Chapter 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

1. Human resource management can be defined as an organisational function that aims at developing
employees’ skills and attributes so that they can serve their best to the organisation.

2. Which of the following includes developing programs that meet the economic, psychological, ethical,
and social needs of employees?
a. Societal Objectives
b. Organisational Objectives
c. Functional Objectives
d. Personal Objectives
3. Which function of HRM involves determining the wages and salaries of employees at different levels
and positions in an organisation?
a. Manpower planning
b. Job analysis
c. Compensation management
d. Recruitment and selection
4. What forces HR managers to face challenges related to training, development of new infrastructure,
addressing employee issues, building of transition teams, etc.?
a. Workforce diversity
b. Business expansion
c. Employee empowerment
d. Change management
5. Personal management is a proactive and people-oriented approach as it lays emphasis on teamwork.
(True/False)

6. A strategy can be defined as a set of actions that aims to achieve predefined goals and objectives.
7. The country where the subsidiary is located is called the host country. (True/False)

Key words
 Bargaining power: An ability of a person, group, or organisation to make negotiations in order to achieve
favorable deals for themselves.
 Compensation: Monetary and non-monetary benefits given to employees in exchange of services provided
by them.
 Human resource management: A process of selecting, developing, motivating and maintaining human
resource of an organisation.
 Industrial revolution: An era between the 18th to 19th centuries that brought a transitional shift in the
manufacturing processes of organisations.
 Shift-based working: A working culture of organisations that are operational for 24 hours a day. In such
organisations, employees work in the shifts of 8 to 9 hours.
________________________________________________________________________________________
 Chapter 2: HUMAN RESOURCE PLANNING
1. The process of Planning starts with taking into consideration the current operations of an organisation and
finding out the areas of improvement for the upcoming year.
2. What is HRP also known as? Manpower planning
3. The HRP process attempts to assess Manpower requirements to perform different organisational
activities for a future period of time.
4. Which of the following is the second step in the HRP process?
a. Reviewing business goals
b. Scanning the environment
c. Balancing manpower demand and supply
d. Implementing and monitoring the HR plan

5. HR demand forecasting is a process of anticipating the number of people and skills required to perform
different jobs in an organisation with an aim to meet organisational goals and objectives. (True/False)

6. Qualitative methods are less statistical in nature as compared to quantitative methods.

7. Which of the following techniques help to reduce subjectivity in HR demand forecasting?

a. Delphi technique
b. Expert forecasts
c. Management forecasts

8. HR personnel determine the Future trends by analysing the past trends.

9. Skill Inventories consist of information about non-managers within an organisation.

10. An organisation, in order to deal with shortage of employees, can recruit new employees or train current
employees.

11. HRP is not only confined to predicting future human resource requirements of an organisation rather it
also helps in finding out future action plans for all departments of the organisation. (True/False)

12. HRP equalizes the demand and supply of human resource in an organisation by anticipating the
situations of shortage and surplus of human resource.
13. The selection of the right demand forecasting technique can be a major difficulty in HRP.
14. When an organisation decides to take a new approach to HRP, employees easily accept this change.
(True/False)
 Key words
 Conflicts of interest: A clash between the personal and professional interests of an individual.
 Lead time: The time duration between a start of a process and the end of the process in an organisation.
 Layoffs: A situation where employee(s) of an organisation are relieved of their duties, either temporarily or
permanently.
 Manpower surplus: A situation where there are more people than available jobs.
 Voluntary retirement: A situation where employee(s) of an organisation retire earlier than their normal
retirement time.
____________________________________________________________________________________________

Chapter 3: JOB ANALYSIS AND JOB DESIGN

1. “A job is a collection of tasks that can be performed by a single employee to contribute to the
production of some product or service provided by the organization.” Identify the speaker of this
statement.
a. Dale Yoder,
b. Hertbert G Herman
c. Michael J. Jucius
d. Edwin B. Flippo

2. In which of the following method, an analyst asks a series of questions from employees about the type
of work performed by them, roles and responsibilities involved, etc.
a. Interview
b. Questionnaire
c. Observation
d. Participant’s diary/logs

3. Position analysis Questionnaire (PAQ) is a well-structured, quantitative questionnaire having 194

items called elements.

