HRM Practice Q&A: Exam
Questions and Solutions
For Business Management Students
Prepared for Exam Preparation
Date: June 10, 2025
This document provides real exam-style questions and detailed, student-friendly
solutions for Human Resource Management (HRM) in Business Management. It is
designed to help students master key concepts and succeed in their exams.
, Contents
1 Introduction 3
2 Questions and Solutions 3
2.1 Question 1: What is the primary role of HRM in achieving business ob-
jectives? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Question 2: How do recruitment and selection differ in HRM? . . . . . . 3
2.3 Question 3: What are the steps involved in designing an effective training
program? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.4 Question 4: Why are performance appraisals important for employees and
organizations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.5 Question 5: What is employee engagement, and how does HRM promote it? 4
2.6 Question 6: List three workplace conflict resolution methods, and explain
one in detail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.7 Question 7: Why is diversity and inclusion a critical focus in HRM? . . . 4
2.8 Question 8: What is the purpose of job analysis, and how is it conducted? 5
2.9 Question 9: How does HRM ensure compliance with labor laws? . . . . . 5
2.10 Question 10: What are intrinsic and extrinsic rewards, and how do they
motivate employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.11 Question 11: What is succession planning, and why is it essential? . . . . 5
2.12 Question 12: How can HRM reduce employee turnover? . . . . . . . . . . 5
2.13 Question 13: What is HRM’s role in ensuring workplace safety? . . . . . 6
2.14 Question 14: What are the benefits of flexible work arrangements for
employees and employers? . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.15 Question 15: How does HRM handle employee grievances effectively? . . 6
2.16 Question 16: How does HRM support organizational change management? 6
2.17 Question 17: How does HRM build a strong organizational culture? . . . 7
2.18 Question 18: What is the difference between on-the-job and off-the-job
training? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.19 Question 19: Why is employee motivation important, and what strategies
does HRM use to enhance it? . . . . . . . . . . . . . . . . . . . . . . . . 7
2.20 Question 20: How does HRM use technology to improve its processes? . 7
2.21 Question 21: What is talent management, and how does HRM implement
it? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.22 Question 22: What is a 360-degree feedback system, and how is it used in
HRM? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.23 Question 23: How does HRM address workplace stress? . . . . . . . . . . 8
2.24 Question 24: Why is employee onboarding important, and how is it con-
ducted? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.25 Question 25: How does HRM promote ethical business practices? . . . . 9
2.26 Question 26: What is the role of HRM in designing compensation strategies? 9
2.27 Question 27: How does HRM evaluate the effectiveness of HR policies? . 9
2.28 Question 28: What is employee empowerment, and how does HRM en-
courage it? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.29 Question 29: How does HRM address challenges related to workforce di-
versity? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.30 Question 30: How does HRM contribute to strategic business planning? . 10
1
Questions and Solutions
For Business Management Students
Prepared for Exam Preparation
Date: June 10, 2025
This document provides real exam-style questions and detailed, student-friendly
solutions for Human Resource Management (HRM) in Business Management. It is
designed to help students master key concepts and succeed in their exams.
, Contents
1 Introduction 3
2 Questions and Solutions 3
2.1 Question 1: What is the primary role of HRM in achieving business ob-
jectives? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Question 2: How do recruitment and selection differ in HRM? . . . . . . 3
2.3 Question 3: What are the steps involved in designing an effective training
program? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.4 Question 4: Why are performance appraisals important for employees and
organizations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.5 Question 5: What is employee engagement, and how does HRM promote it? 4
2.6 Question 6: List three workplace conflict resolution methods, and explain
one in detail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.7 Question 7: Why is diversity and inclusion a critical focus in HRM? . . . 4
2.8 Question 8: What is the purpose of job analysis, and how is it conducted? 5
2.9 Question 9: How does HRM ensure compliance with labor laws? . . . . . 5
2.10 Question 10: What are intrinsic and extrinsic rewards, and how do they
motivate employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.11 Question 11: What is succession planning, and why is it essential? . . . . 5
2.12 Question 12: How can HRM reduce employee turnover? . . . . . . . . . . 5
2.13 Question 13: What is HRM’s role in ensuring workplace safety? . . . . . 6
2.14 Question 14: What are the benefits of flexible work arrangements for
employees and employers? . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.15 Question 15: How does HRM handle employee grievances effectively? . . 6
2.16 Question 16: How does HRM support organizational change management? 6
2.17 Question 17: How does HRM build a strong organizational culture? . . . 7
2.18 Question 18: What is the difference between on-the-job and off-the-job
training? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.19 Question 19: Why is employee motivation important, and what strategies
does HRM use to enhance it? . . . . . . . . . . . . . . . . . . . . . . . . 7
2.20 Question 20: How does HRM use technology to improve its processes? . 7
2.21 Question 21: What is talent management, and how does HRM implement
it? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.22 Question 22: What is a 360-degree feedback system, and how is it used in
HRM? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.23 Question 23: How does HRM address workplace stress? . . . . . . . . . . 8
2.24 Question 24: Why is employee onboarding important, and how is it con-
ducted? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.25 Question 25: How does HRM promote ethical business practices? . . . . 9
2.26 Question 26: What is the role of HRM in designing compensation strategies? 9
2.27 Question 27: How does HRM evaluate the effectiveness of HR policies? . 9
2.28 Question 28: What is employee empowerment, and how does HRM en-
courage it? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.29 Question 29: How does HRM address challenges related to workforce di-
versity? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.30 Question 30: How does HRM contribute to strategic business planning? . 10
1
