Human Resource Management MCQ – Change your future

671. Which of the following term best represents the individuals who have interests in an Organisation and are influenced by it?

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

Exam Relevance: MBA exams, Business Ethics exams, Organizational Behavior exams

Difficulty: Moderate

Concept notes: Stakeholders are individuals or groups who have an interest in an organization and are affected by its actions and decisions.

Common Mistakes: Students may confuse stakeholders with stockholders, who are only a subset of stakeholders and specifically refer to shareholders.

Explanations: Stakeholders include a wide range of individuals and groups such as employees, customers, suppliers, investors, and the community. They are all affected by the organization's activities and have a vested interest in its performance. The term "stakeholders" encompasses a broader range of individuals compared to the other options provided.

Option Analysis:

Option A: Workforce refers only to the employees of an organization, which is too narrow to cover all individuals with an interest in the organization.
Option B: Stakeholders include all individuals and groups who have an interest in the organization, making it the most comprehensive term.
Option C: Customers are only one type of stakeholder and do not represent all individuals with an interest in the organization.
Option D: Stockholders are a specific type of stakeholder, referring to shareholders, and do not encompass all individuals with an interest in the organization.

Mnemonic: S.T.A.K.E. - Stakeholders Take All Kinds of Engagements

672. Consider the following Statements: Promotion by merit uses qualifications and performance as the basis for promotion. Job design: the process of getting detailed information about jobs. Job evaluation is a process of data collection through which an organization can understand the worth of the various jobs and, as a result, can create a pay structure. Which of the following statement(s) is/are true?

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

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

Difficulty: Moderate

Concept notes: Promotion by merit is based on qualifications and performance. Job evaluation assesses the worth of jobs to create a pay structure. Job design involves detailed information about jobs.

Common Mistakes: Students may confuse job design with job evaluation, as both involve detailed information about jobs.

Explanations: Promotion by merit (Statement 1) is true as it is based on qualifications and performance. Job evaluation (Statement 3) is true as it assesses the worth of jobs to create a pay structure. Job design (Statement 2) is not true in the context of the question, as it involves detailed information about jobs but does not directly relate to the process of understanding job worth or creating a pay structure.

Option Analysis:

Option A: Incorrect because it includes Statement 2, which is not true in the context of the question.
Option B: Incorrect because it includes Statement 2, which is not true in the context of the question.
Option C: Incorrect because it includes Statement 2, which is not true in the context of the question.
Option D: Correct because it includes only Statements 1 and 3, which are true in the context of the question.

673. Consider the following Statements: Recency effects refer to an appraisal error which is too open to interpretation. In the context of HRM in M&As decisions about resources involve staffing and retention issues, termination decisions being particularly important. Recruiting staff is a function performed either in-house (within the organisation) or outsourced to a recruitment agency. Which of the following statement(s) is/are true?

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

Exam Relevance: HRM exams, M&A exams, Organizational Behavior exams

Difficulty: Moderate

Concept notes: Recency effects in HRM refer to the tendency to give more weight to recent information when making decisions, not an appraisal error related to interpretation. In M&As, staffing and retention issues, including termination decisions, are crucial. Recruiting can be handled in-house or outsourced to agencies.

Common Mistakes: Students may confuse recency effects with other types of cognitive biases, such as confirmation bias or halo effect, which are more related to interpretation.

Explanations: Recency effects do not refer to an appraisal error which is too open to interpretation. Instead, they refer to the tendency to give more weight to recent information. In the context of HRM in M&As, staffing and retention issues, including termination decisions, are indeed important. Recruiting staff can be performed either in-house or outsourced to a recruitment agency. Therefore, statements 2 and 3 are true.

Option Analysis:

Option A: Incorrect because statement 1 is false.
Option B: Incorrect because statement 1 is false.
Option C: Incorrect because statement 1 is false.
Option D: Correct because statements 2 and 3 are true.

Mnemonic: RHRM: Recruit, Hire, Retain, Manage

674. "Labour is not a commodity"-is the assertion made by

Correct Answer: Correct answer is: (A) The Declaration of Philadelphia adopted by 26th session of ILO.

Exam Relevance: UPSC, IAS, Civil Services Exam, ILO Exams

Difficulty: Moderate

Concept notes: The Declaration of Philadelphia is a significant document in international labor law, emphasizing the rights and dignity of workers.

