PSHRA CERTIFICATION PREMIUM REVIEW
COLLECTION 2026 TESTED MATERIALS
◉ The Principal Agent Problem. Answer: does as little as possible
because the pay or reward is the same no matter what the outcome
is
◉ Ishikawa Diagram. Answer: AKA Fishbone Diagram
Categorizes potential causes of a problem to identify its root causes
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◉ Golden Handshake. Answer: Payment given to someone who is
laid off or retires early
◉ Golden Handcuffs. Answer: (mainly benefits) payments provided
by an employer to discourage an employee from taking employment
elsewhere
,◉ Golden Parachute. Answer: Large payment or financial
compensation guaranteed to a company executive should they be
dismissed bc of a merger or takeover
◉ Golden Life Jacket. Answer: Large compensation package offered
to executives going through a merger to induce them to study
◉ Balanced Scorecard. Answer: 4 different ways
1. Financial
2. Customers
3. Internal (internal processes)
4. People
◉ Two core areas for success of HR Professionals. Answer: 1. Basic
understanding and knowledge of core competencies
2. Being able to translate these competencies to business success
◉ Green Circle Employees. Answer: individuals that fall below the
minimum of the organization's pay range
, ◉ Concurrent Validity. Answer: evidence that can be gathered to
defend the use of a test for predicting other outcomes
◉ Face validity. Answer: Making a decision on the appropriateness
of a test based on the appearance rather than objective criteria
◉ Fair Labor Standards act of 1938. Answer: Act that set up basic
min. wage and overtime pay
◉ Buffer Stock. Answer: Stock accrued by gov. when supplies are
plentiful and prices are cheap and used when supplies are short in
effort to stabilize the price (also known as reverse stock)
◉ Hardship premiums. Answer: Extra compensation for difficult
living conditions
◉ Employee Buyout (EBO). Answer: when employees pull together
money to buy a majority stake in the company
◉ Cliff vesting. Answer: when an employee becomes fully vested at a
specified time, rather than partially vested over long period of time
◉ Graded Vesting. Answer: schedule used for vesting over 5-15 yrs
COLLECTION 2026 TESTED MATERIALS
◉ The Principal Agent Problem. Answer: does as little as possible
because the pay or reward is the same no matter what the outcome
is
◉ Ishikawa Diagram. Answer: AKA Fishbone Diagram
Categorizes potential causes of a problem to identify its root causes
\\\\\
------->
/////
◉ Golden Handshake. Answer: Payment given to someone who is
laid off or retires early
◉ Golden Handcuffs. Answer: (mainly benefits) payments provided
by an employer to discourage an employee from taking employment
elsewhere
,◉ Golden Parachute. Answer: Large payment or financial
compensation guaranteed to a company executive should they be
dismissed bc of a merger or takeover
◉ Golden Life Jacket. Answer: Large compensation package offered
to executives going through a merger to induce them to study
◉ Balanced Scorecard. Answer: 4 different ways
1. Financial
2. Customers
3. Internal (internal processes)
4. People
◉ Two core areas for success of HR Professionals. Answer: 1. Basic
understanding and knowledge of core competencies
2. Being able to translate these competencies to business success
◉ Green Circle Employees. Answer: individuals that fall below the
minimum of the organization's pay range
, ◉ Concurrent Validity. Answer: evidence that can be gathered to
defend the use of a test for predicting other outcomes
◉ Face validity. Answer: Making a decision on the appropriateness
of a test based on the appearance rather than objective criteria
◉ Fair Labor Standards act of 1938. Answer: Act that set up basic
min. wage and overtime pay
◉ Buffer Stock. Answer: Stock accrued by gov. when supplies are
plentiful and prices are cheap and used when supplies are short in
effort to stabilize the price (also known as reverse stock)
◉ Hardship premiums. Answer: Extra compensation for difficult
living conditions
◉ Employee Buyout (EBO). Answer: when employees pull together
money to buy a majority stake in the company
◉ Cliff vesting. Answer: when an employee becomes fully vested at a
specified time, rather than partially vested over long period of time
◉ Graded Vesting. Answer: schedule used for vesting over 5-15 yrs
