PHRi cheat sheet

Strategy hierarchy: mission (why the organization exists) → vision (future state) → strategic goals → functional and HR objectives; each HR initiative must trace upward to a strategic goal.

SWOT analysis classifies internal strengths and weaknesses against external opportunities and threats; PESTLE covers Political, Economic, Social, Technological, Legal, Environmental macro factors.

Porter's three generic strategies: cost leadership, differentiation, and focus (cost focus or differentiation focus); being stuck in the middle yields below-average returns.

Balanced Scorecard perspectives: financial, customer, internal process, learning and growth; HR metrics typically sit in the learning-and-growth perspective.

HR is a strategic partner when it translates workforce capability gaps into business cases with cost, risk, and expected return, not when it only administers transactions.

Break-even volume = fixed costs ÷ (price per unit − variable cost per unit); contribution margin per unit is price minus variable cost.

Return on investment = (benefit − cost) ÷ cost; a 3:1 ROI means $3 returned per $1 invested, and payback period = cost ÷ annual net benefit.

Change models: Lewin's unfreeze–change–refreeze; Kotter's eight steps begin with creating urgency and end with anchoring new approaches in culture.

Ethical decision tests include the utilitarian (greatest good), rights (respects entitlements), justice (fair and consistent), and virtue (character) tests.

Demand forecast minus current headcount adjusted for attrition, promotions, and transfers equals the net hiring requirement for the planning horizon.

Turnover rate = separations ÷ average headcount × 100; separate voluntary from involuntary and regrettable from non-regrettable turnover.

Yield ratios track candidates moving between funnel stages (applications to interviews, interviews to offers, offers to hires); time-to-fill runs from requisition approval to offer acceptance.

Cost per hire = (internal recruiting costs + external recruiting costs) ÷ total hires; the standard formula is codified in ANSI/SHRM 06001.

Structured interviews with job-related, behaviorally anchored questions and consistent rating scales have higher predictive validity and lower adverse impact than unstructured interviews.

Validity types: criterion-related (predictive or concurrent), content, and construct; reliability (consistency) is necessary but not sufficient for validity.

Job analysis produces the job description (duties, responsibilities, reporting lines) and job specification (knowledge, skills, abilities, other characteristics).

Succession planning uses a 9-box grid plotting performance against potential to classify talent pools and target development.

Adverse impact under the four-fifths rule exists when the selection rate of a protected group is less than 80% of the highest group's selection rate.

Needs assessment has three levels: organizational (where training is needed), task or operational (what must be taught), and individual or person (who needs it).

Training objectives should be SMART and written with observable behaviors so evaluation criteria are defined before design begins.

ADDIE model phases: Analysis, Design, Development, Implementation, Evaluation; it is iterative, not strictly linear.

Kirkpatrick's four levels: reaction, learning, behavior, results; level 3 (behavior) requires on-the-job transfer and is often the weakest link.

The 70-20-10 model attributes roughly 70% of learning to challenging experience, 20% to relationships and coaching, and 10% to formal coursework.

Learning curve: massed practice produces fast initial gains but poor retention; spaced (distributed) practice produces slower initial gains with better long-term retention.

Onboarding design follows the four Cs: compliance (rules and policies), clarification (role and expectations), culture (norms and values), and connection (relationships).

Training ROI = (monetary benefits − training costs) ÷ training costs × 100; benefits must be isolated from other influences where possible.

Total rewards = compensation (base, variable, equity) + benefits + work-life effectiveness + performance recognition + development and career opportunities.

Compa-ratio = employee base pay ÷ midpoint of the pay range; 1.00 means pay at midpoint, below 0.80 signals a range-minimum issue.

Range penetration = (employee pay − range minimum) ÷ (range maximum − range minimum); it locates an individual within a grade.

Pay grades group jobs of comparable value; broadbanding collapses many narrow grades into a few wide bands to support lateral moves.

Job evaluation methods: ranking, classification, point-factor (most defensible), and market comparison; point-factor uses compensable factors such as skill, effort, responsibility, and working conditions.

Equity types: internal equity (pay relationships across jobs), external competitiveness (market position), and individual equity (pay differences among peers).

Market positioning policy: lead the market (P75), match the market (P50), or lag the market (P25), usually offset by variable pay or benefits.

FLSA exemptions turn on the salary basis test plus duties tests (executive, administrative, professional, computer, outside sales); being paid a salary alone does not confer exemption.

Incentive plan design: eligibility, performance measures, performance standards, payout structure, and funding; line of sight between individual effort and payout drives motivation.

Engagement is discretionary effort plus commitment; it is distinct from satisfaction (contentment) and from mere retention (staying).

Drivers commonly measured: recognition, career growth, manager effectiveness, workload, autonomy, and pay fairness; pay usually ranks mid-list, not first.

eNPS = % promoters − % detractors on a 0–10 likelihood-to-recommend item; scores range from −100 to +100.

Survey practice: define constructs before items, use validated multi-item scales, guarantee anonymity, and report only groups large enough to prevent re-identification.

Response bias sources include nonresponse, social desirability, central tendency, and acquiescence; reverse-scored items and mixed item order reduce them.

Action planning after a survey should follow the sequence: communicate results, prioritize two or three drivers, assign owners, set dates, and re-measure.

Motivation theory: Herzberg separates hygiene factors (pay, conditions) that prevent dissatisfaction from motivators (achievement, recognition) that create satisfaction.

Psychological contract is the unwritten set of mutual expectations between employee and employer; breach reduces engagement and increases turnover intention.

Progressive discipline sequence: verbal warning, written warning, suspension, termination; each step requires documentation, consistency, and an opportunity to improve.

Just cause analysis is commonly organized as the seven tests: notice, reasonable rule, investigation, fair investigation, proof, equal treatment, and appropriate penalty.

Due process requires notice of the allegation and a fair opportunity to respond before discipline is imposed.

Grievance procedure steps typically run from supervisor to HR to senior management, with binding arbitration as the final step.

Collective bargaining covers mandatory subjects (wages, hours, terms and conditions of employment); permissive subjects may be bargained but cannot be forced to impasse.

Unfair labor practices differ by actor: employer interference or discrimination against union activity, union coercion of members, and refusal by either party to bargain in good faith.

Grievance vs. discipline: a grievance is an employee complaint about a contract or policy violation; discipline is an employer action, and the two may intersect in arbitration.

Alternative dispute resolution ladder: negotiation, mediation (facilitated, non-binding), arbitration (adjudicated, usually binding), litigation.

HRIS data domains: core HR (employee record), payroll, time and attendance, benefits, talent management, and reporting and analytics layers.

Data quality dimensions: accuracy, completeness, consistency, timeliness, and validity; a single trusted source of record prevents conflicting reports.

Access control uses role-based permissions and the principle of least privilege; audit logs record who viewed or changed what and when.

Personal data handling rests on lawful basis, purpose limitation, data minimization, retention limits, and security safeguards under regimes such as GDPR.

Common HR metrics: headcount, full-time equivalent, turnover rate, absenteeism rate, cost per hire, time to fill, and revenue per FTE.

Full-time equivalent = sum of scheduled hours for all employees ÷ hours of one full-time schedule; it normalizes headcount for part-time staff.

Absenteeism rate = total unplanned absence hours ÷ total scheduled work hours × 100.

Data visualization rule: match chart type to question (bar for comparison, line for trend, scatter for correlation) and never truncate a bar chart's y-axis.

Predictive analytics requires sufficient clean historical data and validation against a holdout sample; correlation in HR data does not establish causation.