WGU D351 Functions of Human
Resource Management –Practice Exam
100 Questions with Correct Answers and
Explanations.
Section 1: Strategic Human Resource Management
1. Which of the following best describes the primary role of Human Resource
Management in an organization?
A) Processing payroll and employee benefits paperwork
B) Ensuring compliance with labor laws only
C) Aligning HR practices with organizational strategy to achieve business goals
D) Managing employee terminations and hiring
Rationale: HRM is a strategic partner that aligns its practices (recruiting, training,
compensation, etc.) with the overall business strategy to help the organization achieve its
goals. While administrative tasks are part of HR, the primary role is strategic.
2. The concept of "strategic human resource management" (SHRM) emphasizes
that HR practices should:
A) Be identical across all organizations
B) Focus only on cost reduction
C) Be designed to support the organization's competitive strategy
D) Operate independently of business strategy
Rationale: SHRM focuses on the integration of HR practices with the strategic objectives
of the organization. HR strategies should complement and support business strategies
(e.g., cost leadership, differentiation, focus).
,3. When HR works to ensure that the organization has the right number of
employees with the right skills in the right places at the right time, this is called:
A) Job analysis
B) Recruitment
C) Human resource planning (workforce planning)
D) Performance management
Rationale: Human resource planning (or workforce planning) involves forecasting future
HR needs and determining how to meet those needs through recruitment, training,
succession planning, and other activities.
4. A company pursuing a "cost leadership" strategy would most likely design its
HR practices to:
A) Offer high salaries and extensive benefits to attract top creative talent
B) Focus on efficiency, productivity, and cost control with standardized processes
C) Emphasize innovation and risk-taking
D) Provide extensive autonomy and flexible work arrangements
Rationale: A cost leadership strategy (competing on low price) requires HR practices that
emphasize efficiency, productivity, standardized processes, and cost control. Jobs are often
narrowly defined with clear performance metrics.
5. A company pursuing a "differentiation" strategy (offering unique products or
services) would most likely design its HR practices to:
A) Minimize training costs
B) Use strict, standardized job descriptions
C) Focus on high-volume, low-cost hiring
D) Emphasize innovation, creativity, and employee development
Rationale: A differentiation strategy requires innovation and uniqueness. HR practices
should support creativity, provide autonomy, invest in employee development, and reward
innovation.
,6. The "resource-based view" (RBV) of the firm suggests that human resources can
be a source of sustained competitive advantage if they are:
A) Easily imitated by competitors
B) Available in the external labor market
C) Replaceable with technology
D) Valuable, rare, inimitable, and organized (VRIO framework)
Rationale: The RBV argues that human capital can be a source of competitive advantage
when employees possess valuable, rare, and difficult-to-imitate skills, and the organization
is organized to capture their value.
7. Which of the following is an example of a "transactional" HR activity?
A) Developing a strategic workforce plan
B) Designing a leadership development program
C) Creating a diversity and inclusion strategy
D) Processing payroll and benefits enrollments
Rationale: Transactional HR activities are routine, administrative tasks (payroll, benefits
administration, record keeping). Strategic activities include workforce planning, talent
management, and organizational development.
8. HR metrics such as "time-to-fill" and "cost-per-hire" are examples of:
A) Strategic alignment metrics
B) Efficiency or operational metrics
C) Effectiveness metrics
D) Compliance metrics
Rationale: Time-to-fill and cost-per-hire measure the efficiency of recruitment processes.
They track operational performance rather than the quality or strategic impact of hires.
, 9. Which of the following best describes "HR analytics" (people analytics)?
A) Processing employee payroll data
B) Maintaining employee personnel files
C) Using data analysis to make evidence-based HR decisions
D) Conducting employee satisfaction surveys
Rationale: HR analytics involves collecting, analyzing, and interpreting HR data to make
informed, evidence-based decisions about talent management, retention, productivity, and
other HR outcomes.
10. The "balanced scorecard" approach to HR measurement includes metrics from
which four perspectives?
A) Recruitment, selection, training, compensation
B) Financial, customer, internal processes, learning and growth
C) Input, process, output, outcome
D) Strategic, operational, tactical, administrative
Rationale: The balanced scorecard (Kaplan & Norton) measures performance from four
perspectives: financial, customer, internal business processes, and learning/growth. HR
uses this framework to link HR metrics to organizational strategy.
11. An HR department that operates as a "business partner" is expected to:
A) Only handle administrative tasks
B) Report exclusively to the finance department
C) Collaborate with line managers to achieve business objectives
D) Avoid involvement in strategic decisions
Rationale: The HR business partner model (Ulrich) positions HR professionals as strategic
partners who work alongside line managers to achieve business goals through effective
people management.
