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Question 01

 What HR practice involves forecasting an organization’s future human resource needs and developing strategies to meet those needs?

a) Recruitment

b) Job analysis

c) Human resource planning (HRP)

d) Performance management

Correct Answer: c) Human resource planning (HRP)

Explanation: HRP involves predicting future HR needs based on the organization's goals and planning for recruitment, training, and development to meet those needs.

Question 02

What is the purpose of a SWOT analysis in HR?

a) To evaluate employee performance

b) To identify the organization’s strengths, weaknesses, opportunities, and threats

c) To manage compensation and benefits programs

d) To conduct training and development

Correct Answer: b) To identify the organization's strengths, weaknesses, opportunities, and threats

Explanation: A SWOT analysis helps HR professionals assess internal strengths and weaknesses, as well as external opportunities and threats, to guide strategic planning.

Question 03

What is a key characteristic of a learning organization?

a) Hierarchical decision-making

b) Rewarding individual learning and development

c) Emphasizing short-term goals

d) Limiting innovation and creativity

Correct Answer: b) Rewarding individual learning and development

Explanation: A learning organization fosters a culture where learning is a continuous process and rewards both individual and group learning, promoting innovation and growth.

Question 04

Which compensation method links employee pay to organizational performance through bonuses or profit-sharing?

a) Fixed compensation

b) Incentive pay

c) Direct compensation

d) Non-monetary rewards

Correct Answer: b) Incentive pay

Explanation: Incentive pay, such as profit-sharing or bonuses, is linked to organizational performance and is used to motivate employees to achieve specific results.

Question 05

What is the role of HR professionals in managing diversity within an organization?

a) To focus on compliance with safety regulations

b) To ensure a homogenous workforce

c) To promote recognition and respect for individual differences

d) To reduce the number of protected groups within the workforce

Correct Answer: c) To promote recognition and respect for individual differences

Explanation: Diversity management focuses on recognizing and respecting individual differences in the workforce, ensuring inclusivity and equal opportunities.

Question 06

What is the purpose of performance appraisals?

a) To assign work tasks to employees

b) To evaluate employee performance and provide feedback

c) To calculate compensation increases

d) To track employee attendance

Correct Answer: b) To evaluate employee performance and provide feedback

Explanation: Performance appraisals are used to assess employees' job performance, provide feedback, and guide decisions related to promotions, raises, and development.

Question 07

Which HR objective focuses on ensuring compliance with labor laws and regulations?

a) Improving employee engagement

b) Ensuring legal compliance

c) Increasing productivity

d) Enhancing employee satisfaction

Correct Answer: b) Ensuring legal compliance

Explanation: HR ensures that the organization complies with labor laws, regulations, and policies to avoid legal issues and maintain a fair workplace.

Question 08

Which HR practice is essential for creating a safe and healthy work environment?

a) Job design

b) Employee assistance programs

c) Health and safety management

d) Compensation planning

Correct Answer: c) Health and safety management

Explanation: Health and safety management ensures that the workplace is free from hazards and promotes the physical well-being of employees.

Question 09

What type of compensation includes benefits such as health insurance, retirement plans, and employee services?

a) Direct compensation

b) Variable pay

c) Indirect compensation

d) Piecework pay

Correct Answer: c) Indirect compensation

Explanation: Indirect compensation refers to non-monetary rewards, such as health benefits, retirement plans, and other services provided by the organization to its employees.

Question 10

Which performance appraisal method involves managers keeping written records of an employee’s positive and negative behaviors throughout the year?

a) Paired comparison

b) Critical incidents method

c) Straight ranking

d) Forced distribution

Correct Answer: b) Critical incidents method

Explanation: The critical incidents method involves documenting specific examples of employee behavior (both good and bad) over time, which can be used in performance evaluations.

Question 11

What is the primary objective of strategic human resource planning?

a) To reduce turnover

b) To improve employee morale

c) To align HR activities with organizational goals

d) To ensure compliance with workplace safety regulations

Correct Answer: c) To align HR activities with organizational goals

Explanation: Strategic HR planning ensures that all HR activities, such as recruitment and training, support the broader objectives of the organization

Question 12

Which HR practice is used to determine the relative worth of jobs within an organization for compensation purposes?

a) Job evaluation

b) Job design

c) Performance management

d) Workforce planning

Correct Answer: a) Job evaluation

Explanation: Job evaluation systematically assesses the relative value of jobs within an organization, helping to establish fair compensation practices.

Question 13

Which of the following is a characteristic of variable compensation?

a) It is guaranteed regardless of performance

b) It is based on individual or group performance

c) It is only provided to senior executives

d) It remains constant throughout an employee’s tenure

Correct Answer: b) It is based on individual or group performance

Explanation: Variable compensation, such as bonuses or commissions, fluctuates based on the performance of the individual or the organization, unlike fixed pay.

Question 14

Which term refers to employees’ perception of fairness regarding their pay compared to others in similar roles?

a) Equity

b) Compensation

c) Motivation

d) Reward

Correct Answer: a) Equity

Explanation: Equity theory suggests that employees compare their compensation to others in similar roles and assess whether it is fair, which can impact motivation and job satisfaction.

Question 15

Which of the following is an example of direct compensation?

a) Health insurance

b) Retirement plans

c) Hourly wages

d) Employee assistance programs

Correct Answer: c) Hourly wages

Explanation: Direct compensation includes wages, salaries, and bonuses that are directly linked to an employee's performance, unlike indirect compensation, which includes benefits.

Question 16

Which performance appraisal method assigns employees to categories such as “outstanding,” “satisfactory,” and “needs improvement”?

a) Straight ranking

b) Forced distribution

c) Paired comparison

d) Critical incidents method

Correct Answer: b) Forced distribution

Explanation: The forced distribution method categorizes employees into predefined performance levels, ensuring that not all employees are rated the same.

Question 17

Which ethical theory evaluates the morality of an action based on its adherence to rules rather than its consequences?

a) Virtue ethics

b) Consequentialism

c) Deontological ethics

d) Ethical relativism

Correct Answer: c) Deontological ethics

Explanation: Deontological ethics focuses on the inherent morality of actions based on rules or principles, rather than the consequences of those actions.

Question 18

What is the purpose of the Age Discrimination in Employment Act (ADEA)?

a) To prohibit discrimination against employees based on race or color

b) To protect employees age 40 and older from discrimination based on age

c) To ensure equal pay for men and women

d) To provide accommodations for employees with disabilities

Correct Answer: b) To protect employees age 40 and older from discrimination based on age

Explanation: The ADEA protects employees who are 40 years old and above from being discriminated against in hiring, promotions, and other employment decisions.

Question 19

 Which HR process involves evaluating the future needs of the organization and identifying the skills and employees required to meet those needs?

a) Job evaluation

b) Succession planning

c) Job analysis

d) Workforce scheduling

Correct Answer: b) Succession planning

Explanation: Succession planning focuses on identifying key roles within the organization and preparing employees to fill those positions in the future, ensuring continuity.

Question 20

 Which law mandates that employers provide up to 12 weeks of unpaid leave for qualifying family and medical reasons?

a) Americans with Disabilities Act (ADA)

b) Family and Medical Leave Act (FMLA)

c) Civil Rights Act of 1964

d) Equal Pay Act

Correct Answer: b) Family and Medical Leave Act (FMLA)

Explanation: The FMLA provides eligible employees with up to 12 weeks of unpaid leave for family or medical reasons, such as childbirth or serious illness.

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