Human Resource Management MCQ – Change your future

501. According to Herzberg, job salary and incentives are classified as

Correct Answer: Correct answer is: (C) Hygiene factor.

Exam Relevance: Organizational Behavior, Human Resource Management, Industrial Psychology

Difficulty: Moderate

Concept notes: Herzberg's Two-Factor Theory distinguishes between hygiene factors and motivators. Hygiene factors are extrinsic elements that prevent job dissatisfaction but do not directly motivate employees. Motivators are intrinsic elements that can lead to job satisfaction and increased motivation.

Common Mistakes: Students often confuse hygiene factors with motivators, mistaking extrinsic factors like salary for intrinsic motivators.

Explanations: According to Herzberg's theory, job salary and incentives are classified as hygiene factors. These factors are necessary to prevent job dissatisfaction but do not directly motivate employees. They are extrinsic elements that address basic needs and working conditions, ensuring that employees are not dissatisfied but do not necessarily lead to higher job satisfaction or motivation.

Option Analysis:

Option A: Unhygienic is not a term used in Herzberg's theory.
Option B: DE motivators is not a recognized term in Herzberg's theory.
Option C: Hygiene factor is the correct classification for salary and incentives according to Herzberg's theory.
Option D: Extrinsic factors is a broader category that includes hygiene factors, but the specific term used by Herzberg is hygiene factors.

Mnemonic: Salary keeps the job clean, not motivating.

502. Which one of the following is the advantage of team-based pay for performance plans?

Correct Answer: Correct answer is: (D) Aids performance measurement.

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

Difficulty: Moderate

Concept notes: Team-based pay for performance plans are designed to align the financial incentives of team members with the goals of the organization. One of the key advantages of such plans is that they can aid in performance measurement by providing a clear link between team performance and rewards.

Common Mistakes: Students may mistakenly believe that team-based pay plans primarily focus on individual performance, rather than the collective performance of the team.

Explanations: Team-based pay for performance plans are structured to reward the team as a whole based on the achievement of specific performance targets. This structure makes it easier to measure the overall performance of the team and tie it directly to the rewards. By focusing on collective performance, these plans can more effectively align the team's efforts with organizational goals, thereby aiding in performance measurement.

Option Analysis:

Option A: Financial incentives can shape a person's goals, but this is more relevant to individual-based pay plans rather than team-based plans.
Option B: Team-based pay plans do not necessarily help the firm to attain individual equity, as they focus on collective performance rather than individual contributions.
Option C: Team-based pay plans are not designed to fit an individualistic culture; they are more suited to collaborative environments.
Option D: Team-based pay plans aid performance measurement by linking rewards to the achievement of team performance targets.

503. Which of the following is not a core value of the Bank

Correct Answer: Correct answer is: (C) Customer delight.

Exam Relevance: Bank PO, MBA Entrance, Competitive exams

Difficulty: Easy

Concept notes: Core values of an organization typically focus on internal principles and behaviors rather than external outcomes.

Common Mistakes: Students may confuse customer satisfaction or delight as a core value, when it is more often a goal or outcome of the core values.

Explanations: Core values are foundational principles that guide the behavior and decision-making within an organization. They are typically internal and focus on how the organization operates rather than external outcomes. Customer delight, while important, is more of a goal or outcome of the core values rather than a core value itself. Therefore, it is not considered a core value of the Bank.

Option Analysis:

Option A: Excellence is a common core value as it reflects a commitment to high standards and quality.
Option B: Innovation is a core value as it encourages creativity and continuous improvement within the organization.
Option C: Customer delight is not a core value but rather an outcome of the core values.
Option D: Courage is a core value as it promotes taking risks and making bold decisions.

Mnemonic: EIC - Excellence, Innovation, Courage (not Customer delight)

504. What refers to the appraisal involving identifying the hidden talents and skills of a person to assume a higher position in the organisation?

Correct Answer: Correct answer is: (C) Potential Appraisal.

