Human Resources Practice Test with Solutions

Business Management 1. All of the following are appropriate purposes for an HR audit, except: a. Evaluate policies and processes b. Review documentation and records retention c. Ensure the organization is meeting legal requirements Correct answer d. Termination of unsatisfactory employees The purpose of an HR Audit is to provide an organizational review, which can be used in a strategic planning process. Though it may be an eventual outcome, the purpose does not include making immediate employment decisions. 2. When comparing the business Return on Investment with that of the competition, you discover the ROI is a bit lower than the competitors. What is the best plan of action? a. Develop a new strategic plan for the business. Correct answer b. Adjust the strategic plan to maximize the value of expenses. c. Compare the companies Return on Equity (ROE) with competitors. d. Adjust the strategic plan to increase investment. The best plan of action in this circumstance is to adjust the strategic plan to maximize the value of expenses with the greatest return. Only develop a new strategic plan if the ROI is much lower than the competition. If the difference is not significant, only an adjustment is needed to ensure that financial resources expended receive the greatest return. 3. Which motivation theory suggests employees are motivated by success, but consider the value of the expected reward against the effort required to achieve it? Correct answer a.Vroom's expectancy theory b.McGregor's Theory X and Theory Y c.Maslow's hierarchy of need theory d.McClelland's acquired needs theory There are three terms of Vroom's expectancy theory: Expectancy - whether an employee expects to achieve their goal; EXAM Human Resources Practice Test with Solutions Instrumentality – whether an employee is confident in their ability for goal achievement; Valence – whether the value of the goal is equal to or more valuable than the effort to achieve it. 4. As an HR professional, you want to establish and maintain a strong sense of ethics within an organization. One effective way is to: a. Ignore unethical behavior Correct answer b. Establish a code of conduct c. Develop new recruitment procedures d. Write a corporate ethics statement