HRCI SPHR Practice Test Questions, Exam Dumps

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SPHR HRCI Practice Test Questions and Exam Dumps

Question 1

Which of the following functional areas covers activities related to planning for and managing entry into and exit from the organization to meet changing business needs?

A. Workforce Planning and Employment
B. Business Management and Strategy
C. Human Resource Development
D. Employee and Labor Relations

Correct Answer: A

Explanation:

The functional area that specifically addresses planning for and managing entry into and exit from the organization is Workforce Planning and Employment. This area is central to aligning human capital with strategic organizational goals and ensuring that staffing levels and capabilities meet evolving business demands.

What is Workforce Planning and Employment?

Workforce Planning and Employment encompasses the forecasting, recruitment, selection, placement, retention, and separation of employees. The goal is to ensure that the organization has the right people with the right skills in the right roles at the right time. This function helps organizations:

Adapt to changing internal and external environments
Manage talent pipelines and succession plans
Respond to growth, downsizing, or shifts in strategic direction

It includes tasks such as:

Job analysis and design
Workforce forecasting
Recruitment and staffing strategies
Onboarding
Exit interviews and offboarding

Because it directly involves entry into (e.g., recruitment and hiring) and exit from (e.g., retirement, resignation, layoffs) the organization, this function aligns precisely with the activities described in the question.

Why the Other Options Are Incorrect:

B. Business Management and Strategy:
This area focuses on aligning HR practices with business objectives, strategic planning, and organizational leadership. It involves high-level direction but not specifically the operational tasks of hiring and separation.
C. Human Resource Development:
This area is concerned with training, employee development, performance management, and career planning. While it supports employee growth, it does not manage hiring or exit processes directly.
D. Employee and Labor Relations:
This function deals with employee rights, union interactions, conflict resolution, and maintaining a productive work environment, but it doesn’t directly manage organizational entry and exit.

Workforce Planning and Employment is the HR functional area that directly involves planning for and managing how employees enter (recruitment, selection, onboarding) and exit (termination, resignation, retirement) the organization in response to changing business needs. It ensures an agile, appropriately staffed workforce to meet strategic goals.

Thus, the correct answer is A.

Question 2

According to Knowles, there are five key assumptions about how adults learn. One of the assumptions is the learner's need to know. Which of the following statements is best associated with the assumption of the learner's need to know?

A. I'm ready to learn this because what I learn will help me function better in some way.
B. I understand why I need to learn this.
C. What I learn today will help me solve problems at my workplace tomorrow.
D. I've got lots of valuable experience that I want to draw upon to help me as I learn.

Correct Answer: B

Explanation:

The theory of Andragogy, developed by Malcolm Knowles, outlines five key assumptions about adult learners. These assumptions describe how adults differ from children in their approach to learning. One of these assumptions is the "need to know." This assumption states that adult learners need to understand the reason why they need to learn something before they commit to learning it.

Understanding the “Need to Know” Assumption

According to Knowles, adult learners:

Require clarity about the value or purpose of learning.
Want to know how the learning will benefit them—whether it improves job performance, life skills, or future opportunities.
Are unlikely to engage fully in learning unless they see a direct and clear relevance or application.

This assumption acknowledges that adults are self-directed and goal-oriented. Unlike children, who may learn because an authority figure tells them to, adults want a rationale for learning. They ask questions like:

Why is this important?
What problem does this solve?
How will this help me?

In this context, the statement “I understand why I need to learn this” most closely reflects this assumption. It shows the learner’s recognition of the necessity or value of the material being presented.

Why the Other Options Are Incorrect:

A. "I'm ready to learn this because what I learn will help me function better in some way."
This statement reflects the readiness to learn, another assumption of Knowles, where adults are motivated to learn things they believe will help them perform tasks or solve real-life problems.
C. "What I learn today will help me solve problems at my workplace tomorrow."
This aligns with the orientation to learning assumption, which suggests adults prefer learning that is problem-centered and has immediate application.
D. "I've got lots of valuable experience that I want to draw upon to help me as I learn."
This matches the experience assumption, emphasizing that adult learners bring a reservoir of knowledge and experiences that form the foundation for new learning.

The "need to know" assumption in adult learning refers specifically to the learner's desire to understand the purpose or value of the learning before engaging with it. It is best captured by the statement: “I understand why I need to learn this.”

