Human Resource Management MCQ – Change your future

101. Performance development plan is set for the employee by his immediate boss.

Correct Answer: Correct answer is: (C) Immediate boss.

Exam Relevance: HR Management, Organizational Behavior, Management Exams

Difficulty: Easy

Concept notes: Performance development plans are typically set by the immediate boss as they have the most direct oversight and understanding of the employee's work and performance.

Common Mistakes: Students may mistakenly believe that the department head or employer sets the performance development plan, overlooking the direct line of supervision.

Explanations: The immediate boss is responsible for setting the performance development plan because they have the most direct interaction with the employee and can provide the most relevant and specific feedback and goals.

Option Analysis:

Option A: The employer is too high-level to set specific performance development plans for individual employees.
Option B: The department head oversees multiple teams and is not directly involved in the day-to-day performance of individual employees.
Option C: The immediate boss is the correct choice as they have the most direct oversight and understanding of the employee's work and performance.
Option D: While any of the above could theoretically set a plan, the immediate boss is the most appropriate and common choice.

102. A strike called by a section of workers/union members without authorisation from proper authority of the union is called..

Correct Answer: Correct answer is: (D) Wild cat strike.

Exam Relevance: UPSC, SSC, Banking Exams

Difficulty: Easy

Concept notes: A wild cat strike is an unauthorized strike initiated by a group of workers without the approval of the union leadership.

Common Mistakes: Students may confuse a wild cat strike with a sympathetic strike, which is a strike in support of another group of workers.

Explanations: A wild cat strike is characterized by its lack of official authorization from the union. It is initiated by a group of workers who decide to strike without the formal approval of the union leadership. This unauthorized nature distinguishes it from other types of strikes, such as sectional, jurisdictional, or sympathetic strikes, which may have some form of union endorsement or authorization.

Option Analysis:

Option A: A sectional strike involves a specific section of workers within a union, but it is typically authorized by the union leadership.
Option B: A jurisdictional strike occurs when workers strike over disputes about the scope of work within their jurisdiction, and it is usually authorized by the union.
Option C: A sympathetic strike is a strike in support of another group of workers, and it is generally authorized by the union.
Option D: A wild cat strike is an unauthorized strike initiated by workers without union approval, making it the correct answer.

Mnemonic: Wild cats strike without a purr (union approval).

103. Which of the following is an example of internal recruitment? Advertising a job vacancy:

Correct Answer: Correct answer is: (B) On a firm's intranet.

Exam Relevance: Human Resource Management, Organizational Behavior, Business Management

Difficulty: Easy

Concept notes: Internal recruitment involves sourcing candidates from within the organization. Posting a job vacancy on a firm's intranet is an example of internal recruitment as it targets current employees.

Common Mistakes: Students may confuse internal recruitment with external recruitment methods, such as advertising in newspapers or job centers.

Explanations: Internal recruitment involves advertising job vacancies to current employees. Posting a job vacancy on a firm's intranet is an effective method for reaching out to existing staff members, making it an example of internal recruitment.

Option Analysis:

Option A: Advertising in a job centre is an external recruitment method, not internal.
Option B: Posting on a firm's intranet is an internal recruitment method, as it targets current employees.
Option C: Advertising in a shop window is an external recruitment method, not internal.
Option D: Advertising in a local newspaper is an external recruitment method, not internal.

Mnemonic: Intranet = Internal

104. Which of the following is a benet of performance pay?

Correct Answer: Correct answer is: (D) It encourages unmotivated and inefficient individuals to improve their performance.

Exam Relevance: HRM exams, Management exams, Organizational Behavior exams

Difficulty: Moderate

Concept notes: Performance pay is a compensation strategy that links pay to performance. One of its key benefits is that it can motivate employees to improve their performance by tying rewards directly to their efforts and outcomes.

Common Mistakes: Students may confuse the benefits of performance pay with its potential drawbacks, such as the difficulty in measuring performance or the potential for conflict.

Explanations: Performance pay incentivizes employees by directly linking their compensation to their performance. This can motivate unmotivated and inefficient individuals to improve their performance, as they see a clear connection between their efforts and their rewards. This aligns with the goal of performance pay to enhance productivity and efficiency within the organization.

Option Analysis:

Option A: This option describes a potential drawback of performance pay, not a benefit.
Option B: This option also describes a potential drawback of performance pay, not a benefit.
Option C: This option describes a possible employee preference, not a benefit of performance pay.
Option D: This option correctly identifies a benefit of performance pay, as it can motivate employees to improve their performance.

105. Which of the following best describes the role of human resource management within a business?

Correct Answer: Correct answer is: (D) The management of employees.

Exam Relevance: HRM exams, Business Management exams, MBA exams

Difficulty: Easy

Concept notes: Human resource management (HRM) focuses on managing employees within an organization.

Common Mistakes: Students may confuse HRM with other business functions like finance or marketing.

Explanations: Human resource management is specifically concerned with the management of employees, including recruitment, training, performance management, and employee relations. This makes it distinct from other business functions such as financial management, supplier relationships, or marketing strategies.

Option Analysis:

Option A: Financial resources management is a separate function within a business, not HRM.
Option B: Supplier relationships are part of supply chain management, not HRM.
Option C: Marketing plans are developed by the marketing department, not HRM.
Option D: HRM is directly involved in managing employees, making this the correct answer.

Mnemonic: HRM = Hire, Retain, Manage

106. Relationship between HRM & Management?

Correct Answer: Correct answer is: (C) HRM is one aspect of Management.

