SPHR TEST PREP CHAPTER 7
LEADERSHIP AND STRATEGY EXAM
2025 QUESTIONS AND ANSWERS
HR participates in the strategic planning process by doing which of the following?
a Formulating the strategy
b Scanning the environment
c Providing expertise
d Identifying strategic goals - ANS Providing Expertise. HR Participates in strategic planning
process by providing expertise on attracting, retaining, and managing qualified workforce.
Formulating strategy-executive team
Environmental Scanning-each business function
Strategic goals-identified by executive team
What is a statement that describes what an organization does that is different from others?
Values Statement
Corporate Goal
Vision Statement
Mission Statement - ANS Mission Statement b/c it describes who the organization is, what it
does, where it is going, and how it is different from others.
Corp value statement- communicates executive teams expectations for the way the
organization conducts business.
Corp goals-describes what the organization plans to achieve in the future.
Vision statement-short, inspirational statement of what the org will accomplish in the future.
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, What is the purpose of an HR budget? - ANS To determine how much cash is required to
achieve a goal. EX. Addition of employees, costs to train, purchase of new equipment
Salaries, payroll taxes, and benefits are all examples of which of the following HR activities?
a Conducting a business impact measure
b Creating an HR budget
c Creating a compensation strategy
d Analyzing the cost of recruiting - ANS Creating an HR budget. Costs associated with having
an employee. (travel, training, payroll, benefits, equipment, etc)
Based on an analysis of the industry and labor market trends, a VP of human resources has
determined that the best course of action for her company is to change from a narrow to a
broadband salary structure. The current structure has been in place for more than 15 tears and
the VP is anticipating strong resistance to making the change. Which of the following tools
should the VP use to convince the executive team to make the change?
Calculate ROI
Build Business Case
Calculate Cost benefit analysis
Conduct SWOT analysis - ANS Build business case. Business case lays out the desired result of
an action or program, presents alternative solutions, and describes possible risks from
implementing/not the action and defines the criteria to measure success.
ROI and CBA may be included in business case
SWOT would identify the need for the action/program.
Which of the following is not an appropriate use of an HRIS?
Tracking applicant data for the EEO-1
Tracking time and attendance
Tracking employee expense reports
Maintaining employee records - ANS Tracking employee expense reports. HRIS Systems are
designed to house virtual employee file. Purposes are to store info and to aid in operational
efficiencies of an HR dept.
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
LEADERSHIP AND STRATEGY EXAM
2025 QUESTIONS AND ANSWERS
HR participates in the strategic planning process by doing which of the following?
a Formulating the strategy
b Scanning the environment
c Providing expertise
d Identifying strategic goals - ANS Providing Expertise. HR Participates in strategic planning
process by providing expertise on attracting, retaining, and managing qualified workforce.
Formulating strategy-executive team
Environmental Scanning-each business function
Strategic goals-identified by executive team
What is a statement that describes what an organization does that is different from others?
Values Statement
Corporate Goal
Vision Statement
Mission Statement - ANS Mission Statement b/c it describes who the organization is, what it
does, where it is going, and how it is different from others.
Corp value statement- communicates executive teams expectations for the way the
organization conducts business.
Corp goals-describes what the organization plans to achieve in the future.
Vision statement-short, inspirational statement of what the org will accomplish in the future.
1 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
, What is the purpose of an HR budget? - ANS To determine how much cash is required to
achieve a goal. EX. Addition of employees, costs to train, purchase of new equipment
Salaries, payroll taxes, and benefits are all examples of which of the following HR activities?
a Conducting a business impact measure
b Creating an HR budget
c Creating a compensation strategy
d Analyzing the cost of recruiting - ANS Creating an HR budget. Costs associated with having
an employee. (travel, training, payroll, benefits, equipment, etc)
Based on an analysis of the industry and labor market trends, a VP of human resources has
determined that the best course of action for her company is to change from a narrow to a
broadband salary structure. The current structure has been in place for more than 15 tears and
the VP is anticipating strong resistance to making the change. Which of the following tools
should the VP use to convince the executive team to make the change?
Calculate ROI
Build Business Case
Calculate Cost benefit analysis
Conduct SWOT analysis - ANS Build business case. Business case lays out the desired result of
an action or program, presents alternative solutions, and describes possible risks from
implementing/not the action and defines the criteria to measure success.
ROI and CBA may be included in business case
SWOT would identify the need for the action/program.
Which of the following is not an appropriate use of an HRIS?
Tracking applicant data for the EEO-1
Tracking time and attendance
Tracking employee expense reports
Maintaining employee records - ANS Tracking employee expense reports. HRIS Systems are
designed to house virtual employee file. Purposes are to store info and to aid in operational
efficiencies of an HR dept.
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