Common Mistakes: Students may confuse the Declaration of Philadelphia with other historical documents like the Magna Carta or the Constitution of India, which do not contain the specific assertion about labor.

Explanations: The Declaration of Philadelphia, adopted in 1944 by the 26th session of the International Labour Organization (ILO), explicitly states that "labour is not a commodity." This declaration is a foundational document in international labor law, emphasizing the rights and dignity of workers. It distinguishes labor from goods and services, asserting that workers should not be treated as mere commodities to be bought and sold.

Option Analysis:

Option A: Correct. The Declaration of Philadelphia adopted by the 26th session of ILO explicitly states that "labour is not a commodity."
Option B: Incorrect. The Magna Carta is a historical document from 1215 that primarily deals with the rights of nobles and does not address labor as a commodity.
Option C: Incorrect. The Constitution of India does not contain the specific assertion that "labour is not a commodity."
Option D: Incorrect. The International Labour Conference is a regular meeting of the ILO, but the specific assertion is found in the Declaration of Philadelphia, not the conference itself.

675. Examples include insurance companies and dentists.

Correct Answer: Correct answer is: (C) Service-providing business.

Exam Relevance: Business Management, MBA, Economics

Difficulty: Easy

Concept notes: Service-providing businesses are organizations that offer services rather than physical products. Examples include insurance companies and dentists, which provide services like insurance coverage and dental care, respectively.

Common Mistakes: Students may confuse service-providing businesses with goods-producing businesses, which manufacture and sell physical products.

Explanations: Insurance companies and dentists are examples of service-providing businesses because they offer services rather than physical products. Insurance companies provide coverage and risk management services, while dentists provide dental care and oral health services. These businesses do not produce tangible goods, which distinguishes them from goods-producing businesses.

Option Analysis:

Option A: Planning and staffing are activities that can be part of any type of business, not specific to service-providing businesses.
Option B: Goods-producing businesses manufacture and sell physical products, which is not the case for insurance companies and dentists.
Option C: Service-providing businesses offer services, which aligns with the examples given.
Option D: Outsourcing refers to the practice of contracting a third party to perform services, which is not the primary characteristic of the examples provided.

676. Workers compensation, disability insurance, health and hospitalization costs are all types of

Correct Answer: Correct answer is: (C) Insurance benefits.

Exam Relevance: CPA, CFA, PMP, HR Certification Exams

Difficulty: Easy

Concept notes: Insurance benefits refer to the financial protection provided by insurance policies, which cover various risks and expenses related to health, disability, and employment.

Common Mistakes: Students may confuse insurance benefits with employment benefits, which are broader and include non-insurance perks like paid leave and retirement plans.

Explanations: Workers compensation, disability insurance, health, and hospitalization costs are all types of insurance benefits. These benefits are designed to provide financial protection and support in case of work-related injuries, disabilities, or health issues. They are specifically categorized under insurance benefits because they involve insurance policies that cover these specific risks.

Option Analysis:

Option A: Employment benefits include a broader range of perks and are not limited to insurance policies.
Option B: Unemployment benefits are provided by the government and are not related to insurance policies.
Option C: Insurance benefits cover the specific types of costs mentioned in the question.
Option D: Optional benefits are not a standard category and do not specifically encompass the types of insurance mentioned.

677. Which of the following statements about downsizing is not correct?

Correct Answer: Correct answer is: (D) Technical up gradation cannot be attributed as a reason for downsizing.

Exam Relevance: MBA, HR Management, Business Strategy

Difficulty: Moderate

Concept notes: Downsizing is a strategic decision made by organizations to reduce costs, improve efficiency, or adapt to changes in the business environment. It often involves reducing the workforce, closing facilities, or streamlining operations.

Common Mistakes: Students may mistakenly believe that technical upgrades always lead to downsizing, as they might think that automation and technology reduce the need for human labor. However, technical upgrades can also lead to new job roles and increased efficiency without necessarily reducing the workforce.

Explanations: Technical upgrades are often aimed at improving efficiency and productivity, which can lead to cost savings and better performance. However, they do not inherently necessitate a reduction in the workforce. In fact, technical upgrades can create new roles and opportunities, thus not being a direct cause of downsizing. The other options (getting rid of deadwood, cost-cutting measures, and mergers and acquisitions) are valid reasons for downsizing.

