Human Resource Management MCQ – Change your future

771. A written statement of policies and principles that guides the behavior of all employees is called

Correct Answer: Correct answer is: (A) Code of ethics.

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

Difficulty: Easy

Concept notes: A code of ethics is a formal statement of policies and principles that guides the behavior of all employees within an organization.

Common Mistakes: Students may confuse a code of ethics with a training manual, which is a document that provides instructions and guidelines for specific tasks or procedures.

Explanations: A code of ethics is a written statement that outlines the ethical principles and standards that employees are expected to follow. It serves as a guide for decision-making and behavior within the organization. This makes it the correct answer as it directly aligns with the description provided in the question.

Option Analysis:

Option A: Correct. A code of ethics is a formal statement of policies and principles that guides employee behavior.
Option B: Incorrect. "Word of ethics" is not a recognized term in business ethics.
Option C: Incorrect. "Ethics dilemma" refers to a situation where ethical principles conflict, not a written statement of policies.
Option D: Incorrect. A training manual provides instructions for specific tasks, not ethical guidelines.

772. Dipu is paid by the hour. What does his take home pay depend on?

Correct Answer: Correct answer is: (A) How much time he has worked.

Exam Relevance: SAT, ACT, GED

Difficulty: Easy

Concept notes: Dipu is paid by the hour, which means his earnings are directly tied to the amount of time he works.

Common Mistakes: Students might confuse hourly pay with output-based pay, where earnings depend on the quantity of work produced.

Explanations: Dipu's take-home pay is determined by the number of hours he works. Since he is paid by the hour, his earnings are calculated based on the time he spends working, not on the output he produces, the number of items he sells, or any other factor.

Option Analysis:

Option A: This is correct because Dipu is paid based on the time he works.
Option B: This is incorrect because his pay is not based on the output he produces.
Option C: This is incorrect because his pay is not based on the number of items he sells.
Option D: This is incorrect because the correct answer is provided in option A.

Mnemonic: Hourly pay, time is key.

773. Stanford- Binet test, The Wechsler Adult Intelligence Scale are examples of .....

Correct Answer: Correct answer is: (A) Intelligence Test.

Exam Relevance: AP Psychology, SAT, ACT

Difficulty: Easy

Concept notes: Intelligence tests are designed to measure cognitive abilities and intellectual functioning.

Common Mistakes: Students may confuse intelligence tests with personality tests, which measure traits and behaviors rather than cognitive abilities.

Explanations: The Stanford-Binet test and the Wechsler Adult Intelligence Scale are both well-known intelligence tests. They are designed to measure various aspects of cognitive abilities, such as reasoning, problem-solving, and memory. These tests are not designed to measure personality traits or preferences, which rules out options B, C, and D.

Option Analysis:

Option A: Correct. Intelligence tests measure cognitive abilities.
Option B: Incorrect. Personality tests measure traits and behaviors.
Option C: Incorrect. Preference tests measure individual preferences or choices.
Option D: Incorrect. Aptitude tests measure specific skills or abilities.

Mnemonic: SBIW - Stanford-Binet Intelligence, Wechsler

774. Which of the following is an example of fixed fringe benefit?

Correct Answer: Correct answer is: (C) Clothing allowance.

Exam Relevance: HR Management Exams, Payroll Management Exams, Labor Relations Exams

Difficulty: Moderate

Concept notes: Fixed fringe benefits are those that are provided to employees on a regular basis and do not vary with the level of work or performance. They are predetermined and consistent.

Common Mistakes: Students may confuse fixed fringe benefits with variable benefits, which can change based on performance or other factors.

Explanations: Clothing allowance is a fixed fringe benefit because it is typically provided on a regular basis and does not vary based on the employee's performance or the level of work. It is a predetermined amount given to employees to cover the cost of work-related clothing.

Option Analysis:

Option A: Hazard pay is not a fixed fringe benefit as it is typically provided based on the level of risk or danger associated with the job, which can vary.
Option B: Honorarium is not a fixed fringe benefit as it is usually a payment for a specific service or contribution and can vary in amount.
Option C: Clothing allowance is a fixed fringe benefit as it is provided on a regular basis and does not vary based on performance or work level.
Option D: This option is incorrect as clothing allowance is a valid fixed fringe benefit.

775. Which of the following pairs is the element of job specification?

Correct Answer: Correct answer is: (A) Qualification - Skills.

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

Difficulty: Easy

Concept notes: Job specification outlines the qualifications and skills required for a job.

Common Mistakes: Students may confuse job specification with job description, which focuses on job duties and responsibilities.

Explanations: Job specification includes the qualifications and skills necessary for a job. Qualifications and skills are directly related and form a key part of the job specification. Job location, job title, and reporting to are not part of the job specification but rather part of the job description.

Option Analysis:

Option A: Correct. Qualification and skills are elements of job specification.
Option B: Incorrect. Job location is part of the job description, not the job specification.
Option C: Incorrect. Job title is part of the job description, not the job specification.
Option D: Incorrect. Reporting to is part of the job description, not the job specification.

776. ..... have direct responsibility for people below them in the hierarchy of an organisation.

Correct Answer: Correct answer is: (B) Line managers.

Exam Relevance: MBA, HR Management, Organizational Behavior

Difficulty: Moderate

Concept notes: Line managers are directly responsible for overseeing and managing the work of employees below them in the organizational hierarchy.

