Human Resource Management Exam
Review
Question 1
Human Resource Management (HRM) is best defined as:
A) The management of an organization's financial resources
B) The strategic approach to managing an organization's most valued assets — the people working there
C) The management of an organization's physical assets
D) The management of an organization's information technology systems
Correct Answer: B) The strategic approach to managing an organization's most valued assets — the
people working there
Rationale: HRM is the strategic and coherent approach to the management of an organization's
most valued assets — the people working there who individually and collectively contribute to
the achievement of the objectives of the business.
Question 2
Which of the following is NOT one of the primary functions of HRM?
A) Recruitment and selection
B) Training and development
C) Product development
D) Compensation and benefits
Correct Answer: C) Product development
Rationale: Product development is typically a function of the research and development or
marketing departments, not HRM. The primary functions of HRM include recruitment, selection,
training, compensation, performance management, and employee relations.
Question 3
The process of attracting qualified candidates to apply for a job vacancy is known as:
A) Selection
B) Recruitment
C) Orientation
D) Placement
Correct Answer: B) Recruitment
,Rationale: Recruitment is the process of identifying, attracting, and encouraging potential
candidates to apply for job openings. Selection is the process of choosing the best candidate
from the pool of applicants.
Question 4
Which of the following is an internal source of recruitment?
A) Employment agencies
B) Employee referrals
C) Promotions and transfers
D) Campus recruitment
Correct Answer: C) Promotions and transfers
Rationale: Promotions and transfers are internal sources of recruitment because they involve
filling vacancies with existing employees. Employment agencies, employee referrals, and
campus recruitment are external sources.
Question 5
The process of choosing the most suitable candidate from among the pool of applicants is called:
A) Recruitment
B) Selection
C) Orientation
D) Training
Correct Answer: B) Selection
Rationale: Selection is the process of gathering and evaluating information about applicants to
choose the most suitable candidate for a specific job. Recruitment precedes selection and aims
to attract applicants.
Question 6
Which of the following is a type of structured interview?
A) Behavioral interview
B) Unstructured interview
C) Informal interview
D) Conversational interview
Correct Answer: A) Behavioral interview
Rationale: A behavioral interview is a structured interview technique in which candidates are
asked to describe how they handled specific work situations in the past. It is based on the
premise that past behavior is the best predictor of future behavior.
,Question 7
The purpose of onboarding (orientation) is to:
A) Evaluate the employee's performance
B) Help new employees adjust to the organization and become productive
C) Terminate an employee's contract
D) Determine compensation
Correct Answer: B) Help new employees adjust to the organization and become productive
Rationale: Onboarding (or orientation) is the process of integrating a new employee into the
organization. It helps the employee understand the company culture, policies, and their role,
and helps them become productive quickly.
Question 8
The process of providing employees with the knowledge and skills they need to perform their current
jobs is called:
A) Training
B) Development
C) Compensation
D) Appraisal
Correct Answer: A) Training
Rationale: Training is focused on improving an employee's knowledge, skills, and abilities to
perform their current job effectively. Development, on the other hand, prepares employees for
future responsibilities and career advancement.
Question 9
The process of preparing employees for future responsibilities and career advancement is called:
A) Training
B) Development
C) Compensation
D) Appraisal
Correct Answer: B) Development
Rationale: Development focuses on preparing employees for future roles and responsibilities. It
is broader than training and often includes career planning, mentorship, and leadership
development.
, Question 10
Which of the following is a common method of on-the-job training?
A) Classroom lectures
B) Job rotation
C) Online courses
D) Simulation exercises
Correct Answer: B) Job rotation
Rationale: Job rotation is an on-the-job training method where employees rotate through
different jobs or departments to gain a variety of skills and experiences. Classroom lectures,
online courses, and simulations are typically off-the-job training methods.
Question 11
The systematic process of evaluating an employee's job performance is called:
A) Job analysis
B) Performance appraisal
C) Compensation
D) Recruitment
Correct Answer: B) Performance appraisal
Rationale: Performance appraisal is the systematic evaluation of an employee's job
performance and productivity. It is used to make decisions about promotions, compensation,
training needs, and terminations.
Question 12
Which of the following is a common performance appraisal method?
A) Graphic rating scale
B) Job rotation
C) Recruitment
D) Selection
Correct Answer: A) Graphic rating scale
Rationale: A graphic rating scale is a performance appraisal method in which the evaluator
rates an employee on various dimensions of performance using a scale. Job rotation is a training
method, and recruitment and selection are staffing functions.
