STUDY NOTES MODULE 1 EPHRM-07

1) Which among these are not external factors impacting the HRMS
a) Economic
b) Industry/Product Market
c) Labor Market
d) Technology
Ans: Technology
2) Who among these is not a stake holder
a) Competitors
b) Customers
c) Employees
d) Shareholders
Ans: Competitors
3) Which of these are part of the environmental trends
a) Product Markets
b) Resource Mobilization
c) Changing Customer, Shareholders, & Employee Expectations
d) All of the above
Ans: All of the above
4) Which among these is not people related
a) Age
b) Productivity
c) Personality
d) Values
Ans: Productivity
5) What are the five stages of HR system
a) Objective
b) Input
c) Process
d) Output
e) Feedback
6) What are the Internal factors that impact / effect the HR system
a) Type of Ownership / Leadership
b) Culture of Organisation
c) Organisation Structure
d) Technology
e) Organisation Life cycle / stage
f) Strategy

STUDY NOTES MODULE 1 EPHRM-07

7) What are the external factors that impact the HR system
a) Political
b) Economical
c) Social Societal Values
d) Technological
e) Legal
f) Industry (competitors/Products and Services)
g) Labour market
h) Institutional Framework
8) What are the purpose of establishing OPTUS
a) Govt wanted to deregulate
b) Move from Monopoly to dupoly
c) Lower the price
d) Provide superior customer service
9) What are the factors that influenced the recruitment process in Optus
a) Superior Customer service
b) Empowering the employees
c) Operational flexibility
d) Non Union HR
10) What are the benefits of Attrition (Healthy attrition)?
a) Fresh blood
b) Fresh Ideas
c) Poor Performers are removed
d) Helps in sustaining flat structure
11) What are the set of obligations from Organisation to employee in a Psychological contract?
a) Security
b) Stability
c) Growth
d) Compensation
e) Opportunity to learn
12) What are the 2 important fitment that organisations look during recruitment / Hiring an employee
a) PTJ Person to Job Fit
b) PTO Person to Organisation Fit
13) What are the 2 approaches in choosing the HR system for an organization
a) BFA Best Fit Approach Analyse to fit the best practice for the organization as each organization
is different from the other
b) BPA Best Practice Approach ( Best manpower, Best training, Best process) Bench mark with best
practices. Best Practice may not always be successful.

STUDY NOTES MODULE 1 EPHRM-07

14) What is the difference between Recruitment and Selection
a) Recruitment Attracting talent Includes all stages including selection
b) Selection Process of interviewing and hiring the candidate
15) What are the various stages of Recruitment
a) Identifying the requirement
b) Attracting talent
c) Selection of the candidate (Interview and offer)
d) Verification
e) Onboarding
16) What is replacement cost
a) Replacement cost = Separation cost + Attraction / Selection Cost + Onboarding / Initial training
cost + Bench Cost
17) What actions is suggested when Demand > Supply
a) Retain
b) Train
c) Hire in advance
d) Provide hiring compensation
18) What is Cohort Analysis
a) A cohort is a group of people who share a common characteristic over a certain period of time.
b) Cohort analysis is a study that focuses on the activities of a particular cohort. If we were to
calculate the average income of students over the course of a five year period following their
graduation, we would be conducting a cohort analysis.
c) Cohort analysis allows us to identify relationships between the characteristics of a population and
that population's behavior. Looking at the average income over the five years after graduation in
comparison to the income of the 2010 and 2011 graduating students over the same relative
interval allows for a unique apples-to-apples comparison of these groups. In this case, there
appears to be a relationship between a student's year of graduation and their income.
d) Cohort Analysis for Business
Imagine that instead of graduating students, we were studying our customers. We could group
them by how they were originally referred to your business and track how much money they
spent over time.
19) What is the difference between training and development
a) Training Short term intervention, addresses current requirements, focuses on job requirement,
skill development to perform a job
b) Development long term intervention, focuses on future orientation of the business /
organization, addresses career growth for an individual, it is more individual focused than skill
focused.
20) How do you evaluate the effectiveness of training

STUDY NOTES MODULE 1 EPHRM-07

a)
b)
c)
d)

Immediate feedback
Test to measure learning
Transfer of learning on job execution
Monetary value

21) What is reliability and validity?

