Multiple-Choice Questions (MCQs)

Chapter 1: Introduction to Human Resource Management

1. What is Human Resource Management (HRM)?

a) Managing financial resources
b) Managing people in organizations
c) Managing customer relations
d) Managing physical assets
**Answer**: b

2. Which of the following is NOT a function of HRM?

a) Recruiting employees
b) Planning labor needs
c) Monitoring financial transactions
d) Appraising employee performance
**Answer**: c

3. The process of establishing goals and developing plans is

called:
a) Leading
b) Organizing
c) Planning
d) Controlling
**Answer**: c

4. Who typically holds line authority in an organization?

a) HR managers
b) Staff managers
c) Functional managers
d) Line managers
**Answer**: d

5. Which trend is shaping the future of HRM?

a) Globalization
b) Declining population
c) Lower competition
d) Decreasing use of technology
**Answer**: a
6. What term refers to the right to make decisions and give orders
to others?
a) Functional authority
b) Line authority
c) Staff authority
d) Managerial authority
**Answer**: b

7. Which of the following HR activities involves compensating

employees?
a) Job analysis
b) Training
c) Staffing
d) Wage and salary administration
**Answer**: d

8. Which HR trend involves using data-driven approaches to make

HR decisions?
a) Globalization
b) Evidence-based HRM
c) Ethical HRM
d) Outsourcing
**Answer**: b

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Chapter 2: Job Analysis

9. What is the primary purpose of job analysis?

a) To increase employee turnover
b) To identify the duties and responsibilities of a job
c) To control company costs
d) To set financial goals
**Answer**: b

10. Which of the following methods is NOT commonly used for job
analysis?
a) Interviews
b) Observation
c) Experiments
d) Questionnaires
**Answer**: c
11. Which term refers to a summary of the personal traits and
qualifications needed for a job?
a) Job analysis
b) Job description
c) Job specification
d) Job context
**Answer**: c

12. A job description usually includes all of the following EXCEPT:

a) Job title
b) Performance standards
c) Personal hobbies
d) Working conditions
**Answer**: c

13. What is competency-based job analysis focused on?

a) Identifying personality traits
b) Measuring skills that predict performance
c) Comparing job satisfaction levels
d) Evaluating employee benefits
**Answer**: b

14. Which method involves employees recording their activities in

a log or diary?
a) Observation
b) Interviews
c) Diaries/logs
d) Questionnaires
**Answer**: c

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Chapter 3: Personnel Planning and Recruitment

15. What is the first step in the recruitment and selection process?
a) Conducting interviews
b) Deciding what positions to fill
c) Administering tests
d) Posting job advertisements
**Answer**: b
16. Which forecasting method uses past trends to predict future
personnel needs?
a) Ratio analysis
b) Trend analysis
c) Scatter plot
d) Managerial judgment
**Answer**: b

17. Which of the following is an internal source of candidates?

a) Job postings
b) Employment agencies
c) Job fairs
d) Internet recruiting
**Answer**: a

18. Which technique involves matching employee qualifications

with future job openings?
a) Job posting
b) Personnel replacement chart
c) External recruiting
d) Scatter plot
**Answer**: b

19. The Recruiting Yield Pyramid helps recruiters to:

a) Forecast company profit margins
b) Manage relationships with job agencies
c) Understand ratios between leads and successful hires
d) Evaluate employee job satisfaction
**Answer**: c

20. What is the main disadvantage of online recruiting?

a) It is expensive
b) It reaches too few candidates
c) It may generate too many résumés
d) It excludes young applicants
**Answer**: c

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Chapter 4: Employee Testing and Selection

21. Which of the following refers to the consistency of test results

over time?
a) Validity
b) Reliability
c) Predictive accuracy
d) Construct validity
**Answer**: b

22. What is criterion validity?

a) A measure of how well a test predicts job performance
b) A method to assess test scores
c) A test for evaluating mental abilities
d) A type of skill test
**Answer**: a

23. Which of the following is a method used to validate a test?

a) Job analysis
b) Concurrent validation
c) Compensation analysis
d) Ethics check
**Answer**: b

24. Which type of test measures mental abilities such as reasoning

and memory?
a) Cognitive ability test
b) Personality test
c) Physical ability test
d) Work sample test
**Answer**: a

25. Which personality model includes openness,

conscientiousness, extraversion, agreeableness, and neuroticism?
a) Myers-Briggs Type Indicator
b) Big Five personality dimensions
c) Achievement test
d) Intelligence test
**Answer**: b
26. Which of the following best describes work samples?
a) Tests of general intellectual abilities
b) Tasks that simulate actual job activities
c) Questionnaires on employee preferences
d) Personality evaluations
**Answer**: b

27. What is an assessment center?

a) A place where employees receive training
b) A facility for conducting job interviews
c) A method where candidates perform real-life tasks
d) A software platform for online tests
**Answer**: c

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Here’s the completion of the Multiple-Choice Questions (MCQs)
set, followed by the broad/short questions as requested.

