WGU C202 – MANAGING HUMAN CAPITAL
PRACTICE QUESTIONS WITH VERIFIED
ANSWERS
1. Which statement best describes human capital?
A. The financial resources available to an organization
B. The physical equipment employees use
C. The knowledge, skills, abilities, and experience possessed by employees
D. The legal requirements imposed on employers
Correct Answer: C. The knowledge, skills, abilities, and experience
possessed by employees
Rationale: Human capital represents the knowledge, skills, abilities,
experience, and other employee attributes that contribute to
organizational performance.
2. What is the primary purpose of strategic human resource
management?
A. To eliminate employee turnover completely
B. To align human resource practices with organizational strategy
C. To reduce all employee compensation
D. To replace managers with technology
Correct Answer: B. To align human resource practices with
organizational strategy
Rationale: Strategic HRM connects workforce practices with the
organization's broader goals and competitive strategy.
3. Which activity is most directly associated with workforce planning?
A. Determining future staffing requirements
B. Processing employee expense reports
C. Designing office furniture
D. Auditing financial statements
,Correct Answer: A. Determining future staffing requirements
Rationale: Workforce planning identifies the number and types of
employees an organization will need to meet future objectives.
4. What is a job analysis?
A. A process for determining an employee's personality
B. A systematic examination of the duties and requirements of a job
C. A method of calculating organizational profit
D. A process for terminating employees
Correct Answer: B. A systematic examination of the duties and
requirements of a job
Rationale: Job analysis identifies job duties, responsibilities, required
knowledge, skills, abilities, and other characteristics.
5. Which document primarily describes the duties and responsibilities
associated with a position?
A. Job description
B. Balance sheet
C. Organizational chart
D. Training invoice
Correct Answer: A. Job description
Rationale: A job description outlines the essential duties, responsibilities,
and other characteristics of a particular position.
6. Which document identifies the qualifications needed to perform a job
successfully?
A. Job specification
B. Employee handbook
C. Performance appraisal
D. Payroll register
Correct Answer: A. Job specification
,Rationale: A job specification identifies the education, experience, skills,
abilities, and other qualifications required for a job.
7. Which recruitment method involves filling a position with someone
already employed by the organization?
A. External recruitment
B. Internal recruitment
C. Outsourcing
D. Contingent staffing
Correct Answer: B. Internal recruitment
Rationale: Internal recruitment considers existing employees for available
positions and can support career development and retention.
8. What is one potential advantage of internal recruitment?
A. It guarantees a larger applicant pool
B. It eliminates all training requirements
C. The organization already has information about the candidate's
performance
D. It prevents employee promotions
Correct Answer: C. The organization already has information about the
candidate's performance
Rationale: Internal candidates have established work histories, allowing
employers to evaluate known performance and organizational fit.
9. Which selection method generally provides applicants with the same
questions in a consistent format?
A. Structured interview
B. Informal conversation
C. Unplanned interview
D. Casual observation
Correct Answer: A. Structured interview
, Rationale: Structured interviews use standardized questions and
evaluation procedures, improving consistency among candidates.
10. What is validity in employee selection?
A. The degree to which a selection method measures what it is intended
to measure
B. The cost of recruiting an employee
C. The number of applicants for a job
D. The length of the interview process
Correct Answer: A. The degree to which a selection method measures
what it is intended to measure
Rationale: Selection validity concerns whether an assessment accurately
measures characteristics relevant to successful job performance.
11. Which type of validity examines whether a selection test predicts
future job performance?
A. Predictive validity
B. Face validity
C. Content validity
D. Construct validity
Correct Answer: A. Predictive validity
Rationale: Predictive validity evaluates whether assessment results are
associated with later performance outcomes.
