HRM CHAPTER I

1) ________ is the process of acquiring, training, appraising, and compensating employees, and
attending to their labor relations, health and safety, and fairness concerns.
A) Labor relations
B) Human resource management
C) Behavioral management
D) Organizational health and safety management

2) Personnel activities associated with human resource management most likely include all of
the following EXCEPT ________.
A) orienting and training new employees
B) appraising employee performance
C) building employee commitment
D) developing customer relationships

3) Since human resources is important to all managers, which is NOT a personnel mistake a
manager wants to avoid making while managing?
A) waste time with useless interviews
B) hire the wrong person
C) have your people not doing their best
D) experience low turnover

4) In most organizations, human resource managers are categorized as ________, who assist
and advise ________ in areas like recruiting, hiring, and compensation.
A) staff managers; line managers
B) line managers; middle managers
C) line managers; staff managers
D) functional managers; staff managers

5) HRM can be performed by ………….

(a) HR Managers
(b) Line Managers
(c) Both
(d) None

6) Human Resource Management aims to maximize employees as well as organizational

A. Effectiveness
B. Economy
C. Efficiency
D. Planning

7) HRM is associated with the management of

A. General people.
B. Financial resources
C. Organizational people
D. Community members.

8) Playing the role of ____________ requires designing and delivering efficient and effective
HR systems, processes, and practices
A. Administrative Agent.
B. Change Agent.
C. Strategic Partner
D. Employee Advocate

9) In the management process, which of the following is an activity associated with the leading
function?
A) motivating subordinates
B) setting performance standards
C) training new employees
D) developing procedures

10) Personnel activities associated with human resource management most likely include all of
the following EXCEPT ________.
A) orienting and training new employees
B) appraising employee performance
C) building employee commitment
D) developing customer relationships

11) Human resource managers generally exert ________ within the human resources department
and ________ outside the human resources department.
A) line authority; staff authority
B) staff authority; line authority
C) functional authority; line authority
D) staff authority; implied authority

12) Which of the following areas is NOT a major area where human resource managers assist
and advise line managers?
A) recruiting
B) hiring
C) compensation
D) performance management
13) Hiring the wrong person for the job, committing unfair labor practices, and having your
people not doing their best are personnel mistakes that hinder firms from achieving positive
results.
TRUE

FALSE

14) Human resource managers are generally staff managers.

TRUE

FALSE

15) What term refers to the knowledge, skills, and abilities of a firm's workers?
A) human resources
B) human capital
C) intangible assets
D) contingent personnel

16) ________ refers to being psychologically involved in, connected to, and committed to
getting one's jobs done.
A) Ethics
B) Sustainability
C) Human capital
D) Employee engagement

17) Strategic human resource management refers to performing basic day-to-day duties that
satisfy the needs and demands of both the employees and the employer.
TRUE

FALSE

18) _____________helps the organization in achieving short term and long term goals by
effective utilization of human resources. It involves the development of HR objectives and their
alignment with organizational objectives
A. Employee relations management
B. Strategic human resource management
C. Compensation management
D. Human relations management
19) Which SHRM HR manager competency involves the ability to effectively exchange
information with stakeholders?
A) relationship management
B) communication
C) ethical practice
D) controlling

20) The SHRM human resource manager competencies include ethical practice, business
acumen, and relationship management.
TRUE

FALSE
 HRM CHAPTER II

1) The process of ensuring that there are the right number of qualified people in the right jobs for
best results is termed
A. Human Resource Planning
B. Recruitment
C. Retrenchment
D. Downsizing

2) Which of the following terms refers to the procedure used to determine the duties associated
with job positions and the characteristics of the people to hire for those positions?
A) job description
B) job specification
C) job analysis
D) job context

3) The information resulting from a job analysis is used for writing ________.
A) job descriptions
B) corporate objectives
C) personnel questionnaires
D) training requirements

4) Which of the following refers to the human requirements needed for a job, such as education,
skills, and personality?
A) job specifications
B) job analysis
C) job placement
D) job descriptions

5) During the job analysis process, the primary purpose of having workers review and modify
data collected about their current positions is to ________.
A) confirm that the information is correct and complete
B) provide a legal benchmark for employer lawsuits
C) encourage employees to seek additional job training
D) validate the job specification list provided by HR

6) Which of the following terms refers to systematically moving workers from one job to
another?
A) job rotation
B) job enrichment
C) job enlargement
D) job adjustment
7) Which of the following terms refers to redesigning jobs in a way that increases the
opportunities for the worker to experience feelings of responsibility, achievement, growth, and
recognition?
A) job rotation
B) job enrichment
C) job reengineering
D) job enlargement

