OA Exams

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Question 01

Which HR strategy involves hiring external organizations to perform tasks traditionally done by the company’s internal workforce?

a) Job rotation

b) Outsourcing

c) Succession planning

d) Talent acquisition

Correct Answer: b) Outsourcing

Explanation: Outsourcing is the practice of hiring external organizations to handle work that was previously performed internally, often to reduce costs or access specialized expertise.

Question 02

What is the primary goal of affirmative action policies in the workplace?

a) To ensure equal pay for all employees

b) To provide flexible working arrangements

c) To overcome the effects of past discrimination against protected groups

d) To reduce employee turnover

Correct Answer: c) To overcome the effects of past discrimination against protected groups

Explanation: Affirmative action policies are designed to address the disadvantages that protected groups have historically faced, promoting fair employment practices.

Question 03

Which HR function involves creating a pool of qualified candidates to fill job vacancies?

a) Recruitment

b) Job analysis

c) Performance appraisal

d) Succession planning

Correct Answer: a) Recruitment

Explanation: Recruitment focuses on attracting a pool of qualified candidates from which the best-fit individual can be selected to fill a job vacancy.

Question 04

What is the main purpose of the Fair Labor Standards Act (FLSA)?

a) To establish workplace safety standards

b) To regulate child labor, minimum wage, and overtime pay

c) To provide equal employment opportunities

d) To define the rights of union workers

Correct Answer: b) To regulate child labor, minimum wage, and overtime pay

Explanation: The FLSA sets standards for minimum wage, overtime pay, and restrictions on child labor, ensuring that employees are compensated fairly for their work.

Question 05

Which type of test evaluates an individual’s intellectual curiosity and motivation in a specific field?

a) Skills test

b) Interest test

c) Personality test

d) Cognitive ability test

Correct Answer: b) Interest test

Explanation: Interest tests measure an individual’s curiosity and motivation within a particular field, helping to assess whether a candidate is likely to enjoy and succeed in a specific job.

Question 06

What is the primary objective of the Employee Assistance Program (EAP)?

a) To provide employees with financial planning services

b) To offer counseling and support services to employees facing personal problems

c) To deliver career development training

d) To enforce workplace safety guidelines

Correct Answer: b) To offer counseling and support services to employees facing personal problems

Explanation: EAPs provide confidential counseling and support to help employees deal with personal issues, such as stress or substance abuse, that may affect their work performance.

Question 07

Which type of HR forecast involves the use of historical data and mathematical models to predict future staffing needs?

a) Qualitative forecasting

b) Judgmental forecasting

c) Quantitative forecasting

d) Delphi technique

Correct Answer: c) Quantitative forecasting

Explanation: Quantitative forecasting uses mathematical models and historical data to project future HR needs, providing a data-driven approach to workforce planning.

Question 08

What does the WARN Act require employers to do in the event of a plant closing or mass layoff?

a) Provide training for displaced workers

b) Offer severance pay to affected employees

c) Give employees 60 days’ advance notice

d) Find alternative employment for laid-off employees

Correct Answer: c) Give employees 60 days' advance notice

Explanation: The WARN Act mandates that employers provide 60 days' notice to employees before a mass layoff or plant closing to allow workers time to prepare and seek new employment.

Question 09

Which law ensures that employees receive continued health insurance coverage after leaving their job?

a) Family and Medical Leave Act (FMLA)

b) Americans with Disabilities Act (ADA)

c) Consolidated Omnibus Budget Reconciliation Act (COBRA)

d) Fair Labor Standards Act (FLSA)

Correct Answer: c) Consolidated Omnibus Budget Reconciliation Act (COBRA)

Explanation: COBRA ensures that employees can continue to receive health insurance coverage for a limited period after leaving their job, though they may need to pay the full premium.

Question 10

What is the primary focus of the Occupational Safety and Health Administration (OSHA)?

a) To enforce labor union regulations

b) To promote equal employment opportunities

c) To ensure safe and healthy working conditions

d) To manage employee compensation

Correct Answer: c) To ensure safe and healthy working conditions

Explanation: OSHA's mission is to ensure safe and healthy working conditions by setting and enforcing standards and providing training, outreach, and education to prevent workplace accidents.