Resource Management –Practice Exam
100 Questions with Correct Answers and
Explanations.
Section 1: Strategic Human Resource Management
1. Which of the following best describes the primary role of Human Resource
Management in an organization?
A) Processing payroll and employee benefits paperwork
B) Ensuring compliance with labor laws only
C) Aligning HR practices with organizational strategy to achieve business goals
D) Managing employee terminations and hiring
Rationale: HRM is a strategic partner that aligns its practices (recruiting, training,
compensation, etc.) with the overall business strategy to help the organization achieve its
goals. While administrative tasks are part of HR, the primary role is strategic.
2. The concept of "strategic human resource management" (SHRM) emphasizes
that HR practices should:
A) Be identical across all organizations
B) Focus only on cost reduction
C) Be designed to support the organization's competitive strategy
D) Operate independently of business strategy
Rationale: SHRM focuses on the integration of HR practices with the strategic objectives
of the organization. HR strategies should complement and support business strategies
(e.g., cost leadership, differentiation, focus).
,3. When HR works to ensure that the organization has the right number of
employees with the right skills in the right places at the right time, this is called:
A) Job analysis
B) Recruitment
C) Human resource planning (workforce planning)
D) Performance management
Rationale: Human resource planning (or workforce planning) involves forecasting future
HR needs and determining how to meet those needs through recruitment, training,
succession planning, and other activities.
4. A company pursuing a "cost leadership" strategy would most likely design its
HR practices to:
A) Offer high salaries and extensive benefits to attract top creative talent
B) Focus on efficiency, productivity, and cost control with standardized processes
C) Emphasize innovation and risk-taking
D) Provide extensive autonomy and flexible work arrangements
Rationale: A cost leadership strategy (competing on low price) requires HR practices that
emphasize efficiency, productivity, standardized processes, and cost control. Jobs are often
narrowly defined with clear performance metrics.
5. A company pursuing a "differentiation" strategy (offering unique products or
services) would most likely design its HR practices to:
A) Minimize training costs
B) Use strict, standardized job descriptions
C) Focus on high-volume, low-cost hiring
D) Emphasize innovation, creativity, and employee development
Rationale: A differentiation strategy requires innovation and uniqueness. HR practices
should support creativity, provide autonomy, invest in employee development, and reward
innovation.
,6. The "resource-based view" (RBV) of the firm suggests that human resources can
be a source of sustained competitive advantage if they are:
A) Easily imitated by competitors
B) Available in the external labor market
C) Replaceable with technology
D) Valuable, rare, inimitable, and organized (VRIO framework)
Rationale: The RBV argues that human capital can be a source of competitive advantage
when employees possess valuable, rare, and difficult-to-imitate skills, and the organization
is organized to capture their value.
7. Which of the following is an example of a "transactional" HR activity?
A) Developing a strategic workforce plan
B) Designing a leadership development program
C) Creating a diversity and inclusion strategy
D) Processing payroll and benefits enrollments
Rationale: Transactional HR activities are routine, administrative tasks (payroll, benefits
administration, record keeping). Strategic activities include workforce planning, talent
management, and organizational development.
8. HR metrics such as "time-to-fill" and "cost-per-hire" are examples of:
A) Strategic alignment metrics
B) Efficiency or operational metrics
C) Effectiveness metrics
D) Compliance metrics
Rationale: Time-to-fill and cost-per-hire measure the efficiency of recruitment processes.
They track operational performance rather than the quality or strategic impact of hires.
, 9. Which of the following best describes "HR analytics" (people analytics)?
A) Processing employee payroll data
B) Maintaining employee personnel files
C) Using data analysis to make evidence-based HR decisions
D) Conducting employee satisfaction surveys
Rationale: HR analytics involves collecting, analyzing, and interpreting HR data to make
informed, evidence-based decisions about talent management, retention, productivity, and
other HR outcomes.
10. The "balanced scorecard" approach to HR measurement includes metrics from
which four perspectives?
A) Recruitment, selection, training, compensation
B) Financial, customer, internal processes, learning and growth
C) Input, process, output, outcome
D) Strategic, operational, tactical, administrative
Rationale: The balanced scorecard (Kaplan & Norton) measures performance from four
perspectives: financial, customer, internal business processes, and learning/growth. HR
uses this framework to link HR metrics to organizational strategy.
11. An HR department that operates as a "business partner" is expected to:
A) Only handle administrative tasks
B) Report exclusively to the finance department
C) Collaborate with line managers to achieve business objectives
D) Avoid involvement in strategic decisions
Rationale: The HR business partner model (Ulrich) positions HR professionals as strategic
partners who work alongside line managers to achieve business goals through effective
people management.
