Exam Content Outlines
Below are the sections of the exam content outlines for this functional area. These specifications detail the responsibilities and knowledge covered on the certification exams.
PHR Functional Area 01: Business Management (20%)
Responsibilities:
01 Interpret and apply information related to general business environment and industry best practices.
02 Reinforce the organization’s core values, ethical and behavioral expectations through modeling, communication and coaching.
03 Understand the role of cross-functional stakeholders in the organization and establish relationships to influence decision making.
04 Recommend and implement best practices to mitigate risk. (for example: lawsuits, internal/external threats).
05 Determine the significance of data for recommending organizational strategies. (for example: attrition rates, diversity in hiring, time to hire, time to fill, ROI, success of training).
Knowledge of:
01 Vision, mission, values, and structure of the organization.
02 Legislative and regulatory knowledge and procedures
03 Corporate governance procedures and compliance
04 Employee communications
05 Ethical and professional standards
06 Business elements of an organization (for example, cross-departments, products, competition, customers, technology, demographics, culture, processes, safety and security)
07 Existing HRIS, reporting tools, and other systems for effective data reporting and analysis
08 Change management theory, methods, and application
09 Risk management
10 Qualitative and quantitative methods and tools for analytics
11 Dealing with situations that are uncertain, unclear or chaotic
SPHR Functional Area 1: Leadership and Strategy (40%)
Responsibilities
01 Develop and execute HR plans that are aligned to the organization’s strategic plan (e.g., strategic plans, budgets, business plans, service delivery plans, HRIS, technology).
02 Evaluate the applicability of federal laws and regulations to organizational strategy (e.g., policies, programs, practices, business expansion/reduction).
03 Analyze and assess organizational practices that impact operations and people management to decide on the best available risk management strategy (e.g., avoidance, mitigation, acceptance).
04 Interpret and use business metrics to assess and drive achievement of strategic goals and objectives (e.g., key performance indicators, financial statements, budgets).
05 Design and evaluate HR data indicators to inform strategic actions within the organization (e.g., turnover rates, cost per hire, retention rates).
06 Evaluate credibility and relevance of external information to make decisions and recommendations (e.g., salary data, management trends, published surveys and studies, legal/regulatory analysis).
07 Contribute to the development of the organizational strategy and planning (e.g., vision, mission, values, ethical conduct).
08 Develop and manage workplace practices that are aligned with the organization’s statements of vision, values and ethics to shape and reinforce organizational culture.
09 Design and manage effective change strategies to align organizational performance with the organization’s strategic goals.
10 Establish and manage effective relationships with key stakeholders to influence organizational behavior and outcomes.
Knowledge of
01 Vision, mission and values of an organization Legal and regulatory requirements
02 Strategic planning process
03 Management functions, including planning, organizing, directing, and controlling
04 Corporate governance procedures and compliance
05 Business elements of an organization (for example, products, competition, customers, technology, demographics, culture, processes, safety and security)
06 Third-party or vendor selection, contract negotiation, and management, including development of requests for proposals (RFPs)
07 Project management (for example, goals, timetables, deliverables, and procedures)
08 Technology to support HR activities
09 Budgeting, accounting, and financial concepts (for example, evaluating financial statements, budgets, accounting terms, and cost management)
10 Techniques and methods for organizational design (for example outsourcing, shared services, organizational structures)
11 Methods of gathering data for strategic planning purposes (for example: Strengths, Weaknesses, Opportunities, and Threats [SWOT], and Political, Economic, Social, and Technological [PEST])
12 Qualitative and quantitative methods and tools for analysis, interpretation, and decision-making purposes
13 Change management processes and techniques
14 Techniques for forecasting, planning, and predicting the impact of HR activities and programs across functional areas
15 Risk management
16 Dealing with situations that are uncertain, unclear or chaotic