4. Job description is an organised factual statement that is prepared by considering the data gathered in the job
analysis process.
5. Duties comprise the title of a job and the concerned department. (True/False)

6. Job specification is also known as Employee specification.

 7. “A list of job’s human requirements that is the requisite education, skills, personality and so on.” Who coined
this definition?
a. Edwin B. Flippo,
b. Dale Yoder,
c. Gary Desslar
d. Michael J. Jucius
8. Job design helps in boosting the level of job satisfaction among employees by increasing their interest
in the job. (True/False)
9. In which step of job design, the current work practices are assessed to determine the requirement and
feasibility of job design?
a. Assessing existing work practices
b. Analysing tasks
c. Designing jobs
d. Revaluating job design

10. Job rotation is one of the most commonly used job design approach that involves shifting an employee
from one job to another with an aim to add variety and prevent monotony.
11. According to Strauss and L.R Sayles, “Job enlargement implies that instead of assigning one man to
each job, a group of men can be assigned to a group of jobs and then allowed to decide for themselves
how to organize the work. Such changes permit more social contacts and control over the work
process.”
12. Job enlargement is a method of expanding the scope of a job with the addition of some more tasks and
duties to it. (True/ False)
13. Job enrichment is a process in which employees are given opportunities to utilise their abilities by
participating the decision-making process of an organisation.
14. Job simplification is a process wherein a job is broken into smaller tasks to make the job easier and
interesting. (True/ False)

Key words
 Attrition: An organisation, it is referred to as the rate at which employees leave an organisation due to
various reasons.
 By-products: The secondary products manufactured during the synthesis of some other products.
 Job profile: The description of a particular job in an organisation in terms of roles, responsibilities, and
activities of a job.
 Job structure: The general layout of a particular job in an organisation.
 Supervision: An action where a group of people or a set of activities are monitored by a responsible and
authorized person.
 Chapter 4: RECRUITMENT AND SELECTION

1. The process of finding and attracting talented applicants for a particular job position in an organisation
is called Recruitment.
2. It is often observed that organisations with a strong recruitment policy are successful in attracting the
right pool of candidates for a job vacancy. (True/False)

3. What are the two types of recruitment followed in organisations? Centralised and Decentralised

4. Internal factors are beyond the control of an organisation. (True/False)

5. Which of the following involves shifting an employee from one job to another, one department to
another or one branch to another?
a. Recommendations
b. Former employees
c. Promotions
d. Transfers
6. Which of the following are government bodies that help organisations in the recruitment process by
attracting part- time or shift-based candidates?
a. Private employment agencies
b. Executive search firms
c. Public employment agencies
d. Professional or trade associations
7. Selection is a process of choosing candidates who have the required knowledge and skills to do a
particular job.
8. Most people view selection as a positive process because there are a lot of candidates who are rejected
in this process. (True/ False)
9. The process of selection is different from one organisation to the other depending on the nature of
work, jobs involved, etc. (True/False)

10. Which of the following is the first step in the selection process?
a. Filling an application blank
b. Conducting employment tests
c. Conducting employment interviews
d. Conducting preliminary interviews

11. The person who asks questions is called the Interviewer while the person who responds to the
questions is called the interviewee.
12. Name the two stages for an effective interview?
Ans: Preparing for the interview and conducting the interview

13. Outsourcing is a process of hiring another organisation for performing some part of an organisation’s
business operations.
14. Outsourcing has enabled business enterprises to acquire all types of physical and intellectual resources
from around the world to carry out their operations. (True/False)

