CHAPTER

3

Core Knowledge

The Human Resource Certification Institute (HRCI) has identified 23 knowledge items that it considers “core knowledge” applying to the HR profession overall. Consider these prerequisites or foundations. HRCI believes that certification candidates should have a good grasp of these 23 knowledge areas.

In this chapter, we discuss each of the 23 knowledge items individually and show how they link to the other knowledge mastery requirements in the certification process.

23 Core Knowledge Requirements

Some of these core knowledge requirements apply to a few functional areas. Nearly all of them apply to more than one. That’s why they are considered core requirements. Just because one area of knowledge might be designated as applying to a single function doesn’t mean there are not other applications as well. In this analysis, we are identifying major applications and linkages. The related functional areas are listed in the gray boxes under each core knowledge requirement.

Needs Assessment and Analysis

Needs assessment is a structured process of measuring the difference between current status and the desired level or quantity of any given organizational condition. A needs assessment can become input to strategic planning or training program development. It can also be done in support of individual developmental planning for career enhancement.

The following are the most common steps in needs assessment analysis:

1. Describe the objective.

2. Define the current condition.

3. Conduct a gap analysis.

4. Prioritize a list of what must occur.

5. Determine options.

6. Evaluate best options with cost/budget associations.

7. Recommend a solution and action plan.

Third-Party or Vendor Selection, Contract Negotiation, and Management, Including Development of Requests for Proposals (RFPs)

Requests for Proposals are a common tool used in selection of vendors for fulfillment of projects that usually carry a significant cost. They are a structured method for outlining the desired organizational outcome while allowing competing vendors to demonstrate how they will reach that outcome and how much the project will cost. RFPs allow organizations to compare “bid” responses from multiple vendors using the same format. Negotiation of final details can be facilitated through the RFP content.

With the increasing number of HR functions being outsourced, the need for HR professionals to effectively manage third-party contractors becomes vitally important. For a successful contractor relationship, it is critical that a clear understanding of the deliverable be established in the RFP and final contract.

Generally, an RFP will follow a format such as this:

1. Brief overview

2. Qualifications of vendor

3. How the service/product will be supplied by the vendor

4. Project team from both vendor and client organization—with responsibilities and accountabilities described

5. Delivery timeline

6. Billing and pricing schedule

7. Deadline for final submission of RFPs

Once the RFPs have been submitted, an evaluation of the proposals occurs. There are various factors to consider that will be specific to the needs request, including the reputation of the vendor. Once a vendor is selected and the contract drafted, negotiated, and entered into, it is important to have an ongoing evaluation of the project/service to ensure the deliverable is meeting the expectations as outlined in the contract.

Communication Skills and Strategies (For Example: Presentation, Collaboration, Sensitivity)

Presentation skills are applicable in all functional areas for HR professionals. Having the ability to make presentations to small groups as well as large gatherings is critical when addressing policy makers in the boardroom and employee assemblies to present or discuss policy or program changes. Understanding how to select the proper communication tool contributes to strategic plans for policy implementation.

HR professionals will find themselves presenting a variety of timely messages to a vast array of audiences. The skills needed for effective communications include written and verbal skills that involve persuasion, collaboration, influencing, sensitivity, tact, and diplomacy.

Organizational Documentation Requirements to Meet Federal and State Guidelines

Documentation is the lifeblood of human resource managers. Attorneys are careful to point out, “If it isn’t documented…it didn’t happen.” When legal challenges pit employees against their employers, jury sympathy tends to swing to the “little guy” (the employee) rather than to the employer organization. Employers are expected to spend the energy necessary to make a record of events that take place during employee management. Supervisors must be trained in effective documentation techniques for employment actions and performance issues, and it is the responsibility of HR professionals to be sure supervisors are fulfilling that duty.

Adult Learning Processes

Recent decades have brought us a continuing flow of behavioral science about how adult learning is different from children’s learning. While the working of brain synapses may be similar, there are huge differences in what it takes to motivate students to learn. Adults must be shown “what’s in it for them.” What benefit will they derive from their efforts to learn new materials? HR professionals are often thrust into the role of instructor and must understand the adult learning process so they are able to properly facilitate the training experience for their employees.

Malcolm Knowles identified the following characteristics of adult learning:

• Self-concept Moving from dependency on others to autonomy and self-directed learning.

