PHR Certification Exam 2023 with complete solution
Accounts Payable
Money an organization owes its vendors and suppliers.
Accounts Receivable
Money an organization's customers owe the organization.
Action Plans
Detailed steps a unit, department, or team will take in order to achieve short-term
objectives.
Amendment
Modification or the Constitution or a law; modification may be either formal (written) or
informal (unwritten).
Assets
Financial, physical, and sometiems intangible properties an organization owns.
Balance Sheet
Statement of a firm's financial position at a particular time.
Balanced scorecard
Measurement approach that provides an overall picture of an organization's
performance as measured against goals in finance, customers, internal business
processes, and learning and growth.
Bill
Proposal presented to a legislative body for possible enactment as a law.
Break-even analysis
Analysis that shows point in time at which total revenue associated with a program is
equal to the total cost of the program.
Business Case
Description of an organizational challenge and possible alternative solutions, arguing for
specific solution.
Capacity
To an operations department, the ability to yield output.
Cash flow statement
Record of how much cash is flowing into and out of an organization, including its
sources or destinations.
Centralization
Degree to which decision-making authority is restricted to higher levels of management
in an organization.
Code of ethics
Principles of conduct within an organization that guide decision making and behavior.
Consumer price index
Measure of the average change over time in the prices paid by consumers for goods
and services.
Control
To an operations department, an after-the-fact evaluation of a company's ability to meet
its own specifications and its customers' needs.
Correlation
Measure that indicates the relationship between two variables.
,Cost-benefit analysis
Ratio of value created to cost of creating that value; allows management to determine
the financial impact particular activities and programs have on an organization's
profitability.
Decentralization
Degree to which decision-making authority is given to lower levels in an organization's
hierarchy.
Departmentalization
Way an organization groups jobs to coordinate work.
Divestiture
Sale by a company of an asset that is not performing well, that is not core to the
company's business, or that is worth more as a separate entity.
Divisional structure
Organizational structure in which segments ae separated by product, customer or
market, or region.
Due diligence
Process of conducting an intensive investigation of an organization as one of the first
steps in a pending merger or acquisition.
Electronic Communications Privacy Act (ECPA)
Act that makes it unlawful to intercept messages in transmission, access stored
information on electronic communication services, or disclose this information.
Enterprise management
Integrated processes and tools to allow information sharing and process management
across functions, sometimes even with external partners, such as suppliers.
Environmental scanning
Process that involves a systematic survey and interpretation of relevant data to identify
external opportunities and threats.
Equity
Amount of owners' or shareholders' portion of a business.
Ethics
System of moral principles and values that establish appropriate conduct.
Extended organization
Alliance between organizations to create processes and information channels that allow
communication and collaboration.
Financial ratios
Calculations designed to describe an organization's financial health and performance
from various perspectives.
Foreign Corrupt Practices Act (FCPA)
Prohibits American companies from making corrupt payments to foreign officials for the
purpose of obtaining or keeping business.
Formula budgeting
Form of budgeting in which an average cost is applied to comparable expenses and
general funding is changed by a specific amount.
Functional structure
Organizational structure that defines departments by what services they contribute to
the organization's overall mission.
, Gantt chart
Project planning tool that graphically displays activities of a project in sequential order
and plots them against time.
Generation X
Group of people born roughly between the years of 1965 - 1980
Generation Y
Group of people born after 1980.
Gross domestic product (GDP)
Estimate of the total value of goods and services produced in a country in a given year.
Gross profit margin
Ratio of gross profit to net sales.
HR audit
Process to measure the effectiveness and efficiency of HR programs and positions.
Human capital
Combined knowledge, skills, and experience of a company's employees.
Human resource information system (HRIS)
Systematic tool for gathering, storing, maintaining, retrieving, and revising HR data.
Human resource management (HRM)
Design of formal systems in an organization that ensure the effective and efficient use
of human capital to accomplish organizational goals.
Income statement
Statement comparing revenues, expenses, and profits over a specified period of time,
usually a year or a quarter.
Incremental budgeting
Form of budgeting in which the prior budget is the basis for allocation of funds.
Inventory
To an operations department, an organization's major asset after physical buildings and
equipment.
Key performance indicators (KPIs)
Quantifiable measures of performances used to gauge progress toward strategic
objectives or agreed standards of performance.
Liabilities
Organization's debts and other financial obligations.
Line units
Work groups that conduct the major business of an organization.
Long-term objectives
Specific results, to be accomplished in three to five years, that an organization seeks to
achieve in pursuing its mission.
Marketing
Process of planning, pricing, promoting, and distributing goods and services to satisfy
organizational objectives.
Matrix structure
Organizational structure that combines departmentalization by division and function to
gain the benefits of both.
