Human Resource Management MCQ – Change your future

211. The utilization of individuals to achieve organizational objectives is known as

Correct Answer: Correct answer is: (C) Human resource management.

Exam Relevance: HRM exams, MBA exams, Management exams

Difficulty: Moderate

Concept notes: Human resource management encompasses the strategic and coherent approach to the management of an organization's most valued assets - the people working there, to maximize return on investment from the people and to optimize the contribution of individuals and groups to organizational success.

Common Mistakes: Students may confuse human resource management with human resource staffing, which is a narrower function focused on hiring and placement.

Explanations: Human resource management (HRM) is the broad term that covers all activities related to managing people within an organization. It includes planning, staffing, training, compensation, and performance management. The utilization of individuals to achieve organizational objectives is a core function of HRM, as it involves aligning the workforce with the strategic goals of the organization. This makes HRM the most comprehensive answer among the options provided.

Option Analysis:

Option A: Human resource planning is a subset of HRM that focuses on forecasting and ensuring the right number of employees with the right skills at the right time. It does not encompass the full scope of utilizing individuals to achieve organizational objectives.
Option B: Human resource staffing is a narrower function within HRM that deals specifically with the recruitment and selection of employees. It does not cover the broader aspects of managing and utilizing the workforce.
Option C: Human resource management is the correct answer as it encompasses all activities related to managing people within an organization, including the utilization of individuals to achieve organizational objectives.
Option D: Human resource leadership is a role within HRM but does not encompass the full scope of managing and utilizing the workforce to achieve organizational objectives.

Mnemonic: HRM: Hire, Retain, Manage

212. A plan, offering a 75% base salary along with 25% incentives is classified as

Correct Answer: Correct answer is: (A) Combination plan.

Exam Relevance: HRM exams, Management exams, Business exams

Difficulty: Moderate

Concept notes: A combination plan in compensation structures involves a mix of base salary and incentives.

Common Mistakes: Students may confuse a combination plan with a non-commission plan, which typically does not include incentives.

Explanations: A combination plan offers a base salary along with additional incentives, such as bonuses or commissions. The given plan offers 75% base salary and 25% incentives, fitting the definition of a combination plan. This structure is designed to provide a stable income while also motivating employees through performance-based rewards.

Option Analysis:

Option A: Correct. A combination plan includes both a base salary and incentives.
Option B: Incorrect. A non-commission plan typically does not include incentives.
Option C: Incorrect. A competitive plan focuses on market competitiveness but does not necessarily combine base salary and incentives.
Option D: Incorrect. A noncompetitive plan does not aim to be competitive in the market and does not necessarily combine base salary and incentives.

Mnemonic: Base + Bonus = Best

213. HRM function does not involve

Correct Answer: Correct answer is: (B) Cost control.

Exam Relevance: HRM exams, Management exams, MBA exams

Difficulty: Easy

Concept notes: The Human Resource Management (HRM) function primarily focuses on managing the workforce of an organization. This includes activities such as recruitment, selection, training, and development. Cost control, while important for an organization, is typically not considered a core function of HRM.

Common Mistakes: Students may mistakenly believe that cost control is part of HRM because HRM often involves budgeting and financial planning. However, cost control is more closely associated with financial management and accounting functions.

Explanations: HRM functions are centered around managing the human capital of an organization. Recruitment, selection, and training are all directly related to managing the workforce. Cost control, on the other hand, is more aligned with financial management and is not a core HRM function.

Option Analysis:

Option A: Recruitment is a core HRM function as it involves attracting and selecting potential employees.
Option B: Cost control is not a core HRM function; it is more related to financial management.
Option C: Selection is a core HRM function as it involves choosing the most suitable candidates from the pool of applicants.
Option D: Training is a core HRM function as it involves developing the skills and knowledge of employees.

214. Employees 'career hazards' are dealt in

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

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

Difficulty: Moderate

Concept notes: Mentoring involves a more experienced individual guiding a less experienced one, often focusing on career development and personal growth.

Common Mistakes: Students may confuse mentoring with coaching, which is more focused on skill development and performance improvement.

Explanations: Mentoring is specifically designed to address career hazards and personal development. It involves a more experienced individual providing guidance, support, and advice to help the mentee navigate career challenges and risks. This aligns with the concept of dealing with 'career hazards'.

Option Analysis:

Option A: Coaching focuses on skill development and performance improvement, not specifically on career hazards.
Option B: Mentoring involves guidance and support to navigate career challenges and risks, making it the correct choice.
Option C: Career management is broader and includes various aspects of career planning and development, but it does not specifically address 'career hazards' as mentoring does.
Option D: Career development focuses on the overall growth and progression of a career, but it does not specifically address 'career hazards' as mentoring does.

Mnemonic: Mentor: More experienced, navigates risks.

215. Who typically heads up an international division?

Correct Answer: Correct answer is: (C) Parent country nationals.

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

Difficulty: Moderate

Concept notes: In international business, parent country nationals are often chosen to lead international divisions due to their familiarity with the parent company's culture, strategies, and operations.

Common Mistakes: Students may mistakenly believe that host country nationals are typically chosen to lead international divisions due to their local market knowledge.

Explanations: Parent country nationals are often selected to head international divisions because they have a deep understanding of the parent company's corporate culture, strategic goals, and operational practices. This familiarity ensures consistency in implementing the parent company's vision and strategies across different markets. Additionally, parent country nationals can act as a bridge between the parent company and the international division, facilitating smoother communication and decision-making processes.