Therefore, the correct answer is B.

Question 3

As an HR Professional you must be familiar with the project management processes and the stakeholders of projects. All projects can map to the project management lifecycle. Which one of the following best describes the project management lifecycle?

A. It is a unique life of each project -from its initiation through its closing.
B. It is the aggregation of the nine knowledge areas of project management: integration management, scope, schedule, costs, quality, human resources, communication, risk, and procurement.
C. It is the life of the management of the project -from initiation, planning, execution, controlling, through closing.
D. It is the life of a project to interact with all areas including scope, schedule, costs, quality, human resources, communication, risk, and procurement.

Correct Answer: C

Explanation:

The project management lifecycle refers to the series of phases that a project passes through from its beginning to its end. According to the Project Management Institute (PMI), the five major process groups in the project management lifecycle are:

Initiating
Planning
Executing
Monitoring and Controlling
Closing

These five process groups provide a structured approach to managing a project and ensure that it progresses in an organized and controlled manner. Each process group serves a distinct purpose and collectively they represent the life of managing the project, not just the project itself.

Breakdown of the Correct Option:

C. "It is the life of the management of the project -from initiation, planning, execution, controlling, through closing."
This is the most accurate description of the project management lifecycle. It focuses specifically on the management processes involved in running a project and aligns with the standard phases as outlined in PMI’s PMBOK Guide (Project Management Body of Knowledge).

Why the Other Options Are Incorrect:

A. "It is a unique life of each project -from its initiation through its closing."
While this is partially true, this description is too vague. It describes the project itself rather than focusing on the management processes that govern it. The question specifically asks for the project management lifecycle, not just the project lifecycle.
B. "It is the aggregation of the nine knowledge areas of project management..."
This describes the knowledge areas defined by PMI (now expanded beyond nine), not the lifecycle. Knowledge areas are categories of project management knowledge and expertise (like scope, time, cost, etc.), not process phases.
D. "It is the life of a project to interact with all areas including scope, schedule, costs..."
Again, this describes interaction with knowledge areas but not the sequenced process groups that define a project’s lifecycle. It lacks reference to the management phases that constitute the actual lifecycle.

The project management lifecycle is not about the project itself, nor just a summary of areas of expertise. It is about the structured process of managing the project through its life. Option C best describes this by outlining the key phases of management: initiation, planning, execution, controlling, and closing.

Therefore, the correct answer is C.

Question 4

The Department of Labor establishes the rules for unemployment insurance and associated claims. Who administers the unemployment?

A. The Department of Labor
B. Each state
C. Insurance companies
D. Each organization

Correct Answer: B

Explanation:

Unemployment insurance (UI) in the United States is a joint federal-state program that provides temporary income support to workers who lose their jobs through no fault of their own. While the U.S. Department of Labor (DOL) sets broad guidelines and regulations, the actual administration and delivery of unemployment benefits is handled by individual states.

Role of the Department of Labor:

The U.S. Department of Labor, through its Employment and Training Administration (ETA), provides overall oversight, funding, and guidance to the states. The federal government ensures that:

Programs are operated in accordance with federal law.
States receive federal funds to support administrative costs.
States meet performance and reporting requirements.

However, the DOL does not directly manage or distribute unemployment benefits to individual claimants.

State Responsibilities:

Each state administers its own unemployment insurance program, which includes:

Setting eligibility criteria within the framework of federal guidelines.
Determining benefit amounts and duration.
Managing the application and appeals processes.
Disbursing weekly or biweekly benefits to eligible claimants.

States also have some flexibility in defining "suitable work," the work search requirements, and benefit formulas. Because of this autonomy, UI programs can differ in eligibility and benefits from one state to another.

Why Other Options Are Incorrect:

A. The Department of Labor:
While the DOL provides overarching rules and funding, it does not directly administer unemployment benefits. That task falls to the states.
C. Insurance companies:
Unemployment insurance is not provided by private insurance companies. It is funded by employer payroll taxes under the Federal Unemployment Tax Act (FUTA) and state laws, not through private insurance.
D. Each organization:
Individual employers are not responsible for administering unemployment insurance benefits. They pay unemployment taxes, and in some cases (for example, in self-insured arrangements), they may reimburse the state for benefits paid, but they do not manage or distribute UI benefits.