12. What is adverse impact?
A. A positive effect of diversity
B. A disproportionately negative selection outcome for a protected group
C. A decrease in employee motivation
D. A reduction in organizational revenue
Correct Answer: B. A disproportionately negative selection outcome for
a protected group
PRACTICE QUESTIONS WITH VERIFIED
ANSWERS
1. Which statement best describes human capital?
A. The financial resources available to an organization
B. The physical equipment employees use
C. The knowledge, skills, abilities, and experience possessed by employees
D. The legal requirements imposed on employers
Correct Answer: C. The knowledge, skills, abilities, and experience
possessed by employees
Rationale: Human capital represents the knowledge, skills, abilities,
experience, and other employee attributes that contribute to
organizational performance.
2. What is the primary purpose of strategic human resource
management?
A. To eliminate employee turnover completely
B. To align human resource practices with organizational strategy
C. To reduce all employee compensation
D. To replace managers with technology
Correct Answer: B. To align human resource practices with
organizational strategy
Rationale: Strategic HRM connects workforce practices with the
organization's broader goals and competitive strategy.
3. Which activity is most directly associated with workforce planning?
A. Determining future staffing requirements
B. Processing employee expense reports
C. Designing office furniture
D. Auditing financial statements
,Correct Answer: A. Determining future staffing requirements
Rationale: Workforce planning identifies the number and types of
employees an organization will need to meet future objectives.
4. What is a job analysis?
A. A process for determining an employee's personality
B. A systematic examination of the duties and requirements of a job
C. A method of calculating organizational profit
D. A process for terminating employees
Correct Answer: B. A systematic examination of the duties and
requirements of a job
Rationale: Job analysis identifies job duties, responsibilities, required
knowledge, skills, abilities, and other characteristics.
5. Which document primarily describes the duties and responsibilities
associated with a position?
A. Job description
B. Balance sheet
C. Organizational chart
D. Training invoice
Correct Answer: A. Job description
Rationale: A job description outlines the essential duties, responsibilities,
and other characteristics of a particular position.
6. Which document identifies the qualifications needed to perform a job
successfully?
A. Job specification
B. Employee handbook
C. Performance appraisal
D. Payroll register
Correct Answer: A. Job specification
,Rationale: A job specification identifies the education, experience, skills,
abilities, and other qualifications required for a job.
7. Which recruitment method involves filling a position with someone
already employed by the organization?
A. External recruitment
B. Internal recruitment
C. Outsourcing
D. Contingent staffing
Correct Answer: B. Internal recruitment
Rationale: Internal recruitment considers existing employees for available
positions and can support career development and retention.
8. What is one potential advantage of internal recruitment?
A. It guarantees a larger applicant pool
B. It eliminates all training requirements
C. The organization already has information about the candidate's
performance
D. It prevents employee promotions
Correct Answer: C. The organization already has information about the
candidate's performance
Rationale: Internal candidates have established work histories, allowing
employers to evaluate known performance and organizational fit.
9. Which selection method generally provides applicants with the same
questions in a consistent format?
A. Structured interview
B. Informal conversation
C. Unplanned interview
D. Casual observation
Correct Answer: A. Structured interview
, Rationale: Structured interviews use standardized questions and
evaluation procedures, improving consistency among candidates.
10. What is validity in employee selection?
A. The degree to which a selection method measures what it is intended
to measure
B. The cost of recruiting an employee
C. The number of applicants for a job
D. The length of the interview process
Correct Answer: A. The degree to which a selection method measures
what it is intended to measure
Rationale: Selection validity concerns whether an assessment accurately
measures characteristics relevant to successful job performance.
11. Which type of validity examines whether a selection test predicts
future job performance?
A. Predictive validity
B. Face validity
C. Content validity
D. Construct validity
Correct Answer: A. Predictive validity
Rationale: Predictive validity evaluates whether assessment results are
associated with later performance outcomes.
12. What is adverse impact?
A. A positive effect of diversity
B. A disproportionately negative selection outcome for a protected group
C. A decrease in employee motivation
D. A reduction in organizational revenue
Correct Answer: B. A disproportionately negative selection outcome for
a protected group
