Human Resource Management MCQ – Change your future

651. The HR manager at Dart Electronics, a small business operating in Rio de Janeiro, Brazil, observed that in 2019, out of an average workforce of 83, there had been the following leavers: five employees had taken jobs at other businesses, two employees had retired, one employee had resigned for an unspecified reason and three employees had left to care for young children. What was the labour turnover for 2019?

Correct Answer: Correct answer is: (B) 13.3%.

Exam Relevance: HR Management, Business Administration, Management Accounting

Difficulty: Moderate

Concept notes: Labour turnover is calculated as the total number of employees who left the company divided by the average number of employees, multiplied by 100 to get a percentage.

Common Mistakes: Students often forget to divide by the average number of employees or do not convert the result into a percentage.

Explanations: To calculate the labour turnover, first sum the number of employees who left the company: 5 (jobs at other businesses) + 2 (retired) + 1 (resigned) + 3 (left to care for young children) = 11 employees. Next, divide this number by the average workforce of 83 employees: 11 / 83 = 0.1325. Finally, convert this to a percentage by multiplying by 100: 0.1325 * 100 = 13.25%, which rounds to 13.3%.

Option Analysis:

Option A: Incorrect because 12% is not the correct calculation of labour turnover.
Option B: Correct because 13.3% is the accurate calculation of labour turnover.
Option C: Incorrect because 10.80% is not the correct calculation of labour turnover.
Option D: Incorrect because 6% is not the correct calculation of labour turnover.

652. Seeking guidance from experienced people for advising and counseling is called

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

Exam Relevance: GRE, GMAT, MBA entrance exams

Difficulty: Easy

Concept notes: Mentoring involves seeking guidance and advice from experienced individuals to aid in personal and professional development.

Common Mistakes: Students may confuse mentoring with other forms of professional development, such as career counseling or performance reviews.

Explanations: Mentoring is the process of seeking guidance and advice from experienced individuals. This aligns with the description of seeking guidance and counseling from experienced people. The other options do not fit the context of the question.

Option Analysis:

Option A: Correct. Mentoring involves seeking guidance and advice from experienced individuals.
Option B: Incorrect. Employee's performance refers to the evaluation of an employee's work, not seeking guidance.
Option C: Incorrect. Career interests refer to personal career goals and preferences, not seeking guidance.
Option D: Incorrect. Developmental needs refer to the areas where an individual needs improvement, not the act of seeking guidance.

Mnemonic: Mentor: More experienced, trusted advisor.

653. Consider the following Statements: Even small firms are finding that success depends on their ability to market and manage overseas. Ingratiation and self-promotion are examples of impression management techniques. Hiring the wrong person for the job, committing unfair labor practices, and failing to motivate employees are personnel mistakes that hinder firms from achieving positive results. Which of the following statement(s) is/are true?

Correct Answer: Correct answer is: (C) Only 1, 2, 3.

Exam Relevance: MBA exams, HR management exams, business strategy exams

Difficulty: Moderate

Concept notes: The question tests the understanding of global business operations, impression management techniques, and personnel management issues.

Common Mistakes: Students may overlook the importance of global marketing and management for small firms, or they might not recognize ingratiating and self-promotion as impression management techniques.

Explanations: Statement 1 is true because even small firms are increasingly finding that their success depends on their ability to market and manage overseas. Statement 2 is true as ingratiating and self-promotion are recognized as impression management techniques used to influence others' perceptions. Statement 3 is true because hiring the wrong person, committing unfair labor practices, and failing to motivate employees are all personnel mistakes that can hinder a firm's success.

Option Analysis:

Option A: Incorrect because it omits statement 3.
Option B: Incorrect because it omits statement 1.
Option C: Correct because it includes all three true statements.
Option D: Incorrect because it omits statement 2.

654. In which of the following would information typically have to pass through many layers of management in order to get from the director to operational staff?

Correct Answer: Correct answer is: (A) Hierarchical organisational structure.

