HRCI Test Specifications

Below is a list of HRCI Test Specifications for this functional area, as well as the core knowledge that is relevant to all functional areas of the PHR and SPHR exams. These specifications detail the responsibilities and knowledge covered on the certification exam. The item numbering is not sequential here because it reflects the numbering system employed in the HRCI Test Specifications.

Functional Area 01: Business Management & Strategy (11%, 30%)

Developing, contributing to, and supporting the organization’s mission, vision, values, strategic goals and objectives; formulating policies; guiding and leading the change process; and evaluating organizational effectiveness as an organizational leader.

Responsibilities:

01     Interpret and apply information related to the organization’s operations from internal sources, including finance, accounting, business development, marketing, sales, operations, and information technology, in order to contribute to the development of the organization’s strategic plan.

02     Interpret information from external sources related to the general business environment, industry practices and developments, technological advances, economic environment, labor force, and the legal and regulatory environment, in order to contribute to the development of the organization’s strategic plan.

03     Participate as a contributing partner in the organization’s strategic planning process (for example: provide and lead workforce planning discussion with management, develop and present long-term forecast of human capital needs at the organizational level). SPHR only

04     Establish strategic relationships with key individuals in the organization to influence organizational decision-making.

05     Establish relationships/alliances with key individuals and outside organizations to assist in achieving the organization’s strategic goals and objectives (for example: corporate social responsibility and community partnership).

06     Develop and utilize business metrics to measure the achievement of the organization’s strategic goals and objectives (for example: key performance indicators, balanced scorecard). SPHR only

07     Develop, influence, and execute strategies for managing organizational change that balance the expectations and needs of the organization, its employees, and other stakeholders.

08     Develop and align the human resource strategic plan with the organization’s strategic plan. SPHR only

09     Facilitate the development and communication of the organization’s core values, vision, mission, and ethical behaviors.

10     Reinforce the organization’s core values and behavioral expectations through modeling, communication, and coaching.

11     Provide data such as human capital projections and costs that support the organization’s overall budget.

12     Develop and execute business plans (i.e., annual goals and objectives) that correlate with the organization’s strategic plan’s performance expectations to include growth targets, new programs/services, and net income expectations. SPHR only

13     Perform cost/benefit analyses on proposed projects. SPHR only

14     Develop and manage an HR budget that supports the organization’s strategic goals, objectives, and values. SPHR only

15     Monitor the legislative and regulatory environment for proposed changes and their potential impact to the organization, taking appropriate proactive steps to support, modify, or oppose the proposed changes.

16     Develop policies and procedures to support corporate governance initiatives (for example: whistleblower protection, code of ethics). SPHR only

17     Participate in enterprise risk management by ensuring that policies contribute to protecting the organization from potential risks.

18     Identify and evaluate alternatives and recommend strategies for vendor selection and/or outsourcing. SPHR only

19     Oversee or lead the transition and/or implementation of new systems, service centers, and outsourcing. SPHR only

20     Participate in strategic decision-making and due diligence activities related to organizational structure and design (for example: corporate restructuring, mergers and acquisitions, divestitures). SPHR only

21     Determine strategic application of integrated technical tools and systems (for example: new enterprise software, performance management tools, self-service technologies). SPHR only

Knowledge of:

1     The organization’s mission, vision, values, business goals, objectives, plans, and processes

2     Legislative and regulatory processes

3     Strategic planning process, design, implementation, and evaluation

4     Management functions, including planning, organizing, directing, and controlling

5     Corporate governance procedures and compliance (for example: Sarbanes-Oxley Act)

6     Due diligence processes (for example: mergers and acquisitions, divestitures) SPHR only

7     Transition techniques for corporate restructuring, mergers and acquisitions, offshoring, and divestitures SPHR only

8     Elements of a cost-benefit analysis during the life cycle of the business (such as scenarios for growth, including expected, economic stressed, and worst case conditions) and the impact to net worth/earnings for short-, mid-, and long-term horizons

9     Business concepts (for example: competitive advantage, organizational branding, business case development, corporate responsibility)

10     Business processes (for example: operations, sales and marketing, data management)

Core Knowledge:

76     Needs assessment and analysis

77     Third-party or vendor selection, contract negotiation, and management, including development of requests for proposals (RFPs).

78     Communication skills and strategies (for example: presentation, collaboration, sensitivity).

79     Organizational documentation requirements to meet federal and state guidelines.

80     Adult learning processes

81     Motivation concepts and applications

82     Training techniques (for example: virtual, classroom, on-the-job)

83     Leadership concepts and applications

84     Project management concepts and applications

85     Diversity concepts and applications (for example: generational, cultural competency, learning styles)

86     Human relations concepts and applications (for example: emotional intelligence, organizational behavior)

87     Ethical and professional standards

88     Technology to support HR activities (for example: HR Information Systems, employee self-service, e-learning, applicant tracking systems)

89     Qualitative and quantitative methods and tools for analysis, interpretation, and decision-making purposes (for example: metrics and measurements, cost/benefit analysis, financial statement analysis)

90     Change management theory, methods, and application

91     Job analysis and job description

92     Employee records management (for example: electronic/paper, retention, disposal)

93     Techniques for forecasting, planning, and predicting the impact of HR activities and programs across functional areas

94     Types of organizational structures (for example: matrix, hierarchy)

95 Environmental scanning concepts and applications (for example: Strengths, Weaknesses, Opportunities, and Threats [SWOT], and Political, Economic, Social, and Technological [PEST])

96     Methods for assessing employee attitudes, opinions, and satisfaction (for example: surveys, focus groups/panels)

97     Budgeting, accounting, and financial concepts

98     Risk-management techniques