Exam Relevance: MBA, HRM Certification, Management Exams

Difficulty: Moderate

Concept notes: Human Resource Management (HRM) is a specialized function within the broader field of management. It focuses on managing the organization's workforce, including recruitment, training, performance management, and employee relations.

Common Mistakes: Students may mistakenly believe that HRM and management are entirely separate disciplines, or that management is a subset of HRM.

Explanations: Management encompasses a wide range of activities and functions, including planning, organizing, leading, and controlling. HRM is one of the key functions within management, specifically focused on managing human resources. Therefore, HRM is an aspect of the broader field of management.

Option Analysis:

Option A: Incorrect because HRM and management are not the same; HRM is a specialized function within management.
Option B: Incorrect because management is not a subset of HRM; HRM is a subset of management.
Option C: Correct because HRM is a specialized function within the broader field of management.
Option D: Incorrect because there is a clear relationship between HRM and management, with HRM being a subset of management.

107. Which among of the following is not considered as an objective of recruitment?

Correct Answer: Correct answer is: (C) To develop brand reputation that attracts more competition.

Exam Relevance: HR Management Exams, MBA Entrance Exams, Competitive Recruitment Exams

Difficulty: Moderate

Concept notes: Recruitment objectives typically focus on bringing in skilled individuals who can contribute to the organization's goals and values. Attracting competition through brand reputation is not a direct recruitment objective.

Common Mistakes: Students may confuse brand reputation with recruitment objectives, thinking that a strong brand reputation is a direct goal of recruitment.

Explanations: The primary objectives of recruitment include inducting skilled individuals, infusing fresh perspectives, and aligning new hires with the company's values. Developing a brand reputation that attracts more competition is not a direct recruitment objective but rather a potential outcome of effective recruitment practices. Therefore, option C is not considered an objective of recruitment.

Option Analysis:

Option A: Inducting outsiders with new perspectives is a valid recruitment objective.
Option B: Infusing fresh blood at all levels is also a valid recruitment objective.
Option C: Developing brand reputation that attracts more competition is not a direct recruitment objective.
Option D: Searching for individuals whose skills fit the company's values is a valid recruitment objective.

108. Which of the following external factors that affect human resource management makes the HR deal with the different characteristics such as age, race, and gender of employees?

Correct Answer: Correct answer is: (D) WORKFORCE DEMOGRAPHICS.

Exam Relevance: HRM exams, Management exams, Organizational Behavior exams

Difficulty: Moderate

Concept notes: Workforce demographics refer to the characteristics of the workforce, including age, race, gender, and other demographic factors. These characteristics can significantly impact human resource management practices.

Common Mistakes: Students may confuse workforce demographics with government regulations, which also affect HR but in a different manner.

Explanations: Workforce demographics encompass the various characteristics of employees, such as age, race, and gender. These factors influence HR management as they require tailored strategies to address diversity, inclusion, and compliance with equal opportunity laws. Therefore, workforce demographics directly impact how HR deals with the different characteristics of employees.

Option Analysis:

Option A: Economic conditions affect HR by influencing budget constraints and hiring decisions but do not directly address the characteristics of employees.
Option B: Technological advancements impact HR through changes in work processes and the need for new skills but do not directly relate to employee demographics.
Option C: Government regulations impact HR through compliance requirements but do not directly address the demographic characteristics of employees.
Option D: Workforce demographics directly address the characteristics such as age, race, and gender of employees, making it the correct answer.

109. Mr Jay's Superfantastic Wonderful Business llc pays its workers 50 AED per hour. Being such a wonderful business and selling super products, its profits keep increasing. If he pays his workers more, what impact will this have on his profit?

Correct Answer: Correct answer is: (B) Decrease profit.

Exam Relevance: AP Economics, IB Economics, SAT Subject Test in Economics

Difficulty: Easy

Concept notes: Explain the core concept clearly.

Common Mistakes: Students may mistakenly believe that increasing wages will lead to increased productivity and thus higher profits.

Explanations: Increasing wages directly increases the cost of labor for the business. Since the profits are calculated as revenue minus costs, an increase in labor costs will decrease the overall profit, assuming revenue remains constant.

Option Analysis:

Option A: Incorrect because increasing wages will not increase profit; it will increase costs.
Option B: Correct because increasing wages will increase costs, thereby decreasing profit.
Option C: Incorrect because increasing wages will change the profit, not leave it unchanged.
Option D: Incorrect because there is sufficient information to determine the impact on profit.

110. In 360-degree feedback, ratings are collected from

Correct Answer: Correct answer is: (D) All of above.

Exam Relevance: HRM exams, Management exams, Organizational Behavior exams

Difficulty: Moderate

Concept notes: 360-degree feedback is a comprehensive performance evaluation method that gathers input from multiple sources.

Common Mistakes: Students may mistakenly believe that 360-degree feedback only includes ratings from supervisors or peers, overlooking the inclusion of subordinates.

Explanations: 360-degree feedback is designed to provide a holistic view of an employee's performance by collecting feedback from various perspectives. This includes supervisors, who can provide insights into the employee's work quality and adherence to company policies; subordinates, who can offer feedback on leadership and management skills; and peers, who can evaluate teamwork and collaboration abilities. Therefore, the correct answer is that ratings are collected from all of the above.

Option Analysis:

Option A: Supervisors are one of the sources of feedback in 360-degree evaluations.
Option B: Subordinates are also included in the feedback process to provide a comprehensive view.
Option C: Peers are another source of feedback, contributing to the overall assessment.
Option D: This option correctly identifies that feedback is collected from all the mentioned sources.

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Human Resource Management MCQ - Set 11

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