Option Analysis:

Option A: Downsizing can help in eliminating underperforming employees, which is referred to as getting rid of deadwood.
Option B: Cost-cutting measures are a common reason for downsizing, as reducing expenses can improve financial performance.
Option C: Mergers and acquisitions often lead to redundancies and downsizing as companies streamline operations post-merger.
Option D: Technical upgrades do not necessarily lead to downsizing; they can enhance productivity without reducing the workforce.

678. A method by which employees are given hands-on methods experience with instructions from their supervisor is called .....

Correct Answer: Correct answer is: (C) On-the-Job Training (OJT).

Exam Relevance: HR Management Exams, Organizational Behavior Exams, Management Exams

Difficulty: Moderate

Concept notes: On-the-Job Training (OJT) involves providing employees with hands-on experience and instructions from their supervisor in their actual work environment.

Common Mistakes: Students may confuse OJT with other training methods such as orientation or simulation, which do not involve hands-on experience in the actual work environment.

Explanations: On-the-Job Training (OJT) is the method where employees receive hands-on experience and direct instructions from their supervisor in their actual work environment. This approach allows employees to learn by doing, with immediate feedback and guidance from their supervisor. This aligns with the description provided in the question, making it the correct answer.

Option Analysis:

Option A: Orientation typically involves introducing new employees to the company culture, policies, and procedures, but does not involve hands-on training.
Option B: Onboarding is a broader process that includes orientation and may involve some training, but it is not specifically focused on hands-on experience with supervisor instructions.
Option C: On-the-Job Training (OJT) involves providing employees with hands-on experience and instructions from their supervisor in their actual work environment, which matches the description in the question.
Option D: Simulation involves creating a simulated environment for training, but it does not necessarily involve hands-on experience in the actual work environment with supervisor instructions.

679. The sixth step of the SHRM application tool is to evaluate the plan against success criteria. During this stage it is important to note:

Correct Answer: Correct answer is: (D) The positive & negative effect of the actions implemented.

Exam Relevance: SHRM certification exams, HR management exams, MBA exams

Difficulty: Moderate

Concept notes: The evaluation stage in the SHRM application tool involves a comprehensive assessment of the implemented actions, considering both their positive and negative impacts.

Common Mistakes: Students may mistakenly focus only on the positive outcomes, neglecting the negative effects which are equally important for a thorough evaluation.

Explanations: The evaluation of a strategic human resource management (SHRM) plan must be comprehensive. It is crucial to assess both the positive and negative effects of the actions implemented. This dual evaluation helps in understanding the full impact of the plan, identifying areas of success, and pinpointing areas that need improvement. By considering both aspects, organizations can make informed decisions for future strategic planning and adjustments.

Option Analysis:

Option A: This option is incomplete as it only considers the positive effects, which does not provide a full picture of the plan's impact.
Option B: This option is also incomplete as it only considers the negative effects, which does not provide a full picture of the plan's impact.
Option C: This option is too narrow, focusing only on failures, which does not provide a comprehensive evaluation.
Option D: This option is correct as it considers both the positive and negative effects, providing a comprehensive evaluation of the plan's impact.

680. The written statement of the findings of job analysis is called

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

Exam Relevance: HRM exams, Management exams, Competitive exams

Difficulty: Easy

Concept notes: A job description is a written statement that outlines the key aspects of a job, including duties, responsibilities, qualifications, and working conditions.

Common Mistakes: Students may confuse job description with job evaluation, which involves assessing the relative worth of jobs within an organization.

Explanations: The job description is the formal document that results from job analysis. It provides a clear and detailed account of the job's requirements and responsibilities. Job design, job classification, and job evaluation are related but distinct processes that do not directly produce a written statement of job analysis findings.

Option Analysis:

Option A: Job design involves planning and organizing work tasks, but it does not produce the written statement of job analysis findings.
Option B: Job classification is the process of grouping jobs into categories based on their level of responsibility and complexity, but it does not produce the written statement of job analysis findings.
Option C: Job description is the correct answer as it is the written statement that summarizes the findings of job analysis.
Option D: Job evaluation is the process of determining the relative value of jobs within an organization, but it does not produce the written statement of job analysis findings.

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Human Resource Management MCQ - Set 68

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