Human Resource Management (HRM)
Comprehensive Exam
For Stuvia Students
Date: June 10, 2025
Instructions
This exam tests knowledge of Human Resource Management (HRM) across all
major topics, including recruitment, training, performance management, com-
pensation, employee relations, and strategic HRM. It consists of three sections:
Multiple-Choice Questions (MCQs), Short-Answer Questions, and Essay Questions.
Answer all questions in the provided answer booklet. Total marks: 100. Time al-
lowed: 3 hours. Calculators are not permitted. Ensure answers are clear and
concise.
1 Multiple-Choice Questions (30 marks)
Each question is worth 3 marks. Choose the correct option and provide a brief
justification for your answer in the answer booklet.
1. What is the primary goal of Human Resource Management (HRM)?
a) Maximize employee payroll costs
b) Align workforce with organizational objectives
c) Focus solely on compliance with labor regulations
d) Minimize employee training initiatives
Answer: b) Align workforce with organizational objectives
Justification: HRM strategically manages employees to achieve business
goals while supporting individual development.
2. How does HRM differ from Personnel Management?
a) HRM is administrative, while Personnel Management is strategic
b) HRM emphasizes employee development, while Personnel Management
is task-focused
c) HRM focuses only on payroll, while Personnel Management handles re-
cruitment
d) There is no difference between the two
Answer: b) HRM emphasizes employee development, while Personnel Man-
agement is task-focused
Justification: HRM is proactive and strategic, focusing on growth, whereas
Personnel Management handles routine administrative tasks.
3. What is the initial step in the recruitment process?
a) Conducting interviews
b) Identifying staffing requirements
c) Advertising job vacancies
d) Onboarding new employees
Answer: b) Identifying staffing requirements
1
, Justification: Recruitment starts by assessing organizational needs to en-
sure alignment with business goals.
4. Which tool is used in Human Resource Planning (HRP) to forecast work-
force transitions?
a) SWOT Analysis
b) Markov Analysis
c) PESTLE Analysis
d) Balanced Scorecard
Answer: b) Markov Analysis
Justification: Markov Analysis predicts employee movements (e.g., promo-
tions, turnover) using probability.
5. What best describes training in HRM?
a) Long-term career development
b) Short-term skill improvement for current roles
c) Strategic workforce planning
d) Employee retention strategy
Answer: b) Short-term skill improvement for current roles
Justification: Training addresses immediate skill gaps, unlike development,
which focuses on future roles.
6. What is a potential drawback of individual performance-related pay (IPRP)?
a) Increases employee motivation
b) Encourages teamwork
c) May lead to biased performance evaluations
d) Simplifies performance assessments
Answer: c) May lead to biased performance evaluations
Justification: Subjective appraisals in IPRP can result in unfair rewards, re-
ducing effectiveness.
7. Employee Involvement and Participation (EIP) primarily enhances:
a) Payroll accuracy
b) Organizational innovation
c) Recruitment efficiency
d) Legal compliance
Answer: b) Organizational innovation
Justification: EIP encourages employees to share ideas, fostering creativity
and innovation.
8. Which of the following represents an ethical issue in HRM?
a) Offering competitive salaries
b) Discrimination in recruitment
c) Providing training programs
d) Conducting performance reviews
Answer: b) Discrimination in recruitment
Justification: Unfair hiring based on non-job-related criteria is a significant
ethical concern.
9. How does globalization impact HRM practices?
a) Reduces workforce diversity needs
2
Comprehensive Exam
For Stuvia Students
Date: June 10, 2025
Instructions
This exam tests knowledge of Human Resource Management (HRM) across all
major topics, including recruitment, training, performance management, com-
pensation, employee relations, and strategic HRM. It consists of three sections:
Multiple-Choice Questions (MCQs), Short-Answer Questions, and Essay Questions.
Answer all questions in the provided answer booklet. Total marks: 100. Time al-
lowed: 3 hours. Calculators are not permitted. Ensure answers are clear and
concise.
1 Multiple-Choice Questions (30 marks)
Each question is worth 3 marks. Choose the correct option and provide a brief
justification for your answer in the answer booklet.
1. What is the primary goal of Human Resource Management (HRM)?
a) Maximize employee payroll costs
b) Align workforce with organizational objectives
c) Focus solely on compliance with labor regulations
d) Minimize employee training initiatives
Answer: b) Align workforce with organizational objectives
Justification: HRM strategically manages employees to achieve business
goals while supporting individual development.
2. How does HRM differ from Personnel Management?
a) HRM is administrative, while Personnel Management is strategic
b) HRM emphasizes employee development, while Personnel Management
is task-focused
c) HRM focuses only on payroll, while Personnel Management handles re-
cruitment
d) There is no difference between the two
Answer: b) HRM emphasizes employee development, while Personnel Man-
agement is task-focused
Justification: HRM is proactive and strategic, focusing on growth, whereas
Personnel Management handles routine administrative tasks.
3. What is the initial step in the recruitment process?
a) Conducting interviews
b) Identifying staffing requirements
c) Advertising job vacancies
d) Onboarding new employees
Answer: b) Identifying staffing requirements
1
, Justification: Recruitment starts by assessing organizational needs to en-
sure alignment with business goals.
4. Which tool is used in Human Resource Planning (HRP) to forecast work-
force transitions?
a) SWOT Analysis
b) Markov Analysis
c) PESTLE Analysis
d) Balanced Scorecard
Answer: b) Markov Analysis
Justification: Markov Analysis predicts employee movements (e.g., promo-
tions, turnover) using probability.
5. What best describes training in HRM?
a) Long-term career development
b) Short-term skill improvement for current roles
c) Strategic workforce planning
d) Employee retention strategy
Answer: b) Short-term skill improvement for current roles
Justification: Training addresses immediate skill gaps, unlike development,
which focuses on future roles.
6. What is a potential drawback of individual performance-related pay (IPRP)?
a) Increases employee motivation
b) Encourages teamwork
c) May lead to biased performance evaluations
d) Simplifies performance assessments
Answer: c) May lead to biased performance evaluations
Justification: Subjective appraisals in IPRP can result in unfair rewards, re-
ducing effectiveness.
7. Employee Involvement and Participation (EIP) primarily enhances:
a) Payroll accuracy
b) Organizational innovation
c) Recruitment efficiency
d) Legal compliance
Answer: b) Organizational innovation
Justification: EIP encourages employees to share ideas, fostering creativity
and innovation.
8. Which of the following represents an ethical issue in HRM?
a) Offering competitive salaries
b) Discrimination in recruitment
c) Providing training programs
d) Conducting performance reviews
Answer: b) Discrimination in recruitment
Justification: Unfair hiring based on non-job-related criteria is a significant
ethical concern.
9. How does globalization impact HRM practices?
a) Reduces workforce diversity needs
2
