Human Resource Management MCQ

1301. Sales commission is an example of

Correct Answer: Correct answer is: (B) Performance based pay.

Exam Relevance: CPA, CFA, HRM exams

Difficulty: Moderate

Concept notes: Sales commission is a payment structure where the amount earned is directly tied to the performance of the salesperson, typically measured by the volume of sales or the number of sales made.

Common Mistakes: Students may confuse sales commission with bonuses, which are typically one-time payments given for exceptional performance or company profitability, rather than a regular payment tied to sales performance.

Explanations: Sales commission is a form of performance-based pay because the compensation directly correlates with the salesperson's performance. The higher the sales, the higher the commission, making it a clear example of performance-based pay.

Option Analysis:

Option A: Time-based pay refers to compensation based on the time worked, such as hourly wages or salaries, which does not apply to sales commission.
Option B: Performance-based pay is directly tied to the performance of the individual, which aligns with the concept of sales commission.
Option C: Bonuses are typically one-time payments for exceptional performance or company profitability, not a regular payment tied to sales performance.
Option D: Salary incentives are additional payments tied to a base salary, not directly linked to sales performance.

1302. What are dissatisfiers (maintenance factors)?

Correct Answer: Correct answer is: (A) Elements in one's job that don't motivate but their absence can demotivate.

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

Difficulty: Moderate

Concept notes: Dissatisfiers, also known as maintenance factors, are job elements that do not directly motivate employees but can lead to dissatisfaction if they are not adequately addressed.

Common Mistakes: Students often confuse dissatisfiers with motivators, mistaking them for factors that directly increase job satisfaction.

Explanations: Dissatisfiers are job elements that do not inherently motivate employees to perform better or feel more satisfied with their work. However, if these elements are absent or poorly managed, they can lead to dissatisfaction. For example, factors such as salary, company policies, supervision, and work conditions are considered dissatisfiers. While they do not directly increase motivation, their inadequacy can cause employees to feel demotivated and dissatisfied.

Option Analysis:

Option A: Correct. Dissatisfiers are job elements that do not motivate but can lead to demotivation if they are not adequately addressed.
Option B: Incorrect. Motivators are job elements that inspire and encourage employees, which is not the definition of dissatisfiers.
Option C: Incorrect. This option refers to internal competition, which is unrelated to the concept of dissatisfiers.
Option D: Incorrect. This option is not applicable as the correct answer is provided in Option A.

1303. Which is an internal method of recruitment?

Correct Answer: Correct answer is: (B) Notice board.

Exam Relevance: HR Management, Organizational Behavior, Business Management

Difficulty: Easy

Concept notes: Internal recruitment methods involve sourcing candidates from within the organization.

Common Mistakes: Students may confuse external recruitment methods, such as job centres and newspapers, with internal methods.

Explanations: Notice boards are used within an organization to post job openings, allowing current employees to apply for new positions. This is an internal recruitment method because it targets existing employees rather than external candidates.

Option Analysis:

Option A: Job centre is an external recruitment method, as it involves sourcing candidates from outside the organization.
Option B: Notice board is an internal recruitment method, as it targets current employees within the organization.
Option C: Newspaper is an external recruitment method, as it involves advertising job openings to the general public.
Option D: Testing is a method used in both internal and external recruitment but does not specify the source of candidates.

Mnemonic: N for Notice, N for Internal.

1304. Why Organisations provide, attractive salaries, fringe benefits, career development opportunities:

Correct Answer: Correct answer is: (A) To retain valuable human resources.

Exam Relevance: CAT, GMAT, GRE, HR Management Exams

Difficulty: Moderate

Concept notes: Organizations provide attractive salaries, fringe benefits, and career development opportunities to retain valuable human resources.

Common Mistakes: Students may mistakenly believe that these benefits are primarily to attract new employees rather than retain existing ones.

Explanations: Organizations offer attractive salaries, fringe benefits, and career development opportunities to retain valuable human resources. This is because retaining skilled and experienced employees is crucial for maintaining organizational stability and performance. Attractive benefits and career development opportunities make employees feel valued and secure, reducing the likelihood of them leaving the organization.

Option Analysis:

Option A: Correct. Organizations aim to retain valuable human resources by providing attractive salaries, fringe benefits, and career development opportunities.
Option B: Incorrect. While being a market leader is a goal, it is not the primary reason for providing these benefits.
Option C: Incorrect. Attracting new people is important, but retaining existing valuable employees is a more direct reason for these benefits.
Option D: Incorrect. Enforcing government regulations is not the primary reason for providing these benefits.

1305. 'commission' that salesmen earns is an example of

Correct Answer: Correct answer is: (A) Direct pay.

Exam Relevance: CAT, GMAT, GRE

Difficulty: Easy

Concept notes: Direct pay refers to compensation that is directly tied to the performance or output of an employee, such as commissions.

Common Mistakes: Students may confuse direct pay with indirect pay, which includes benefits and perks not directly tied to performance.

Explanations: The commission that salesmen earn is directly tied to their sales performance. This makes it an example of direct pay, as the compensation is directly linked to the output or performance of the individual.

Option Analysis:

Option A: Correct. Commission is a form of direct pay as it is directly linked to the sales performance of the individual.
Option B: Incorrect. Indirect pay includes benefits and perks not directly tied to performance.
Option C: Incorrect. Compensation is a broader term that includes both direct and indirect pay.
Option D: Incorrect. Direct recruitment is a method of hiring and not a form of pay.

1306. ..... is the process of estimating the quantity and quality of people required to meet future needs of the organisation.

Correct Answer: Correct answer is: (A) Demand forecasting.

Exam Relevance: HRM exams, MBA exams, Management exams

Difficulty: Moderate

Concept notes: Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs of the organisation.