Multiple-Choice Questions (MCQs) (Continued)

Chapter 1: Introduction to Human Resource Management

(Continued)

28. Which of the following is a key responsibility of HR managers?

a) Setting production quotas
b) Developing corporate strategy
c) Conducting job analyses
d) Designing advertising campaigns
**Answer**: c

29. What is the significance of evidence-based HRM?

a) It relies on intuition rather than data
b) It uses data to improve HR practices
c) It eliminates the need for HR policies
d) It focuses only on financial metrics
**Answer**: b

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Chapter 2: Job Analysis (Continued)

30. Which of the following is NOT a benefit of conducting job

analysis?
a) Improved employee morale
b) Increased employee turnover
c) Better performance appraisal
d) Enhanced training programs
**Answer**: b

31. The job specification outlines which of the following?

a) Job responsibilities
b) Job duties
c) Required qualifications
d) Job context
**Answer**: c

32. What is a competency-based job analysis focused on?

a) Job titles
b) Observable and measurable behaviors
c) Employee salary
d) Job descriptions only
**Answer**: b

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Chapter 3: Personnel Planning and Recruitment (Continued)

33. What is a common method for forecasting personnel needs?

a) Employee interviews
b) Ratio analysis
c) Employee satisfaction surveys
d) Job descriptions
**Answer**: b

34. What is the primary advantage of hiring from internal sources?

a) Fresh perspectives
b) Knowledge of company culture
c) Reduced recruitment costs
d) Increased diversity
**Answer**: b
35. Which of the following methods is used to find external
candidates?
a) Job postings
b) Employee referrals
c) Online job boards
d) Promotions
**Answer**: c

36. Which term describes temporary workers who are not bound
by employment contracts?
a) Permanent employees
b) Contingent workers
c) Full-time employees
d) Freelancers
**Answer**: b

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Chapter 4: Employee Testing and Selection (Continued)

37. What is the purpose of conducting background checks during

recruitment?
a) To validate academic qualifications only
b) To assess cultural fit
c) To verify factual information provided by applicants
d) To test physical abilities
**Answer**: c

38. What type of test measures an individual’s general

intelligence?
a) Aptitude test
b) Personality test
c) Cognitive ability test
d) Work sample test
**Answer**: c

39. What are the Big Five personality dimensions collectively

referred to as?
a) OCEAN
b) MBTI
c) HEXACO
d) DISC
**Answer**: a
40. What is a key ethical consideration in employee testing?
a) Ensuring tests are expensive
b) Maintaining test security and confidentiality
c) Using tests for all job positions
d) Requiring all candidates to take the same test
**Answer**: b

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Broad/Short Questions

Chapter 1: Introduction to Human Resource Management

1. Define Human Resource Management (HRM) and explain its

significance in organizations.
Answer: HRM is the process of acquiring, training, appraising,
and compensating employees while addressing labor relations and
ensuring fairness. It is significant because it enhances
organizational effectiveness by optimizing employee performance
and engagement.

2. What are the primary functions of management as they

relate to HRM?
Answer: The primary functions include planning, organizing,
staffing, leading, and controlling. Each function is crucial for
effectively managing human resources to achieve organizational
goals.

Chapter 2: Job Analysis

3. Discuss the importance of job analysis in the recruitment

and selection process.
Answer: Job analysis is essential as it provides detailed
information about job duties, responsibilities, and the qualifications
required, ensuring that the right candidates are selected and
aligned with organizational needs.

4. What methods can be used to collect job analysis

information? Provide examples.
Answer: Methods include interviews (gathering insights from
current employees), questionnaires (collecting data from a larger
pool), observation (noting job tasks firsthand), and participant
diaries (tracking daily activities).

Chapter 3: Personnel Planning and Recruitment

5. Explain the recruitment and selection process and its

significance in HRM.
Answer: The recruitment and selection process involves
identifying job vacancies, attracting candidates, screening
applications, and selecting the best fit for the job. Its significance
lies in ensuring that organizations hire qualified individuals, which
impacts overall performance and productivity.

6. What are the main internal and external sources for

recruiting candidates?
Answer: Internal sources include job postings and promotions
within the organization. External sources involve recruitment
through job boards, employment agencies, social media, and
college recruitment.

Chapter 4: Employee Testing and Selection

7. What is the difference between reliability and validity in the

context of employee testing?
Answer: Reliability refers to the consistency of test results over
time, while validity measures whether a test accurately assesses
what it is intended to measure, predicting job performance
effectively.

8. List and describe at least three types of tests used for

employee selection.
Answer:
- Cognitive Ability Tests: Measure general intelligence and
problem-solving skills.
- Personality Tests: Assess traits and behaviors relevant to job
performance.
- Work Sample Tests: Involve completing actual tasks related to
the job to evaluate skills.