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 (e.g., lawsuits, internal/external threats).

05    Determine the significance of data for recommending organizational strategies (e.g., 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 (e.g., 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 (e.g., 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 (e.g., goals, timetables, deliverables, and procedures)

08    Technology to support HR activities

09    Budgeting, accounting, and financial concepts (e.g., evaluating financial statements, budgets, accounting terms, and cost management)

10    Techniques and methods for organizational design (e.g., outsourcing, shared services, organizational structures)

11    Methods of gathering data for strategic planning purposes (e.g., 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