Human Resource Management MCQ – Change your future

641. In which incentive executives are given right to purchase stocks for specific period?

Correct Answer: Correct answer is: (A) Long-term incentives.

Exam Relevance: CFA, MBA, HR Certification Exams

Difficulty: Moderate

Concept notes: Long-term incentives are designed to align executives' interests with the long-term success of the company. One common form of long-term incentive is the right to purchase stocks at a predetermined price over a specific period.

Common Mistakes: Students may confuse long-term incentives with short-term incentives, which typically focus on immediate performance metrics rather than stock options.

Explanations: Long-term incentives, such as stock options, provide executives with the right to purchase company stocks at a predetermined price over a specific period. This aligns their interests with the long-term performance of the company, encouraging them to make decisions that benefit the company's future growth and value.

Option Analysis:

Option A: Correct. Long-term incentives include stock options, which give executives the right to purchase stocks for a specific period.
Option B: Incorrect. Short-term incentives typically focus on immediate performance metrics and do not include stock options.
Option C: Incorrect. Pay scale refers to the range of salaries and wages within an organization and does not involve stock options.
Option D: Incorrect. Ranking jobs is a method of job evaluation and does not involve stock options or long-term incentives.

642. What is a benefit of external recruitment?

Correct Answer: Correct answer is: (D) The company will get new people with new skills.

Exam Relevance: HR Management, Business Studies, Management Exams

Difficulty: Easy

Concept notes: External recruitment involves hiring individuals from outside the organization. This can bring fresh perspectives and new skills to the company.

Common Mistakes: Students may overlook the potential for new skills and focus only on the costs and time associated with external recruitment.

Explanations: External recruitment allows a company to bring in individuals who have different experiences and skill sets that may not be present within the current workforce. This can enhance the company's capabilities and innovation, as new employees can introduce different methods and ideas.

Option Analysis:

Option A: This option highlights a potential drawback of external recruitment, as new hires may require training to acclimate to the company's processes and culture.
Option B: This option also points out a potential drawback, as the recruitment process can be time-consuming.
Option C: This option mentions another potential drawback, as external recruitment can involve higher costs due to recruitment fees and training expenses.
Option D: This option correctly identifies a key benefit of external recruitment, which is the introduction of new skills and perspectives to the company.

643. Below are the activities if compensation function. Except

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

Exam Relevance: HRM exams, MBA exams, Competitive recruitment exams

Difficulty: Moderate

Concept notes: The compensation function in human resource management typically includes activities such as job evaluation, wage and salary administration, and bonus structures. Potential appraisal, however, is more related to performance management and career development rather than direct compensation activities.

Common Mistakes: Students may confuse potential appraisal with performance appraisal, which can be a part of the compensation process but is not directly a compensation function.

Explanations: Potential appraisal focuses on assessing an employee's future potential and development needs, which is more aligned with performance management and career planning. Job evaluation, wage and salary administration, and bonus structures are all directly related to the compensation function, which involves determining and managing the financial rewards for employees.

Option Analysis:

Option A: Job evaluation is a core activity in the compensation function, involving the systematic comparison of jobs to determine their relative worth within an organization.
Option B: Wage and salary administration is a key component of the compensation function, dealing with the setting and adjustment of pay rates.
Option C: Potential appraisal is not a direct compensation function but rather a part of performance management and career development.
Option D: Bonus structures are a part of the compensation function, involving the design and implementation of incentive pay systems.

Mnemonic: JWBP - Job Evaluation, Wage, Bonus, Potential (not compensation)

644. A method in which corresponding points of each compensable factors for calculation of total point is called

Correct Answer: Correct answer is: (A) Point method.

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

Difficulty: Easy

Concept notes: The point method is a job evaluation technique that assigns numerical values to various compensable factors of a job to determine its overall worth.

Common Mistakes: Students may confuse the point method with factor comparison, which also involves compensable factors but uses a different approach.

Explanations: The point method involves identifying key compensable factors (such as skill, effort, responsibility, and working conditions) and assigning points to each factor based on the level of the job. The total points for each job are then summed to determine its overall value. This method is systematic and allows for a detailed analysis of each job component.

Option Analysis:

Option A: Correct. The point method involves assigning points to compensable factors.
Option B: Incorrect. Factor comparison involves comparing jobs to a set of benchmark jobs, not assigning points to factors.
Option C: Incorrect. Job classification involves grouping jobs into broad categories, not assigning points to factors.
Option D: Incorrect. The alternation ranking method involves ranking jobs in order of importance, not assigning points to factors.

645. For continuous work growth, company's direct, non-financial and financial payments are being received by employees, categorized as

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

Exam Relevance: GMAT, GRE, HR Exams, MBA Entrance Exams

Difficulty: Moderate

Concept notes: Benefits encompass both non-financial and financial payments that companies provide to employees beyond their base salary. These can include health insurance, retirement plans, paid time off, and other perks that contribute to job satisfaction and employee retention.

Common Mistakes: Students may mistakenly believe that only financial payments are considered benefits, overlooking non-financial rewards.

Explanations: Benefits are a comprehensive category that includes both non-financial and financial payments. Non-financial benefits can include health insurance, retirement plans, and paid time off, while financial benefits can include bonuses, stock options, and other monetary incentives. The term "benefits" encompasses all these forms of compensation, making it the most accurate answer.

Option Analysis:

Option A: Benefits include both non-financial and financial payments, making it the correct answer.
Option B: Stock ownership is a specific type of financial benefit but does not cover all forms of compensation.
Option C: Loyalty scholarships are a specific type of non-financial benefit but do not cover all forms of compensation.
Option D: While all options may be part of benefits, the term "Benefits" is the most inclusive and accurate answer.

