Human Resource Management MCQ – Change your future

421. Manpower inventory involves.....?

Correct Answer: Correct answer is: (B) The classification of characteristics of personnel in an organisation, in addition to counting their number.

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

Difficulty: Moderate

Concept notes: Manpower inventory involves the systematic classification and quantification of personnel within an organization.

Common Mistakes: Students may confuse manpower inventory with inventory of physical goods or managerial qualities.

Explanations: Manpower inventory is a process that involves not only counting the number of employees but also classifying them based on their characteristics such as skills, experience, and roles. This helps in understanding the workforce composition and planning for future needs. The correct answer, option B, accurately describes this process by emphasizing both the classification of personnel characteristics and the counting of their number.

Option Analysis:

Option A: This option incorrectly includes the term "qualities" which is not specific enough and does not align with the precise definition of manpower inventory.
Option B: This option correctly describes the process of manpower inventory by including both the classification of personnel characteristics and the counting of their number.
Option C: This option is incorrect as it limits the scope to managers' qualities and number, which is too narrow for manpower inventory.
Option D: This option incorrectly refers to functions and their total number, which is not relevant to manpower inventory.

422. Human Resource Management (HRM) is a part of the broad Human Resource Development (HRD) System, as this focus to

Correct Answer: Correct answer is: (C) And (B) above.

Exam Relevance: HRM exams, MBA exams, HR certification exams

Difficulty: Moderate

Concept notes: Human Resource Management (HRM) is a subset of Human Resource Development (HRD). HRM focuses on operational and organizational options, while also including selection, induction, training, and development.

Common Mistakes: Students may mistakenly believe that HRM only includes selection, induction, training, and development, without recognizing its broader operational and organizational aspects.

Explanations: HRM is a part of the broader HRD system. HRM encompasses both operational and organizational options, as well as selection, induction, training, and development. Therefore, the correct answer includes both aspects mentioned in options A and B.

Option Analysis:

Option A: Selection, Induction, Training and Development are components of HRM but do not encompass the full scope of HRM.
Option B: Operational and Organisational Options are also components of HRM but do not encompass the full scope of HRM.
Option C: This option correctly combines both aspects of HRM, making it the correct answer.
Option D: This option is incorrect as it does not acknowledge the correct combination of HRM components.

423. Below is the non-equity modes of foreign operation EXCEPT:

Correct Answer: Correct answer is: (A) Joint Ventures.

Exam Relevance: MBA, CFA, International Business Exams

Difficulty: Moderate

Concept notes: Joint ventures are a form of equity investment where two or more parties share ownership and control of a business. Non-equity modes of foreign operation, on the other hand, do not involve ownership or control sharing.

Common Mistakes: Students may confuse joint ventures with other non-equity modes because they all involve some form of collaboration with foreign entities.

Explanations: Joint ventures involve equity investment and shared ownership, which distinguishes them from non-equity modes. Non-equity modes such as subcontracting, licensing, and management contracts do not involve ownership or control sharing. Instead, they involve contractual agreements where one party provides services, technology, or management expertise to another without sharing ownership.

Option Analysis:

Option A: Joint Ventures involve equity investment and shared ownership, making them an equity mode of foreign operation.
Option B: Subcontracting is a non-equity mode where a company contracts with another to perform specific tasks or services.
Option C: Licensing is a non-equity mode where a company grants permission to another to use its intellectual property in exchange for fees.
Option D: Management contracts are non-equity modes where a company provides management expertise to another without sharing ownership.

Mnemonic: JV = Joint Ventures ≠ Non-Equity

424. It contributes to the learning of the employees, to enhance theirattitudes and competencies to achieve business objectives.

Correct Answer: Correct answer is: (C) Training.

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

Difficulty: Moderate

Concept notes: Training is a process that enhances employees' attitudes and competencies to achieve business objectives.

Common Mistakes: Students may confuse training with recruitment or selection, which are different processes focused on bringing in new employees rather than developing existing ones.

Explanations: Training contributes to the learning of employees by enhancing their attitudes and competencies, which aligns with the goal of achieving business objectives. This is a core function of training programs within organizations.

Option Analysis:

Option A: Selection is the process of choosing the most suitable candidates from a pool of applicants, not focused on enhancing existing employees' competencies.
Option B: Recruitment involves attracting and hiring new employees, not developing the skills of current employees.
Option C: Training is the process of enhancing employees' skills and knowledge to improve their performance and achieve business goals.
Option D: Interview is a method used in the recruitment process to assess candidates, not a method for enhancing employee competencies.

425. Which of the below given options are the forecasting techniques used? Ration Trend Analysis Delphi Technique Staffing projections

Correct Answer: Correct answer is: (D) I & II.

Exam Relevance: MBA, CFA, PMP

Difficulty: Moderate

Concept notes: Forecasting techniques are methods used to predict future outcomes based on historical data and trends. The options provided include different types of forecasting methods.

Common Mistakes: Students may confuse staffing projections with forecasting techniques, as it is more related to human resource planning rather than forecasting.

Explanations: Ration Trend Analysis and Delphi Technique are both recognized forecasting techniques. Ration Trend Analysis involves analyzing past data to identify trends and predict future outcomes. The Delphi Technique is a structured communication method used to reach a consensus among experts. Staffing projections, on the other hand, are more related to predicting future staffing needs and are not a forecasting technique in the context of predicting future outcomes based on historical data.

Option Analysis:

Option A: Incorrect because Staffing projections are not a forecasting technique.
Option B: Incorrect because Staffing projections are not a forecasting technique.
Option C: Incorrect because Staffing projections are not a forecasting technique.
Option D: Correct because Ration Trend Analysis and Delphi Technique are both forecasting techniques.