Key words
 Budgetary control: A process of using monitoring and performance standards for controlling the income
and expenditure of an organisation.
 Interview panel: A group of interviewers who interview the candidate for a job vacancy.
 Labor-intensive country: A country where organisations re- quire a large amount of labor for the
production of their goods and services.
 Outsourcing: A cost-saving method where organisations give out contracts for their business to a third-
party member.
 Promotion: A movement of an employee to a higher rank from the current position in an organisational
hierarchy.
 Reference checks: A process of authenticating the information provided by a candidate. This information
can be related to educational background, personal details, work experience, etc.
______________________________________________________________________________________
Chapter 5: INDUCTION AND ORIENTATION
1. Induction is a formal process of introducing new employees to the work environment.
2. Which of the following is the first step in the process of induction?
a. Identifying the objectives of the induction program
b. Collecting employee information
c. Defining the audience
d. Deciding the content and mode of delivery
3. To develop the objectives of the induction program, the HR personnel can seek suggestions from
departmental heads and other concerned senior employees to understand their needs and expectations
from new employees. (True/False)
4. “Orientation is the process of planned introduction of employees to their jobs, their co-workers, and the
organisation”. Identify the speaker. Robert L. Mathis
5. A General orientation program is conducted for all new recruits irrespective of their departments and
profiles.
6. While determining the type of the orientation program, the HR personnel must consider factors, such as
objectives of the program, the allotted budget, the type of information to be provided to employees, etc.
(True/False)
7. While designing the orientation program, the HR personnel must clearly define the Participants of the
 orientation program.

Key words
 Code of conduct: A set of rules and regulations that defines the behavior expected from employees to be
followed in the organisation.
 Employee turnover: A rate at which employees leave an organisation or the organisation replaces an
employee with another employee for various reasons.
 Flow of communication: The flow of information between employees, their seniors and the management.
 Learning cost: A direct or indirect cost incurred on training new employees.
 Reporting authority: A person in an organisation to whom employees are answerable regarding their jobs.

Chapter 6: MAPPING AND ASSESSMENT CENTRES

1. Competency is a set of knowledge, skills or behavior that an individual needs to demonstrate to perform
a particular work successfully.
2. Which type of competency is characterized by planning, organizing, and coordinating skills of an
individual?
a. Technical competency
b. Managerial/organisational competency
c. Human/behavioral competency
d. Conceptual competency

3. Competency mapping is a process of assessing the strengths of employees in an organisation and

judging whether they are fit for a particular job.

4. Competency mapping provides insight to employees into their career prospects. (True/False)

5. Which of the following is the second step in the process of developing a competency model?
a. Building the model
b. Implementing the model
c. Evaluating and updating the model
d. Collecting information

6. Competency models help in performance appraisal as competencies of employees are measured to

identify their
Strengths and weaknesses.

7. It is predicted that in the future, many medium and small- scale IT companies will also learn from these
big IT giants and develop successful competency models which will have greater impact on their
workforce. (True/False)
 8. An assessment centre is a technique used in the selection process for identifying the skills and abilities of
candidates.

9. When was assessment centres first used in the UK?

a. 1940 b. 1942
c. 1947 d. 1950

10. Simulation is an act or process of pretending something from real life. (True/False)
11. In which of the following activity, every member is treated on equal terms with no specific individual
being the leader?
a. Role play b. In-basket exercise
c. Work sample d. Leaderless group exercise

12. Which of the following refers to an individual’s honesty, trustworthiness, dependability, reliability, and
attitude towards work?
a. Cognitive ability b. Integrity
c. Personality d. Physical ability
13. Interviews are formal meetings in person where qualifications, knowledge, and skills of an applicant are
assessed by the hirer.
14. Preparing for an interview is the second step in the interview method. (True/False)

Key words
 Core competency: The unique characteristics of a person or specific features of a business that
distinguishes itself from others.
 Diversity: The uniqueness of a person in terms of his/her age, race, cultural background, capabilities, etc.
 Emotional quotient: An individual’s intelligence to understand and use his/her emotions positively at a
workplace in order to obtain productive results.
 Negotiation skills: Skills used by people to come to a settlement while avoiding arguments.
 Questionnaires: A set of questions with multiple choice answers, used for the purpose of a survey or
statistical study.
___________________________________________________________________________________________________

Chapter 7: TRAINING AND DEVELOPMENT

1. “Training is the creation of an environment where employees may acquire or learn specific, job-related
behaviour, knowledge, skills, abilities and attitudes.” Who is the speaker of these words?
a. Edwin Flippo b. Michael Armstrong
c. Terry L. Leap d. Michael J. Jucius
2. Who are the stakeholders of a training program?
 Ans: Top management, participants and the trainer

3. Without the acceptance of participants, it is difficult to achieve the goals and objectives of the training
program.
4. In which type of training, the participants receive stipends while learning and developing their skills?
a. Apprenticeship training
b. Internship training
c. Induction training
d. Job training or orientation
5. Internship training is required to facilitate formal education with practical training.

