D351 HRM 2110
Functions of HRM
Comprehensive OA Review (Qns & Ans)
2025
1. Which of the following best describes strategic Human
Resource Management (HRM)?
A. A traditional HR approach aligning HR policies with
company policies.
B. An approach integrating HR decisions with long-term
organizational goals.
C. Focusing solely on recruitment and selection processes.
D. Concentrating on employee relations and law compliance.
©2024/2025
, ANS: B. An approach integrating HR decisions with long-
term organizational goals.
Rationale: Strategic HRM involves aligning HR functions with
the strategic objectives of the organization, ensuring that HR
contributes to the overall success and competitiveness.
2. In workforce planning, what is a primary reason for
conducting a skills inventory?
A. To identify redundant employees.
B. To assess current employee competencies.
C. To determine compensation packages.
D. To develop new training modules.
ANS: B. To assess current employee competencies.
Rationale: A skills inventory helps ascertain the current skill
levels of employees, which aids in identifying gaps and planning
for development or hiring needs.
3. Which of the following methods is most effective for
resolving conflicts in a multicultural workplace?
A. Imposing strict penalties.
B. Encouraging cultural assimilation.
©2024/2025
, C. Facilitating open communication and cultural sensitivity
training.
D. Avoiding discussion of cultural differences.
ANS: C. Facilitating open communication and cultural
sensitivity training.
Rationale: Open communication and cultural sensitivity
training help in understanding and resolving conflicts arising from
cultural differences effectively.
4. Which financial metric best evaluates the effectiveness of a
compensation strategy?
A. Net Profit Margin
B. Return on Investment (ROI)
C. Total Compensation Management
D. Labor Cost as a Percentage of Revenue
ANS: D. Labor Cost as a Percentage of Revenue
Rationale: This metric assesses whether the compensation costs
align with organizational revenue, reflecting efficiency and
efficacy of the compensation strategy.
5. What is the primary aim of employee retention programs?
©2024/2025
Functions of HRM
Comprehensive OA Review (Qns & Ans)
2025
1. Which of the following best describes strategic Human
Resource Management (HRM)?
A. A traditional HR approach aligning HR policies with
company policies.
B. An approach integrating HR decisions with long-term
organizational goals.
C. Focusing solely on recruitment and selection processes.
D. Concentrating on employee relations and law compliance.
©2024/2025
, ANS: B. An approach integrating HR decisions with long-
term organizational goals.
Rationale: Strategic HRM involves aligning HR functions with
the strategic objectives of the organization, ensuring that HR
contributes to the overall success and competitiveness.
2. In workforce planning, what is a primary reason for
conducting a skills inventory?
A. To identify redundant employees.
B. To assess current employee competencies.
C. To determine compensation packages.
D. To develop new training modules.
ANS: B. To assess current employee competencies.
Rationale: A skills inventory helps ascertain the current skill
levels of employees, which aids in identifying gaps and planning
for development or hiring needs.
3. Which of the following methods is most effective for
resolving conflicts in a multicultural workplace?
A. Imposing strict penalties.
B. Encouraging cultural assimilation.
©2024/2025
, C. Facilitating open communication and cultural sensitivity
training.
D. Avoiding discussion of cultural differences.
ANS: C. Facilitating open communication and cultural
sensitivity training.
Rationale: Open communication and cultural sensitivity
training help in understanding and resolving conflicts arising from
cultural differences effectively.
4. Which financial metric best evaluates the effectiveness of a
compensation strategy?
A. Net Profit Margin
B. Return on Investment (ROI)
C. Total Compensation Management
D. Labor Cost as a Percentage of Revenue
ANS: D. Labor Cost as a Percentage of Revenue
Rationale: This metric assesses whether the compensation costs
align with organizational revenue, reflecting efficiency and
efficacy of the compensation strategy.
5. What is the primary aim of employee retention programs?
©2024/2025
