MGT211 – Principles of Management Department of Management Science

Yanbu Industrial College

Module-5: Human Resource Management (HRM)
Important Questions

Multiple Choice Questions (MCQs)

1. Which of the following is the primary goal of Human Resource Management (HRM)?
A. Maximizing employee turnover
B. Increasing costs associated with employee benefits
C. Managing people effectively to achieve organizational goals
D. Reducing employee engagement
Answer: C. Managing people effectively to achieve organizational goals

2. What does the HRM process involve when ensuring employees have the necessary skills and
knowledge?
A. Downsizing
B. Employee orientation
C. Strategic planning
D. Recruitment
Answer: B. Employee orientation

3. In the HR planning process, what is the term used to describe the alignment of employee supply
with demand?
A. Employment forecasting
B. Job analysis
C. Workforce balancing
D. Strategic assessment
Answer: C. Workforce balancing

4. Which recruitment source is most effective for filling temporary positions?

A. Public employment agencies
B. Employee referrals
C. Temporary help services
D. Internal searches
Answer: C. Temporary help services

5. What does a job specification describe?

A. The duties and responsibilities of a job
B. The working conditions of a job
C. The qualifications and skills required of a person for a job
D. The salary and benefits associated with a job
Answer: C. The qualifications and skills required of a person for a job

6. Which of the following selection devices is based on actual job behaviors?

A. Written tests
B. Interviews
C. Performance-simulation tests
D. Application forms
Answer: C. Performance-simulation tests

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MGT211 – Principles of Management Department of Management Science
Yanbu Industrial College
Module-5: Human Resource Management (HRM)
Important Questions

7. What type of interview is focused on observing how a candidate behaves under stress?
A. Structured interview
B. Panel interview
C. Behavioral interview
D. Informal interview
Answer: C. Behavioral interview

8. Which training method involves transferring employees to work in different jobs within the
organization?
A. Apprenticeship
B. Job rotation
C. Classroom lectures
D. Simulation exercises
Answer: B. Job rotation

9. What is the main objective of employee orientation?

A. To train employees in new skills
B. To assess employee performance
C. To introduce new employees to the job and organization
D. To determine employee compensation
Answer: C. To introduce new employees to the job and organization

10. Which appraisal technique involves ranking employees into different groups such as “top fifth”
or “bottom fifth”?
A. Graphic rating scales
B. 360° appraisal
C. Group-order ranking
D. Individual ranking approach
Answer: C. Group-order ranking

11. Which of the following is a nonfinancial reward designed to enrich employees' lives?
A. Salary increment
B. Performance bonus
C. Health insurance
D. Overtime pay
Answer: C. Health insurance

12. Which factor is not typically considered when determining compensation levels?
A. Job complexity
B. Employee’s job location
C. Employee’s family background
D. Business environment
Answer: C. Employee’s family background

13. What is the purpose of a Human Resource Inventory?

A. To list current job vacancies
B. To assess available talents and skills in the organization
C. To document the company’s financial status
D. To create job descriptions and specifications
Answer: B. To assess available talents and skills in the organization

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MGT211 – Principles of Management Department of Management Science
Yanbu Industrial College
Module-5: Human Resource Management (HRM)
Important Questions

14. What is the outcome of a job analysis?

A. Employee performance review
B. Job rotation
C. Job description and job specification
D. Employee training schedule
Answer: C. Job description and job specification

15. What is a 360° appraisal?

A. A ranking system that lists employees from highest to lowest performance
B. An appraisal device that seeks feedback from multiple sources
C. A method for calculating employee salary
D. A compensation package that includes benefits and bonuses
Answer: B. An appraisal device that seeks feedback from multiple sources

16. Which training method is best for providing technical skills that are not easily conveyed through
other means?
A. Job rotation
B. Simulation exercises
C. Classroom lectures
D. Films and videos
Answer: D. Films and videos

17. What is the purpose of performance management systems?

A. To determine the legal structure of an organization
B. To evaluate and enhance employee performance
C. To assign job duties
D. To recruit new employees
Answer: B. To evaluate and enhance employee performance

18. Which is a contemporary issue in managing human resources?

A. Providing more vacation time
B. Managing downsizing and layoffs
C. Reducing office space
D. Increasing workplace diversity
Answer: B. Managing downsizing and layoffs

19. What is the main reason organizations offer employee benefits?

A. To reduce salary costs
B. To attract and retain competent employees
C. To comply with legal regulations
D. To increase employee turnover
Answer: B. To attract and retain competent employees

20. Which strategy is best for communicating layoffs effectively?

A. Announce layoffs without prior notice
B. Use anonymous emails
C. Communicate openly and honestly
D. Avoid discussing layoffs
Answer: C. Communicate openly and honestly

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MGT211 – Principles of Management Department of Management Science
Yanbu Industrial College
Module-5: Human Resource Management (HRM)
Important Questions

21. What is the primary function of job rotation as a training method?

A. To reduce employee workload
B. To provide exposure to various tasks
C. To train employees in simulation environments
D. To prepare employees for layoffs
Answer: B. To provide exposure to various tasks

22. Which recruitment source is most cost-effective for the organization?

A. Private employment agencies
B. Temporary help services
C. Internal searches
D. School placement
Answer: C. Internal searches

23. What is one advantage of employee referrals as a recruitment source?

A. High cost
B. Limited employee diversity
C. Familiarity with the organization
D. Limited supply of candidates
Answer: C. Familiarity with the organization

24. Which of the following is a disadvantage of using advertisements for recruitment?

A. Limited distribution
B. High cost of advertisement
C. High number of unqualified candidates
D. Limited applicant knowledge about the organization
Answer: C. High number of unqualified candidates