Unemployment insurance in the United States operates under a federal-state partnership. While the Department of Labor establishes standards, it is the states that administer the unemployment insurance programs—handling claims, eligibility determination, benefits distribution, and compliance with both state and federal laws.

Therefore, the correct answer is B.

Question 5

A correlation coefficient is an example of a type of what?

A. Qualitative analysis
B. Quantitative analysis
C. Job evaluation
D. Learning matrix

Correct Answer: B

Explanation:

A correlation coefficient is a statistical measure that expresses the degree and direction of a linear relationship between two variables. This makes it a clear example of quantitative analysis, as it deals with numerical data and statistical evaluation.

What is Quantitative Analysis?

Quantitative analysis involves the use of mathematical, statistical, or computational techniques to analyze data and draw conclusions. It focuses on numbers and measurable forms to interpret patterns, relationships, and trends. Common tools include:

Correlation coefficients
Regression analysis
Statistical averages
Standard deviation
Probability distributions

The correlation coefficient specifically measures the strength and direction of a relationship between two continuous variables. It ranges from -1 to +1:

A value of +1 indicates a perfect positive correlation.
A value of -1 indicates a perfect negative correlation.
A value of 0 suggests no correlation.

This numerical measurement makes it purely quantitative, as it involves analyzing data values and calculating a numerical result.

Why the Other Options Are Incorrect:

A. Qualitative analysis:
This type of analysis deals with non-numerical data such as opinions, experiences, and concepts. It includes interviews, open-ended survey responses, and observations. A correlation coefficient, being numerical and statistical, does not belong in this category.
C. Job evaluation:
This is a systematic process used by HR professionals to determine the relative worth of a job in an organization. While some job evaluations may use quantitative methods, the term itself refers to an HR-specific compensation and classification process, not to statistical correlation.
D. Learning matrix:
A learning matrix typically refers to a framework for tracking or organizing skills, knowledge, or training across roles or employees. It’s used in talent development or learning management, not in statistical analysis.

Since a correlation coefficient is a numerical tool used to analyze relationships between variables using statistical methods, it falls firmly under quantitative analysis. It is not a qualitative method, a job evaluation tool, or part of a learning framework.

Therefore, the correct answer is B.

Question 6

This nonmathematical forecasting technique brings the participants together to share and discuss their ideas about the forecast. The ideas are then ranked based on the group's input. What technique is discussed?

A. Management forecasts
B. Delphi technique
C. Nominal group technique
D. Brainstorming

Correct Answer: C

Explanation:

The Nominal Group Technique (NGT) is a nonmathematical forecasting method used to gather ideas, facilitate structured discussion, and reach consensus among a group of participants. It is especially useful in situations where diverse perspectives are important and when group decision-making is needed.

What Is the Nominal Group Technique?

The Nominal Group Technique is a structured, face-to-face group interaction method. Participants are typically asked to independently write down their ideas or predictions about a specific question (such as workforce needs or project outcomes). After the initial idea generation phase, each member presents their suggestions, which are recorded—often on a flip chart or whiteboard—without debate. Once all ideas are collected, the group discusses each item to clarify and evaluate it. Finally, members independently rank or vote on the ideas, and the rankings are aggregated to determine the group’s overall priorities or forecasts.

This process encourages equal participation, avoids dominance by a few individuals, and ensures that all ideas are considered before a decision or forecast is made.

Why the Other Options Are Incorrect:

A. Management forecasts:
This method relies on input from senior leaders or managers, often based on their experience or insight into organizational trends. It is typically not a collaborative or structured group process, and it lacks the systematic ranking seen in NGT.
B. Delphi technique:
The Delphi method is also a nonmathematical forecasting technique, but unlike NGT, it does not involve face-to-face discussion. It is a remote, iterative process where experts respond to questionnaires in multiple rounds. Feedback is shared anonymously after each round until a consensus is reached.
D. Brainstorming:
Brainstorming encourages free-flowing idea generation without criticism. It lacks the structured evaluation and ranking step found in the Nominal Group Technique. While it fosters creativity, it is more informal and less directed toward consensus-building.

The key elements described in the question—bringing people together, discussing ideas, and ranking them—clearly point to the Nominal Group Technique. It is designed specifically to combine structured group input with individual assessment, making it ideal for forecasting and prioritization.

Therefore, the correct answer is C.

