HRM 4 5-WPS Office

Which of the following is an objective of employee discipline?
Your Answer:
All of the above
Getting the willing cooperation of the employees in voluntarily observing the discipline code of an organization is
the essence of
Correct Answer:
positive discipline
The threat of punishment as a key to imposing discipline is the basis of
Correct Answer:
negative discipline
Adopting a step-by-step approach in dealing with indiscipline problems is the fundamental principle of
Correct Answer:
progressive discipline
Which of the following is not a disciplinary action against employees?
Correct Answer:
increments
Which of the following statements indicates a good disciplinary system?
Your Answer:
An employee must be reprimanded in private.
Which of the following is not a characteristic of the Hot Stove Rule of Discipline?
Correct Answer:secrecy
Q.1. The process of locating and encouraging potential applicants to apply for an existing or an anticipated job
openings is called_________.
(a) selection
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(b) placement
(c) recruitment
(d) induction
Ans. (c)
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Q.2. Who said “Recruitment is the process of searching for prospective employees and stimulating them to apply
for jobs in organisation”?
(a) Frederick Herzberg
(b) David McClelland

(c) Douglas McGregor
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(d) Edwin B. Flippo
Ans. (d)
Q.3. Employee referral is______________ .
(a) an internal method of recruitment
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(b) an indirect method of recruitment
(c) third party method of recruitment
(d) an internet recruiting
Ans. (a)
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Q.4. Advertisements, television, radio ad.s, and newspaper ad.s are_______________ method of recruitment
(a) an internal method of recruitment
(b) an indirect method of recruitment
(c) third party method of recruitment
ADVERTISEMENTS:
(d) direct recruiting
Ans. (b)
Q.5. _____________ is an extended work sample.
(a) Intelligence test
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(b) Assessment Centre
(c) Personality test
(d) Interest test
Ans. (b)
Q.6. Attributing characteristics to individuals based on their inclusion or membership in a particular group is
called____________ .
(a) resort to snap judgment
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(b) stereotyping
(c) leniency
(d) halo effect
Ans. (b) stereotyping
Q.7. Assigning a specific rank and responsibility to an employee is known as__________.

(a) job
(b) task
(c) placement
(d) selection
Ans. (c)
Q.8. Inputs to the selection process include all but_____________.
(a) job analysis
(b) supervision
(c) HR planning
(d) job applicants
Ans. (b)
Q.9. Which among the following tests measure self-confidence, motivation, emotional balance etc.?
(a) Intelligence test
(b) Preference test

(c) Personality test
(d) Interest test
Ans. (c)
Q.10. Positive features and benefits offered by an organisation to attract job applicants is known as ___________.
(a) inducement
(b) increment
(c) package
(d) compensation
Ans. (a)
Q.11. In which of the following method of recruitment, employees are encouraged to recommend the names of
their friends working in other organisations for possible vacancy in the near future.
(a) job posting
(b) gate hiring
(c) campus recruitment

(d) employee referrals
Ans. (d)
Q.12. Job posting is______________ .
(a) posting of an employee
(b) a method of Recruitment
(c) is an appraisal technique
(d) an internet recruitment
Ans. (b)
Q.13. In which method of recruitment, the organisation publicises job openings on bulletin boards, electronic
media and similar outlets?
(a) Employee referrals
(b) Job Posting
(c) Employment detail
(d) Job Opening

Ans. (b)
Q.14. Compensation will be perceived as fair if it is comprised of a system of components developed to maintain
______________.
(a) internal equity
(b) external equity
(c) both internal and external equity
(d) none of these
Ans. (c)
Q.15. Health insurance, retirement pension, payment for overtime, etc., are __________.
(a) base pay
(b) variable pay
(c) benefits
(d) all of these
Ans. (c)
Q.16. Wage and salary survey ensures about_______________ .
(a) Internal equity
(b) External equity
(c) INDIVIDUAL equity
(d) Both (a) and (b)
Ans. (b)
Q17. Which among the following allowances is paid to employees in order to enable them to face the increasing
price of essential commodities?
(a) Bonus
(b) Rent allowance
(c) Increment in salary
(d) Dearness allowance
Ans. (d)
Q.18. Which among all the three wages, minimum wage, fair wage and living wage is the highest kind of wage?
(a). Fair wage
(b) Minimum wage
(c) Living wage
(d) All of these
Ans. (c)
Q.19. The minimum wage can be fixed by______________ .
(a) hour
(b) day
(c) month
(d) all of these
Ans. (d)
Q.20. Under which plan if a worker reaches the standards, he will be paid time wage plus a bonus at fixed
percentage (20%) of normal time wage?
(a) Gantt Task and Bonus Plan

