PHR® Exam
Actual Questions and Answers
Professional in Human Resources (PHR) Certification
Covers all major PHR content domains:
Business Management & Strategy
Talent Planning & Acquisition
Learning & Development
Total Rewards
Employee & Labor Relations
Health, Safety, Security & Compliance
,1. What is the primary purpose of a mission statement?
A. To describe the organization's core purpose and reason for existing
B. To set specific quarterly sales targets
C. To list company policies
D. To outline the organizational chart
Answer: A
Rationale: A mission statement communicates why an organization exists and what
it does. A vision statement describes future aspirations, while policies and org charts
serve different purposes.
2. A SWOT analysis examines which four factors?
A. Sales, Workforce, Operations, Training
B. Strengths, Weaknesses, Opportunities, Threats
C. Staffing, Wages, Output, Turnover
D. Skills, Work, Objectives, Time
Answer: B
Rationale: SWOT is a strategic planning tool that assesses internal
Strengths/Weaknesses and external Opportunities/Threats.
3. Which step typically occurs first in the strategic planning process?
A. Implementing the plan
B. Conducting an environmental scan
C. Allocating the annual budget
D. Evaluating employee performance
Answer: B
Rationale: Environmental scanning (internal and external analysis) provides the
information needed before goals and strategies can be developed.
4. In a functional organizational structure, employees are grouped by:
A. Product line
B. Geographic region
C. Specialized function (e.g., marketing, finance, HR)
D. Customer type
Answer: C
, Rationale: Functional structures organize departments around areas of specialization
rather than products, regions, or customer segments.
5. Benchmarking is best described as:
A. Comparing organizational practices or metrics against industry leaders or
competitors
B. Conducting a job analysis
C. Forecasting turnover
D. Auditing payroll records
Answer: A
Rationale: Benchmarking identifies best practices by comparing an organization's
processes and metrics to top-performing peers.
6. Which HR metric is calculated as (number of separations during a period / average
number of employees) x 100?
A. Turnover rate
B. Absence rate
C. Cost per hire
D. Yield ratio
Answer: A
Rationale: Turnover rate measures the percentage of employees who leave an
organization during a defined period.
7. The term "core competencies" refers to:
A. Mandatory annual training topics
B. The unique capabilities that give an organization a competitive advantage
C. Entry-level job qualifications
D. Union bargaining topics
Answer: B
Rationale: Core competencies are the distinctive strengths and resources a company
leverages to differentiate itself from competitors.
8. A matrix organizational structure is characterized by:
A. A single chain of command
B. Employees reporting to both a functional manager and a project manager
C. No formal management
D. Strict geographic divisions
Actual Questions and Answers
Professional in Human Resources (PHR) Certification
Covers all major PHR content domains:
Business Management & Strategy
Talent Planning & Acquisition
Learning & Development
Total Rewards
Employee & Labor Relations
Health, Safety, Security & Compliance
,1. What is the primary purpose of a mission statement?
A. To describe the organization's core purpose and reason for existing
B. To set specific quarterly sales targets
C. To list company policies
D. To outline the organizational chart
Answer: A
Rationale: A mission statement communicates why an organization exists and what
it does. A vision statement describes future aspirations, while policies and org charts
serve different purposes.
2. A SWOT analysis examines which four factors?
A. Sales, Workforce, Operations, Training
B. Strengths, Weaknesses, Opportunities, Threats
C. Staffing, Wages, Output, Turnover
D. Skills, Work, Objectives, Time
Answer: B
Rationale: SWOT is a strategic planning tool that assesses internal
Strengths/Weaknesses and external Opportunities/Threats.
3. Which step typically occurs first in the strategic planning process?
A. Implementing the plan
B. Conducting an environmental scan
C. Allocating the annual budget
D. Evaluating employee performance
Answer: B
Rationale: Environmental scanning (internal and external analysis) provides the
information needed before goals and strategies can be developed.
4. In a functional organizational structure, employees are grouped by:
A. Product line
B. Geographic region
C. Specialized function (e.g., marketing, finance, HR)
D. Customer type
Answer: C
, Rationale: Functional structures organize departments around areas of specialization
rather than products, regions, or customer segments.
5. Benchmarking is best described as:
A. Comparing organizational practices or metrics against industry leaders or
competitors
B. Conducting a job analysis
C. Forecasting turnover
D. Auditing payroll records
Answer: A
Rationale: Benchmarking identifies best practices by comparing an organization's
processes and metrics to top-performing peers.
6. Which HR metric is calculated as (number of separations during a period / average
number of employees) x 100?
A. Turnover rate
B. Absence rate
C. Cost per hire
D. Yield ratio
Answer: A
Rationale: Turnover rate measures the percentage of employees who leave an
organization during a defined period.
7. The term "core competencies" refers to:
A. Mandatory annual training topics
B. The unique capabilities that give an organization a competitive advantage
C. Entry-level job qualifications
D. Union bargaining topics
Answer: B
Rationale: Core competencies are the distinctive strengths and resources a company
leverages to differentiate itself from competitors.
8. A matrix organizational structure is characterized by:
A. A single chain of command
B. Employees reporting to both a functional manager and a project manager
C. No formal management
D. Strict geographic divisions