Common Mistakes: Students may confuse demand forecasting with supply forecasting, which focuses on the availability of resources rather than the needs of the organization.

Explanations: Demand forecasting involves predicting the future needs of an organization in terms of the number and type of employees required. This process helps in aligning the human resource planning with the strategic goals of the organization. It is crucial for ensuring that the organization has the right number of skilled employees to meet its future demands.

Option Analysis:

Option A: Correct. Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs of the organization.
Option B: Incorrect. Supply forecasting focuses on the availability of resources, not the needs of the organization.
Option C: Incorrect. Environmental forecasting deals with external factors affecting the organization, not the internal human resource needs.
Option D: Incorrect. This option is not applicable as the correct answer is provided.

1307. The means to identify and develop internal talent to meet CURRENT AND FUTURE talent needs of organisation is called

Correct Answer: Correct answer is: (A) Succession planning.

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

Difficulty: Moderate

Concept notes: Succession planning is a strategic process that identifies and develops internal talent to meet both current and future talent needs of an organization.

Common Mistakes: Students may confuse succession planning with recruitment, which focuses on hiring external candidates rather than developing internal talent.

Explanations: Succession planning involves identifying key roles within an organization and developing internal candidates to fill these roles in the future. This process ensures that the organization has a pipeline of qualified individuals ready to step into critical positions as needed. It is a proactive approach to talent management that addresses both current and future needs, making it the correct answer.

Option Analysis:

Option A: Succession planning is the correct answer as it focuses on identifying and developing internal talent for current and future needs.
Option B: Recruitment is the process of attracting and hiring external candidates, not developing internal talent.
Option C: Assessment is the evaluation of an individual's skills and abilities, but it does not encompass the development of internal talent for future roles.
Option D: Job Analysis is the process of collecting information about the duties, responsibilities, and specifications of a job, but it does not involve talent development.

Mnemonic: S-P: Succession Planning - Strategic Pipeline

1308. Mention the non-analytical methods of job evaluation.

Correct Answer: Correct answer is: (D) Only (A) & (B).

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

Difficulty: Moderate

Concept notes: Job evaluation methods can be categorized into analytical and non-analytical methods. Non-analytical methods do not break down jobs into their component parts for evaluation.

Common Mistakes: Students may confuse non-analytical methods with analytical methods, which involve detailed breakdown and comparison of job elements.

Explanations: Job classification and ranking methods are non-analytical because they do not break down jobs into their component parts. Instead, they evaluate jobs as a whole. Job classification involves grouping jobs into classes based on overall worth, while ranking involves ordering jobs from highest to lowest value. Factor comparison and other methods that break down jobs into elements are considered analytical.

Option Analysis:

Option A: Job Classification is a non-analytical method as it groups jobs into classes without breaking them down into components.
Option B: Ranking method is also non-analytical as it ranks jobs based on overall value without detailed breakdown.
Option C: Factor Comparison is an analytical method as it involves breaking down jobs into specific factors for comparison.
Option D: This option correctly identifies Job Classification and Ranking as non-analytical methods.

Mnemonic: JCR: Job Classification and Ranking are non-analytical.

1309. Which is not a current trend impacting on the HR environment?

Correct Answer: Correct answer is: (B) Unions.

Exam Relevance: SHRM-CP, CIPD, HRM exams

Difficulty: Moderate

Concept notes: The question asks about current trends impacting the HR environment. Unions are not considered a current trend but rather a long-standing factor in the HR environment.

Common Mistakes: Students may mistakenly consider unions as a current trend due to recent labor disputes or changes in labor laws.

Explanations: Globalisation, diversity and inclusion, and changes in the nature of work are all current trends impacting the HR environment. Unions, while still relevant, are not considered a current trend but rather a long-standing factor in the HR environment. Therefore, unions are the correct answer as they are not a current trend.

Option Analysis:

Option A: Globalisation is a current trend impacting HR due to increased international business operations and workforce diversity.
Option B: Unions are not considered a current trend but rather a long-standing factor in the HR environment.
Option C: Diversity and inclusion are current trends as organizations increasingly focus on creating inclusive workplaces.
Option D: Changes in the nature of work, such as remote work and gig economy, are current trends impacting HR.

Mnemonic: GDCU - Globalisation, Diversity, Changes, Unions (not a trend)

1310. The following technique(s) is based on the critical incident approach.

Correct Answer: Correct answer is: (C) Both (A) and (B).

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

Difficulty: Moderate

Concept notes: The critical incident approach is a method used in performance appraisal to identify and document specific instances of effective and ineffective behavior. Both Behaviorally Anchored Rating Scales (BARS) and the Critical Incident Technique are based on this approach.

Common Mistakes: Students may mistakenly believe that only one of the techniques is based on the critical incident approach, not recognizing that both BARS and the Critical Incident Technique utilize this method.

Explanations: Behaviorally Anchored Rating Scales (BARS) are developed by identifying critical incidents of effective and ineffective job performance, which are then used to create a scale. The Critical Incident Technique involves collecting and analyzing critical incidents to understand job performance. Both methods rely on the critical incident approach to evaluate and improve performance.

Option Analysis:

Option A: Behaviorally anchored rating scales (BARS) are indeed based on the critical incident approach, as they use critical incidents to develop performance scales.
Option B: The Critical Incident Technique is directly based on the critical incident approach, as it involves the collection and analysis of critical incidents.
Option C: Both (A) and (B) are correct because both BARS and the Critical Incident Technique are based on the critical incident approach.
Option D: This option is incorrect because both BARS and the Critical Incident Technique are based on the critical incident approach.

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Human Resource Management MCQ - Set 131

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