(b) Merrick plan
(c) Halsey Plan
(d) Rowan plan
Ans. (a)
Q.21. Deciding how much an employee should be paid observing internal as well as external equity is called
_________.
(a) comparable worth
(b) wage curve
(c) salary survey
(d) compensation administration
Ans. (d)
Q.22. Rewards that one gets from the employer, usually money, a promotion or benefits is called
_____________________.
(a) intrinsic rewards
(b) extrinsic rewards

(c) self-motivated reward
(d) organisation reward
Ans. (b)
Q.23. Fringe Benefits are______________ .
(a) supplementary compensation
(b) base compensation
(c) merit Plan
(d) bonus
Ans. (a)
Q.24. Remuneration to blue collar workers is called______________ .
(a) wage
(b) salary
(c) compensation
(d) payment
Ans. (a)
Q.25. When efficiency of a worker reaches____________ he gets bonus under Emerson’s Efficiency Plan?
(a) Efficiency reaches 67%
(b) efficiency reaches 50%
(c) efficiency reaches 76%
(d) efficiency reaches 20%
Ans. (a)
Q.26. A dyadic relationship between a manager who is offering help and an employee to whom such help is given.
This is known as____________.
(a) Mentoring
(b) Counselling
(c) Coaching
(d) Helping
Ans. (b)
Q.27. The range of destructive stress or Distress is from______________ .
(a) low to moderate
(b) moderate to high
(c) high to low
(d) none of these
Ans. (b)
Q.28. The belief that conflict is a natural and inevitable outcome in any group is a _____________ .
(a) traditional view
(b) human relation view
(c) interactionist view
(d) functional view
Ans. (b)
Q.29. Job enlargement, Job enrichment, Job rotation and Job simplifications are the various techniques used in an
exercise.
(a) job analysis
(b) job rotation
(c) job enlargement
(d) Moods
Ans. (a)
Q.30. Job Characteristics model was developed by_______________ .
(a) Hackman and Oldham
(b) Herzberg
(c) Taylor
(d) Fredrick
Ans. (a)
Q.31. _________ helps to develop Job design.

(a) job analysis
(b) job rotation
(c) job enlargement
(d) Moods
Ans. (a)
Q.32. Which of the following is a written statement of the skills, knowledge, abilities, and other characteristics
needed to perform a job effectively?
(a) Job Analysis
(b) job specification
(c) job enlargement
(d) Job design
Ans. (b)
Q.33. The job characteristics approach was popularised by_____________ .
(a) Maslow
(b) Hackman and Oldham
(c) Taylor
(d) Mayo
Ans. (b)
Q.34. Which one of the following is not an approach to work design?
(a) engineering approach
(b) motivational theories (two factor theories)
(c) socio-technical system method
(d) scientific approach
Ans. (d)
Q.35. Vertical enhancement of job is known as________________ .
(a) job enrichment
(b) job rotation
(c) job enlargement

(d) Moods
Ans. (a)
Q.36. The method that depends mainly on the ability and experience of the supervisors for gathering relevant
information about the job is called the
(a) work simplification method
(b) data collecting method
(c) Critical Incident
(d) Technical conference Method
Ans. (d)
Q.37. Who has given “Hierarchy of Needs” theory?
(a) Abraham Maslow
(b) McClelland
(c) Fredreick Herzberg
(d) Henry Fayol