• Experiential learning Drawing on past experience for future learning

• Readiness to learn Needs-specific to the current condition

• Orientation to learning Applying information in current situations to solve immediate issues

• Motivation Coming from a source of personal inspiration and desire vs. outside conditions

Knowles also identified three different types of learners. They are:

• Auditory learners A process of learning that suits those who have a preference to “hear” information

• Visual learners A process of learning that suits those who have a preference to see information to commit it to memory

• Tactile/kinesthetic learners A process that suits those who have a preference to be physical, involving a sense of touch and hands-on learning

Motivation Concepts and Applications

Contemporary motivation of human beings in a work environment is based on the early scientific studies conducted by Herzberg, Skinner, and Maslow among others. HR professionals must understand the differences between hygiene factors and motivational factors, between social needs and self-actualization. McGregor’s X-Y Theory of motivation impacts decisions about which tools to use and which approaches to take based on the personal beliefs and orientation of the employee in question. Motivation is a complex subject that impacts HR professionals every day, often with challenges that have not yet been experienced. Each of the HRCI functional areas is affected by employee motivation or demotivation at work. Understanding the basic motivational theories, and keeping up-to-date with newly developed theories, is a lifelong learning objective of the HR professional.

Training Techniques (For Example: Virtual, Classroom, On-the-Job)

With current technology, remote instruction is possible, including both virtual classroom and self-paced computer education. Employees can participate in computer-based learning programs from terminals at kiosks in the workplace or from remote locations. In sophisticated organizations, job assignments often have identified prerequisites, and developmental training programs are made available for those who wish to participate in them. Classroom instruction, either in-person or virtually, is still an appropriate technique for some programs that require group discussions, sub-group activities, or physical involvement among participants. Selection of the best technique is the role of HR professionals and training professionals. Training techniques are discussed more fully in Chapter 8.

Leadership Concepts and Applications

HR professionals must understand the concepts of leadership—how to recognize it in others, and how to develop leadership skills in themselves and in others. Key support in that effort exists in the Michigan Bell Management Progress Studies, conducted by psychologists at the American Telephone and Telegraph Company (AT&T). Out of those studies came the modern industrial assessment centers that can be used to observe, rate, and develop management skills, including leadership skills. HR professionals know that leadership is more than someone making suggestions. It involves getting others to follow those suggestions willingly.

Leadership styles have been identified to fall into the following labels. Many leaders will adopt a blend of several different styles. Identification and development of leadership styles should be ideally suited and aligned with the organization’s desired culture and values.

• Directive

• Democratic

• Coaching

• Laissez-faire

• Transformational

• Transactional

Project Management Concepts and Applications

The area of project management represents skills involving planning, executing, controlling, accountability, and lessons learned. Project management involves working with Project Evaluation and Review Techniques (PERT) charts, Critical Path Method (CPM) planning processes, and other similar techniques to guide a project through to completion while controlling resources, manpower, and deliverables. For HR professionals, managing projects is a necessary skill and factor for success. Projects can occur in just about every area of the HRCI listed functional areas.

Diversity Concepts and Applications (For Example: Generational, Cultural Competency, Learning Styles)

Diversity issues impact every aspect of employment these days. Types of diversity include employee representation (demographics), educational background, and cultural experience. Taking advantage of viewpoints molded by those differing experiences can result in more effective decisions.

It can also take longer to resolve questions simply because you need to discuss differing viewpoints. A key consideration involves people from different generations having different values, beliefs, and expectations that can lead to difficulties and conflict.

Making decisions in a group of people with similar backgrounds and experiences can be faster, but may not include considerations of cultural issues outside that experience. And so even though groups with a multitude of backgrounds and experiences will discuss issues for a longer period, the decisions they make will typically be more sound and apply to a broader target population.

This same variety of perspectives from a diverse workforce can also create a cultural competence to add strength to an organization. Military Veterans will have had different experiences and will have developed the ability to problem solve in different ways than those without such background. Disabled people are able to bring viewpoints that those without disabilities cannot readily see. The amalgam of all these differences can bring together organizational policies and outcomes. The results can be much stronger and more effective than are seen in organizations without such diversity.

Human Relations Concepts and Applications (For Example: Emotional Intelligence, Organizational Behavior)

Human relations focuses on the relationship between supervisors and subordinates in an employment organization. Organizational behavior is what results from the impact individuals, systems, and groups have on the overall organizational effectiveness. Emotional intelligence refers to the ability to perceive, control, and evaluate emotions. Emotionally intelligent individuals are able to motivate themselves, have awareness of others’ emotions, are able to manage relationships, and can control their reactions to emotions. Applying these concepts can provide a valuable benefit to any employment organization. The more supervisors understand these concepts, the better they will be able to influence subordinate behavior and organizational results.

