PHR Certification
Exam Review 2023 Update
Accounts Payable - ANS-Money an organization owes its vendors and suppliers.
Accounts Receivable - ANS-Money a... [Show More] n organization's customers owe the organization.
Action Plans - ANS-Detailed steps a unit, department, or team will take in order to
achieve short-term objectives.
Amendment - ANS-Modification or the Constitution or a law; modification may be either
formal (written) or informal (unwritten).
Assets - ANS-Financial, physical, and sometiems intangible properties an organization
owns.
Balance Sheet - ANS-Statement of a firm's financial position at a particular time.
Balanced scorecard - ANS-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 - ANS-Proposal presented to a legislative body for possible enactment as a law.
Break-even analysis - ANS-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 - ANS-Description of an organizational challenge and possible
alternative solutions, arguing for specific solution.
Capacity - ANS-To an operations department, the ability to yield output.
Cash flow statement - ANS-Record of how much cash is flowing into and out of an
organization, including its sources or destinations.
Centralization - ANS-Degree to which decision-making authority is restricted to higher
levels of management in an organization.
Code of ethics - ANS-Principles of conduct within an organization that guide decision
making and behavior.
Consumer price index - ANS-Measure of the average change over time in the prices
paid by consumers for goods and services.
Control - ANS-To an operations department, an after-the-fact evaluation of a company's
ability to meet its own specifications and its customers' needs.
Correlation - ANS-Measure that indicates the relationship between two variables.
Cost-benefit analysis - ANS-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 - ANS-Degree to which decision-making authority is given to lower
levels in an organization's hierarchy.
Departmentalization - ANS-Way an organization groups jobs to coordinate work.
Divestiture - ANS-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 - ANS-Organizational structure in which segments ae separated by
product, customer or market, or region.
Due diligence - ANS-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) - ANS-Act that makes it unlawful to
intercept messages in transmission, access stored information on electronic
communication services, or disclose this information.
Enterprise management - ANS-Integrated processes and tools to allow information
sharing and process management across functions, sometimes even with external
partners, such as suppliers.
Environmental scanning - ANS-Process that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats.
Equity - ANS-Amount of owners' or shareholders' portion of a business.
Ethics - ANS-System of moral principles and values that establish appropriate conduct.
Extended organization - ANS-Alliance between organizations to create processes and
information channels that allow communication and collaboration.
Financial ratios - ANS-Calculations designed to describe an organization's financial
health and performance from various perspectives.
Foreign Corrupt Practices Act (FCPA) - ANS-Prohibits American companies from
making corrupt payments to foreign officials for the purpose of obtaining or keeping
business.
Formula budgeting - ANS-Form of budgeting in which an average cost is applied to
comparable expenses and general funding is changed by a specific amount.
Functional structure - ANS-Organizational structure that defines departments by what
services they contribute to the organization's overall mission.
Gantt chart - ANS-Project planning tool that graphically displays activities of a project in
sequential order and plots them against time.
Generation X - ANS-Group of people born roughly between the years of 1965 - 1980
Generation Y - ANS-Group of people born after 1980.
Gross domestic product (GDP) - ANS-Estimate of the total value of goods and services
produced in a country in a given year.
Gross profit margin - ANS-Ratio of gross profit to net sales.
HR audit - ANS-Process to measure the effectiveness and efficiency of HR programs
and positions.
Human capital - ANS-Combined knowledge, skills, and experience of a company's
employees.
Human resource information system (HRIS) - ANS-Systematic tool for gathering,
storing, maintaining, retrieving, and revising HR data.
Human resource management (HRM) - ANS-Design of formal systems in an
organization that ensure the effective and efficient use of human capital to accomplish
organizational goals.
Income statement - ANS-Statement comparing revenues, expenses, and profits over a
specified period of time, usually a year or a quarter.
Incremental budgeting - ANS-Form of budgeting in which the prior budget is the basis
for allocation of funds.
Inventory - ANS-To an operations department, an organization's major asset after
physical buildings and equipment.
Key performance indicators (KPIs) - ANS-Quantifiable measures of performances used
to gauge progress toward strategic objectives or agreed standards of performance.
Liabilities - ANS-Organization's debts and other financial obligations.
Line units - ANS-Work groups that conduct the major business of an organization.
Long-term objectives - ANS-Specific results, to be accomplished in three to five years,
that an organization seeks to achieve in pursuing its mission.
Marketing - ANS-Process of planning, pricing, promoting, and distributing goods and
services to satisfy organizational objectives.
Matrix structure - ANS-Organizational structure that combines departmentalization by
division and function to gain the benefits of both.
Mean - ANS-Average score or value in a set of data.
Median - ANS-Middle point above and below which 50% of scores in a set of data lie.
Mergers and acquisitions (M&A) - ANS-Combination of two separate firms either by
their joining together as a relative equals (merger) or by one acquiring the other
(acquisition).
Mid-term objectives - ANS-Serve a purpose similar to short-term objectives but are
completed in one to three years.
Mission statement - ANS-Specifies what the organization does, who its customers are,
and the priorities it has set in pursuing its work.
Mode - ANS-Value that occurs most frequently in a set of data.
Net profit margin - ANS-Ratio of net income (gross sales minus expenses and taxes) to
net sales.
Normal distribution - ANS-Expected distribution given a random sampling across a large
population.
Offshoring - ANS-Relocation of processes or functions from a 'home' country to another
country.
Percentile - ANS-Specific point in a distribution of data that has a given percentage of
cases below it.
Population - ANS-Group of persons or objects or a complete set of observations or
measurements about which one whishes to draw conclusions.
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