Human Resource Management (HRM) Comprehensive Exam
For Stuvia Students
Date: June 10, 2025
Instructions
This exam tests knowledge of Human Resource Management (HRM) across key top-
ics, including recruitment, training, performance management, compensation, 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 allowed: 3 hours. Calculators are
not permitted. Ensure answers are clear, concise, and supported with examples where
required.
1 Multiple-Choice Questions (40 marks)
Each question is worth 2 marks. Choose the correct option and provide a brief justification
in the answer booklet.
1. What is the primary objective of Human Resource Management (HRM)?
a) Maximize employee turnover
b) Align workforce with organizational goals
c) Focus solely on payroll administration
d) Eliminate training programs
Answer: b) Align workforce with organizational goals
Justification: HRM strategically manages employees to achieve business objectives
while supporting individual development.
2. Which of the following best distinguishes HRM from Personnel Management?
a) HRM is reactive, while Personnel Management is proactive
b) HRM focuses on strategic employee development, while Personnel Management
is administrative
c) HRM only handles recruitment, while Personnel Management focuses on training
d) There is no difference between the two
Answer: b) HRM focuses on strategic employee development, while Personnel Man-
agement is administrative
Justification: HRM integrates HR practices with business strategy, whereas Per-
sonnel Management focuses on routine tasks.
3. What is the first step in the recruitment process?
a) Conducting interviews
b) Identifying staffing needs
c) Advertising vacancies
d) Onboarding new hires
Answer: b) Identifying staffing needs
Justification: Recruitment begins by assessing organizational needs to align with
strategic goals.
1
, 4. Which tool is commonly used in Human Resource Planning (HRP) to predict em-
ployee transitions?
a) SWOT Analysis
b) Markov Analysis
c) PESTLE Analysis
d) Balanced Scorecard
Answer: b) Markov Analysis
Justification: Markov Analysis uses probability to forecast workforce movements,
such as promotions or turnover.
5. What characterizes training in HRM?
a) Long-term career growth
b) Short-term skill enhancement for current roles
c) Strategic workforce forecasting
d) Employee retention planning
Answer: b) Short-term skill enhancement for current roles
Justification: Training focuses on immediate job-specific skills, unlike development,
which prepares for future roles.
6. What is a disadvantage of individual performance-related pay (IPRP)?
a) Encourages teamwork
b) May lead to biased appraisals
c) Simplifies performance evaluation
d) Increases employee retention
Answer: b) May lead to biased appraisals
Justification: Subjective evaluations in IPRP can result in unfair rewards, reducing
morale.
7. Employee Involvement and Participation (EIP) is most likely to improve:
a) Payroll accuracy
b) Organizational innovation
c) Recruitment costs
d) Compliance with labor laws
Answer: b) Organizational innovation
Justification: EIP encourages employees to contribute ideas, enhancing creativity
and problem-solving.
8. Which of the following is an ethical issue in HRM?
a) Offering competitive salaries
b) Discrimination in hiring practices
c) Providing training programs
d) Conducting performance appraisals
Answer: b) Discrimination in hiring practices
Justification: Unfair hiring based on non-job-related criteria violates ethical and
legal standards.
9. How does globalization impact HRM practices?
a) Reduces workforce diversity needs
b) Increases complexity in managing diverse workforces
c) Eliminates training requirements
2
For Stuvia Students
Date: June 10, 2025
Instructions
This exam tests knowledge of Human Resource Management (HRM) across key top-
ics, including recruitment, training, performance management, compensation, 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 allowed: 3 hours. Calculators are
not permitted. Ensure answers are clear, concise, and supported with examples where
required.
1 Multiple-Choice Questions (40 marks)
Each question is worth 2 marks. Choose the correct option and provide a brief justification
in the answer booklet.
1. What is the primary objective of Human Resource Management (HRM)?
a) Maximize employee turnover
b) Align workforce with organizational goals
c) Focus solely on payroll administration
d) Eliminate training programs
Answer: b) Align workforce with organizational goals
Justification: HRM strategically manages employees to achieve business objectives
while supporting individual development.
2. Which of the following best distinguishes HRM from Personnel Management?
a) HRM is reactive, while Personnel Management is proactive
b) HRM focuses on strategic employee development, while Personnel Management
is administrative
c) HRM only handles recruitment, while Personnel Management focuses on training
d) There is no difference between the two
Answer: b) HRM focuses on strategic employee development, while Personnel Man-
agement is administrative
Justification: HRM integrates HR practices with business strategy, whereas Per-
sonnel Management focuses on routine tasks.
3. What is the first step in the recruitment process?
a) Conducting interviews
b) Identifying staffing needs
c) Advertising vacancies
d) Onboarding new hires
Answer: b) Identifying staffing needs
Justification: Recruitment begins by assessing organizational needs to align with
strategic goals.
1
, 4. Which tool is commonly used in Human Resource Planning (HRP) to predict em-
ployee transitions?
a) SWOT Analysis
b) Markov Analysis
c) PESTLE Analysis
d) Balanced Scorecard
Answer: b) Markov Analysis
Justification: Markov Analysis uses probability to forecast workforce movements,
such as promotions or turnover.
5. What characterizes training in HRM?
a) Long-term career growth
b) Short-term skill enhancement for current roles
c) Strategic workforce forecasting
d) Employee retention planning
Answer: b) Short-term skill enhancement for current roles
Justification: Training focuses on immediate job-specific skills, unlike development,
which prepares for future roles.
6. What is a disadvantage of individual performance-related pay (IPRP)?
a) Encourages teamwork
b) May lead to biased appraisals
c) Simplifies performance evaluation
d) Increases employee retention
Answer: b) May lead to biased appraisals
Justification: Subjective evaluations in IPRP can result in unfair rewards, reducing
morale.
7. Employee Involvement and Participation (EIP) is most likely to improve:
a) Payroll accuracy
b) Organizational innovation
c) Recruitment costs
d) Compliance with labor laws
Answer: b) Organizational innovation
Justification: EIP encourages employees to contribute ideas, enhancing creativity
and problem-solving.
8. Which of the following is an ethical issue in HRM?
a) Offering competitive salaries
b) Discrimination in hiring practices
c) Providing training programs
d) Conducting performance appraisals
Answer: b) Discrimination in hiring practices
Justification: Unfair hiring based on non-job-related criteria violates ethical and
legal standards.
9. How does globalization impact HRM practices?
a) Reduces workforce diversity needs
b) Increases complexity in managing diverse workforces
c) Eliminates training requirements
2
