Professional in Human Resources (PHR) Practice Exam

What is the purpose of replacement planning in an organization?

1. To develop training programs for all employees

2. To streamline hiring processes

3. To assess the availability of qualified backups for key positions

4. To create a succession plan for every employee

The correct answer is: To assess the availability of qualified backups for key positions

The purpose of replacement planning in an organization is to assess the availability of qualified backups for key positions. This process focuses on identifying and evaluating potential candidates who can step into critical roles if they become vacant due to various reasons such as retirement, resignation, or promotion. By having a clear understanding of who is prepared to take on these responsibilities, organizations can ensure continuity in operations and maintain stability during transitions. This proactive approach helps to minimize disruptions and allows for smooth leadership transitions, ensuring that there are capable individuals ready to fill key roles without significant delays. Effective replacement planning also underscores the importance of talent management and strategic workforce planning, thereby enhancing overall organizational resilience. While developing training programs for all employees, streamlining hiring processes, and creating succession plans for every employee can be valuable HR functions, they do not specifically address the primary focus of replacement planning. Replacement planning is particularly centered around key positions and their immediate backups, making it distinct from broader training and development initiatives or general hiring processes.