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SPHR Questions - Part 40

Jenny Clarke

Wed, 05 Nov 2025

1. A code of conduct is primarily used by companies that wish to do which of the following?

A) Work toward preventing disciplinary action through clearly communicated behavior standards
B) Provide equal opportunity for all employees
C) Discourage violations of company policy
D) Establish the framework for a discipline system



2. Management and human resource professionals must be aware of unlawful interference with union activities. One such method to remember what employers may do is called the TIPS approach. What does TIPS mean?

A) TIPS refers to the four actions employers cannot legally do: terminate, instigate, police, and sever
B) TIPS refers to the four actions employers cannot legally do: threaten, interrogate, promise, and spy
C) TIPS refers to the four actions employers cannot legally do: threaten, investigate, police, and spy
D) TIPS refers to the four actions employers cannot legally do: terminate, investigate, promise, and segregate



3. Which of the following is an example of direct compensation?

A) Employer Social Security contributions
B) 401(k) matches
C) Vacation pay
D) Variable compensation



4. A board of directors can have an inside director and an outside director. What is an inside director?

A) It is an employee that serves as the director for the corporation's board, but also has operational responsibilities, such as the CEO or CFO.
B) It is the director of the corporation's board that also started the corporation.
C) It is an employee that also serves as the director for the corporation's board.
D) It is an employee that has been hired by the company to be the director of the board.



5. For purposes of developing a security program, an HR manager must assess potential risks and costs related to loss and protection. Which factor must the manager first examine?

A) Severity of impact of the loss to the organization
B) Cost of the loss, including a permanent or temporary substitute
C) Degree of probability that the loss will occur
D) Availability and cost of insurance to cover the loss



1. Right Answer: A
Explanation: Answer option A is correct.A code of conduct is one tool used by employers to clearly communicate company expectations. With regular feedback, employees are given the opportunity to succeed in their jobs based on organizational needs. A code of conduct is not the foundation of a system (D), nor does it focus on providing EEO in employment(B) or discourage violations of company policy (C). See Chapter 7 for more information.Chapter: Employee and Labor RelationsObjective: Employee Relations

2. Right Answer: B
Explanation: Answer option B is correct.TIPS refers to the four actions employers cannot legally do: threaten, interrogate, promise, and spy.Answer options D, C, and A are incorrect. These are not valid definitions of TIPS. TIPS means that an employer cannot threaten, interrogate, promise, and spy.Reference: Professional in Human Resources Certification Guide, Sybex, ISBN: 978-0-470-43096-5. Chapter 7: Employee and Labor Relations. Official PHR andSPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.Chapter: Employee and Labor RelationsObjective: Labor Relations

3. Right Answer: D
Explanation: Answer option D is correct.Direct compensation is composed of base pay (hourly wage or salary), variable compensation, and pay for performance. Vacation pay (C), 401(k) matches (B), and employer Social Security contributions (A) are examples of indirect compensation. See Chapter 6 for more information.Chapter: Compensation and BenefitsObjective: Total Rewards Defined

4. Right Answer: A
Explanation: Answer option A is correct.Of all the choices, A is the best answer. An inside director of the board also serves as an operation lead in the corporation, such as the CEO or CFO. An outside director is someone who is not employed by the corporation and does not have operation responsibilities.Answer option C is incorrect. This answer is technically correct, but it is not the best choice for the question.Answer options B and D are incorrect. These aren't valid definitions of an inside director.Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 978-0-470-43096-5. Chapter Four: Workforce Planning and Employment.Chapter: Business Management and StrategyObjective: Corporate Governanc

5. Right Answer: C
Explanation: Answer option C is correct.The significance of various security issues depends partly on the size of the organization. However, regardless of size, the same considerations go into assessing vulnerabilities and the method for estimating the cost of potential losses. The justification of such a program requires that the potential losses will exceed the cost of the program. See Chapter 8 for more information.Chapter: Risk Management -Objective: Risk Management

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