Exam Relevance: HR Management Exams, MBA Exams, Management Aptitude Tests

Difficulty: Moderate

Concept notes: Potential appraisal is a process used in organizations to identify employees' hidden talents and skills that can be developed to prepare them for higher positions.

Common Mistakes: Students may confuse potential appraisal with self-appraisal, which is an individual's assessment of their own performance and skills.

Explanations: Potential appraisal focuses on identifying the underlying abilities and potential of employees that are not immediately apparent. This process helps organizations to develop a talent pool for future leadership roles. It is distinct from self-appraisal, which is an individual's self-assessment, and promotion, which is the act of moving an employee to a higher position.

Option Analysis:

Option A: Self Appraisal is an individual's assessment of their own performance and skills, not an organizational process to identify potential for higher positions.
Option B: Promotion is the act of moving an employee to a higher position, not the process of identifying potential.
Option C: Potential Appraisal is the correct term for identifying hidden talents and skills to prepare employees for higher positions.
Option D: None of the Above is incorrect as Potential Appraisal is a valid and recognized process.

Mnemonic: P.A.P. - Potential Appraisal Prepares

505. Public recognition such as an award in organized function is best classified as an example of

Correct Answer: Correct answer is: (B) Non-financial rewards.

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

Difficulty: Easy

Concept notes: Non-financial rewards include recognition, praise, and awards that do not involve monetary compensation.

Common Mistakes: Students may confuse non-financial rewards with financial awards, which involve monetary compensation.

Explanations: Public recognition such as an award in an organized function is a form of non-monetary acknowledgment. It does not involve any financial compensation, making it a non-financial reward.

Option Analysis:

Option A: Financial awards involve monetary compensation, which is not the case here.
Option B: Non-financial rewards include recognition and awards that do not involve money, which fits the description.
Option C: Proportional award implies a financial reward that is proportional to some measure of performance, which is not applicable here.
Option D: Fixed award typically refers to a financial reward that is a fixed amount, which is not the case here.

506. What is the FINAL step in the appraisal process?

Correct Answer: Correct answer is: (A) Discussing the appraisal with the employee.

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

Difficulty: Moderate

Concept notes: The final step in the appraisal process involves discussing the appraisal with the employee to provide feedback and set future goals.

Common Mistakes: Students often confuse the final step with the initial step of communicating performance criteria to the employee.

Explanations: The final step in the appraisal process is discussing the appraisal with the employee. This step is crucial as it allows for a two-way communication where the employee can receive feedback on their performance and discuss any areas for improvement. It also provides an opportunity to set future goals and expectations, ensuring that the employee is aligned with the organization's objectives.

Option Analysis:

Option A: This is the correct answer as it represents the final step in the appraisal process.
Option B: Examining the work performance of the employee is an earlier step in the process, not the final one.
Option C: Appraising the work performance of the employee is also an earlier step, not the final one.
Option D: Communicating the performance criteria to the employee is typically done at the beginning of the appraisal cycle, not at the end.

Mnemonic: Discuss, Feedback, Goals (DFG)

507. HRM is

Correct Answer: Correct answer is: (A) Employee oriented.

Exam Relevance: HRM exams, Management exams, MBA exams

Difficulty: Easy

Concept notes: Human Resource Management (HRM) focuses on managing and developing employees within an organization.

Common Mistakes: Students may confuse HRM with being solely employer-oriented, overlooking its emphasis on employee welfare and development.

Explanations: HRM is primarily concerned with the well-being, development, and management of employees. It involves strategies and practices aimed at attracting, retaining, and motivating employees, which aligns with the employee-oriented approach.

Option Analysis:

Option A: Correct. HRM is focused on the needs and development of employees.
Option B: Incorrect. While HRM does consider employer needs, it is not primarily employer-oriented.
Option C: Incorrect. Although HRM must comply with legal requirements, it is not primarily legally oriented.
Option D: Incorrect. The correct answer is provided among the options.