25. What is a key advantage of using performance-simulation tests in the selection process?
A. High reliability of intelligence measurement
B. Use of standardized written tests
C. Assessment of actual job behaviors
D. Limited applicability to different jobs
Answer: C. Assessment of actual job behaviors

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MGT211 – Principles of Management Department of Management Science
Yanbu Industrial College
Module-5: Human Resource Management (HRM)
Important Questions

Fill in the Blanks

1. Human Resource Management (HRM) is the process of getting, training, motivating, and retaining
________ employees.
Answer: competent

2. A Human Resource Inventory includes information such as name, education, training, and ________
about each employee in the organization.
Answer: prior employer

3. The process of Strategic Human Resource Planning ensures the organization has the right number and
kinds of people in the right places at the right ________.
Answer: time

4. A Job Description outlines the tasks, duties, and ________ required of a job.
Answer: responsibilities

5. Performance Management Systems are used to establish ________ standards that help evaluate
employee performance.
Answer: performance

6. In recruitment, internal searches are advantageous because they are ________ cost and build employee
morale.
Answer: low

7. Employee Orientation aims to reduce the initial ________ that new employees feel when starting a new
job.
Answer: anxiety

8. Job Analysis results in creating two key documents: job description and job ________.
Answer: specification

9. 360° Appraisal gathers feedback from a variety of sources, including bosses, peers, and ________.
Answer: customers

10. Health insurance and retirement programs are examples of ________ benefits offered by organizations.
Answer: employee

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MGT211 – Principles of Management Department of Management Science
Yanbu Industrial College
Module-5: Human Resource Management (HRM)
Important Questions

True/False Questions

S.N. Statement Question Answer

Recruitment is the process of screening job applicants False (Recruitment is about locating
1 to ensure that the most appropriate candidates are True or False and attracting capable applicants;
hired. selection is about screening them.)

A job specification describes the qualifications, skills,

2 True or False True
and abilities required for a job.

Job rotation involves moving employees between

3 True or False True
different roles to provide exposure to various tasks.

Written tests are effective for evaluating a candidate's False (Performance-simulation tests
4 True or False
performance in real job situations. are used for this purpose.)

False (Employee benefits are

Employee benefits are designed to provide financial
5 True or False nonfinancial rewards to enrich
rewards to employees for high performance.
employees' lives.)

In a behavioral interview, candidates are asked to

6 discuss their past experiences to predict future True or False True
behavior.

False (It indicates that the supply of

A surplus of workers indicates that the demand for
7 True or False employees is greater than the
employees is greater than the supply.
demand.)
False (It seeks feedback from multiple
360° appraisal seeks feedback from only the employee's
8 True or False sources, including peers and
direct supervisor.
subordinates.)

Health care costs have been rising by an average of

9 True or False True
15% per year since 2002.

Temporary help services are the best recruitment False (They are suitable for filling
10 True or False
source for filling permanent positions. temporary needs.)

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MGT211 – Principles of Management Department of Management Science
Yanbu Industrial College
Module-5: Human Resource Management (HRM)
Important Questions

Short Questions and Answers

1. What is the primary purpose of Human Resource Management (HRM)?

Answer: The primary purpose of HRM is to manage people effectively to achieve organizational goals by
acquiring, training, motivating, and retaining competent employees.

2. What does a Human Resource Inventory include?

Answer: It includes information about employees such as their names, education, training, prior employers,
and languages spoken.

3. Why is job analysis important in HRM?

Answer: Job analysis is important because it helps define the skills, knowledge, and abilities needed to
perform each job, resulting in accurate job descriptions and specifications.

4. What is the role of performance management systems?

Answer: Performance management systems are used to establish performance standards and evaluate
employee performance, supporting HR decisions and personnel actions.

5. What is a 360° appraisal?

Answer: A 360° appraisal is a performance evaluation method that gathers feedback from multiple sources,
including supervisors, peers, team members, and customers.

6. What are the main objectives of employee orientation?

Answer: The main objectives are to reduce initial anxiety, familiarize new employees with the job and
organization, and facilitate the transition from outsider to insider.

7. What is the difference between job description and job specification?

Answer: A job description outlines the duties and responsibilities of a job, while a job specification describes
the qualifications, skills, and abilities required for a person to perform the job successfully.

8. Why do organizations use employee referrals for recruitment?

Answer: Employee referrals are used because they often result in strong candidates who are familiar with
the organization, reflecting positively on the recommender.

9. What is the purpose of compensation administration in HRM?

Answer: The purpose is to determine a cost-effective pay structure that attracts and retains competent
employees, incentivizes hard work, and ensures fairness.

10. How can organizations manage downsizing effectively?

Answer: Organizations can manage downsizing effectively by communicating openly, providing support to
affected employees, reassigning roles based on individual talents, and boosting morale.

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MGT211 – Principles of Management Department of Management Science
Yanbu Industrial College
Module-5: Human Resource Management (HRM)
Important Questions

List Questions and Answers

1. List the key components of the HRM process.

• Identification and selection of competent employees

• Adaptation and development of employee skills
• Retention of high-performing employees

2. List three main sources of recruitment.

• Internal searches
• Employee referrals
• Private employment agencies

3. List four types of employee benefits commonly offered by organizations.

• Health insurance
• Retirement programs
• Paid time off
• Life and disability insurance

4. List three types of performance appraisal techniques.

• Graphic rating scales

• 360° appraisal
• Group-order ranking

5. List three training methods used for employee development.

• Job rotation
• Apprenticeship
• Simulation exercises

6. List two strategies for managing downsizing effectively.

• Communicate openly and honestly with employees

• Provide support and counseling for surviving employees

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