Mean
Average score or value in a set of data.
Accounts Payable
Money an organization owes its vendors and suppliers.
Accounts Receivable
Money an organization's customers owe the organization.
Action Plans
Detailed steps a unit, department, or team will take in order to achieve short-term
objectives.
Amendment
Modification or the Constitution or a law; modification may be either formal (written) or
informal (unwritten).
Assets
Financial, physical, and sometiems intangible properties an organization owns.
Balance Sheet
Statement of a firm's financial position at a particular time.
Balanced scorecard
Measurement approach that provides an overall picture of an organization's
performance as measured against goals in finance, customers, internal business
processes, and learning and growth.
Bill
Proposal presented to a legislative body for possible enactment as a law.
Break-even analysis
Analysis that shows point in time at which total revenue associated with a program is
equal to the total cost of the program.
Business Case
Description of an organizational challenge and possible alternative solutions, arguing for
specific solution.
Capacity
To an operations department, the ability to yield output.
Cash flow statement
Record of how much cash is flowing into and out of an organization, including its
sources or destinations.
Centralization
Degree to which decision-making authority is restricted to higher levels of management
in an organization.
Code of ethics
Principles of conduct within an organization that guide decision making and behavior.
Consumer price index
Measure of the average change over time in the prices paid by consumers for goods
and services.
Control
To an operations department, an after-the-fact evaluation of a company's ability to meet
its own specifications and its customers' needs.
Correlation
Measure that indicates the relationship between two variables.
,Cost-benefit analysis
Ratio of value created to cost of creating that value; allows management to determine
the financial impact particular activities and programs have on an organization's
profitability.
Decentralization
Degree to which decision-making authority is given to lower levels in an organization's
hierarchy.
Departmentalization
Way an organization groups jobs to coordinate work.
Divestiture
Sale by a company of an asset that is not performing well, that is not core to the
company's business, or that is worth more as a separate entity.
Divisional structure
Organizational structure in which segments ae separated by product, customer or
market, or region.
Due diligence
Process of conducting an intensive investigation of an organization as one of the first
steps in a pending merger or acquisition.
Electronic Communications Privacy Act (ECPA)
Act that makes it unlawful to intercept messages in transmission, access stored
information on electronic communication services, or disclose this information.
Enterprise management
Integrated processes and tools to allow information sharing and process management
across functions, sometimes even with external partners, such as suppliers.
Environmental scanning
Process that involves a systematic survey and interpretation of relevant data to identify
external opportunities and threats.
Equity
Amount of owners' or shareholders' portion of a business.
Ethics
System of moral principles and values that establish appropriate conduct.
Extended organization
Alliance between organizations to create processes and information channels that allow
communication and collaboration.
Financial ratios
Calculations designed to describe an organization's financial health and performance
from various perspectives.
Foreign Corrupt Practices Act (FCPA)
Prohibits American companies from making corrupt payments to foreign officials for the
purpose of obtaining or keeping business.
Formula budgeting
Form of budgeting in which an average cost is applied to comparable expenses and
general funding is changed by a specific amount.
Functional structure
Organizational structure that defines departments by what services they contribute to
the organization's overall mission.
, Gantt chart
Project planning tool that graphically displays activities of a project in sequential order
and plots them against time.
Generation X
Group of people born roughly between the years of 1965 - 1980
Generation Y
Group of people born after 1980.
Gross domestic product (GDP)
Estimate of the total value of goods and services produced in a country in a given year.
Gross profit margin
Ratio of gross profit to net sales.
HR audit
Process to measure the effectiveness and efficiency of HR programs and positions.
Human capital
Combined knowledge, skills, and experience of a company's employees.
Human resource information system (HRIS)
Systematic tool for gathering, storing, maintaining, retrieving, and revising HR data.
Human resource management (HRM)
Design of formal systems in an organization that ensure the effective and efficient use
of human capital to accomplish organizational goals.
Income statement
Statement comparing revenues, expenses, and profits over a specified period of time,
usually a year or a quarter.
Incremental budgeting
Form of budgeting in which the prior budget is the basis for allocation of funds.
Inventory
To an operations department, an organization's major asset after physical buildings and
equipment.
Key performance indicators (KPIs)
Quantifiable measures of performances used to gauge progress toward strategic
objectives or agreed standards of performance.
Liabilities
Organization's debts and other financial obligations.
Line units
Work groups that conduct the major business of an organization.
Long-term objectives
Specific results, to be accomplished in three to five years, that an organization seeks to
achieve in pursuing its mission.
Marketing
Process of planning, pricing, promoting, and distributing goods and services to satisfy
organizational objectives.
Matrix structure
Organizational structure that combines departmentalization by division and function to
gain the benefits of both.
Mean
Average score or value in a set of data.