6. In apprenticeship training, vocational and educational institutes enter into a formal contract with
organisations to provide practical training to their students. (True/False)
7. Training methods are broadly classified into On-the-job training and Off-the-job training.
8. Coaching and mentoring is the most commonly used off-the- job training method. (True/False)
9. A learning organization is one that focuses on acquiring knowledge and encouraging innovative ideas
with an aim to survive in a rapidly changing business environment.
10. Training plays an important role in the growth of the organisation. (True/False)
11. Training is a short-term process while development is a long- term process.
12. Training has narrow scope, while development is a broad concept. (True/False)
13. Training is applicable for a particular job.
14. Mostly on-the-job training methods are used in the development process. (True/False)

Key words
 Industrial relations: Relationships of an organisation with its internal and external stakeholders.
 Interns: The students who undergo post-educational training with organisations that maintain contracts
with institutions.
 Cultural diversity: Differences in the cultural backgrounds of employees in an organisation.
 Occupational discrepancy: A lack of skills and abilities required to perform a job.
 Stipends: A form of salary given to apprentices when they take practical training in an organisation.

____________________________________________________________________________________
Chapter 8: HUMAN RESOURCE DEVELOPMENT
1. Employees are motivated if they are encouraged to participate in the Decision-making process of an
organisation, which ultimately boosts productivity.
2. Before launching new products, organisations should ensure that their employees are well aware of the
need of new product launches. (True/False)
 3. Which of the following refers to an organisation altering its business strategy with respect to the
changes in the business environment?
a. Personal level need
b. Work level need
c. Organisational level need

4. Organisational development focuses on improving the overall performance of an organisation and the
well-being of its members through planned interventions. (True/False)
5. Which of the following HRD function is meant to make employees realize their work potential?
a. Career development
b. Organisational development
c. Training and development

6. Name the two parts of career development.

Ans: Career Planning and Career Management
7. HRD is an organised process that involves skilful planning towards Formal and informal learning and
knowledge processes and experiences with an aim to achieve organisational performance.
8. Which of the following is the second phase of the HRD process?
a. Evaluation b. Implementation
c. Design d. Needs Assessment
9. In the Implementation phase of the HRD process, it is checked whether the designed HRD program has
met the set objectives. (True/False)
10. The work system focuses on attracting new employees and retaining the existing ones so that an
organisation can continuously achieve its performance. (True/False)
11. The business environment changes quite rapidly and organisations need to adapt to changes to stay
competitive in the market.
12. Employees in an organisation belong to different cultural backgrounds and have different mind-sets.
(True/False)
13. An HRD program must follow a set of clearly defined objectives in order to be effective. (True/False)
14. A feedback can be conducted through surveys, questionnaires, etc. to get the opinions of employees on
how effective was the HRD program and to what extent it helped them to improve their skills.

Key words
 Action research: A process of using various evaluative, objective and analytical techniques to solve a
problem and is generally used in research studies.
 Career development: A life-long learning and development process that helps to plan and manage an
individual’s work career.
  Career planning: A process wherein individuals making plan regarding their choice of career and future
growth.
 Organisational development: A systematic approach to improve the performance and effectiveness of
organisations.
 Team building activities: Activities that intend to improve the morale and performance of a team as well
as individual members.
___________________________________________________________________________________________
Chapter 9: CAREER PLANNING AND SUCCESSION PLANNING