Ans. (a)
Q.38. Two-Factor Theory is also known as ______________ .
(a) Theory X and Y
(b) Motivation-hygiene theory
(c) Negative and Positive
(d) All of the above
Ans. (b)
Q.39. Who proposed ERG Theory?
(a) Gene Broadwater
(b) Edwin Locke
(c) Victor Vroom
(d) Clayton Alderfer
Ans. (d)
Q.40. MBO Stands for____________ .
(a) Management by objectives
(b) Management by observation
(c) Management by ownership
(d) Management by operation
Ans. (a)
Q.41. ESOP stands for_____________ .
(a) Employee Stock Ownership Plans
(b) Employees Share Ownership Plans
(c) Employer Stock Ownership Plans
(d) Employer Share Ownership Plans
Ans. (a)
Q.42. Compensation based on some established formula designed around a company’s profitability is known
as____________ .
(a) profit sharing plan
(b) gain sharing
(c) bonuses
(d) piece-rate pay plan
Ans. (a)
Q.43. Reinforcement Theory has an impressive record of predicting______________ .
(a) dependent variables
(b) performance variables
(c) absenteeism
(d) none of these
Ans. (c)
Q.44. A participative process that uses entire capacity of employees and is designed to encourage increased
commitment to the organisation’s success, is known as ______________ .
(a) Works council

(b) Employee participation
(c) Employee involvement
(d) Participative management
Ans. (c)
Q.45. Who proposed “Theory X and Theory Y”?
(a) Frederick Herzberg
(b) David McClelland
(d) Abraham Maslow
Ans. (c)
Q.46. Works council and board representative are forms of______________ .
(a) employee Participation
(b) employee involvement
(c) quality circle

(d) participative management
Ans. (b)
Q.47. Company-established benefits plans in which employees acquire stock as part of their benefits is known
as,____________.
(a) fringe benefit
(b) bonus
(c) flexible benefit
(d) ESOP
Ans. (d)
Q48. Which of the following tasks represents a leadership responsibility?
(a) Budgeting
(b) Aligning people
(c) Organising
(d) None of these

Ans. (b)
Q.49. Emotional Intelligence____________.
(a) is genetic
(b) can be learned
(c) cannot be improved
(d) none of these
Ans. (a)
Q.50. Recognising and rewarding success form part of the ______________ process of motivating and inspiring.
(a) Leadership
(b) Management
(c) Negotiation
(d) Motivation
Ans. (a)
Q.51. A charismatic leadership has which of the following characteristics?
(a) Builds a strong and distinctive image for the organisation
(b) Seeks to pick up the mood of the audience
(c) Employs a clear chain of command
(d) Takes the view that rewards and punishment motivate staff
Ans. (a)
Q.52. A democratic leadership style has which of the following characteristics?
(a) Split power
(b) Genuine
(c) Dictatorial leader
(d) None of these
Ans. (a)
Q.53. Performance appraisal is conducted for_______________ .
(a) manager
(b) employees
(c) executives
(d) subordinates
Ans. (b)
Q.54. BARS is combination of______________.
(a) confidential report and rating scale
(b) forced choice method and confidential report
(c) critical incident technique and rating scale
(d) checklist and critical incident technique
Ans. (c)
Q.55. This among the followings is not a method of Performance Appraisal,
(a) Self-appraisal
(b) Rating scale