Ethical and Professional Standards

Ethics is a field of intense interest among many organizations these days. For HR professionals, ethics is tied to the proper and fair methods used to manage employees in an employment environment. It also involves HR professionals participating with senior management to define ethics standards for their organizational behavior and employee expectations. SHRM and HRCI have standards for professional behavior for the HR profession. The SHRM Code of Ethical and Professional Standards in Human Resource Management may be viewed in its entirety at www.shrm.org/about/pages/code-of-ethics.aspx. Ethical standards follow six core principles:

• Professional Responsibility

• Professional Development

• Ethical Leadership

• Fairness and Justice

• Conflicts of Interest

• Use of Information

HRCI’s Model of Professional Excellence sets standards for honesty, reliability, fairness, and cooperation.

Technology to Support HR Activities (For Example: HR Information Systems, Employee Self-Service, e-Learning, Applicant Tracking Systems)

Technology can accomplish many things. It can reduce the number of employees necessary in performing repetitive and menial duties. It can assist employees with records management, updating information as it changes through time. Technology can assist with employee training, processing job applicants, and employee information. Exactly which technology to use in any given situation is the decision to be made by HR professionals and their colleagues. There are four mainstays of technology in Human Resources:

• HRIS (Human Resource Information System) A repository of information for storing employment files

• Applicant Tracking & Hiring Systems Automated methods for keeping track of applicants and the hiring process

• Employee Self-Service Systems Allows employees access to their own employment and benefit records on the company intranet 24/7

• Learning Management Systems Track, enroll and organize employee training requirements, needs, and progression

Qualitative and Quantitative Methods and Tools for Analysis, Interpretation, and Decision-Making Purposes (For Example: Metrics and Measurements, Cost/Benefit Analysis, Financial Statement Analysis)

As HR professionals gain access to the executive suites of senior management, knowledge of business strategies and measurements is critical. It is not just a question of how many employees it takes to produce a given product, or the cost of health care plans per employee. Now it is a question of the dollar benefits produced by a diversity program and the increased production per employee realized by providing an in-house childcare center. All of those are fair game for measurements (metrics) that demonstrate they add value to the employer’s organization and its ultimate mission. Knowing which method to utilize for research, data collection, and analysis is essential for the information presented.

Change Management Theory, Methods, and Application

In 1962, Everett Rogers wrote a book called Diffusion of Innovations that described how people adapt to new ideas and technologies. Many scientists have followed with their own versions of studies examining how organizations can identify an end result and then plan to manage the change process in order to achieve that result. Particularly in large businesses, change management has become an identifiable function on the organization chart. In others, it is a function that is either part time or hired in through consulting firms. The notion that large organizational changes can be properly managed is important in the fast-paced world of mergers, acquisitions, and other upheavals such as restructuring and downsizing. Only 10 percent of the population is known as a “change agent”—people simply resist change.¹ HR professionals must be masters of understanding, orchestrating, and getting others to accept change. As the saying goes, “Change is good—you go first!”

Job Analysis and Job Description Methods

There are many different ways to put a job description on paper (or into electronic format), but most will contain these segments of information:

• Summary A statement about the overall job responsibilities

• List of duties and responsibilities A detailed list of duties assigned to this position with a corresponding allocation of time spent on each—by percentage—so the weight of activities can be determined by looking over the list

• List of qualifications Including educational requirements, experience required, and other specific prerequisites for successful job candidates

• List of physical job requirements Description of the environment in which the incumbent works—noise level, heat/cold exposure, standing/sitting/walking/running, arm and hand movement, sight/hearing requirements

• List of mental job requirements Language, math, science

• Expression of time requirements Full-time, part-time, overtime

The main purpose of a job description is to help communicate the standards and expectations of each position in an organization. It is the basis for performance management, determination of pay levels, and outreach for applicants, and serves as a guideline for requests of reasonable accommodation.

Employee Records Management (For Example: Electronic/Paper, Retention, Disposal)

Knowing what records to keep is critical. So is knowing what records to destroy. Records management is an area of responsibility that can be a part-time assignment in a small organization or a full staff responsibility in a large organization. Employee records include an employee’s personnel file, medical records, investigation records, training records, and security clearances. Depending on the organization, there can be other categories of records retained for employees—for example, safety records. Some records are required for government compliance, such as the W-4, I-9, W-2, work time records, hazardous exposure records, workers’ compensation reports, and more. Other records are maintained for the convenience and use of the employer—for example, commendation and disciplinary records, training records, and performance appraisals. Some records are required by law and must be retained for designated periods of time. Other records have no retention requirements. Generally speaking, any record other than one made by an attorney can be discovered through legal process and are often sought in lawsuits against employers, including informal electronic communications. Retaining records beyond their required period can be detrimental to employers so create and follow a purging schedule, especially of electronic records.

