Human Resource Management MCQ

1391. Human resource planning is a process of deciding

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

Exam Relevance: HRM exams, MBA exams, Management exams

Difficulty: Moderate

Concept notes: Human resource planning involves determining the positions a firm needs to fill and how to fill them.

Common Mistakes: Students may overlook the dual nature of human resource planning, focusing only on one aspect.

Explanations: Human resource planning is a strategic process that includes identifying the positions the firm will need to fill (Option B) and deciding how to fill these positions (Option A). The correct answer includes both aspects, making Option D the correct choice.

Option Analysis:

Option A: Deciding how to fill positions is a key part of human resource planning.
Option B: Determining what positions the firm will need to fill is also a crucial part of human resource planning.
Option C: This option is incorrect as it does not address the dual nature of human resource planning.
Option D: This option correctly identifies both aspects of human resource planning.

Mnemonic: HRP: Plan & Fill

1392. Which of the following is NOT one of the typical methods used by job evaluation committees to determine the worth of a job?

Correct Answer: Correct answer is: (D) Factor comparison.

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

Difficulty: Moderate

Concept notes: Job evaluation committees use various methods to determine the worth of a job. The typical methods include ranking, point method, and job classification. Factor comparison is not typically used by job evaluation committees.

Common Mistakes: Students may confuse factor comparison with other methods like the point method, as both involve comparing jobs based on factors.

Explanations: Job evaluation committees typically use ranking, point method, and job classification to determine the worth of a job. Ranking involves ordering jobs from highest to lowest value. The point method assigns points to jobs based on factors like skill, effort, responsibility, and working conditions. Job classification involves grouping jobs into classes based on their overall value. Factor comparison, while a valid method, is not typically used by job evaluation committees, making it the correct answer.

Option Analysis:

Option A: Ranking is a common method used by job evaluation committees to determine the worth of a job.
Option B: The point method is a common method used by job evaluation committees to determine the worth of a job.
Option C: Job classification is a common method used by job evaluation committees to determine the worth of a job.
Option D: Factor comparison is not typically used by job evaluation committees to determine the worth of a job.

Mnemonic: RANK-POINT-CLASS

1393. This is a list of basic tasks or functions that you are required to do.

Correct Answer: Correct answer is: (B) Job Description.

Exam Relevance: HR exams, employment tests, job placement exams

Difficulty: Easy

Concept notes: A job description outlines the basic tasks and functions required for a job.

Common Mistakes: Students may confuse job description with job title, which is simply the name of the job.

Explanations: A job description provides a detailed list of the tasks, duties, and responsibilities associated with a job. It is a document that outlines what the job entails, making it the correct answer. A job title, on the other hand, is merely the name given to the position, and does not detail the tasks involved.

Option Analysis:

Option A: Job Title is the name given to a position, not a list of tasks.
Option B: Job Description is the correct answer as it lists the tasks and functions of a job.
Option C: Job Term refers to the duration of employment, not the tasks.
Option D: Job Application is the process of applying for a job, not a list of tasks.

1394. Which is non monetary reward?

Correct Answer: Correct answer is: (D) Having lunch with CEO.

Exam Relevance: CAT, GRE, GMAT, Civil Services Exam

Difficulty: Easy

Concept notes: Non-monetary rewards are those that do not involve direct financial compensation.

Common Mistakes: Students may confuse monetary and non-monetary rewards, mistaking any form of compensation as monetary.

Explanations: Having lunch with the CEO is a non-monetary reward because it does not involve direct financial compensation. It is a form of recognition and can provide opportunities for professional development and networking, which are valuable but not monetary.

Option Analysis:

Option A: A raise in salary is a direct increase in financial compensation, making it a monetary reward.
Option B: A bonus is a form of financial compensation, making it a monetary reward.
Option C: Gratuity is a form of financial compensation, making it a monetary reward.
Option D: Having lunch with the CEO is a non-monetary reward as it does not involve direct financial compensation.

1395. What do we call the higher-level human needs as they appeal more to emotions?

Correct Answer: Correct answer is: (D) Wants.

Exam Relevance: Marketing exams, Psychology exams, Business Management exams

Difficulty: Easy

Concept notes: In marketing and psychology, higher-level human needs that appeal more to emotions are often referred to as "wants."

Common Mistakes: Students may confuse "wants" with "needs," which are more basic and essential.

Explanations: Higher-level human needs that are more emotional in nature are classified as "wants." These are desires that go beyond basic necessities and are often driven by personal preferences, aspirations, and emotional satisfaction.

Option Analysis:

Option A: Marketing is a broader field that includes the study of wants and needs but is not a term for higher-level emotional needs.
Option B: Needs refer to basic necessities and are not typically associated with higher-level emotional desires.
Option C: Preferences are individual choices but do not specifically denote higher-level emotional needs.
Option D: Wants are the correct term for higher-level human needs that are more emotional and aspirational.

Mnemonic: Wants are Wishes, not Needs.

1396. Average organization's employee cost (wages or salaries and benefits) is

Correct Answer: Correct answer is: (B) Over 25% of its revenue.

Exam Relevance: CPA, CFA, MBA exams

Difficulty: Moderate

Concept notes: Employee costs, including wages, salaries, and benefits, typically constitute a significant portion of an organization's total expenses. Understanding the proportion of revenue allocated to employee costs is crucial for financial planning and management.