(c) Group Appraisal
(d) 360-degree
(e) None of these
Ans. (e)
Q.56. Forced choice method is______________
(a) used to correct the tendency of a rater to give consistently high or low ratings to all the employees.
(b) multi person evaluation method
(c) both (a) and (b)
(d) none of these
Ans. (a)
Q.57. Critical incident technique provides __________________ basis for conducting employee’s performance.
(a) subjective
(b) objective
(c) non-quantitative
(d) none of these
Ans. (b)
Q.58. The rater gives greater weightage to recent occurrence than earlier performance, this type of judgmental
error is known as____________ .
(a) Halo
(b) Horn effect
(c) Stereotyping
(d) Recency effect
Ans. (d)
Q.59. Which among the following techniques of performance appraisal was developed to eliminate bias and the
preponderance of high ratings that might occur in some organisation?
(a) Confidential report
(b) Forced choice method
(c) Critical incident technique
(d) Checklist
Ans. (b)
Q.60. Ranking is:_____________ .
(a) multi-person evaluation method
(b) individual evaluation method
(c) other method
(d) all of these
Ans. (d)
Q.61. Essay evaluation method is______________ .
(a) subjective
(b) objective
(c) quantitative
(d) none of these
Ans. (a)
Q.62. The management information system (MIS) responds to the need for___________ .
(a) electronic data processing
(b) managerial information
(c) accounting application
(d) utility billing information
Ans. (b)
Q.63. PERT and CPM are
(a) Project evaluation techniques
(b) Assignment techniques
(c) Network techniques
Ans. (c)
Q.64. A system must be composed of more than one______________ .
(a) subsystem
(b) element
(c) super system
(d) place
Ans. (b)
Q.65. Inventory is also referred to as_______________ .
(a) stock
(b) warehouse capacity
(c) materials
(d) materials in hand
Ans. (a)
Q.66. A long-range management information system plan provides __________ for the development.
(a) direction
(b) finance
(c) control
(d) coordination
Ans. (a)
Q.67. In-basket method of training is helpful in enhancing
(a) interpersonal skills
(b) job knowledge
(c) decision-making skills
(d) organisational knowledge
Ans. (c)
Q.68. Job rotation and multiple management method of training is helpful in enhancing ____________.
(b) job knowledge

Ans. (d)
Q.69. Training Evaluation methods include all but _____________.
(a) questionnaire
(b) Cost benefit analysis
(c) human resource factor
(d) checklist
Ans. (d)
Q.70. A concept that people tend to repeat responses that give them some type of positive reward and avoid
actions associated with negative consequences is called ______________.
(a) Punishment
(b) Positive motivation
(c) Obsolescence
(d) Reinforcement
Ans. (d)
Q.71. All are simulation methods of training except one______________ .
(a) case studies
(b) decision games
(c) role playing
(d) lecture method
Ans. (b)
Q.72. On-the-job experiences, coaching and understudy methods of training is helpful in enhancing
______________.
(b) job knowledge
Ans. (b)
Q.73. Business game and case study method of training is helpful in enhancing
(b) job knowledge
Ans. (c)
Q.74. Trade Union Act was passed in the year______________ .
(a) 1926
(b) 1936
(c) 1958
(d) 1916
Ans. (a)
Q.75. Rules and regulations which govern the conditions of employment of workers is stated in ______________ .
(a) Standing Orders

(b) Industry Relations
(c) Factories Act
(d) None of these
Ans. (a)
Q.76. JMC stands for_____________ .
(a) Junior Management Committee
(b) Junior Management Council
(c) Joint Management Committee
(d) Joint Management Council
Ans. (d)
Q.77. Out of provocation, workers may go on strike without notice or at a very short notice, such strike is called
________________.
(a) Sectional strike
(b) Lightning strike