Techniques for Forecasting, Planning, and Predicting the Impact of HR Activities and Programs Across Functional Areas

HR activities embrace many different organizational functions, including employment, payroll, benefits programs, policy development and implementation, governmental reporting, and labor relations. It is important that HR professionals be constantly looking into the future to determine what will be using resources. Union contract negotiations, government tax requirements, medical benefit cost increases, and issuance of a new employee handbook are examples of activities or issues that will require some amount of organizational resources. Identifying strategies for maximizing the benefit of each and minimizing the cost is a key role of the HR professional. Developing proper forecasting and planning techniques for organizational requirements is a key contribution of the HR department.

Types of Organizational Structures (For Example: Matrix, Hierarchy)

HR professionals can make a significant contribution to the organization when designing its structure. There are three key types of structures employers usually implement: functional, divisional, and matrix. Other structures less used are product-based and geographic. Functional structures are those that group organizational segments according to their purpose—for example, production, accounting, and shipping. Divisional structures group organizational segments according to product type or market segments—for example, large screen TV division, computer monitor division, audio equipment division, Pacific states division, and Midwest division. Matrix organizations rely on relationships to determine the structure. For example, a reorganization task force can pull members from traditional accounting, HR, manufacturing, marketing, and other functional areas. Matrix organizations can often create situations where individuals report to more than one supervisor.

Environmental Scanning Concepts and Applications (For Example: Strengths, Weaknesses, Opportunities, and Threats [SWOT], and Political, Economic, Social, and Technological [PEST])

Environmental scanning is the process of monitoring for and detecting events or conditions that will have an impact on the employer’s organization. Over time, the process has been structured by some scientists to produce methods that can be applied by lay people in HR management and other functional areas. SWOT and PEST are two examples of methods for environmental scanning. The degree to which the internal environment of an organization matches its external environment is expressed as its strategic fit. Strengths and weaknesses are considered by the method as internal elements, while opportunities and threats are considered external elements. PEST analysis has been expanded since its inception as a strategic management tool and can be represented by the acronym STEEPLED: Social, Technological, Environmental, Economic, Political, Legal, Ethics, and Demographics. Through quantification and anecdotal examples, this method allows for unmasking issues to be considered in strategically preparing for the organization’s future.

Methods for Assessing Employee Attitudes, Opinions, and Satisfaction (For Example: Surveys, Focus Groups/Panels)

It is wise for any organization large enough to have one or more HR professionals on staff to engage in activities to gather feedback from employees about their experience on the job. Even smaller organizations can avail themselves of consulting support to do the same thing. Providing employees with an opportunity to be heard and express their opinions assists management and HR in many areas, including building good employee relationships and avoiding third-party interventions. Structured investigations through the use of focus groups, surveys, or panel discussions can yield a wealth of information about employee reactions, attitudes, and expectations. That information is important as a component of strategic planning and in design of HR systems and programs. The process of gathering employee input should be repeated periodically because attitudes, expectations, and reactions change over time as the environment changes.

Budgeting, Accounting, and Financial Concepts

Business competence is a requirement of HR professionals just as it is of any other member of senior management. It is necessary for HR professionals to be able to create and manage within a financial budget, understand accounting reports, and be able to discuss financing issues. Chief Executive Officers (CEOs) expect HR professionals to have a grasp of business concerns and be able to express in financial terms how HR programs are contributing to the “bottom line.” HR programs often must be justified in business terms so senior executives can understand the impact they will have on organizational financial results. There are several different types of budget development processes. The most used are Zero-Based Budgeting and Historical Information Budgeting.

Risk-Management Techniques

Nearly every aspect of HR management impacts the function of risk management in one way or another. Employee satisfaction can be captured through monitoring of complaints. Safety can be expressed in terms of workers’ compensation experience. The cost of employee health benefits is impacted by employer programs that support smoking cessation, exercise, and good diet. Computer security programs can block unauthorized access to confidential employee and business records. Privacy of records can be expressed in financial terms. All of these issues are potential impacts on the profit or loss of an employer’s organization. Even non-profits and governmental agencies have budgets they are expected to live within. Huge, unexpected expenses related to risks can cause instant budget failure. HR professionals can have a great impact on the organizational finances by preventing large losses through proper risk management programs.