426. Where would you usually find a summary of the work history of a prospective employee?

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

Exam Relevance: HR Management, Business Studies, Employment Law

Difficulty: Easy

Concept notes: A CV (Curriculum Vitae) is a document that summarizes a person's educational qualifications, work experience, and other relevant information.

Common Mistakes: Students may confuse a CV with a job description or person specification, which are different documents used in the hiring process.

Explanations: A CV is the document where a prospective employee typically lists their work history, educational background, and other relevant details. A job description outlines the responsibilities and requirements of a job, while a person specification details the qualifications and attributes required for a specific role. Therefore, the CV is the correct answer as it is the document that summarizes the work history of a prospective employee.

Option Analysis:

Option A: Correct. A CV is the document that summarizes a person's work history and qualifications.
Option B: Incorrect. A person specification outlines the qualifications and attributes required for a specific role, not the work history of a prospective employee.
Option C: Incorrect. A job description outlines the responsibilities and requirements of a job, not the work history of a prospective employee.
Option D: Incorrect. The correct answer is provided in the options.

Mnemonic: CV = Career Vision

427. An automated end to end process of managing and compensating employees is called

Correct Answer: Correct answer is: (C) Talent management.

Exam Relevance: HRM exams, MBA exams, SHRM exams

Difficulty: Moderate

Concept notes: Talent management involves a comprehensive approach to managing and compensating employees throughout their career lifecycle within an organization.

Common Mistakes: Students may confuse talent management with other HR processes like phased retirement or preretirement counseling, which are more specific to certain stages of an employee's career.

Explanations: Talent management encompasses the entire process of attracting, developing, retaining, and compensating employees. It includes recruitment, performance management, succession planning, and compensation strategies. This holistic approach ensures that employees are effectively managed and rewarded throughout their tenure with the organization.

Option Analysis:

Option A: Phased retirement is a strategy for gradually reducing an employee's work hours as they approach retirement, not a comprehensive talent management process.
Option B: Preretirement counseling focuses on preparing employees for retirement, which is a specific aspect of HR rather than an end-to-end talent management process.
Option C: Talent management is the correct answer as it covers the full spectrum of employee management and compensation.
Option D: Modifying selection procedures pertains to the recruitment phase and does not encompass the entire lifecycle of employee management.

Mnemonic: Talent Management: T-M (Think Management)

428. Technique, involving trainees to act on role of specific person in real situation is

Correct Answer: Correct answer is: (B) Role playing.

Exam Relevance: HR Management Exams, Training and Development Exams, Management Aptitude Tests

Difficulty: Easy

Concept notes: Role playing is a technique where trainees act out the role of a specific person in a real-life situation to enhance their understanding and skills.

Common Mistakes: Students may confuse role playing with behavior modeling, which focuses on observing and imitating specific behaviors rather than acting out a role.

Explanations: Role playing involves trainees acting in the role of a specific person in a real-life situation. This technique is used to improve skills and understanding by experiencing the situation firsthand. Behavior modeling, on the other hand, involves observing and imitating specific behaviors, which is different from acting out a role.

Option Analysis:

Option A: Behavior modeling involves observing and imitating specific behaviors, not acting out a role in a real-life situation.
Option B: Role playing involves trainees acting out the role of a specific person in a real-life situation, which matches the description given in the question.
Option C: An in-house development center is a facility for training and development, not a specific technique involving role-playing.
Option D: Since only role playing matches the description, combining it with behavior modeling is incorrect.

Mnemonic: Role Play, Real Act

429. First step in management by objectives is to

Correct Answer: Correct answer is: (B) Set organizational goals.

Exam Relevance: MBA Exams, HR Management Exams, Business Management Exams

Difficulty: Easy

Concept notes: Management by Objectives (MBO) is a process where managers and employees collaboratively set goals for the organization. The first step in this process is to establish overarching organizational goals.

Common Mistakes: Students often confuse the sequence of steps in MBO, mistakenly believing that departmental or individual goals should be set first.

Explanations: The first step in Management by Objectives is to set organizational goals. This is because organizational goals provide the overarching direction and purpose for the entire organization. Once these goals are established, they can then be cascaded down to departmental and individual levels, ensuring alignment and focus throughout the organization.

Option Analysis:

Option A: Setting departmental goals is a subsequent step after organizational goals are set.
Option B: Correct. Setting organizational goals is the first step in MBO.
Option C: Setting individual goals comes after organizational and departmental goals are established.
Option D: Discussing departmental goals is part of the process but not the first step.

430. Compensation given to expatriates for exceptionally hard working and living conditions at certain locations is classified as

Correct Answer: Correct answer is: (C) Hardship allowances.

Exam Relevance: MBA, HR Certification Exams, International Business Exams

Difficulty: Moderate

Concept notes: Hardship allowances are compensations provided to expatriates for working and living in challenging environments.

Common Mistakes: Students may confuse hardship allowances with other types of allowances such as mobility premiums or foreign service premiums, which are related but distinct.

Explanations: Hardship allowances are specifically designed to compensate expatriates for the difficult living and working conditions they face in certain locations. These allowances are intended to offset the additional costs and inconveniences associated with such environments, making them the correct classification for the given scenario.

Option Analysis:

Option A: Ethnocentric allowances are not a standard term and do not apply to the context of compensating for hard conditions.
Option B: Mobility premiums are typically given for the willingness to relocate, not for the conditions of the location.
Option C: Hardship allowances are the correct classification for compensating expatriates for exceptionally hard working and living conditions.
Option D: Foreign Service premiums are generally associated with government employees and not specifically for hardship conditions.

Mnemonic: HARD = Hardship, Additional Remuneration, Difficult

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Human Resource Management MCQ - Set 43

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