(c) Sit-down strike
(d) Unofficial strike
Ans. (b)
Q.78. JIT stands for_____________ .
(a) Job Instruction Training
(b) Job Information Training
(c) Job Incentive Technology
(d) Job Incentive Training
Ans. (a)
Q.79. Industrial Disputes Act commenced in the year_______ .
(a) 1946
(b) 1947
(c) 1948
(d) 1926
Ans. (b)
Q.80. A strike which is started without the consent of union is called______________ .
(a) Slow-down strike
(b) Bumper strike
(c) Hunger strike
(d) Unofficial strike
Ans. (d)
Q.81. Conciliation Officer is appointed by central or state government to mediate in all disputes, and he is required
to give his judgement within_____________ days of the commencement of conciliation proceeding.
(a) 10
(b) 16
(c) 15
(d) 14
Ans. (d)
Q.82. Lockout means closing down the place of business but not the business itself.
(a) True
(b) False
(c) Partly true
(d) Partly false
Ans. (a)
Q.83. AIOE stands for______________ .
(a) All India Organisation of Employees
(b) All India Organisation of Employment
(c) All India Organisation of Employers
(d) All India Organisation of Empowerment
Ans. (c)
Q.84. A union whose members do one type of work, often using specialised skills and training is known as
______________.
(a) Craft union
(b) Industrial union
(c) General union
(d) Federations
Ans. (a)
Q.85. How many members can constitute to form a registered Trade Union?
(a) 100
(b) 10
(c) 7
(d) 50
Ans. (c)
Q.86. Complaint and Grievance are one and the same thing,
(a) True
(b) False
(c) Cannot be determined
(d) None of these
Ans. (b)
Q.87. When a worker faces a problem then according to Model Grievance Procedure, given by National
Commissions on Labour, firstly he/she will report to_____________ .
(a) Foreman
(b) Supervisor
(c) HOD
(d) Manager
Ans. (a)
Q.88. When dissatisfaction at the work place, mostly related to work is brought to the notice of the management,
it is known as____________ .
(a) Complaint
(b) Grievance
(c) Both (a) and (b)
(d) Negative discipline
Ans. (b)
Q.89. In a model Grievance Procedure, the Supervisor has to respond against the grievance within
_______________.
(a) 2 days
(b) 3 days
(c) 7 days
(d) 5 days
Ans. (a)
Q.90. During suspension of an employee, employer is liable to pay 50% of wages/salary as emoluments till enquiry
is going on. What is the outer limit of that enquiry in terms of days. Beyond that if enquiry goes on then 75% of
salary/wages has to be paid to the employee ______________.
(a) 60 days
(b) 30 days
(c) 90 days
(d) 45 days
Ans. (c)
Q.91. Termination from employment for any of the misconducts mentioned in the Industrial Employment Act,
1946 is called___________ .
(a) Discharge
(b) Suspension
(c) Layoff
(d) Dismissal
Ans. (d)
Q.91. Quality circle was first established in______________ .
(a) Japan
(b) China
(c) America
(d) Korea
Ans. (a)
Q.92. Employee disclosure of an employer’s illegal, immoral or illegitimate practices to persons or organisations
that may be able to take corrective action is called____________.
(a) Whistle-blowing
(b) Business ethics
(c) Responsible employee
(d) None of these
Ans. (a) Whistle-blowing
Q.93. If the number of days of suspension exceeds beyond 90 days, due to delay in the enquiry from the part of
employer then in such condition how much wages/salary + D.A. employee will get thereafter?
(a) 50%
(b) 90%
(c) 60%
(d) 75%
Ans. (d) 75%

Q.94. Which model was accepted by Indian Labor Conference in its 16th session held in 1958, in India?
(a) Grievance procedural model
(b) Labor procedural model
(c) Wages procedural model
(d) Negotiation procedural model
Ans. (a) Grievance procedural model
Q.95. Collective Bargaining is a_______________ .
(a) bipartite process
(b) tripartite process
(c) arbitration process
(d) conciliation process
Ans. (a) bipartite process
Q.96. Arbitration may be____________ .

(a) voluntary
(b) compulsory
(c) both a and b
(d) none of these
Ans. (c) both a and b
Q.97. Reservation price is also known as_____________ .
(a) Walkaway
(b) BATNA
(c) ZOPA
(d) None of these
Ans. (a) Walkaway
Q.98. Which among the following negotiators’ role is not to settle the issues but to improve the relation so as they
can reach the settlement themselves?
(a) Mediator
(b) Arbitrator
(c) Conciliator
(d) Consultant
Ans. (d) Consultant
Q.99. When does complain become a grievance?
(a) When it is known by one employee to another
(b) Both are same
(c) When it is brought to the notice of management
(d) Both (a) and (c)
Ans. (c) When it is brought to the notice of management
Q.100. Development aims at improving_______________ .
(a) Total personality of an individual
(b) Specific skill relating to job
(c) Organisation culture

(d) All of these
Ans. (a) total personality of an individual
Q.101. In international, labour, family and community disputes which method of negotiation is extensively used
___________________.
(a) mediation
(b) arbitration
(c) conciliation
(d) consultant
Ans. (c) conciliation
Q.102. EFI stands for ______________.
(a) Employees’ Federation of India
(b) Employers’ Federation of India
(c) Employers’ Federation of Industries
(d) Employees’ Federation of Industries

