WGU D351 v2 Functions of Human
Resource Management: All topics study
guide OA | 176+ Questions & Verified
Answers | 100% Correct | Grade A
(2026/2027)
This WGU D351 (Functions of Human Resource Management) v2 study guide is a
comprehensive set of 176 questions and answers designed to prepare students for the Objective
Assessment (OA). This guide covers the core pillars of human resource management, including staffing,
compensation, and legal compliance
Core HR Functions & Strategic Planning
The planning function of HRM is critical for aligning workforce capabilities with organizational goals.
• HR Planning: Involves two major activities: strategic planning (long-term goals like market
share and revenue growth) and short-to-medium-range planning.
• Staffing: Focuses on recruiting job applicants and selecting the most appropriate candidates for
available roles.
• Strategic Objectives: HR professionals use a SWOT analysis (Strengths, Weaknesses,
Opportunities, and Threats) to assess internal abilities against the external environment.
• Employee Potential: HRM enhances potential through both formal and informal training and
development programs.
Compensation & Benefits
Understanding how employees are rewarded is a major component of this 176-question set.
• Direct Compensation: Includes wages, salaries, and performance-based pay.
• Indirect Compensation: Consists of benefits, services, and perks given solely for
organizational membership, such as health insurance or Employee Assistance Programs (EAPs).
• Pay Structure Methods: Common techniques include the job-ranking method (ordering
roles by perceived value) and the point-factor method (using objective measures to
determine value),
Legal & Ethical Standards
This section addresses the regulatory framework that governs employment relationships.
1
, • OUCH Test: A common principle used to ensure employment actions are Objective, Uniform
in application, Consistent in effect, and have a Has-job-relatedness.
• Four-Fifths Rule: A mathematical test used by the EEOC to determine if disparate impact
exists in employment testing.
• Implicit HR Objectives: The four primary goals are to improve productivity, improve the
quality of work life, ensure legal compliance, and ensure ethical behavior.
Q1. Explain how the staffing function fills organizational roles and distinguish between
recruiting and selecting. [Short Answer]
Answer: Staffing involves first recruiting a pool of job applicants and then selecting the most
appropriate candidates for available positions; recruiting attracts potential candidates while
selection evaluates and chooses those who best fit the job and organization.
Explanation: Recruiting and selection are complementary parts of staffing: recruiting creates options by
drawing candidates in, and selection narrows those options based on fit, skills, and organizational needs.
Together they ensure the right people are placed in the right roles.
Q2. Which four implicit HR objectives are identified in the study guide? [Multiple Choice]
A) Improve productivity, improve quality of work life, ensure legal compliance, and foster
ethical behavior
B) Reduce labor costs, increase market share, centralize decision-making, and automate
processes
C) Focus on recruitment, retention, training, and international assignments only
D) Prioritize technology adoption, outsourcing, short-term profits, and brand visibility
Answer: Improve productivity, improve quality of work life, ensure legal compliance, and foster
ethical behavior
Explanation: These four objectives cover operational effectiveness (productivity), employee well-being
(quality of work life), adherence to laws (legal compliance), and organizational values (ethical behavior).
Together they represent implicit goals HR pursues to balance performance, people, rules, and ethics. The
distractors mix plausible HR aims but omit or replace key objectives: for example, focusing on cost-cutting
and market share ignores quality of work life and ethics; prioritizing only recruitment and retention leaves
out legal compliance and ethics; emphasizing only training and globalization omits productivity and
compliance.
Q3. What must management provide to maintain effective work relationships after hiring
employees? [Multiple Choice]
A) Provide compensation, a healthy and safe environment, and conditions that make
employees want to stay
2
, B) Maximize short-term profits even if employee conditions suffer
C) Focus solely on legal compliance regardless of workplace conditions
D) Reduce training and development to lower organizational costs
Answer: Provide compensation, a healthy and safe environment, and conditions that make
employees want to stay
Explanation: To maintain effective work relationships, management must create a positive workplace by
offering fair compensation, ensuring health and safety, and providing conditions that encourage
retention—these factors influence employees' willingness to remain and contribute. The distractors are
incorrect because prioritizing short-term profits at employees' expense undermines relationships, focusing
only on legal compliance ignores broader retention and motivation needs, and cutting training harms
development and engagement rather than maintaining positive relationships.
Q4. Explain how HRM enhances human potential and why training and development are
central to that effort. [Short Answer]
Answer: HRM enhances human potential primarily through formal and informal training and
development, which build employees' skills and capabilities so they can contribute more
effectively to the organization.
Explanation: Training and development expand employees' knowledge and abilities, enabling better job
performance, adaptability, and career growth. Investing in both formal programs and informal learning
opportunities helps the workforce evolve with organizational needs.
Q5. What are the primary activities of the staffing function in human resource management?
