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Study Guide

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Cultural Framework

Low PDI

Moderate

High PDI

Low Power Distance

Decision Making Participative; employees consulted

Communication Open door; direct access to leaders

Examples Denmark, Sweden, New Zealand

HR Implication Flat structures, team autonomy

Moderate Power Distance

Decision Making Balanced; input welcomed

Communication Respectful but accessible

Examples USA, Canada, UK

HR Implication Clear hierarchy with flexibility

High Power Distance

Decision Making Top-down; manager decides

Communication Formal channels; respect hierarchy

Examples Malaysia, Mexico, Philippines

HR Implication Clear chain of command

Compare Concepts

Policy

Definition

Overarching guidelines governing decisions

Focus

The "what" and "why"

Example

"Zero tolerance for harassment"

Procedure

Definition

Step-by-step instructions for tasks

Focus

The "how"

Example

"Report to HR within 24 hours"

Rule

Definition

Specific mandatory requirements

Focus

The "must"

Example

"No personal phone use during meetings"

Types of HR Audits

Compliance Audit

Focus Area Legal requirements: FLSA, FMLA, ADA, EEO, OSHA

Why It Matters Identifies gaps before regulators do; reduces legal liability

I-9 Audit

Focus Area Employment eligibility verification forms

Why It Matters ICE audits carry significant fines

Benefits Audit

Focus Area ERISA compliance, plan documents, fiduciary duties

Why It Matters Protects employee benefits and company from lawsuits

Key Terms

Disparate Impact

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When a neutral policy inadvertently affects a protected group.

Also called "adverse impact"

Employment-at-Will

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Either party can end employment at any time for any legal reason.

Know the exceptions!

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HRCI® Certifications

aPHR®

Associate Professional in Human Resources

Entry-level certification

Starting at $69

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PHR®

Professional in Human Resources

Mid-career certification

Starting at $89

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SPHR®

Senior Professional in Human Resources

Strategic-level certification

Starting at $109

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SHRM® Certifications

SHRM-CP®

SHRM Certified Professional

Mid-career certification

Starting at $89

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SHRM-SCP®

SHRM Senior Certified Professional

Strategic-level certification

Starting at $109

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