1. Which statement best captures the role of People Practices in organizational
development?
A. They serve administrative functions only.
B. They align HR practices with business strategy.
C. They focus exclusively on employee benefits.
D. They manage day-to-day operations.
Answer: B
Explanation: People Practices integrate HR functions with the overall business strategy to foster
organizational development.
2. What is a key component of a people-centric organization?
A. Centralized decision-making.
B. Rigid hierarchy.
C. Employee empowerment and engagement.
D. Focus on short-term profits.
Answer: C
Explanation: A people-centric organization emphasizes employee empowerment, engagement,
and development, which drives long-term success.
3. How do People Practices contribute to shaping organizational culture?
A. By enforcing strict rules.
B. Through integrating core values in everyday practices.
C. By outsourcing HR functions.
D. By solely focusing on recruitment.
Answer: B
Explanation: People Practices help shape culture by integrating and promoting core values that
resonate with employees and the business.
4. Which of the following best describes a strategic asset in people practices?
A. Payroll processing.
B. Administrative record-keeping.
C. Aligning talent management with business objectives.
D. Manual file storage.
Answer: C
Explanation: Aligning talent management with business objectives makes People Practices a
strategic asset, influencing overall business outcomes.
5. What is one major impact of effective People Practices on organizational performance?
A. Increased bureaucracy.
B. Reduced employee engagement.
C. Enhanced employee satisfaction and productivity.
,D. Higher operational costs only.
Answer: C
Explanation: Effective People Practices lead to increased employee satisfaction, which in turn
boosts productivity and overall performance.
6. How do People Practices align with business strategy?
A. By focusing only on compliance.
B. Through proactive workforce planning.
C. By ignoring employee feedback.
D. Through isolated HR policies.
Answer: B
Explanation: Proactive workforce planning and aligning HR strategies with business goals
ensure People Practices support the organization’s strategy.
7. What role does People Practices play in employee retention?
A. They implement punitive measures.
B. They develop strategies that enhance employee engagement.
C. They focus solely on hiring new employees.
D. They outsource retention to third parties.
Answer: B
Explanation: People Practices develop comprehensive engagement strategies that increase
retention by meeting employee needs.
8. Which aspect is most crucial when integrating People Practices into organizational
decision-making?
A. Ignoring market trends.
B. Including HR leaders in strategic planning.
C. Isolating HR from other departments.
D. Focusing on short-term fixes.
Answer: B
Explanation: Involving HR leaders in strategic planning ensures that People Practices are
integrated into broader business decisions.
9. What is the primary goal of aligning human resources practices with business strategy?
A. Minimizing training expenses.
B. Enhancing operational efficiency and innovation.
C. Maintaining traditional management.
D. Reducing employee benefits.
Answer: B
Explanation: Aligning HR practices with business strategy improves operational efficiency and
fosters innovation by leveraging the workforce.
10. In the context of People Practices, what does “culture” refer to?
A. Only the social events in an organization.
B. The shared values, beliefs, and behaviors within the organization.
C. The external image of the company.
,D. A set of outdated policies.
Answer: B
Explanation: Organizational culture comprises the shared values, beliefs, and behaviors that
influence how employees interact and work.
11. What factor most influences the evolution of organizational culture?
A. Static policies.
B. Consistent leadership and continuous people practices.
C. Short-term financial gains.
D. Exclusion of employee feedback.
Answer: B
Explanation: Consistent leadership combined with dynamic People Practices drives the
continuous evolution of organizational culture.
12. How does a people-centric approach benefit an organization?
A. It limits employee creativity.
B. It fosters open communication and innovation.
C. It increases managerial control without employee input.
D. It reduces the need for leadership development.
Answer: B
Explanation: A people-centric approach emphasizes open communication and employee
involvement, which fuels innovation.
13. Which option best explains the interrelationship between culture and People Practices?
A. Culture determines People Practices without any feedback.
B. People Practices have no impact on culture.
C. They mutually influence each other to create a supportive work environment.
D. Culture only affects external stakeholders.
Answer: C
Explanation: People Practices and organizational culture mutually influence each other, creating
a work environment that supports growth and engagement.
14. What is one reason organizations integrate People Practices into their strategic
planning?
A. To reduce the workforce size.
B. To support long-term business sustainability.
C. To limit employee benefits.
D. To increase short-term profits at all costs.
Answer: B
Explanation: Integrating People Practices helps in aligning the workforce with long-term
strategic objectives, ensuring sustainability.
15. Why is understanding organizational culture important for People Practices?
A. It is irrelevant to HR functions.
B. It enables tailored approaches that resonate with employees.
C. It focuses only on external branding.
, D. It restricts employee growth.
Answer: B
Explanation: Understanding culture helps HR design practices that resonate with employees and
promote a positive work environment.
16. What is a common misconception about People Practices in organizations?
A. They only handle administrative tasks.
B. They are integral to strategic planning.
C. They foster employee development.
D. They drive organizational culture change.
Answer: A
Explanation: A common misconception is that People Practices are merely administrative,
whereas they actually drive strategic and cultural change.
17. Which approach is most effective in aligning People Practices with organizational
objectives?
A. Ignoring employee feedback.
B. Collaborative planning between HR and management.
C. Relying solely on traditional methods.
D. Focusing exclusively on compliance.
Answer: B
Explanation: Collaboration between HR and management ensures that People Practices support
the overall organizational objectives.
18. How can People Practices enhance employee engagement?
A. By imposing strict rules.
B. By offering professional development opportunities.
C. By minimizing communication.
D. By reducing benefits.
Answer: B
Explanation: Providing professional development and clear career paths increases employee
engagement and satisfaction.
19. What role does employee empowerment play in People Practices?
A. It decreases productivity.
B. It creates an environment of mutual respect and innovation.
C. It leads to confusion in roles.
D. It undermines leadership decisions.
Answer: B
Explanation: Employee empowerment fosters a collaborative environment, encouraging
innovation and mutual respect.
20. How do People Practices support business innovation?
A. By maintaining rigid processes.
B. By encouraging a culture of continuous learning and collaboration.
C. By limiting employee input.