Common Mistakes: Students may confuse line managers with staff managers, who provide support rather than direct supervision.

Explanations: Line managers have direct responsibility for people below them in the hierarchy of an organization. They are responsible for supervising, guiding, and evaluating the performance of their subordinates. This direct oversight and management of employees is a key characteristic of line managers.

Option Analysis:

Option A: Directors typically have a broader scope of responsibility and do not directly manage individual employees.
Option B: Line managers have direct responsibility for people below them in the hierarchy of an organization.
Option C: Supervisors can be considered a type of line manager, but the term "line managers" is more commonly used to describe this role.
Option D: Staff managers provide support functions and do not have direct supervisory responsibilities over employees.

777. Need-Hierarchy Theory was propounded by

Correct Answer: Correct answer is: (D) Abraham Maslow.

Exam Relevance: MBA, HRM, Organizational Behavior

Difficulty: Easy

Concept notes: Abraham Maslow is known for his hierarchy of needs theory, which outlines a pyramid of human needs from basic physiological needs to self-actualization.

Common Mistakes: Students may confuse Maslow with other management theorists such as Elton Mayo or Peter F. Drucker, who are also influential but in different areas of management theory.

Explanations: Abraham Maslow developed the Need-Hierarchy Theory, which categorizes human needs into five levels: physiological, safety, love and belonging, esteem, and self-actualization. This theory is a fundamental concept in organizational behavior and motivation.

Option Analysis:

Option A: Elton Mayo is known for the Hawthorne Studies, not the Need-Hierarchy Theory.
Option B: Mc-Fraland is not a recognized name in the context of management theories.
Option C: Peter F. Drucker is known for his contributions to management and business strategy, not the Need-Hierarchy Theory.
Option D: Abraham Maslow is the correct answer as he developed the Need-Hierarchy Theory.

778. A formal interview with an employee who is leaving the small business to determine his or her attitudes about the business and suggestions for improvement.

Correct Answer: Correct answer is: (C) Exit Interview.

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

Difficulty: Moderate

Concept notes: An exit interview is a formal discussion conducted with an employee who is leaving the organization. It aims to gather feedback on the employee's experience and suggestions for improvement.

Common Mistakes: Students may confuse exit interviews with other forms of employee departure processes, such as layoffs or discharges, which do not involve a structured feedback session.

Explanations: An exit interview is specifically designed to gather insights from departing employees. It is a formal process where the employee is interviewed to understand their attitudes about the business and to receive suggestions for improvement. This process is distinct from other forms of employee departure, such as layoffs or discharges, which do not typically involve a structured feedback session.

Option Analysis:

Option A: Layoff refers to the termination of employment due to economic reasons, not a formal interview process.
Option B: Employee Turnover is the rate at which employees leave and are replaced, not a specific interview process.
Option C: Exit Interview is the formal process of interviewing an employee who is leaving to gather feedback and suggestions.
Option D: Discharge refers to the termination of an employee, often for cause, and does not involve a structured feedback session.

Mnemonic: E - Exit, I - Interview

779. Situation in which senior employees' salaries are lesser than recruited employees, called

Correct Answer: Correct answer is: (A) Salary compression.

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

Difficulty: Moderate

Concept notes: Salary compression occurs when senior employees earn less than newly recruited employees, often due to market rate increases or internal pay structures.

Common Mistakes: Students may confuse salary compression with other forms of compensation issues, such as bonuses or incentive compression.

Explanations: Salary compression is the term used to describe a situation where senior employees, who have more experience and tenure, are paid less than newly recruited employees. This can happen due to changes in market rates or internal pay structures that do not adequately account for the experience and tenure of senior employees. The term "salary compression" directly addresses this specific scenario, making it the correct answer.

Option Analysis:

Option A: Correct. Salary compression accurately describes the situation where senior employees earn less than newly recruited employees.
Option B: Incorrect. Incentive compression refers to a different issue, typically involving bonuses or other non-salary compensation.
Option C: Incorrect. Aligned reward strategy is a broader concept and does not specifically address the issue of senior employees earning less than new hires.
Option D: Incorrect. Bonuses compression is not a recognized term and does not apply to the scenario described.

780. Which of the following theories of wages was propounded by Karl Marx?

Correct Answer: Correct answer is: (C) Surplus Value Theory.

Exam Relevance: Economics, Political Economy, Labor Studies

Difficulty: Moderate

Concept notes: Karl Marx's theory of wages is based on the concept of surplus value, which is the difference between the value created by labor and the wages paid to workers.

Common Mistakes: Students may confuse the Surplus Value Theory with the Subsistence Theory, which was proposed by classical economists like David Ricardo.

Explanations: Karl Marx's Surplus Value Theory posits that workers are paid less than the value they produce, and the difference is surplus value that is appropriated by capitalists. This theory is central to Marx's critique of capitalism and his analysis of the exploitation of labor.

Option Analysis:

Option A: The Wage Fund Theory suggests that wages are paid out of a fixed fund of capital, which is not Marx's theory.
Option B: The Subsistence Theory, proposed by classical economists, argues that wages tend to be at a subsistence level, which is not Marx's theory.
Option C: The Surplus Value Theory is the correct answer as it is the theory of wages proposed by Karl Marx.
Option D: The Residual Claimant Theory is associated with the distribution of profits in a firm, not with Marx's theory of wages.

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Human Resource Management MCQ - Set 78

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