Question 13
The performance appraisal method that involves rating an employee on a scale from "poor" to
"excellent" on various traits is called:
A) Critical incident method
Review
Question 1
Human Resource Management (HRM) is best defined as:
A) The management of an organization's financial resources
B) The strategic approach to managing an organization's most valued assets — the people working there
C) The management of an organization's physical assets
D) The management of an organization's information technology systems
Correct Answer: B) The strategic approach to managing an organization's most valued assets — the
people working there
Rationale: HRM is the strategic and coherent approach to the management of an organization's
most valued assets — the people working there who individually and collectively contribute to
the achievement of the objectives of the business.
Question 2
Which of the following is NOT one of the primary functions of HRM?
A) Recruitment and selection
B) Training and development
C) Product development
D) Compensation and benefits
Correct Answer: C) Product development
Rationale: Product development is typically a function of the research and development or
marketing departments, not HRM. The primary functions of HRM include recruitment, selection,
training, compensation, performance management, and employee relations.
Question 3
The process of attracting qualified candidates to apply for a job vacancy is known as:
A) Selection
B) Recruitment
C) Orientation
D) Placement
Correct Answer: B) Recruitment
,Rationale: Recruitment is the process of identifying, attracting, and encouraging potential
candidates to apply for job openings. Selection is the process of choosing the best candidate
from the pool of applicants.
Question 4
Which of the following is an internal source of recruitment?
A) Employment agencies
B) Employee referrals
C) Promotions and transfers
D) Campus recruitment
Correct Answer: C) Promotions and transfers
Rationale: Promotions and transfers are internal sources of recruitment because they involve
filling vacancies with existing employees. Employment agencies, employee referrals, and
campus recruitment are external sources.
Question 5
The process of choosing the most suitable candidate from among the pool of applicants is called:
A) Recruitment
B) Selection
C) Orientation
D) Training
Correct Answer: B) Selection
Rationale: Selection is the process of gathering and evaluating information about applicants to
choose the most suitable candidate for a specific job. Recruitment precedes selection and aims
to attract applicants.
Question 6
Which of the following is a type of structured interview?
A) Behavioral interview
B) Unstructured interview
C) Informal interview
D) Conversational interview
Correct Answer: A) Behavioral interview
Rationale: A behavioral interview is a structured interview technique in which candidates are
asked to describe how they handled specific work situations in the past. It is based on the
premise that past behavior is the best predictor of future behavior.
,Question 7
The purpose of onboarding (orientation) is to:
A) Evaluate the employee's performance
B) Help new employees adjust to the organization and become productive
C) Terminate an employee's contract
D) Determine compensation
Correct Answer: B) Help new employees adjust to the organization and become productive
Rationale: Onboarding (or orientation) is the process of integrating a new employee into the
organization. It helps the employee understand the company culture, policies, and their role,
and helps them become productive quickly.
Question 8
The process of providing employees with the knowledge and skills they need to perform their current
jobs is called:
A) Training
B) Development
C) Compensation
D) Appraisal
Correct Answer: A) Training
Rationale: Training is focused on improving an employee's knowledge, skills, and abilities to
perform their current job effectively. Development, on the other hand, prepares employees for
future responsibilities and career advancement.
Question 9
The process of preparing employees for future responsibilities and career advancement is called:
A) Training
B) Development
C) Compensation
D) Appraisal
Correct Answer: B) Development
Rationale: Development focuses on preparing employees for future roles and responsibilities. It
is broader than training and often includes career planning, mentorship, and leadership
development.
, Question 10
Which of the following is a common method of on-the-job training?
A) Classroom lectures
B) Job rotation
C) Online courses
D) Simulation exercises
Correct Answer: B) Job rotation
Rationale: Job rotation is an on-the-job training method where employees rotate through
different jobs or departments to gain a variety of skills and experiences. Classroom lectures,
online courses, and simulations are typically off-the-job training methods.
Question 11
The systematic process of evaluating an employee's job performance is called:
A) Job analysis
B) Performance appraisal
C) Compensation
D) Recruitment
Correct Answer: B) Performance appraisal
Rationale: Performance appraisal is the systematic evaluation of an employee's job
performance and productivity. It is used to make decisions about promotions, compensation,
training needs, and terminations.
Question 12
Which of the following is a common performance appraisal method?
A) Graphic rating scale
B) Job rotation
C) Recruitment
D) Selection
Correct Answer: A) Graphic rating scale
Rationale: A graphic rating scale is a performance appraisal method in which the evaluator
rates an employee on various dimensions of performance using a scale. Job rotation is a training
method, and recruitment and selection are staffing functions.
Question 13
The performance appraisal method that involves rating an employee on a scale from "poor" to
"excellent" on various traits is called:
A) Critical incident method