Question 7

Your organization offers an employees' retirement benefit program that is covered by the Employee Retirement Income Security Act of 1974. The administrative responsibility for enforcement of the Employee Retirement Income Security Act of 1974 is divided among three government agencies.

Which one of the following is not a government agency that helps to enforce ERISA?

A. IRS
B. Department of Labor
C. Pension Benefit Guaranty Corporation
D. FDIC

Correct Answer: D

Explanation:

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law designed to protect employees participating in retirement and health benefit plans in private industry. Its primary goal is to ensure that plans are managed fairly and financially soundly. The enforcement and administrative oversight of ERISA is divided among three federal government agencies:

1. Internal Revenue Service (IRS)

The IRS is responsible for monitoring the tax-related aspects of retirement plans. It ensures that plans meet the requirements of the Internal Revenue Code, such as nondiscrimination rules, contribution limits, and required minimum distributions. Plans that fail to comply may lose their tax-qualified status, which can have significant financial implications for both the employer and plan participants.

2. U.S. Department of Labor (DOL)

The Department of Labor oversees compliance with Title I of ERISA, which includes the reporting and disclosure requirements, fiduciary responsibilities, and participants' rights. The DOL is particularly focused on ensuring that plan participants are properly informed and that fiduciaries are acting in the best interests of the beneficiaries.

3. Pension Benefit Guaranty Corporation (PBGC)

The PBGC is a federally chartered corporation created by ERISA to insure defined benefit pension plans. If a defined benefit plan becomes insolvent or is terminated, the PBGC steps in to ensure participants still receive benefits, up to certain limits. It operates similarly to an insurance fund, funded by premiums paid by the employers who sponsor such plans.

Why FDIC Is Incorrect:

D. FDIC (Federal Deposit Insurance Corporation):
The FDIC insures deposits in banks and savings institutions, not employee benefit plans. It plays no role in the administration or enforcement of ERISA. While both the PBGC and FDIC serve as safety nets for financial systems, the FDIC is concerned only with protecting consumer deposits in the banking system, not retirement or pension benefits.

ERISA enforcement is handled by the IRS, Department of Labor, and PBGC. The FDIC is unrelated to ERISA and does not participate in its enforcement or oversight, making D the correct answer.

Therefore, the correct answer is D.

Question 8

You are the HR Professional for your organization. You are discussing the status of your company's employees to determine who may be considered nonexempt versus exempt. Which one of the following types of employees can never be considered exempted from overtime provisions?

A. Manual workers
B. Sales people
C. Managers
D. Administrative assistants

Correct Answer: A

Explanation:

The Fair Labor Standards Act (FLSA) is the key federal law that governs wage and hour standards, including overtime provisions. Employees are classified as either exempt or nonexempt, based on their job duties and compensation structure. Exempt employees are not eligible for overtime pay, whereas nonexempt employees must be paid time and a half for all hours worked beyond 40 in a workweek.

Manual Workers: Always Nonexempt

Manual laborers or “blue-collar workers” are explicitly considered nonexempt under the FLSA. This means they are always eligible for overtime, regardless of how much they earn or how they are paid. These workers typically perform repetitive, physical work with their hands and include roles like electricians, mechanics, carpenters, and laborers. The Department of Labor has made it clear that manual workers can never qualify as exempt, regardless of their salary or job title.

Exempt Employee Categories

To be classified as exempt, employees must generally meet three tests:

Salary Level Test: They must earn at least $684 per week (as of current standards).
Salary Basis Test: They must be paid a fixed salary not subject to reduction based on quality or quantity of work.
Duties Test: Their job duties must primarily involve executive, administrative, professional, outside sales, or certain computer-related tasks.

Let’s look at the other answer choices:

B. Sales people:
Outside sales employees (those who primarily work outside the employer’s place of business) can be exempt from overtime if they meet specific duty requirements under the FLSA. Therefore, they can be exempt in some cases.
C. Managers:
Managers often fall under the executive exemption, especially if they supervise at least two full-time employees and have hiring/firing authority or input. Thus, they can be exempt.
D. Administrative assistants:
This is more nuanced. High-level administrative employees who perform significant decision-making may qualify for the administrative exemption, particularly if they work independently and affect business operations. However, routine clerical administrative assistants are usually nonexempt, so this category can vary. But they can be exempt in specific cases.

