PHR Human Resources Exam Prep

Answer - C - Vendors, by definition, are not employees. Whether to classify individuals as employees or contractors is a legal determination, not an emotional or psychological one. While fostering an espirt de corps is essential, that sense of team is separate and distinct from whether an individual is an employee or an independent contractor.

Key Takeaway: Providing positive and constructive feedback is an important part of effectively managing relationships with vendors. Setting clear and reasonable expectations is an important part of effectively managing relationships with vendors. Incorporating upside potential and downside risk into negotiated agreements with contractors is an important part of effectively managing relationships with vendors.