a) Reliability is the degree to which an assessment tool produces stable and consistent results.
i) Types of Reliability
(1) Test-retest reliability is a measure of reliability obtained by administering the same test
twice over a period of time to a group of individuals. The scores from Time 1 and Time 2
can then be correlated in order to evaluate the test for stability over time.
Example: A test designed to assess student learning in psychology could be given to a
group of students twice, with the second administration perhaps coming a week after the
first. The obtained correlation coefficient would indicate the stability of the scores.
(2) Parallel forms reliability is a measure of reliability obtained by administering different
versions of an assessment tool (both versions must contain items that probe the same
construct, skill, knowledge base, etc.) to the same group of individuals. The scores from
the two versions can then be correlated in order to evaluate the consistency of results
across alternate versions.
Example: If you wanted to evaluate the reliability of a critical thinking assessment, you
might create a large set of items that all pertain to critical thinking and then randomly
split the questions up into two sets, which would represent the parallel forms.
(3) Inter-rater reliability is a measure of reliability used to assess the degree to which
different judges or raters agree in their assessment decisions. Inter-rater reliability is
useful because human observers will not necessarily interpret answers the same way;
raters may disagree as to how well certain responses or material demonstrate knowledge
of the construct or skill being assessed.
Example: Inter-rater reliability might be employed when different judges are evaluating
the degree to which art portfolios meet certain standards. Inter-rater reliability is
especially useful when judgments can be considered relatively subjective. Thus, the use
of this type of reliability would probably be more likely when evaluating artwork as
opposed to math problems.
(4) Internal consistency reliability is a measure of reliability used to evaluate the degree to
which different test items that probe the same construct produce similar results.
(5) Average inter-item correlation is a subtype of internal consistency reliability. It is
obtained by taking all of the items on a test that probe the same construct (e.g., reading
comprehension), determining the correlation coefficient for each pair of items, and finally
taking the average of all of these correlation coefficients. This final step yields the average
inter-item correlation.

STUDY NOTES MODULE 1 EPHRM-07

(6) Split-half reliability is another subtype of internal consistency reliability. The process of
obtaining split-half reliability is begun by splitting in half all items of a test that are
intended to probe the same area of knowledge (e.g., World War II) in order to form two
sets of items. The entire test is administered to a group of individuals, the total score
for each set is computed, and finally the split-half reliability is obtained by determining
the correlation between the two total set scores.
b) Validity refers to how well a test measures what it is purported to measure.
i) Types of Validity
1. Face Validity ascertains that the measure appears to be assessing the intended construct
under study. The stakeholders can easily assess face validity. Although this is not a very
scientific type of validity, it may be an essential component in enlisting motivation of
stakeholders. If the stakeholders do not believe the measure is an accurate assessment of the
ability, they may become disengaged with the task.
Example: If a measure of art appreciation is created all of the items should be related to the
different components and types of art. If the questions are regarding historical time periods,
with no reference to any artistic movement, stakeholders may not be motivated to give their
best effort or invest in this measure because they do not believe it is a true assessment of art
appreciation.
2. Construct Validity is used to ensure that the measure is actually measure what it is intended
to measure (i.e. the construct), and not other variables. Using a panel of experts familiar
with the construct is a way in which this type of validity can be assessed. The experts can
examine the items and decide what that specific item is intended to measure. Students can
be involved in this process to obtain their feedback.
Example: A womens studies program may design a cumulative assessment of learning
throughout the major. The questions are written with complicated wording and phrasing.
This can cause the test inadvertently becoming a test of reading comprehension, rather than
a test of womens studies. It is important that the measure is actually assessing the intended
construct, rather than an extraneous factor.
3. Criterion-Related Validity is used to predict future or current performance - it correlates
test results with another criterion of interest.
Example: If a physics program designed a measure to assess cumulative student learning
throughout the major. The new measure could be correlated with a standardized measure of
ability in this discipline, such as an ETS field test or the GRE subject test. The higher the
correlation between the established measure and new measure, the more faith stakeholders
can have in the new assessment tool.
4. Formative Validity when applied to outcomes assessment it is used to assess how well a
measure is able to provide information to help improve the program under study.
Example: When designing a rubric for history one could assess students knowledge across
the discipline. If the measure can provide information that students are lacking knowledge in

STUDY NOTES MODULE 1 EPHRM-07

a certain area, for instance the Civil Rights Movement, then that assessment tool is providing
meaningful information that can be used to improve the course or program requirements.
5. Sampling Validity (similar to content validity) ensures that the measure covers the broad
range of areas within the concept under study. Not everything can be covered, so items need
to be sampled from all of the domains. This may need to be completed using a panel of
experts to ensure that the content area is adequately sampled. Additionally, a panel can
help limit expert bias (i.e. a test reflecting what an individual personally feels are the most
important or relevant areas).
Example: When designing an assessment of learning in the theatre department, it would not
be sufficient to only cover issues related to acting. Other areas of theatre such as lighting,
sound, functions of stage managers should all be included. The assessment should reflect the
content area in its entirety.
c) While reliability is necessary, it alone is not sufficient. For a test to be reliable, it also needs to be
valid. For example, if your scale is off by 5 lbs, it reads your weight every day with an excess of
5lbs. The scale is reliable because it consistently reports the same weight every day, but it is not
valid because it adds 5lbs to your true weight. It is not a valid measure of your weight.
22) What are some ways to improve validity?
a) Make sure your goals and objectives are clearly defined and operationalized.
b) Match your assessment measure to your goals and objectives. Additionally, have the test
reviewed by experts.
c) Get people involved; have them look over the assessment for troublesome wording, or other
difficulties.
d) If possible, compare your measure with other measures, or data that may be available.
23) What is the purpose of Performance Management System?
a) Purpose of Performance Assessment
i) Two-way dialogue regarding work performance
ii) Motivation
iii) Clarify job duties
iv) Work improvement
v) Opportunities for growth within the job
vi) Problem prevention/correction
vii) Professional development and training
viii) Cross training
ix) Scheduling
x) Reassignment
xi) Legal implications
xii) Pay increase
xiii) Termination