Exam Relevance: MBA, HRM, Business Management

Difficulty: Moderate

Concept notes: In a hierarchical organisational structure, information typically has to pass through many layers of management before reaching operational staff.

Common Mistakes: Students may confuse a hierarchical structure with a flat structure, where there are fewer layers of management.

Explanations: A hierarchical organisational structure is characterized by a clear chain of command with multiple levels of management. Information must pass through each level, from the top (director) to the bottom (operational staff). This multi-layered approach ensures that decisions and directives are filtered and interpreted at each level, which can lead to delays and potential miscommunication. In contrast, a flat structure has fewer layers, allowing for quicker and more direct communication.

Option Analysis:

Option A: Hierarchical organisational structure is correct because it involves multiple layers of management.
Option B: Flat organisational structure is incorrect because it has fewer layers of management.
Option C: Centralised business is incorrect because it refers to decision-making authority being concentrated at the top, not necessarily involving multiple layers.
Option D: Decentralised business is incorrect because it involves distributing decision-making authority, not necessarily involving multiple layers of management.

Mnemonic: Hierarchical = High layers, Hierarchies

655. The..... metric views human resource expenses in relation to the total operating expenses of the organization.

Correct Answer: Correct answer is: (A) HR expense factor.

Exam Relevance: HRM exams, MBA exams, finance exams

Difficulty: Moderate

Concept notes: The HR expense factor is a metric that measures the proportion of human resource expenses relative to the total operating expenses of an organization.

Common Mistakes: Students may confuse the HR expense factor with other financial metrics such as human capital ROI, which focuses on the return on investment of human capital.

Explanations: The HR expense factor is specifically designed to view human resource expenses in relation to the total operating expenses of the organization. This metric helps in understanding the cost efficiency of human resource management within the broader context of the organization's financial health. It is a direct ratio that provides insight into how much of the total operating expenses are allocated to human resources.

Option Analysis:

Option A: Correct. The HR expense factor measures the proportion of human resource expenses relative to total operating expenses.
Option B: Incorrect. Human capital ROI measures the return on investment of human capital, not the proportion of expenses.
Option C: Incorrect. Health care costs per employee focus on the cost of health care benefits, not the overall human resource expenses.
Option D: Incorrect. Human capital value added measures the contribution of human capital to the organization's value, not the proportion of expenses.

Mnemonic: HR expense factor: "HR Effort Factor"

656. Is a type of non-financial motivation that takes place when more tasks or activities are added to a worker's job description.

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

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

Difficulty: Moderate

Concept notes: Job enlargement refers to the process of adding more tasks or activities to a worker's job description, which is a form of non-financial motivation.

Common Mistakes: Students may confuse job enlargement with job enrichment, which involves adding more responsibility and decision-making to a job.

Explanations: Job enlargement is a non-financial motivation technique that involves increasing the number of tasks or activities assigned to an employee. This approach aims to enhance job satisfaction and reduce boredom by providing employees with a wider range of responsibilities. The correct answer, job enlargement, directly matches the description provided in the question.

Option Analysis:

Option A: Purpose is not related to adding tasks or activities to a job description.
Option B: Job enlargement is the correct term for adding more tasks or activities to a worker's job description.
Option C: Empowerment involves giving employees more authority and responsibility, not necessarily adding more tasks.
Option D: None of the above is incorrect as job enlargement is a valid concept.

Mnemonic: J.E. = Job Enlargement

657. Involves a series of steps in which candidates are interviewed, tested, and screened to select the most suitable person for the vacant position, called?

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

Exam Relevance: HR Management Exams, MBA Entrance Exams, Competitive Government Exams

Difficulty: Easy

Concept notes: Selection is the process of choosing the most suitable candidate for a job through a series of steps including interviews, tests, and screenings.

Common Mistakes: Students may confuse selection with training, which is the process of developing skills and knowledge after hiring.

