Professional in Human Resources (PHR) Practice Exam

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What does a Pareto chart visually represent?

  1. Job responsibilities and performance metrics

  2. Training effectiveness over time

  3. Frequency or impact of causes

  4. Employee satisfaction ratings

The correct answer is: Frequency or impact of causes

A Pareto chart visually represents the frequency or impact of causes, making it a powerful tool in identifying and prioritizing issues that need to be addressed. It is based on the Pareto Principle, which states that roughly 80% of effects come from 20% of the causes. By displaying data in a bar graph format, where individual bars represent different causes, and a cumulative line graph shows the total impact, stakeholders can quickly see which problems are most significant. This visualization helps in decision-making processes, allowing teams to focus their efforts on the most critical areas for improvement. The other options represent different metrics or areas of focus but do not align with the primary function of a Pareto chart. Job responsibilities and performance metrics relate more to evaluating employee performance, while training effectiveness over time looks at educational outcomes. Employee satisfaction ratings assess workforce morale and engagement, but none of these directly captures the purpose of a Pareto chart, which is specifically designed to analyze causes and their respective impacts.