Mnemonic: E for Employee, E for Empowerment, E for Engagement

508. External Recruitment means looking outside the business, which of these is an ADVANTAGE of external recruitment?

Correct Answer: Correct answer is: (C) Gives fresh perspective and avoid resentment within.

Exam Relevance: HRM, Management, Organizational Behavior

Difficulty: Moderate

Concept notes: External recruitment involves hiring individuals from outside the organization. This approach can bring new ideas and perspectives to the business, which can be beneficial for innovation and problem-solving. Additionally, it can help avoid internal resentment that might arise from promotions or hiring decisions that favor internal candidates.

Common Mistakes: Students may mistakenly believe that internal candidates are always better because they already know the business, overlooking the benefits of external recruitment.

Explanations: External recruitment can provide a fresh perspective to the organization, as new hires bring different experiences and viewpoints. This can lead to innovative solutions and approaches that may not have been considered by internal candidates. Furthermore, external recruitment can help avoid resentment within the organization, as it reduces the perception of favoritism or bias in hiring decisions.

Option Analysis:

Option A: External recruitment is often more expensive and time-consuming compared to internal recruitment.
Option B: External candidates do not have prior knowledge of the business, which is a disadvantage rather than an advantage.
Option C: External recruitment can bring new ideas and avoid internal conflicts, making it a valid advantage.
Option D: External recruitment does not provide a clear career pathway for internal employees, which is more aligned with internal recruitment.

Mnemonic: Fresh Eyes, No Favors

509. Employee's general belief that their organisation values their contribution and cares about their well-being is called.....

Correct Answer: Correct answer is: (D) Perceived organizational support.

Exam Relevance: Organizational Behavior, Human Resource Management, Industrial Psychology

Difficulty: Moderate

Concept notes: Perceived organizational support (POS) refers to employees' belief that their organization values their contribution and cares about their well-being.

Common Mistakes: Students may confuse perceived organizational support with organizational behavior, which is a broader field of study focusing on the actions and interactions of individuals within organizations.

Explanations: Perceived organizational support (POS) is the correct term for the belief that an organization values an employee's contribution and cares about their well-being. This concept is distinct from other options like behavior, workplace misbehaviour, and organizational behavior. POS is a psychological construct that reflects the employees' perceptions of the organization's supportiveness, which can influence their attitudes and behaviors at work.

Option Analysis:

Option A: Behaviour refers to the actions and reactions of individuals, not their perceptions of organizational support.
Option B: Workplace misbehaviour refers to inappropriate or unethical actions in the workplace, not the perception of organizational support.
Option C: Organizational behaviour is a broader field of study that examines the actions and interactions of individuals within organizations, not specifically the perception of organizational support.
Option D: Perceived organizational support is the correct term for the belief that an organization values an employee's contribution and cares about their well-being.

Mnemonic: POS - Perceived Organizational Support

510. Non-financial rewards are also called: (pick two)

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

Exam Relevance: HR Management, Organizational Behavior, Business Management

Difficulty: Easy

Concept notes: Non-financial rewards are often referred to as benefits in kind or perks. These terms describe non-monetary compensation provided by employers to employees.

Common Mistakes: Students may confuse non-financial rewards with financial rewards, such as company allowances, which are monetary in nature.

Explanations: Non-financial rewards are typically referred to as benefits in kind or perks. These terms encompass non-monetary benefits provided by employers, such as company cars, health insurance, or gym memberships. Company allowances, on the other hand, are monetary benefits and do not fall under the category of non-financial rewards.

Option Analysis:

Option A: Benefit in kind is a correct term for non-financial rewards.
Option B: Perks is also a correct term for non-financial rewards.
Option C: Company allowances are monetary benefits and not considered non-financial rewards.
Option D: Only (A) & (B) is the correct choice as it accurately identifies the terms for non-financial rewards.

Mnemonic: BIP: Benefits in Kind and Perks

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Human Resource Management MCQ - Set 51

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