Explanations: Selection involves a series of steps to identify the most suitable candidate for a vacant position. This process includes interviews, tests, and screenings to evaluate the candidates' qualifications and fit for the role. The correct term for this process is selection.

Option Analysis:

Option A: Training is the process of developing skills and knowledge after hiring, not the process of selecting candidates.
Option B: Selection is the correct term for the process of choosing the most suitable candidate through interviews, tests, and screenings.
Option C: Labor turnover refers to the rate at which employees leave and are replaced, not the process of selecting candidates.
Option D: Employment Contract is a legal agreement between an employer and employee, not the process of selecting candidates.

Mnemonic: SIFT: Selection Involves Finding Talent

658. Consider the following Statements: The first phase of the strategic management process is forecast-based planning. The term Human Resource is same as personnel An effective performance reviews should take place several times a year Which of the following statement(s) is/are true?

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

Exam Relevance: MBA exams, HRM exams, Management exams

Difficulty: Moderate

Concept notes: The correct answer is that effective performance reviews should take place several times a year. This is a key aspect of human resource management and performance evaluation.

Common Mistakes: Students may mistakenly believe that the first phase of strategic management involves forecast-based planning or that the term "Human Resource" is synonymous with "personnel."

Explanations: The first phase of strategic management typically involves environmental scanning and situation analysis, not forecast-based planning. The term "Human Resource" is often used interchangeably with "personnel," but they are not exactly the same. "Human Resource" encompasses a broader range of functions and strategic approaches compared to the more traditional "personnel" management. Effective performance reviews should occur multiple times a year to ensure continuous feedback and improvement.

Option Analysis:

Option A: Incorrect because the first phase of strategic management is not forecast-based planning, and "Human Resource" is not the same as "personnel."
Option B: Incorrect because "Human Resource" is not the same as "personnel."
Option C: Correct because only the statement about performance reviews is accurate.
Option D: Incorrect because the first phase of strategic management is not forecast-based planning, and "Human Resource" is not the same as "personnel."

659. Detailed list of the qualifications needed to perform a job, including required skills, knowledge, and abilities.

Correct Answer: Correct answer is: (C) Job specification.

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

Difficulty: Moderate

Concept notes: A job specification is a detailed list of the qualifications needed to perform a job, including required skills, knowledge, and abilities.

Common Mistakes: Students may confuse job specification with job description, which outlines the duties and responsibilities of a job rather than the qualifications needed.

Explanations: A job specification focuses on the qualifications, skills, knowledge, and abilities required to perform a job effectively. It provides a clear outline of what a candidate must possess to be considered for the position. This is distinct from a job description, which details the tasks and responsibilities of the job.

Option Analysis:

Option A: A job is a general term for a position or role within an organization, not a detailed list of qualifications.
Option B: A job description outlines the duties and responsibilities of a job, not the qualifications needed.
Option C: A job specification is the correct term for a detailed list of qualifications, skills, knowledge, and abilities required for a job.
Option D: Job analysis is the process of gathering information about a job to create a job description and job specification, not the detailed list itself.

660. Payment by the entrepreneur as a percentage ofsales and associated with the compensation of salesrepresentatives

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

Exam Relevance: MBA, Business Management, Marketing Exams

Difficulty: Easy

Concept notes: Commission is a payment method where sales representatives are compensated based on a percentage of the sales they generate.

Common Mistakes: Students may confuse commission with a fixed salary, which is a set amount paid regardless of sales performance.

Explanations: Commission is a payment method where the entrepreneur pays a percentage of sales to the sales representatives. This aligns with the description provided in the question, making it the correct answer.

Option Analysis:

Option A: Commission is the correct answer as it involves a percentage of sales.
Option B: Salary is a fixed payment and does not vary with sales performance.
Option C: Hourly wage is based on the number of hours worked, not sales performance.
Option D: Hybrid compensation system combines different payment methods, not just a percentage of sales.

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Human Resource Management MCQ - Set 66

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