Ans. (b) Employers’ Federation of India
Q.103. A Procedure by which the terms and conditions of employment of workers are governed by agreements
between their bargaining agents and employers is known as _______________ .
(a) Collective bargaining
(b) Negotiation
(c) Good Faith bargaining
(d) Bargaining zone
Ans. (a) Collective Bargaining
Q.104. All among the following methods are Off-the-job Methods except one.
(a) Vestibule training
(b) Committee Assignment
(c) Role playing
(d) Lecture method
Ans. (b) Committee Assignment

Q.105. Employee’s dissatisfaction is not because of any valid reason but because of wrong perception, wrong
attitude or wrong information he has. This type of grievance is known as ______________.
(a) Factual
(b) Imaginary
(c) Disguised
(d) None of these
Ans. (b) Imaginary
Q106. Which among the followings is a method of training?
(a) Job enrichment
(b) Job enlargement
(c) Job rotation
(d) None of these
Ans. (c) Job rotation
Q.107. An interpersonal process used by two or more parties whereby both or all modify their demands to reach
an agreement is called____________ .
(a) Collective bargaining
(b) Negotiation
(c) Good Faith bargaining
(d) Bargaining zone
Ans. (b) Negotiation
Q.108. The practical application of the collaborating and compromising approaches to conflict management is
known as ____________.
(a) Arbitration
(b) Negotiating
(c) Meditating
(d) None of these
Ans. (a)
Q.109. Who has given ‘Red Hot Stove Rule’?
(a) Selye
(b) Henry Fayol
(d) None of these
Ans. (c)
Q.110. In which of the following methods of training a senior manager in an organisation assumes the
responsibility for grooming a junior person?
(a) Coaching
(b) JIT
(c) Mentoring
(d) Apprenticeship training
Ans. (c)
Q111. Kirkpatrick Four-level Approach for training Impact Evaluation include all but_____________ .
(a) reaction
(b) learning
(c) behavior
(d) return on investment
Ans. (d)
Q112. Court of Enquiry needs to submit its report after solving the dispute within________.
(a) 10 months
(b) 6 months
(c) 5 months
(d) 12 months
Ans. (b)
Q.113. Temporary closure of a unit called from the side of employer is known as__________.
(a) Strike
(b) Lockout
(c) Closure
(d) Shutdown
Ans. (b)
Q114. What are the roles played by HRM?
(i) Advisory Role
(ii) Functional Role
(iii) Service Role
(iv) Specialist Role
(a) i, ii, iii
(b) ii, iii, iv
(c) i, ii, iv
Ans. (d)
Q115. Human capital is the ______________

(a) Knowledge & skill that individuals acquire through their life & use to produce goods, services or ideas for
productive purposes
(b) Sum of people skills, knowledge, attributes, motivation & efforts
Ans. (c)
Q116. Organisation is-
(a) The coming together of individuals in order to attain a common goal or purpose
(b) The rational coordination of the activities of a number of people for the achievement of some explicit purpose
or goal, through division of labour & function & through a hierarchy of authority & responsibility
(d) None of the above
Ans. (c)
Q117. The attribute of a formal organisation is –
(a) Flexibility
(b) Room for discretion
(c) Method for recognition of individual talent & capacity
Ans. (d)
Q118. A __________ can be defined as several individuals who come together to accomplish a particular task or
goal.
(a) matter
(b) group
(c) achievement
Ans. (b)
Q119. __________ stage is characterized by the recognition of individual differences and shared expectation.
(a) Forming
(b) Storming
(c) Norming
(d) Performing
Ans. (c)
Q120. Group roles may be classified into –
(a) Work Roles
(b) Maintenance Roles
(c) Blocking Roles
Ans. (d)
Q121._______ roles are task – oriented activities that involve accomplishing the group’s goals.
(a) work
(b) maintenance
(c) blocking