8) Interviews for the purpose of collecting job analysis data will most likely address all of the
following topics EXCEPT ________.
A) hazardous conditions
B) primary work duties
C) required education
D) personal hobbies

9) Planning that includes the recruitment or layoff strategy, development strategy etc. based on
corporate policies and strategies is the ______ planning
A. Corporate level
B. Intermediate level
C. Operations level
D. Short term

10) A good recruitment policy

A. Is flexible enough to accommodate changes in the organization
B. Has its own policies and does not comply with government policy on hiring
C. Requires more investment for the organization
D. Ensures short term employment opportunities for its employees

11) The process of choosing the most suitable candidate for a job from among the available
applicants is called
A. Recruitment
B. Placement
C. Appraisal
D. Selection

12) In the process of selection, the step that follows initial screening interview is normally the
A. Decision making interview
B. Prelimnary interview
C. Reference check
D. Analyse the application bank
13) A formal record of an individuals appeal or intention for employment that helps in
gathering information about a prospective candidate is called
A. Application bank
B. Employee data
C. Employee bank
D. Data bank

14) Mohan attended an interview and was very upset with the way it is progressed. The
interviewer repeatedly interrupted him, criticized his answers and asked him unrelated
questions. What is the method of interview adopted
A. Panel Interview
B. Stress Interview
C. In depth interview
D. Group interview

15) Employee referrals is a/an ________ source of recruitment

A. External
B. Internal
C. Hybrid
D. None of the above

16) Reassignment of an employee to a higher level job that involves greater responsibility or
status or pay is termed
A. Transfer
B. Cross functional transfer
C. Demotion
D. Promotion

17) The process of selecting and developing employees in the organization to occupy key
positions in the future is termed
A. Career planning
B. Succession planning
C. Career development
D. Human resource enhancement

18) An interview where the interviewer does not chart out the formal structure of the
interview but lets it take a natural course is called a
A. Formal interview
B. Unstructured interview
C. Group interview
D. Stress interview

19) Tools such as Twitter, Facebook, and LinkedIn that can be used to recruit new employees are
known as:
A) data analytics
B) social media
C) mobile applications
D) cloud computing

20) What was the traditional term used for HRP and the one often associated with personnel
management?
A. Gap analysis
B. Human resource planning
C. Employee planning
D. Manpower planning
 HRM CHAPTER III

1) Which of the following terms refers to the process of evaluating an employee's current
and/or past performance relative to his or her performance standards?
A) employee selection
B) performance appraisal
C) employee orientation
D) organizational development

2) The primary purpose of providing employees with feedback during a performance

appraisal is to motivate employees to ________.
A) apply for managerial positions
B) remove any performance deficiencies
C) revise their performance standards
D) enroll in work-related training programs

3) All of the following are reasons for appraising an employee's performance EXCEPT
________.
A) correcting any work-related deficiencies
B) creating an organizational strategy map
C) determining appropriate salary and bonuses
D) making decisions about promotions

4) In most organizations, who is primarily responsible for appraising an employee's

performance?
A) employee's direct supervisor
B) company appraiser
C) human resources manager
D) employee's subordinates

5) Who is in the best position to observe and evaluate an employee's performance for the
purposes of a performance appraisal?
A) customers
B) rating committees
C) top management
D) immediate supervisor

6) Which of the following terms refers to the process of allowing subordinates to rate their
supervisor's performance anonymously?
A) supplemental evaluation
B) upward feedback
C) paired evaluation
D) peer evaluation
7) Which of the following terms refers to a performance appraisal based on surveys from
peers, supervisors, subordinates, and customers?
A) 360-degree feedback
B) team appraisals
C) upward feedback
D) rating committee

8) Which performance appraisal tool is being used when a supervisor places predetermined
percentages of appraisees into various performance categories?
A) behaviorally anchored rating scale
B) graphic ranking scale
C) alternation ranking
D) forced distribution

9) Which performance appraisal tools require a supervisor to maintain a log of positive and
negative examples of a subordinate's work-related behavior?
A) alternation ranking
B) paired comparison
C) critical incident
D) graphic rating

10) Which of the following terms refers to setting specific measurable goals with each
employee and then periodically reviewing the progress made?
A) behaviorally anchored rating scale
B) management by objective
C) mixed standard scales
D) forced distribution

11) ______ helps in improving the communication, people management and relationship
management skills of the trainees
A. Computer modeling
B. Role playing
C. Class room lectures
D. Vestibule training

12) Response, learning, performance and results are four levels of evaluating a management
development program. This system of evaluation is called
A. Taylors system
B. Kirkpatricks system
C. Werther & Davis method
13) ………...does not require face to face interaction with the trainer.
(a) Virtual Reality
(b) Coaching
(c) Case Studies
(d) Role Playing

14) Programmed Instructions comes in …………

(a) Printed Forms i.e. Books
(b) Interactive Video
(c) Both
(d) None

15) …………. is a one-to-one interaction.