STUDY NOTES MODULE 1 EPHRM-07

24) What are the negative factors of group evaluation (Group PMS)
a) Individual contribution is difficult to / cannot be measured
b) Creates dysfunctional competition
c) Free riding is possible
d) Information Asymmetry
e) Possibility of Max reward for min effort
25) What is information Asymmetry
a) In contract theory and economics, information asymmetry deals with the study of decisions in
transactions where one party has more or better information than the other. This creates an
imbalance of power in transactions, which can sometimes cause the transactions to go awry, a
kind of market failure in the worst case.
26) What is demand forecasting in Recruitment
Human Resource Demand Forecasting depends on several factors, some of which are given below.
a) Employment trends;
b) Replacement needs;
c) Productivity;
d) Absenteeism; and
e) Expansion and growth.
27) What are the various methods of demand forecast
a) Managerial Judgement
b) Work Study Technique
c) Ratio-trend Analysis
d) Econometric Models
e) Delphi Model
f) Other Techniques
28) What is managerial judgement
a) Managerial Judgement: Managerial judgement technique is very common technique of demand
forecasting. This approach is applied by small as well as large scale organisations. This technique
involves two types of approaches i.e. 'bottom-up approach' and 'top-down approach'. Under the
'bottom-up approach', line mangers send their departmental requirement of human resources to
top management. Top management ultimately forecasts the human resource requirement for the
overall organisation on the basis of proposals of departmental heads. Under the Top-down
approach', top management forecasts the human resource requirement for the entire
organisation and various departments. This information is supplied to various departmental heads
for their review and approval. However, a combination of both the approaches i.e. 'Participative
Approach' should be applied for demand forecasting. Under this approach, top management and
departmental heads meet and decide about the future human resource requirement. So, demand
of human resources can be forecasted with unanimity under this approach.

STUDY NOTES MODULE 1 EPHRM-07

29) What is work Study method
a) Work-Study Technique: This technique is also known as 'work-load analysis'. This technique is
suitable where the estimated work-load is easily measureable. Under this method, estimated
total production and activities for a specific future period are predicted. This information is
translated into number of man-hours required to produce per units taking into consideration the
capability of the workforce. Past-experience of the management can help in translating the workloads into number of man-hours required. Thus, demand of human resources is forecasted on the
basis of estimated total production and contribution of each employee in producing each unit
items. The following example gives clear idea about this technique.
Let us assume that the estimated production of an organisation is 3.00.000 units. The standard
man-hours required to produce each unit are 2 hours. The past experiences show that the work
ability of each employee in man-hours is 1500 hours per annum. The work-load and demand of
human resources can be calculated as under:
Estimated total annual production = 300000 units
Standard man-hours needed to produce each unit = 2 hrs
Estimated man-hours needed to meet estimated annual production (i x ii) = 600000 hrs
Work ability/contribution per employee in terms of man-hour = 1500 units
Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units
The above example clearly shows that 400 workers are needed for the year. Further, absenteeism
rate, rate of labour turnover, resignations, deaths, machine break-down, strikes, power-failure
etc. should also be taken into consideration while estimating future demand of human resources/
manpower.
30) What is Ratio Trend Analysis
a) Ratio-Trend Analysis: Demand for manpower/human resources is also estimated on the basis of
ratio of production level and number of workers available. This ratio will be used to estimate
demand of human resources. The following example will help in clearly understanding this
technique.
Estimated production for next year = 1,40,000 units
Estimated no. of workers needed (on the basis of ratio-trend of 1: 200) will be = 700
31) What is Econometrics Model?
a) Econometrics Models: These models are based on mathematical and statistical techniques for
estimating future demand. Under these models relationship is established between the
dependent variable to be predicted (e.g. manpower/human resources) and the independent
variables (e.g., sales, total production, work-load, etc.). Using these models, estimated demand
of human resources can be predicted.
32) What is Delphi Technique?
a) Delphi Technique: Delphi technique is also very important technique used for estimating demand
of human resources. This technique takes into consideration human resources requirements
given by a group of experts i.e. mangers. The human resource experts collect the manpower

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needs, summarises the various responses and prepare a report. This process is continued until all
experts agree on estimated human resources requirement.
33) What the other methods of Manpower forecasting
a) Other Techniques: The other techniques of Human Resources demand forecasting are specified
as under:
i) Following the techniques of demand forecasting of human resources used by other similar
organisations
ii) Organisation-cum-succession-charts
iii) Estimation based on techniques of production
iv) Estimates based on historical records
v) Statistical techniques e.g. co-relation and regression analysis