Mnemonic: BENEFITS: Beyond Earnings, Non-financial, Extra Financial, Incentives, Time Off, Scholarships

646. Certain parts of your organization wants to include 'Honours and Awards' section on the employee profile page, whilst others do not. Can this be achived by creating two Person Profile configurations?

Correct Answer: Correct answer is: (A) No.

Exam Relevance: HRIS certification exams, HR management exams

Difficulty: Moderate

Concept notes: In most HRIS (Human Resource Information Systems), the configuration of employee profiles is typically uniform across the system. This means that if a section like 'Honours and Awards' is enabled, it will be visible to all users with appropriate access rights, and cannot be selectively enabled for certain parts of the organization.

Common Mistakes: Students may mistakenly believe that HRIS systems allow for highly granular customization of profile sections, leading to the assumption that different configurations can be set for different departments or user groups.

Explanations: The correct answer is that it is not possible to achieve this by creating two Person Profile configurations. HRIS systems generally do not support the creation of multiple configurations for the same profile type that can be selectively applied to different organizational units. The configuration of the employee profile is typically a system-wide setting, meaning that any changes to the profile structure will apply to all users within the system.

Option Analysis:

Option A: Correct. The system-wide nature of profile configurations in HRIS means that creating two configurations is not feasible.
Option B: Incorrect. The system does not support selective application of profile configurations to different organizational units.
Option C: Incorrect. The system-wide nature of profile configurations means that only one configuration can be applied system-wide, not selectively.
Option D: Incorrect. The system does support a single configuration, but not multiple configurations for different organizational units.

647. Ethan Djuna is a territorial salesperson for Lennox heating and air conditioning systems. Every six months Djuna's sales manager gives him feedback by showing Djuna a comparison between his actual sales figures and his sales objectives. This feedback is called a ..... appraisal.

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

Exam Relevance: HRM exams, Management exams, Business exams

Difficulty: Easy

Concept notes: Performance appraisal is a systematic process of evaluating the performance of employees against predetermined objectives.

Common Mistakes: Students may confuse performance appraisal with other types of appraisals, such as compensation or projected appraisals, which do not focus on evaluating employee performance.

Explanations: The feedback given by Djuna's sales manager, which compares his actual sales figures to his sales objectives, is a form of performance appraisal. This type of appraisal focuses on evaluating an employee's performance against set objectives, making it the correct choice.

Option Analysis:

Option A: Controlled appraisal is not a standard term in performance management.
Option B: Compensation appraisal focuses on pay and benefits, not performance evaluation.
Option C: Projected appraisal is not a standard term in performance management.
Option D: Performance appraisal evaluates employee performance against objectives, which matches the scenario described.

648. What is the last step in the employee life cycle?

Correct Answer: Correct answer is: (C) Retention/Exit.

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

Difficulty: Moderate

Concept notes: The employee life cycle encompasses the stages an employee goes through from recruitment to departure.

Common Mistakes: Students may confuse the stages of the employee life cycle, particularly onboarding and retention/exit.

Explanations: The employee life cycle begins with recruitment and onboarding, followed by performance management, learning and development, and finally retention or exit. Retention/Exit is the last step as it deals with either retaining the employee or managing their departure from the organization.

Option Analysis:

Option A: Onboarding is the initial stage where new employees are integrated into the organization.
Option B: Learning and Development is a stage where employees are provided with training and development opportunities.
Option C: Retention/Exit is the final stage where the organization focuses on retaining employees or managing their exit.
Option D: Developing, promoting is part of the learning and development stage, not the final stage.

Mnemonic: REX: Retention/Exit is the final Xit.

649. Which of the following role a manager performs as a Resource allocator?

Correct Answer: Correct answer is: (B) Decisional role.

Exam Relevance: MBA, HRM, Management, Organizational Behavior

Difficulty: Moderate

Concept notes: Managers perform various roles in an organization, including interpersonal, informational, and decisional roles. The decisional role involves making decisions and allocating resources.

Common Mistakes: Students may confuse the decisional role with the interpersonal role, as both involve interactions with others. However, the decisional role specifically focuses on making decisions and allocating resources.

Explanations: The decisional role of a manager involves making decisions and allocating resources. This includes determining how to allocate financial, human, and material resources to achieve organizational goals. Therefore, the role of a manager as a resource allocator falls under the decisional role.

Option Analysis:

Option A: The interpersonal role involves activities related to people, such as motivating, communicating, and representing the organization. It does not directly involve resource allocation.
Option B: The decisional role involves making decisions and allocating resources, which aligns with the role of a resource allocator.
Option C: The informational role involves collecting, receiving, and disseminating information. It does not directly involve resource allocation.
Option D: The supportive role is not a recognized managerial role in this context. It does not directly involve resource allocation.

650. What is Job Rotation ?

Correct Answer: Correct answer is: (B) Is a management technique that gives trainees to various jobs and departments in the next few years.

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

Difficulty: Moderate

Concept notes: Job rotation is a management technique used to provide trainees with exposure to different roles and departments within an organization.

Common Mistakes: Students may confuse job rotation with job enlargement, which involves increasing the scope of a job by adding more tasks.

Explanations: Job rotation is a management technique that involves moving employees through a series of jobs in a planned manner. This allows trainees to gain a broader understanding of the organization and develop a wider range of skills. The correct answer describes this process accurately, as it involves giving trainees exposure to various jobs and departments over a period of time.

Option Analysis:

Option A: This describes job enlargement, not job rotation.
Option B: This correctly defines job rotation as a management technique that exposes trainees to different jobs and departments.
Option C: This describes a job description, not job rotation.
Option D: This describes job analysis, not job rotation.

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Human Resource Management MCQ - Set 65

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