Human Resource Management (HRM) Final Exam Preparation
Q&A
For Stuvia Students
Date: June 10, 2025
Instructions
This practice set prepares students for a final HRM exam, covering key topics: recruit-
ment, training and development, performance management, compensation, employee re-
lations, strategic HRM, diversity, globalization, and HR technology. It includes three
sections: Multiple-Choice Questions (MCQs), Short-Answer Questions, and Essay Ques-
tions. Answer all questions in the provided answer booklet. Total marks: 100. Time
allowed: 3 hours. Calculators are not permitted. Answers should be 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 core objective of Human Resource Management (HRM)?
a) Increase employee turnover
b) Align workforce with organizational goals
c) Focus solely on administrative tasks
d) Reduce employee training programs
Answer: b) Align workforce with organizational goals
Justification: HRM strategically manages employees to achieve business objectives
while fostering individual growth.
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-
oriented
c) HRM focuses only on payroll, while Personnel Management handles training
d) There is no difference between the two
Answer: b) HRM emphasizes employee development, while Personnel Management
is task-oriented
Justification: HRM is proactive and aligns with business strategy, whereas Person-
nel 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
1
, strategic goals.
4. Which tool is used in Human Resource Planning (HRP) to forecast workforce tran-
sitions?
a) SWOT Analysis
b) Markov Analysis
c) PESTLE Analysis
d) Balanced Scorecard
Answer: b) Markov Analysis
Justification: Markov Analysis predicts employee movements (e.g., promotions,
turnover) using probability.
5. What distinguishes training from development in HRM?
a) Training is long-term, while development is short-term
b) Training focuses on current job skills, while development prepares for future roles
c) Training is for managers, while development is for employees
d) Training and development are identical
Answer: b) Training focuses on current job skills, while development prepares for
future roles
Justification: Training enhances immediate job performance (e.g., software train-
ing), while development focuses on long-term growth (e.g., leadership programs).
6. What is a potential challenge 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) primarily enhances:
a) Payroll accuracy
b) Organizational innovation
c) Recruitment costs
d) Legal compliance
Answer: b) Organizational innovation
Justification: EIP encourages employees to share ideas, fostering 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
2
Q&A
For Stuvia Students
Date: June 10, 2025
Instructions
This practice set prepares students for a final HRM exam, covering key topics: recruit-
ment, training and development, performance management, compensation, employee re-
lations, strategic HRM, diversity, globalization, and HR technology. It includes three
sections: Multiple-Choice Questions (MCQs), Short-Answer Questions, and Essay Ques-
tions. Answer all questions in the provided answer booklet. Total marks: 100. Time
allowed: 3 hours. Calculators are not permitted. Answers should be 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 core objective of Human Resource Management (HRM)?
a) Increase employee turnover
b) Align workforce with organizational goals
c) Focus solely on administrative tasks
d) Reduce employee training programs
Answer: b) Align workforce with organizational goals
Justification: HRM strategically manages employees to achieve business objectives
while fostering individual growth.
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-
oriented
c) HRM focuses only on payroll, while Personnel Management handles training
d) There is no difference between the two
Answer: b) HRM emphasizes employee development, while Personnel Management
is task-oriented
Justification: HRM is proactive and aligns with business strategy, whereas Person-
nel 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
1
, strategic goals.
4. Which tool is used in Human Resource Planning (HRP) to forecast workforce tran-
sitions?
a) SWOT Analysis
b) Markov Analysis
c) PESTLE Analysis
d) Balanced Scorecard
Answer: b) Markov Analysis
Justification: Markov Analysis predicts employee movements (e.g., promotions,
turnover) using probability.
5. What distinguishes training from development in HRM?
a) Training is long-term, while development is short-term
b) Training focuses on current job skills, while development prepares for future roles
c) Training is for managers, while development is for employees
d) Training and development are identical
Answer: b) Training focuses on current job skills, while development prepares for
future roles
Justification: Training enhances immediate job performance (e.g., software train-
ing), while development focuses on long-term growth (e.g., leadership programs).
6. What is a potential challenge 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) primarily enhances:
a) Payroll accuracy
b) Organizational innovation
c) Recruitment costs
d) Legal compliance
Answer: b) Organizational innovation
Justification: EIP encourages employees to share ideas, fostering 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
2