[Multiple Choice]
A) Recruiting job applicants and selecting the most appropriate applicants for available jobs
B) Designing compensation packages and employee benefits
C) Planning succession and contingency arrangements for key roles
D) Conducting performance appraisals and delivering training programs
Answer: Recruiting job applicants and selecting the most appropriate applicants for available
jobs
Explanation: The staffing function is specifically about filling positions: sourcing candidates (recruiting)
and choosing the best fit for each job (selection). This ensures the organization has the people needed to
execute its plans. The other options are plausible HR activities but not staffing: compensation design
addresses pay and benefits, succession and contingency planning are related to HR strategy and
engagement but are not the core hiring/selecting tasks, and performance appraisals and training are
evaluation and development functions rather than staffing.
Q6. According to the study guide, what are the two types of employee compensation? [Multiple
Choice]
A) Direct and indirect compensation
3
, B) Fixed and variable compensation
C) Monetary and non-monetary compensation
D) Base pay and incentive pay
Answer: Direct and indirect compensation
Explanation: Employee compensation is commonly categorized into direct pay (wages, salaries, bonuses)
and indirect pay (benefits, insurance, paid leave). This two-part distinction captures both immediate
monetary rewards and supplementary non-wage benefits. The distractors name real compensation
concepts but do not match the two categories highlighted: 'fixed and variable' is a pay-structure view,
'monetary and non-monetary' is similar but uses different terms, and 'base pay and incentive pay' are
subcomponents of direct compensation rather than the two broad types.
Q7. What is the primary purpose of conducting a SWOT analysis? [Multiple Choice]
A) Establish a level of understanding needed for a successful plan
B) Serve as a performance appraisal for individual employees
C) Provide a checklist of legal compliance requirements
D) Create daily operational schedules and assignments
Answer: Establish a level of understanding needed for a successful plan
Explanation: A SWOT analysis (strengths, weaknesses, opportunities, threats) is a structured way to gather
and organize internal and external factors so planners understand the situation before making decisions. It
creates the baseline knowledge required to design effective strategies. The distractors are incorrect
because SWOT is not primarily a performance appraisal tool, it is broader than a checklist of legal
requirements, and it is not an operational scheduling method—its purpose is situational assessment to
inform planning.
Q8. Explain how globalization has influenced HR practices and why HR policies must adapt.
[Short Answer]
Answer: Globalization requires HR to develop and implement policies with international
applicability and relevance to employees from diverse cultures and backgrounds so that HR
practices work across borders and cultural contexts.
Explanation: As organizations operate globally, HR policies must be flexible and culturally sensitive to
manage a diverse workforce and ensure consistent standards across countries. This prevents mismatches
between local expectations and corporate practices and supports effective global operations.
Q9. How does human resource management enhance human potential according to the
guide? [Multiple Choice]
A) Substantial interest in both formal and informal training and development
B) Providing only higher salaries to attract talent
C) Outsourcing all employee training to external vendors
4
Resource Management: All topics study
guide OA | 176+ Questions & Verified
Answers | 100% Correct | Grade A
(2026/2027)
This WGU D351 (Functions of Human Resource Management) v2 study guide is a
comprehensive set of 176 questions and answers designed to prepare students for the Objective
Assessment (OA). This guide covers the core pillars of human resource management, including staffing,
compensation, and legal compliance
Core HR Functions & Strategic Planning
The planning function of HRM is critical for aligning workforce capabilities with organizational goals.
• HR Planning: Involves two major activities: strategic planning (long-term goals like market
share and revenue growth) and short-to-medium-range planning.
• Staffing: Focuses on recruiting job applicants and selecting the most appropriate candidates for
available roles.
• Strategic Objectives: HR professionals use a SWOT analysis (Strengths, Weaknesses,
Opportunities, and Threats) to assess internal abilities against the external environment.
• Employee Potential: HRM enhances potential through both formal and informal training and
development programs.
Compensation & Benefits
Understanding how employees are rewarded is a major component of this 176-question set.
• Direct Compensation: Includes wages, salaries, and performance-based pay.
• Indirect Compensation: Consists of benefits, services, and perks given solely for
organizational membership, such as health insurance or Employee Assistance Programs (EAPs).
• Pay Structure Methods: Common techniques include the job-ranking method (ordering
roles by perceived value) and the point-factor method (using objective measures to
determine value),
Legal & Ethical Standards
This section addresses the regulatory framework that governs employment relationships.
1
, • OUCH Test: A common principle used to ensure employment actions are Objective, Uniform
in application, Consistent in effect, and have a Has-job-relatedness.
• Four-Fifths Rule: A mathematical test used by the EEOC to determine if disparate impact
exists in employment testing.
• Implicit HR Objectives: The four primary goals are to improve productivity, improve the
quality of work life, ensure legal compliance, and ensure ethical behavior.
Q1. Explain how the staffing function fills organizational roles and distinguish between
recruiting and selecting. [Short Answer]
Answer: Staffing involves first recruiting a pool of job applicants and then selecting the most
appropriate candidates for available positions; recruiting attracts potential candidates while
selection evaluates and chooses those who best fit the job and organization.
Explanation: Recruiting and selection are complementary parts of staffing: recruiting creates options by
drawing candidates in, and selection narrows those options based on fit, skills, and organizational needs.
Together they ensure the right people are placed in the right roles.