1. Career consists of the changes in values, attitudes, and motivation that occur as persons grow older.”
Identify the speaker. Ans: Hall
2. Which of the following career stages is the pre-employment stage?
a. Exploratory stage b. Establishment stage
c. Maintenance stage d. Decline stage
3. Establishment stage begins when individuals join their first job.
4. Maintenance stage is the last stage of individuals’ career where they retire and take leave from their
organisations. (True/False)
5. The people with as their career anchor are inclined to work where solutions seem impossible
and relate their success by achieving the impossible.
a. Service/Dedication to a Cause b. Pure Challenge
c. Autonomy/Independence d. Lifestyle
6. According to Wrether and Davis, career planning is “the process by which one selects career goals
and path to these goals.”
7. The skills and abilities of an individual play an important role in his/her career planning. (True/False)
8. The process of career planning comprises five steps.
9. In which step of career planning, individuals collect information about their interests, personality type,
characteristics, preferred environment, aptitudes, development needs, and so on?
a. Performing self-assessment
b. Identifying career choices and preferences
c. Formulating action plan
d. Evaluating the process

10. Career planning provides individuals with knowledge about available career opportunities and their
priorities. (True/ False)
11. With the passage of time, every organisation needs successor for various key positions in an
organisation.
12. A productive and successful succession planning ensures the availability of experienced and capable
employees in an organisation. (True/False)
13. Which step of succession planning includes forming and deciding different strategies to develop and
prepare successors?
a. Identifying key positions
b. Identifying the talent pool
c. Developing succession strategies
d. Implementing succession strategies
14. In step, the developed strategies are brought into action so that employees can be trained to
develop the skills that would be required for key positions in the future.
a. Identifying the talent pool
b. Developing succession strategies
c. Implementing succession strategies
d. Evaluating the plan

Key words
 Career shift: A change in one’s career.
 Mentoring: The on-the-job training of new employees under a senior or an experienced employee.
 Peer group: A group of people of the same age sharing the same interests.
 Stability: The state of being stable such as career stability, personal stability, etc.
 Succession strategies: Strategies that organisations formulate to carry out their succession plan
successfully.
___________________________________________________________________________________________
Chapter 10: PERFORMANCE MANAGEMENT
1. Performance management is the systematic analysis and measurement of the overall performance of
an organisation.
2. What are the three primary elements of performance management?
Ans: Measurement, feedback, and positive reinforcement
3. Performance management helps in providing constructive feedback to employees to improve their past
performance. (True/False)
4. Measuring performance requires careful supervision and thoughtful consideration as any Inaccuracy in
performance management may result in the failure of implementation of improvement efforts.

5. Performance management is a backward-looking approach that is primarily concerned with developing

people with sustained growth of an organisation. (True/False)
6. Performance appraisal helps an organisation to measure the current job performance of
employees and determine the areas where they need to improve.
7. Name any four parameters that can be used for analysing the performance of employees.
Ans: Hard work, quantity of output produced, quality of work done, and responsibilities
undertaken.
 8. In which of the following step, a decision is made regarding the selection of an appraiser?
a. Communicating the standards
b. Establishing performance standards
c. Determining personnel responsible for conducting performance appraisal
d. Measuring and comparing the actual performance