Common Mistakes: Students may underestimate the proportion of revenue allocated to employee costs, often thinking it is less than the actual percentage.

Explanations: Employee costs, which include wages, salaries, and benefits, are a substantial part of an organization's expenses. On average, these costs can exceed 25% of an organization's total revenue. This percentage reflects the significant investment organizations make in their workforce, which is essential for maintaining operations and achieving business goals.

Option Analysis:

Option A: This option underestimates the typical proportion of revenue allocated to employee costs.
Option B: This option correctly reflects the average proportion of revenue allocated to employee costs.
Option C: This option overestimates the typical proportion of revenue allocated to employee costs.
Option D: This option is incorrect as the correct proportion is provided in Option B.

1397. What statements are right about Retainer Firms? (Choose more than one answer)

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

Exam Relevance: MBA, CFA, CPA

Difficulty: Moderate

Concept notes: Retainer firms are specialized consulting firms that provide ongoing, dedicated services to a company. They are typically highly educated and strive to understand the company's needs deeply, aiming to select the best fit for the company's requirements.

Common Mistakes: Students may overlook the comprehensive nature of retainer firms, assuming they only provide one or two of the listed services.

Explanations: Retainer firms are known for their higher fees due to the specialized and dedicated nature of their services. They are usually highly educated and make a concerted effort to understand the company's unique needs and culture. Additionally, they aim to choose the best fit for the company, ensuring their services align with the company's goals and requirements. Therefore, all the statements provided are correct, making the answer "All of the above."

Option Analysis:

Option A: Retainer firms typically charge higher fees due to the specialized and dedicated nature of their services.
Option B: Retainer firms are usually highly educated and make a concerted effort to understand the company's unique needs and culture.
Option C: Retainer firms aim to choose the best fit for the company, ensuring their services align with the company's goals and requirements.
Option D: This option correctly states that all of the above statements are true about retainer firms.

1398. Application, interviews, tests, reference checks, letters or recommendation.

Correct Answer: Correct answer is: (C) Stage 3.

Exam Relevance: HR Management, Business Administration, Organizational Behavior

Difficulty: Moderate

Concept notes: The hiring process typically involves multiple stages, with each stage designed to filter and assess candidates progressively.

Common Mistakes: Students may confuse the order of stages or the specific activities associated with each stage.

Explanations: Stage 3 of the hiring process often includes application, interviews, tests, reference checks, and letters of recommendation. These activities are designed to thoroughly evaluate a candidate's qualifications and fit for the position.

Option Analysis:

Option A: Stage 1 typically involves initial screening and shortlisting of applications.
Option B: Stage 2 usually includes preliminary interviews and initial assessments.
Option C: Stage 3 involves comprehensive evaluation through interviews, tests, reference checks, and letters of recommendation.
Option D: Stage 4 often includes final decision-making and job offer.

Mnemonic: AIRT: Application, Interview, Reference, Test

1399. Ken is managing a project in which the morale of the team is very low. The team members have been on the project for more than a year; though the project is due to end in a few weeks' time, they still do not know what is in store for them. What should Ken have planned better to avoid such a situation?

Correct Answer: Correct answer is: (D) Staff release plan.

Exam Relevance: PMP, PRINCE2, CAPM

Difficulty: Moderate

Concept notes: A staff release plan is crucial for managing team morale and expectations, especially towards the end of a project.

Common Mistakes: Students may overlook the importance of a staff release plan, focusing instead on immediate project tasks.

Explanations: Ken should have planned a staff release plan to inform the team about their future roles or next steps after the project ends. This would have helped maintain morale by providing clarity and reducing uncertainty, which is a key factor in team satisfaction and productivity.

Option Analysis:

Option A: Ground rules are important for setting expectations but do not address the issue of future job security or roles.
Option B: 360-degree feedback is useful for performance evaluation but does not address the team's concerns about their future.
Option C: Job rotation within the project can improve skills but does not address the uncertainty about future roles.
Option D: Staff release plan directly addresses the team's concerns about their future roles and helps maintain morale.

1400. Arrange the following in order: Promotion Performance appraisal Recruitment Training and Development

Correct Answer: Correct answer is: (A) (iii), (iv), (ii), (i).

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

Difficulty: Moderate

Concept notes: The correct order of human resource management activities is crucial for effective organizational functioning.

Common Mistakes: Students often confuse the sequence of recruitment and training, leading to incorrect ordering.

Explanations: The correct sequence is: Recruitment (iii), Training and Development (iv), Performance Appraisal (ii), and Promotion (i). Recruitment is the first step in the HR process, followed by training and development to equip employees with necessary skills. Performance appraisal is conducted to evaluate employee performance, and based on the appraisal, promotions are decided.

Option Analysis:

Option A: Correct sequence: Recruitment, Training and Development, Performance Appraisal, Promotion.
Option B: Incorrect sequence: Recruitment, Performance Appraisal, Promotion, Training and Development.
Option C: Incorrect sequence: Promotion, Performance Appraisal, Recruitment, Training and Development.
Option D: Incorrect sequence: Recruitment, Training and Development, Promotion, Performance Appraisal.

Mnemonic: RTPP: Recruitment, Training, Performance, Promotion

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Human Resource Management MCQ - Set 140

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