Q2. Which four implicit HR objectives are identified in the study guide? [Multiple Choice]
A) Improve productivity, improve quality of work life, ensure legal compliance, and foster
ethical behavior
B) Reduce labor costs, increase market share, centralize decision-making, and automate
processes
C) Focus on recruitment, retention, training, and international assignments only
D) Prioritize technology adoption, outsourcing, short-term profits, and brand visibility
Answer: Improve productivity, improve quality of work life, ensure legal compliance, and foster
ethical behavior
Explanation: These four objectives cover operational effectiveness (productivity), employee well-being
(quality of work life), adherence to laws (legal compliance), and organizational values (ethical behavior).
Together they represent implicit goals HR pursues to balance performance, people, rules, and ethics. The
distractors mix plausible HR aims but omit or replace key objectives: for example, focusing on cost-cutting
and market share ignores quality of work life and ethics; prioritizing only recruitment and retention leaves
out legal compliance and ethics; emphasizing only training and globalization omits productivity and
compliance.
Q3. What must management provide to maintain effective work relationships after hiring
employees? [Multiple Choice]
A) Provide compensation, a healthy and safe environment, and conditions that make
employees want to stay
2
, B) Maximize short-term profits even if employee conditions suffer
C) Focus solely on legal compliance regardless of workplace conditions
D) Reduce training and development to lower organizational costs
Answer: Provide compensation, a healthy and safe environment, and conditions that make
employees want to stay
Explanation: To maintain effective work relationships, management must create a positive workplace by
offering fair compensation, ensuring health and safety, and providing conditions that encourage
retention—these factors influence employees' willingness to remain and contribute. The distractors are
incorrect because prioritizing short-term profits at employees' expense undermines relationships, focusing
only on legal compliance ignores broader retention and motivation needs, and cutting training harms
development and engagement rather than maintaining positive relationships.
Q4. Explain how HRM enhances human potential and why training and development are
central to that effort. [Short Answer]
Answer: HRM enhances human potential primarily through formal and informal training and
development, which build employees' skills and capabilities so they can contribute more
effectively to the organization.
Explanation: Training and development expand employees' knowledge and abilities, enabling better job
performance, adaptability, and career growth. Investing in both formal programs and informal learning
opportunities helps the workforce evolve with organizational needs.
Q5. What are the primary activities of the staffing function in human resource management?
[Multiple Choice]
A) Recruiting job applicants and selecting the most appropriate applicants for available jobs
B) Designing compensation packages and employee benefits
C) Planning succession and contingency arrangements for key roles
D) Conducting performance appraisals and delivering training programs
Answer: Recruiting job applicants and selecting the most appropriate applicants for available
jobs
Explanation: The staffing function is specifically about filling positions: sourcing candidates (recruiting)
and choosing the best fit for each job (selection). This ensures the organization has the people needed to
execute its plans. The other options are plausible HR activities but not staffing: compensation design
addresses pay and benefits, succession and contingency planning are related to HR strategy and
engagement but are not the core hiring/selecting tasks, and performance appraisals and training are
evaluation and development functions rather than staffing.
Q6. According to the study guide, what are the two types of employee compensation? [Multiple
Choice]
A) Direct and indirect compensation
3
, B) Fixed and variable compensation
C) Monetary and non-monetary compensation
D) Base pay and incentive pay
Answer: Direct and indirect compensation
Explanation: Employee compensation is commonly categorized into direct pay (wages, salaries, bonuses)
and indirect pay (benefits, insurance, paid leave). This two-part distinction captures both immediate
monetary rewards and supplementary non-wage benefits. The distractors name real compensation
concepts but do not match the two categories highlighted: 'fixed and variable' is a pay-structure view,
'monetary and non-monetary' is similar but uses different terms, and 'base pay and incentive pay' are
subcomponents of direct compensation rather than the two broad types.
Q7. What is the primary purpose of conducting a SWOT analysis? [Multiple Choice]
A) Establish a level of understanding needed for a successful plan
B) Serve as a performance appraisal for individual employees
C) Provide a checklist of legal compliance requirements
D) Create daily operational schedules and assignments
Answer: Establish a level of understanding needed for a successful plan
Explanation: A SWOT analysis (strengths, weaknesses, opportunities, threats) is a structured way to gather
and organize internal and external factors so planners understand the situation before making decisions. It
creates the baseline knowledge required to design effective strategies. The distractors are incorrect
because SWOT is not primarily a performance appraisal tool, it is broader than a checklist of legal
requirements, and it is not an operational scheduling method—its purpose is situational assessment to
inform planning.
Q8. Explain how globalization has influenced HR practices and why HR policies must adapt.
[Short Answer]
Answer: Globalization requires HR to develop and implement policies with international
applicability and relevance to employees from diverse cultures and backgrounds so that HR
practices work across borders and cultural contexts.
Explanation: As organizations operate globally, HR policies must be flexible and culturally sensitive to
manage a diverse workforce and ensure consistent standards across countries. This prevents mismatches
between local expectations and corporate practices and supports effective global operations.
Q9. How does human resource management enhance human potential according to the
guide? [Multiple Choice]
A) Substantial interest in both formal and informal training and development
B) Providing only higher salaries to attract talent
C) Outsourcing all employee training to external vendors
4