Question 11

What is the purpose of a “skills test” during the employee selection process?

a) To measure an individual’s ability to perform job-specific tasks

b) To assess an individual’s cognitive abilities

c) To gauge an applicant’s personality traits

d) To evaluate the applicant’s career interests

Correct Answer: a) To measure an individual’s ability to perform job-specific tasks

Explanation: Skills tests evaluate whether a candidate can effectively perform the key tasks required for a specific job, such as technical or operational roles.

Question 12

Which compensation plan gives employees the option to purchase company stock at a future date at a predetermined price?

a) Stock options

b) Fixed pay

c) Profit-sharing

d) Piecework pay

Correct Answer: a) Stock options

Explanation: Stock options allow employees to purchase company shares at a predetermined price at a future date, aligning employee interests with the company’s financial success.

Question 13

What is the main focus of the Job Characteristics Model in HR management?

a) Enhancing employee motivation and job satisfaction through job design

b) Simplifying tasks to improve efficiency

c) Increasing workplace diversity

d) Ensuring compliance with labor laws

Correct Answer: a) Enhancing employee motivation and job satisfaction through job design

Explanation: The Job Characteristics Model focuses on designing jobs that enhance employee motivation, satisfaction, and performance by incorporating key characteristics like task variety and autonomy.

Question 14

Which type of employment contract allows either the employer or employee to terminate the relationship at any time, for any reason?

a) Collective bargaining agreement

b) At-will employment

c) Fixed-term contract

d) Implied contract

Correct Answer: b) At-will employment

Explanation: At-will employment allows either party to terminate the employment relationship at any time, for any reason, as long as no laws are violated, such as discrimination protections.

Question 15

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

a) To ensure equal pay for employees of all ages

b) To protect workers over the age of 40 from employment discrimination

c) To enforce workplace safety standards for older employees

d) To regulate retirement plans for employees

Correct Answer: b) To protect workers over the age of 40 from employment discrimination

Explanation: The ADEA prohibits employment discrimination against individuals aged 40 and older, ensuring fair treatment in hiring, promotions, and other employment decisions.

Question 16

What type of compensation is determined based on an employee’s performance, with pay increases linked to specific achievements?

a) Fixed pay

b) Variable pay

c) Direct compensation

d) Indirect compensation

Correct Answer: b) Variable pay

Explanation: Variable pay is linked to employee or organizational performance, with pay increases or bonuses provided based on specific achievements or results.

Question 17

Which method of recruitment is likely to result in hiring individuals who are similar to current employees?

a) External recruitment

b) Job posting

c) Employee referrals

d) Recruitment agencies

Correct Answer: c) Employee referrals

Explanation: Employee referral programs often result in hiring individuals who share characteristics with the employees referring them, as employees are likely to recommend people they know.

Question 18

What does the term “vested” mean in the context of employee retirement benefits?

a) The employee can transfer their retirement funds to another company

b) The employee has earned the right to receive full retirement benefits

c) The employer contributes additional funds to the employee’s retirement account

d) The retirement funds are temporarily inaccessible

Correct Answer: b) The employee has earned the right to receive full retirement benefits

Explanation: When an employee is vested, they have met the necessary requirements to receive the full benefits from their retirement plan, regardless of whether they continue working for the company.

Question 19

What is the primary function of an employee orientation program?

a) To establish performance goals

b) To introduce new employees to the company culture and policies

c) To evaluate employee job performance

d) To negotiate compensation and benefits

Correct Answer: b) To introduce new employees to the company culture and policies

Explanation: Employee orientation programs help new hires acclimate to the organization by introducing them to company policies, culture, and expectations, facilitating a smoother transition.

Question 20

Which of the following is an example of a non-monetary form of indirect compensation?

a) Salary

b) Health insurance

c) Bonuses

d) Stock options

Correct Answer: b) Health insurance

Explanation: Health insurance is a form of non-monetary, indirect compensation provided to employees as part of their benefits package, supplementing their salary or wages.

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