Ans. (a)
Q122.________ refers to the bonding of group members and their desire to remain part of the group.
(a) Cohesiveness
(b) Norms
(c) team
(d) Structure
Ans. (a)
Q123. “Managers are the basic resource of the business enterprise”. The definition is given by —
(a) Henry Fayol
(b) Peter Ducker
(c) Dancil Goleman
(d) Hellriegel
Ans. (b)
Q124. ________ is a management process, deductive in nature and designed to produce orderly results, not
change.
(a) Planning
(b) organising
c) Directing
d) Controlling
Ans. (a)
Q125. Performance benchmarking —
(a) allows the initiator firm to assess their Competitive position by comparing products and services with those of
target firms.
(b) involves studying the leading competitor or the company that best carries out a specific function
(c) embraces everything from staffing and productivity to office flow and analysis of procedures performed.
d) All of the above.
Ans. (a)
Q126. __________ means that the same standard can be applied to any organization large or small, whatever its
product or service, in any sector of activity, and whether it is a business enterprise, a public administration, or a
government department.
(a) Generic
(b) Genesis
(c) Quality
(d) Product
Ans. (a)
Q127. The key element of Responsibility Charting is –
(a) Decisions or tasks
(b) Stakeholders
(c) Level of participation of each stakeholders in each decision of task
Ans. (d)
Q128._______ is critical to the bank’s future business success and the bank’s performance is linked to people
development amounting to investing in the future.
(a) Development
(b) Training
(c) Economic Welfare
(d) Compensation
Ans. (a)
Q129. Describe the Changing role of HRM?
(a) New functions are being added to HR like manpower planning, employee development & performance
management
(b) Becomes integral part of management & equally accountable for business results
(c) HR must be actively involved in the process and preparation of business plans & strategies and fulfillment of
such plans
Ans. d
Q130. Out of the following, which one is the difference between Leadership & Management?
(a) Management involves planning & budgeting; Leadership involves setting direction
(b) Management involves organisation & staffing; Leadership involves aligning people
(c) Management provides control & solves problem; Leadership provides motivation
Ans. d
Q131. The area of group behaviour that are addressed for teams to be effective is _____
(a) Hardworking
(b) Right mix of skills
(c) Appropriate approaches to problem solving
Ans. d
Q132. The fundamental group needs for group effectiveness is –
(a) Acceptance & Potential
(b) Purpose & Bond
(c) Impact & Reality

Ans. d
Q133. ____ groups are formed by members who enjoy similar social activities, political beliefs, religious values, or
other common bonds.
(a) task
(b) project
(c) command
(d) friendship
Ans. d
Q134. Formal group may take the form of —
(a) command groups
(b) Task Groups
(c) Functional Groups

Ans. d
Q135. What are the factors that contribute to the teams effectiveness?
(i) The task itself should be motivating
(ii) The task itself should be worthwhile with a clear visible outcome so that the people can feel a sense of
ownership
(iii) The outcome of the task should be perceived as being important to other people’s lives
(iv)The job should provide the team with an opportunity for self- regulation
(a) i, ii, iii
(b) ii, iii, iv
(c) i, ii, iv
Ans. d
Q136. The organisational structure in Quality Circle for its effective performance are –
(i) A Steering Committee

(ii) Coordinator
(iii) Facilitator
(iv) Circle Leader
(v) Staff time
(vi) Development
(a) i, ii, iii, iv
(b) ii, iii, iv, v
(c) iii, iv, v, vi
Ans. a
Q137. How a change is managed?
(i) Involve & solicit support from people within the system
(ii) Understand where the organisation is at the moment
(iii) Understand where one wants to be, when, why, & what the new measures will be, having got there
(iv) Communicate, involve, enable & facilitate involvement from people as early & openly and as fully as possible
(a) i, ii, iii
(b) ii, iii, iv
(c) i, ii, iv
Ans. d
Q138. The selection of employees done on the basis of –
(i) Knowledge
(ii) Skills
(iii) Talent
(iv) Identifying the unique strength
(a) i, ii, iii
(b) ii, iii, iv

