Which of the following is the form of dispute resolution used to resolve complex, long-standing conflicts in the organization?

  • Constructive confrontation

  • Grievance mediation

  • Arbitration

  • Peer-review panel

Correct answer: Constructive confrontation

All answer choices are types of alternative dispute resolution (ADR). ADR methods are used to solve disagreements without civil litigation. 

The idea of constructive confrontation was developed by Guy Burgess. This process is a form of mediation and attempts to use a systematic structured approach to resolve issues that are complex and long-standing in order to get to the root cause. An underlying belief of this approach to mediation is that conflict can be healthy.

Mediation is a process to resolve a grievance or conflict and is commonly used in the workplace. Mediation is lead by an independent third party, a mediator. Mediations are non binding and the goal to for two parties to come up with an agreeable solution to a conflict or problem. 

Arbitration is a way of resolving conflicts without involvement in a lawsuit. Similar to mediation, these proceedings involve the use of an impartial third party, referred to as an arbitrator. Arbitrations can be binding or non-binding.  

A peer-review panel is a panel of individuals within the organization who are knowledgeable in the policies and procedures of the organization, This panel is designed to hear organizational disputes and make decisions on them. 

138.

Statutory deductions include:

Select all that apply. There are 3 correct answers.

  • Social Security

  • Federal and state taxes

  • Medicare

  • Child support

  • Health plan premiums

Statutory deductions are deductions that are required by law. This includes Social Security, Medicare, federal and state taxes, and unemployment insurance and disability insurance in some states. 

Child support is considered an involuntary deduction, while health plan premiums are considered a voluntary deduction.

139.

The concept of respondeat superior is closely related to which of the following?

  • Vicarious liability

  • Tangible employment action

  • Defamation

  • Fraudulent misrepresentation

Correct answer: Vicarious liability

Respondeat superior is a common and civil law doctrine which defines that a principle is responsible for the actions of their agents. In this workplace, this means that employers are responsible for the actions and behaviors of their employees while performing the scope of their job duties. 

Vicarious liability is defined as a situation in which an individual can be held accountable for the unlawful actions of another even if they were not involved in the action or were unaware of the action. Similar to respondeat superior, in an employment context, an employer may be held liable for the actions of their employees despite the lack of knowledge or involvement. 

140.

An income statement is an accounting report that provides which of the following information?

Select all that apply. There are 4 correct answers.

  • Revenues

  • Cost to produce services or goods

  • Overhead expenses

  • Profit & Loss for the reporting period

  • Amount invested in property

  • Available cash

As HR professionals, it is important to be able to review and understand basic accounting reports and functions. Basic accounting reports commonly used include balance sheets, income statements, and statement of cash flows.  

An income statement, which is sometimes called a profit & loss (P&L) statement provides information on the organizations revenues, the cost to produce the goods or services, the overhead expenses, and the P&L for the reporting period.