Chapter Review

This chapter has provided you with an overview and basic understanding of the concepts and applications. As you read the specific topic information in Part II, notice how these core knowledge statements have implications in several functional areas. There are volumes of books, courses of study, and journals that address the many subject topics presented here. An understanding of the concepts is what will be required for the HRCI exams.

Questions

1. HRCI has identified ____ knowledge items that it considers “core knowledge,” which every HR professional should master.

A. 45

B. 23

C. 15

D. 17

2. Needs Assessment and Analysis is an area of required knowledge that applies to these functional areas:

A. Workforce Planning and Employment, Human Resource Development, Risk Management

B. Risk Management, Business Management and Strategy, Employee and Labor Relations.

C. Employee and Labor Relations, Compensation and Benefits, Human Resource Development

D. Business Management and Strategy, Human Resource Development, Employee and Labor Relations

3. Needs assessment can be applied to any of these processes:

A. Benefits planning, vacation assessments, attendance programs, and employee training needs

B. Strategic planning, public relations, and emergency awareness

C. Any given organizational condition, training programs, and strategic planning

D. Staffing forecasts, training planning, and budgeting

4. Vendor selection can involve each of the following activities:

A. Reference checking, financial assessment, comparison with similar projects

B. Interviewing, background checking, financial stability assessment

C. Appointment of contract manager, review of financial statements, review of similar projects

D. Development of RFPs, evaluation of match to project requirements for each vendor, background checking, and financial stability

5. Organizational documentation requirements can impact these functional areas of professional HR management:

A. Parking policy, payroll compliance, orientation

B. EEO/AA, employee records management, performance management

C. Magazine subscriptions, amusement park discount programs, forms management

D. Vacation selection system, cafeteria menu planning, parking lot space assignments

6. HR professionals must be concerned about adult learning processes because they impact these areas of the organization:

A. Human Resource development, training and development, compensation and benefits

B. Payroll, employee orientation programs, training and development

C. Job description development, vacation planning, government compliance

D. Safety compliance, compensation and benefits, employee training

7. Employee motivation is influenced by HR management and so HR professionals must understand these scientists and their studies:

A. McDonald, McGregor, McJohnson

B. Herzberg, Underwood, McDonald

C. Byonberg, Skinner, Maslow

D. Herzberg, Maslow, McGregor

8. Employee training is a function that falls within Human Resources Development. The following are generally accepted training techniques:

A. Texting, lecturing, small group discussions

B. Reading, group discussions, email

C. Lecturing, self-paced online, sub-group exercises

D. On-the-job, classroom, recess

9. Diversity management falls within an HR professional’s responsibility because:

A. It is the most recent academic HR subject studied and recommended.

B. It is considered to have both a representation component and an inclusion component, both of which are HR responsibilities.

C. Racial demographics are a critical component of successful organizations.

D. All of the Fortune 100 organizations have mastered diversity programs and demand that other organizations do the same.

10. Ethics management is important to HR professionals because:

A. No one should have to do anything unethical at work.

B. Ethics is tied to the proper and fair methods used to manage employees in an employment environment.

C. Ethics management programs are a requirement for government compliance.

D. Ethics management programs are required by most state laws.

Answers

1. B. There are 23 knowledge items HRCI considers prerequisites (or foundation requirements) for every HR professional.

2. A. The three major areas of involvement for this knowledge area are Workforce Planning and Employment, Human Resource Development, and Risk Management.

3. C. Needs assessment can be a component of any organizational condition, including benefits. It is also a key component of employee training programs and strategic planning processes.

4. D. RFPs should be the foundation of vendor-assigned projects. Vendor selection should be based on the match of vendor capabilities to RFP requirements, background investigation, and financial stability.

5. B. In fact all of these things are going to require documentation. The most correct answer is B because it has the widest impact across the employer’s organization.

6. A. Like the previous question, this is the correct answer because it has the widest impact on an employer’s organization.

7. D. Herzberg, Maslow, and McGregor were behavioral scientists who made real contributions to the field of employee management. The other names were made up.

8. C. Texting, email, and recess are not commonly accepted training techniques.

9. B. Diversity and inclusion are key components of successful diversity management programs. Representation extends beyond race and gender to cultural background, sexual orientation, disability, veteran status, and any other identifiable characteristic.

10. B. While some federal legislation requires ethical management programs, not every employer must comply with those requirements. Ethics is an important part of HR management because it is based on meeting employee expectations for fairness and proper decision making.

Endnote

1. Barker, Brenda, “Energizing Organizational Readiness,” Queen’s University (2007). http://irc.queensu.ca/articles/energizing-organizational-readiness.