9. In which of the following method, a descriptive report is prepared by the immediate

reporting authority of the employee being appraised, usually at the end of the year?
a. Essay method
b. Confidential report
c. Critical incidents method
d. Checklist method
10. In 360-degree appraisal method, the organisation appraises an employee based on the feedback
received from various sources, such as superiors, subordinates, colleagues and the employee
himself/herself.
11. Potential appraisal is a holistic approach to study the qualities of an employee in terms of personality,
character and intellect.
12. Psychometric aptitude tests judge verbal reasoning, numerical reasoning, and abstract reasoning of
individuals.
13. Potential appraisal data helps in matching the potential of an individual with the requirements of future
roles and responsibilities. (True/False)
14. In the Self-appraisal technique, employees are required to provide their own performance feedback on
various parameters.
Key words
 Abstract reasoning: One’s ability to analyse information and work out on new concepts and abstract
ideas without having prior knowledge.
 Creative imagination: An ability of an individual to present an existing thing in an unconventional and
new manner.
 Layoffs: A provisional or permanent release of a worker or workers (with or without notice) by the
employer or management.
 Management by objectives: A management model that focuses on improving the performance of an
organisation by clearly defining the goals and objectives to be mutually attained by both management and
employees.
 Multinational corporations: Organisations that own or control facilities or other assets in one or more
countries other than its home country.
 Quantifiable performance criteria: Quantitative indicators that can be measured in terms of facts
and numbers.
 Chapter 11: COMPENSATION AND REWARDS
1. Which of the following includes pay received by an employee in the form of wages, salaries, bonuses,
and commissions at regular intervals?
a. Indirect financial compensation
b. Direct financial compensation
c. Non-financial compensation
d. Rewards
2. An unfair compensation system may create a feeling of discrimination among employees, which may
lead to high labor turnover. (True/False)
3. Base involves benefits that are directly paid to employees.
4. Industry compensation provides relevant information on salary trends, working conditions,
minimum wages and other work-related issues to employees, employers, and trade unions.
5. Which one of the following refers to the sum of all monetary benefits received by executives?
a. Long-term incentive plans b. Short-term benefits
c. Cash compensation d. Perks
6. Statutory requirements make an organisation legally answerable for its actions and include numerous
legislations.
7. In India, FBT was introduced under Finance Bill of 2007. (True/False)
8. Rewards can be defined as a payment made to employees in return of their contribution.
9. Name the rewards that are intangible and offered to employees for their intrinsic fulfilment.
Ans: Intrinsic Rewards

10. Reward systems are developed in organisations to recognise the best performers among all
employees.
11. Monetary rewards influence employees to perform well by motivating them. (True/False)
12. Which of the following is not focused on an effective reward system?
a. Boosting the morale of employees
b. Improving the performance of employees
c. Increasing overall productivity
d. Increasing employee turnover

13. Recognition is a measure adopted by organisations to appreciate the efforts and performance of
employees.
14. Structured recognition programs include regular recognition events such as employee of the month
or year recognition.
Key words
  Dry promotion: A type of reward wherein an employee is promoted to a higher level without being
provided any monetary benefits.
 Expatriate: Individuals residing in a country other than their parent country either temporarily or working
purpose.
 Industrial benchmarking: The process of setting standards for best practices, products, services, and
processes within a particular industry for evaluating the performance or level of quality in an organisation.

 Labor market: A place where workers and employees come and interact with each other.
 Tax equalisation: A process of ensuring that the tax paid by an assignee on an international assignment
becomes equal to the tax would have been at his parent nation.
___________________________________________________________________________________________
Chapter 12: HR AUDIT, AND ACCOUNTING
1. Which of the following is the second step in the HR audit process?
a. Formulating the audit plan
b. Developing the audit report
c. Gathering the background data
d. Acting based on the report
2. HR audit can lack uniformity as auditors tend to follow different auditing standards and guidelines.

3. HRA provides information about cost and value of human resource to managers. (True/False)
4. Which of the following refers to a predetermined or estimated cost of employees for each employee
acquisition in a given accounting period?
a. Replacement cost
b. Standard cost
c. Historical cost
5. HRIS collects, stores, processes, generates, and disseminates human resource information for effective
business decision making. (True/False)
6. Which of the following HRIS component updates the data which is stored in the storage
a. device b. Input
c. Output d. Data Maintenance
7. Tactical HRIS provides information to managers for making routine HR decisions. (True/False)
Key words
 Book of accounts: The cash-books, ledgers, etc. that comprise accounts of an organisation.
 Competency profiling: A method of identifying the skills, competencies, and behaviour of an employee
needed to perform a specific task.
 Compliance: The act of complying or following specific guide- lines, rules and laws.
 HR audit: A systematic process of examining policies, procedures, practices, documentation and systems
with regards to an organisation’s HR functions.
 Retrenchment: The termination of employees by an organisation to cut down on costs.
 Time and motion studies: The analysis of the efficiency with which an organisation’s operations are
carried out.