(a) Lecture
(b) Mentoring
(c) Demonstration
(d) Coaching

16) ……….. is most oftenly used in combination with some other techniques.
(a) Behaviour Modelling
(b) In Basket Technique
(c) Equipment Simulator
(d) Role Playing

17) Which of the following is a technique for “On The Job Training”?
(a) Job Instruction Technique
(b) Sensitivity Training
(c) Simulation Exercises
(d) Transactional Analysis

18) On Alicia's first day of work at a software firm, she attended a meeting with the HR
manager and other new employees. Alicia learned about employee benefits packages,
personnel policies, and the structure of the company. In which of the following did Alicia
most likely participate?
A) recruitment
B) selection
C) employee orientation
D) employee development

19) All of the following topics are typically addressed during employee orientation EXCEPT
________.
A) employee benefits
B) personnel policies
C) work behavior expectations
D) wage curves
20) Trainees should be provided adequate practice and be allowed to work at their own pace
during a training session in order to ________.
A) screen applicants based on ability
B) transfer skills more easily to the job
C) reduce training costs
D) determine appropriate pay scales

21) Which of the following is the primary advantage of lecturing as a method of training?
A) motivational for employees
B) effective for informal learning
C) appropriate for large groups
D) requires limited preparation

22) Which of the following is most likely NOT measured when evaluating a training
program?
A) what trainees learned from the program
B) participants' reactions to the program
C) overall organizational productivity
D) changes in on-the-job behavior
 HRM CHAPTER IV

1) Traditionally, the pay scales in companies were associated with

A. Employee performance
B. Organizational hierarchy
C. Worth hierarchy
D. Charm of the employee

2) Performance bonus is an example of a/an

A. Intrinsic reward
B. Extrinsic reward
C. Intrinsic wage payment
D. Extrinsic wage payment

3) The process of rewarding employees by giving them a stake in the company,

which further enhances their performance is called the
A. Gain sharing
B. Annual bonus
C. Employee stock plan
D. Profit sharing

4) A benefit plan where an employee gets a chance to choose from a lot of benefits
is also called
A. Holiday benefit plan
B. Restaurant benefit plan
C. Cafeteria benefit plan
D. Variable/Flexible benefit plan

5) Which of the following terms refers to all forms of pay or rewards going to employees
and arising from their employment?
A) salary
B) employee benefits
C) wage reimbursement
D) employee compensation

6) Which of the following is NOT a type of direct financial payment?

A) wages
B) insurance
C) incentives
D) commissions
7) Which of the following factors has the LEAST effect on the design of an organization's
pay plan?
A) legal
B) union
C) company vision
D) company policy

8) Which of the following terms refers to a compensation plan that advances a firm's
strategic goals?
A) strategic management
B) performance pay plan
C) aligned reward strategy
D) workers' compensation package

9) What theory of motivation states that people are strongly motivated to maintain a balance
between what they perceive as their contributions and their rewards?
A) Two-factor theory
B) Equity theory
C) Learned needs theory
D) Expectancy theory

10) Financial benefits like employer-paid insurance and vacations are not a part of employee
compensation.
TRUE
FALSE

11) Wage rate has been the main issue negotiated by unions in collective bargaining.
TRUE
FALSE

12) Which of the following terms refers to a systematic comparison done in order to
determine the worth of one job relative to another?
A) job analysis
B) job evaluation
C) job description
D) job classification

13) Salary surveys are used by firms to collect data on employee benefits as well as wage
rates for the purpose of pricing jobs.
TRUE
FALSE

14) A ________ is comprised of jobs of approximately equal difficulty or importance as

established by job evaluation.
A) wage curve
B) benchmark
C) pay grade
D) class

15) The purpose of the wage curve is to ________.