Option Analysis:

Option A: Third country nationals are not typically chosen to lead international divisions as they may lack deep ties to either the parent or host country.
Option B: Host country nationals, while valuable for local market knowledge, are not usually chosen to lead international divisions due to potential conflicts of interest and lack of familiarity with the parent company's culture.
Option C: Parent country nationals are chosen for their deep understanding of the parent company's culture, strategies, and operations.
Option D: Primary country nationals is not a standard term in international business and does not apply to the context of leading international divisions.

Mnemonic: PCN leads, knows the home base.

216. A practice used by different companies to reduce costs by transferring portions of work to outside provider rather than completing it internally is termed as:

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

Exam Relevance: GMAT, GRE, MBA entrance exams

Difficulty: Easy

Concept notes: Outsourcing is a business practice where companies transfer certain tasks or processes to external providers to reduce costs and improve efficiency.

Common Mistakes: Students may confuse outsourcing with decentralization, which involves distributing decision-making authority to lower levels within the organization.

Explanations: Outsourcing involves transferring portions of work to outside providers rather than completing it internally. This practice is used to reduce costs and leverage external expertise. The other options do not fit the description: planning is about setting goals and strategies, decentralization is about distributing decision-making, and restructuring is about changing the organizational structure.

Option Analysis:

Option A: Planning involves setting goals and strategies, not transferring work to external providers.
Option B: Decentralization involves distributing decision-making authority within the organization, not transferring work to external providers.
Option C: Restructuring involves changing the organizational structure, not transferring work to external providers.
Option D: Outsourcing involves transferring portions of work to outside providers to reduce costs and improve efficiency.

217. Human resource management is essential to the each employees success and not just of the company itself.

Correct Answer: Correct answer is: (A) TRUE.

Exam Relevance: HRM exams, Management exams, Business exams

Difficulty: Easy

Concept notes: Human resource management (HRM) plays a crucial role in the success of both individual employees and the company as a whole.

Common Mistakes: Students may mistakenly believe that HRM is only concerned with company-wide policies and not individual employee success.

Explanations: HRM is responsible for various functions such as recruitment, training, performance management, and employee relations. These functions directly impact the success of individual employees by ensuring they have the necessary skills, resources, and support to perform their jobs effectively. Consequently, the success of individual employees contributes to the overall success of the company.

Option Analysis:

Option A: Correct. HRM supports both individual employee success and company success.
Option B: Incorrect. HRM is essential for both individual and company success.
Option C: Incorrect. The statement is true and can be confidently answered.
Option D: Incorrect. There is a correct answer provided.

Mnemonic: HRM = Happy, Resourceful, Motivated

218. What are the three Cs?

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

Exam Relevance: GMAT, GRE, MBA entrance exams

Difficulty: Easy

Concept notes: The three Cs refer to Competence, Composition, and Culture, which are key elements often discussed in organizational management and team dynamics.

Common Mistakes: Students may mistakenly believe that only one or two of the Cs are correct, overlooking the comprehensive nature of the term.

Explanations: The three Cs—Competence, Composition, and Culture—are all essential components in organizational management. Competence refers to the skills and abilities of individuals within the organization. Composition involves the structure and diversity of the team. Culture encompasses the shared values, beliefs, and behaviors that define the organization. Therefore, all three are correct, making the answer "All of the above."

Option Analysis:

Option A: Competence is one of the three Cs.
Option B: Composition is one of the three Cs.
Option C: Culture is one of the three Cs.
Option D: All of the above is the correct answer as it includes all three Cs.

Mnemonic: C3: Competence, Composition, Culture

219. Type of compensation based on performance; also known as pay for performance.

Correct Answer: Correct answer is: (A) Incentive.

Exam Relevance: HRM exams, Management exams, Business exams

Difficulty: Easy

Concept notes: Incentive compensation is a form of pay that is based on performance. It is designed to motivate employees to achieve specific goals or targets.

Common Mistakes: Students may confuse incentive with other forms of performance-based pay, such as bonuses or commissions, which are specific types of incentives.

Explanations: Incentive compensation is a broad term that encompasses various forms of pay-for-performance schemes. It includes bonuses, commissions, and other rewards that are tied to the achievement of specific performance metrics. The term "incentive" is the most general and accurate description of this type of compensation.

Option Analysis:

Option A: Incentive is the correct term for compensation based on performance.
Option B: Piecework is a specific type of incentive compensation where pay is based on the number of units produced.
Option C: Bonus is a specific form of incentive compensation, often given for achieving specific goals or targets.
Option D: Commission is another specific form of incentive compensation, typically used in sales roles where pay is based on sales performance.

220. Under the "Employee Assistance programme", the employees can.....

Correct Answer: Correct answer is: (D) Avail counselling service from a professional counsellor appointed by the Bank.

Exam Relevance: Bank PO, SSC, UPSC, MBA Entrance

Difficulty: Easy

Concept notes: Employee Assistance Programmes (EAPs) are designed to help employees deal with personal or work-related issues that may affect their job performance, health, and well-being. One of the key services provided under EAPs is professional counselling.

Common Mistakes: Students may confuse the services provided under EAPs with other employee benefits such as financial support or training programs.

Explanations: Employee Assistance Programmes (EAPs) are structured to offer support to employees facing personal or professional challenges. The primary service provided under EAPs is access to professional counselling services. These services are typically provided by trained counsellors appointed by the bank to help employees address issues such as stress, mental health concerns, and other personal problems that may impact their work performance.

Option Analysis:

Option A: Financial support is not a typical service provided under EAPs.
Option B: Specialised training is not a core service of EAPs.
Option C: Raising grievances is usually handled through a different process, not EAPs.
Option D: This is the correct service provided under EAPs.

Mnemonic: EAPs: "Counseling, not cash or classes."

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Human Resource Management MCQ - Set 22

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