HRM Practice Questions with Correct Answers

1) Human resources management refers to: A) all managerial activities. B) concepts and techniques used in leading people at work. C) concepts and techniques for organizing work activities. D) management techniques for controlling people at work. E) the management of people in organizations. Correct Answer-E. THE MANAGEMENT OF PEOPLE IN ORGANIZATIONS 2) The knowledge, education, training, skills, and expertise of a firmʹs workers is known as: A) physical capital. B) managementʹs philosophy. C) production capital. D) human capital. E) cultural diversity. Correct Answer-D. HUMAN CAPITAL 3) Human resources practices that support strategy include: A) performance management. B) rewards practices. C) staffing practices. D) policies and procedures. E) production scheduling. Correct Answer-E. PRODUCTION SCHEDULING 4) A company utilizes a system to measure the impact of Human Resources which balances measures relating to financial results, customers, internal business processes and human capital management. This system is knows as the: A) HRIS. B) Human Capital Index. C) balanced strategy. D) balanced scorecard. E) none of the above. Correct Answer-D. BALANCED SCORECARD 5) You have been tasked with building employee engagement at the firm you work for. Strategic human resources initiatives you would consider implementing include: A) employee recognition programs. B) employee recognition programs and management development programs. C) job design indicators. D) diversity programs. E) employee relations activity. Correct Answer-B. EMPLOYEE RECOGNITION PROGRAMS AND MANAGEMENT DEVELOPMENT PROGRAMS 6) HR department staff members are traditionally involved in key operational responsibilities. Which of the following is an operational responsibility? A) setting goals and objectives B) interpreting human right laws C) collecting metrics D) analyzing metrics E) interpreting health and safety legislation Correct Answer-C. COLLECTING METRICS 7) Being completely familiar with employment legislation, HR policies and procedures, collective agreements, and the outcome of recent arbitration hearings and court decisions is most closely related with which of the following HR activities? A) serving as a consultant B) formulating policies and procedures C) offering advice D) providing services E) serving as a change agent Correct Answer-C. OFFERING ADVICE 8) The practice of contracting with outside vendors to handle specified functions on a permanent basis is known as A) contract administration. B) payroll and benefits administration. C) hiring temporary employees. D) outsourcing. E) labour-management relations. Correct Answer-D. OUTSOURCING 9) The companyʹs plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain competitive advantage is known as A) environmental scanning. B) HR strategy. C) policies and procedures. D) strategy. E) none of the above. Correct Answer-D. STRATEGY 10) Rita is the HR Director of a manufacturing company. She recently undertook research to identify competitor compensation and incentive plans, information about pending legislative changes and availability of talent in the labour market for the upcoming strategic planning meeting. Rita was conducting: A) environmental scanning. B) an external market survey. C) an employee engagement survey. D) an envrionmental study. E) an external opportunities/threats study. Correct Answer-A. ENVIRONMENTAL SCANNING 11) The HR manager of Smith & Yu company was heavily involved in a downsizing exercise of the companyʹs sales force due to an economic downturn. He was also involved in arranging for outplacement services and employee retention programs as well as restructuring of the business following the downsizing. This is an example of HRʹs role in: A) environmental scanning and executing strategy. B) environmental scanning. C) executing strategy. D) operational activities. E) formulating strategy. Correct Answer-C. EXECUTING STRATEGY 12) The core values, beliefs, and assumptions that are widely shared by members of an organization are known as: A) organizational climate. B) organizational culture. C) the pervading atmosphere. D) the mission statement. E) the strategic plan. Correct Answer-B. ORGANIZATIONAL CULTURE 13) As the HR consultant of a newly formed company, Arun has planned a presentation for the l