Only manual workers are categorically never exempt from overtime. Their work is always subject to the protections of the FLSA, regardless of title, duties, or compensation.

Therefore, the correct answer is A.

Question 9

Holly and Gary are HR Professionals in their organization and they are working to develop the strategic plan for their organization. Holly and Gary are using SWOT analysis to help understand the needs of human, financial, technological, capital, and other aspects of their organization. What is SWOT?

A. SWOT is an analysis to define the strengths, weaknesses, openness, and timeliness of an organization.
B. SWOT is an analysis to define the schedule, weaknesses, opportunities, and timetable of a project endeavor.
C. SWOT is an analysis to define the seriousness, weaknesses, openness, and timetable of organization development.
D. SWOT is an analysis to define the strengths, weaknesses, opportunities, and threats an organization may face.

Correct Answer: D

Explanation:

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a well-established strategic planning tool used by organizations—including HR departments—to assess both internal and external factors that can affect the achievement of goals.

This analytical framework enables businesses and HR professionals to understand:

Strengths: What the organization does well internally—core competencies, skilled workforce, strong brand reputation, effective leadership, etc.
Weaknesses: Internal areas of deficiency—such as limited funding, outdated technology, high employee turnover, or poor communication.
Opportunities: External chances for growth or improvement—such as market expansion, new regulations favoring the business, technological advancements, or strategic partnerships.
Threats: External challenges that may pose risks—such as new competitors, economic downturns, changing regulations, or evolving customer expectations.

Why SWOT is Important in HR Strategic Planning

When HR professionals like Holly and Gary engage in strategic planning, they must align HR initiatives with organizational objectives. Using SWOT helps them:

Evaluate internal workforce strengths and gaps.
Identify areas where HR practices may be underperforming.
Anticipate external trends that could affect recruitment, retention, or compliance.
Develop targeted initiatives such as succession planning, workforce training, and talent acquisition strategies.

Eliminating Other Options:

Option A: Incorrect. “Openness” and “timeliness” are not elements of SWOT.
Option B: Incorrect. “Schedule” and “timetable” relate to project planning, not strategic SWOT analysis.
Option C: Incorrect. “Seriousness” and “openness” are not part of the recognized SWOT acronym or framework.
Option D: Correct. This accurately reflects the four components of SWOT analysis.

Holly and Gary are correctly using SWOT to inform strategic HR planning by assessing internal capabilities and external risks and opportunities. The correct and complete definition is Strengths, Weaknesses, Opportunities, and Threats, making the right answer D.

Question 10

There are many different types of organizations that people create to accomplish business goals. Which business organization has just one person who is responsible for all decisions in the business, retains all profits, and has unlimited personal liability for all business decisions?

A. Partnerships
B. Sole proprietorship
C. Limited liability company
D. Corporation

Correct Answer: B

Explanation:

A sole proprietorship is the simplest and most common form of business ownership. It is owned and operated by one individual who assumes full control over all business operations. This includes decision-making authority, financial responsibility, and legal liability.

Characteristics of a Sole Proprietorship:

Single Owner: The business is owned and run by one person with no legal distinction between the owner and the business.
Complete Control: The owner makes all business decisions independently.
Retention of Profits: All profits generated by the business belong solely to the owner.
Unlimited Personal Liability: The owner is personally liable for all debts and obligations incurred by the business. If the business cannot pay its debts, the owner’s personal assets (like their home or savings) may be at risk.
Ease of Formation and Dissolution: It is relatively easy and inexpensive to set up and dissolve a sole proprietorship, often requiring minimal legal paperwork.

Why the Other Options Are Incorrect:

A. Partnerships: These involve two or more individuals who share decision-making authority, profits, and liabilities. While some partners may have unlimited liability, no single person has sole control or bears all responsibility alone.
C. Limited Liability Company (LLC): An LLC offers liability protection to its owners (called members). This means their personal assets are generally protected from business debts and lawsuits, unlike in a sole proprietorship.
D. Corporation: A corporation is a separate legal entity owned by shareholders. It limits the personal liability of its owners, meaning they are typically not personally responsible for business debts or legal actions.

A sole proprietorship is the only business structure listed where one person bears full responsibility for all decisions, retains all profits, and is personally liable for all business obligations. It offers full control but comes with significant financial risk due to the lack of liability protection.

Therefore, the correct answer is B.