A) show the relationship between the value of the job and the current average pay rates
B) equate jobs of similar difficulty or importance as established by job evaluation
C) choose benchmark jobs within each pay grade
D) cluster jobs into logical groupings

16) Richard was recently offered a position as vice president of marketing at a national retail
chain. As a top executive at the firm, Richard will most likely be compensated with all of
the following EXCEPT ________.
A) stock options
B) pension plans
C) sales commissions
D) supplemental life insurance

17) What is the primary purpose of offering an executive stock options in a compensation
package?
A) providing the executive with guaranteed bonuses
B) encouraging the executive to increase the firm's value
C) enabling the firm to decrease the executive's base pay
D) offering the executive long-term retirement security

18) A company using competency-based pay compensates employees for all of the following
EXCEPT ________.
A) behaviors
B) job title
C) knowledge
D) skills

19) ________ means collapsing salary grades and ranges into just a few wide levels, each of
which contains a relatively wide range of jobs and salary levels.
A) Comparable worth
B) Job evaluation
C) Broadbanding
D) Job grading

20) According to many experts, which of the following would most likely reduce the wage
gap between men and women?
A) education
B) union intervention
C) legislation
D) competency-based pay
 HRM CHAPTER V

1) Which of the following statements is not true about an HR audit?

A It establishes a benchmark for measuring the performance of the HR dept.
B It is done by internal employees or external consultants
C It gathers data about people, process, structure and policies
D It is a statutory requirement for an organization

2) Which of the following pieces of information is normally not considered for HR audit/
A Job description and job specification statements
B hiring policies, practices and procedures
C details about exit and other interviews
D None of the above

3) HR audit needs to be done at ____________ levels of the organization

A Two
B Three
C Four
D Five

4) When the efficiency of the HR activity is measured in terms of the organisational

productivity and cost, it is called the _______ approach.
A Internal
B External
C Self directed team
D Task force

5) Which of the following conditions is essential for an effective HR audit/

A Top management’s commitment
B Clarity in HR audit objectives
C Regularity and continuity
D All of the above.

6) The automation of attendance keeping, payroll preparation and applicant tracking are
some of the activities carried out at the ________ level.
A Management Information System
B Decision support system
C Electronic data processing
D None of the above

7) A control technique that helps in measuring the cost and value of people for an
organization and helps management to value human resources is
A. Human resource accounting
B. Employee control systems
C. Organizational control systems
D. Value based accounting

8) Which of the following is not normally an essential condition for an effective HRIS?
A Ensuring clarity of HRIS goals
B Strengthening the infrastructure and other supporting systems
C Changing the HR manager
D Sustained enhancement of the HRIS capabilities

9) Which of the following is not an advantage of the HRIS?

A A reduction in labour cost
B The ability to manage voluminous data
C Better supervision and control over the human resources
D None of the above

10) Which of the following is/are the sub-system(s) of HRIS?

A Position control and budgeting system
B Compensation management system
C Performance management system
D All of the above

11) Technically HRIS is a/an:

A System software
B System hardware
C Database system
D Operating system

12) HRIS is used to facilitate the decisions related to

A. Overall Organisation
B. Employment planning
C. Sales forecasting
D. Resource allocation

13) As a result of which of the following activity, HRIS is gaining popularity day by
day?
A. Generating organisational reports
B. Managing resources effectively
C. Retrieving timely information
D. Handling bundles of data

14) To add value to HRM, the use of an HRIS is focused primarily on increasing which of the
following kind of tasks or activities?
A. Transactional
B. Benchmarking
C. Transformational
D. Re-engineering

15) Human Resource Information System is

A. is defined only by the software-hardware configuration it uses
B. is used to store data for use by the MIS department
C. includes people, forms, policies, procedures and data
D. cannot be used to manipulate and analyse data

16) The aggregate payment approach in human resource accounting was developed by
A Myers and Flowyers
B Hermanson
C S K Chakroborty
D None of the above

17) A system used to acquire, store, manipulate, analyze, retrieve, and distributed
information related to the company's human resources is called a(n) ___________
A. HRIS.
B. Progressive discipline system.
C. IRS
D. Contingent workforce system.

18) The opportunity cost approach in human resource accounting was introduced by
A. Hekimian and Jones
B. Rensis Likert
C. Eric G. Flamholtz
D. William C. Pyle

19) Shared service HR teams focus on assisting top management in big picture issues such as
developing a firm's long-term strategic plan.
TRUE
FALSE

20) Centralized HR units whose employees are shared by all the companies' departments to
obtain advice are called shared service.
TRUE
FALSE