(c) i, ii, iv
Ans. d
Q139. Knowledge Management is –
(a) Defined in the context of know-why, know-who, know-what & know-when.
(b) An intangible form of asset of an organisation
Ans. c
Q140. What are the significant features of Knowledge Management?
(i) KM initiatives can substantially contribute towards cost cutting, product & process innovations, competitiveness
& hence can ensure improved operational efficiency as well as better systems, procedures & internal control
system
(ii) KM can tremendously improve the competency profile of the employees in an organisation in respect of their
skills and knowledge levels
(iii) Organisational value gets enhanced progressively as it is used

(iv) KM initiatives can significantly contribute towards creation & addition of value in organisations
(v) KM initiatives can significantly contribute towards customer service to a large extent
(vi) KM can provide inputs in assessing the risks associated with a loan proposal & hence can help in taking more
informed & objective credit decisions
(a) i, ii, iii, iv
(b) ii, iii, iv, v
(c) iii, iv, v, vi
Ans. d
Q.141. SWOT analysis should appraise a firm’s__________ .
(a) strength
(b) weakness and opportunity
(c) threats
(d) all of these

Ans. (d) all of these
Q.142. The rights inherent in a managerial position to give orders and to expect the orders to be obeyed is known
as___________.
(a) Responsibility
(b) Authority
(c) Chain of Command
(d) Span of control
Ans. (b) Authority
Q.143. Authority should be commensurate with____________.
(a) degree of coordination
(b) position in the hierarchy
(c) degree of responsibility
(d) degree of supervision
Ans. (c) degree of responsibility

Q.144. The beliefs, values and practices adopted by an organisation that directly influence employee conduct and
behaviour is known as__________.
(a) Corporate culture
(b) Corporate image
(c) Corporate values
(d) Corporate citizenship
Ans. (a) Corporate culture
Q.145. In which method of Performance Appraisal Employees are rated only two factors – job performance and
promotability, and they are placed between two extremes good and bad _________.
(a) Man-to-man comparison method
(b) Graphic rating method
(c) Forced distribution method
(d) Straight ranking method
Ans. (c) Forced distribution method
Q.146. Wages are paid to ___________.

(a) blue collar worker
(b) white collar worker
(d) none of these
Ans. (a) Blue collar worker
Q.147. Salary paid to _________.
(a) blue collar worker
(b) white collar worker
(d) none of these
Ans. (b) white collar worker
Q.148. The process of establishing career objectives and determining appropriate educational and developmental
programmes to further develop the skills required to achieve short- or long-term career objectives is called
______________.
(a) Career development

(b) Career ladder
(c) Career path
(d) Career planning
Ans. (d) Career planning
Q.149. Who has propounded Differential Piece Rate Plan?
(a) Henry Gantt
(b) Karl Marx
(c) Francis A. Walker
(d) Taylor
Ans. (d) Taylor
Q.150. The progression of jobs in an organisation’s specific occupational fields ranked from highest to lowest based
on level of responsibility and pay is called_____________.
(b) Career ladder

(c) Career path
(d) Career planning
Ans. (b) Career ladder
Q.151. The progression of jobs in an organisation’s specific occupational fields ranked from lowest to highest in the
hierarchical structure is called__________.
(b) Career ladder
(c) Career path
(d) Career planning
Ans. (c) Career path
Q.152. Which represent the lower limit of fair wages?
(a) Minimum wage
(b) Living wage
(c) Fair wage

(d) None of these
Ans. (a) Minimum wage
Q.153. Wages come under ____________.
(a) direct compensation
(b) indirect compensation
(d) none of these
Ans. (a) direct compensation
Q.154. According to the Committee of Fair Wages ___________ is the highest level of wage.
(a) minimum wage
(b) living wage,
(d) none of these

Ans. (b) living wage
Q.155. Who propounded Task and Bonus System?
(a) Henry Gantt
(b) Karl Marx
(c) Francis A. Walker
(d) Taylor
Ans. (d) Taylor
Q156. The main objective of the__________ is to provide for registration of trade unions and gives the registered
trade Unions a legal status and immunity to their office bearers from civil and criminal liability for pursuing
legitimate union activities.
(a) Contract Labour (Regulation and Abolition) Act, 1970
(b) Bombay Shop and Establishments Act, 1948
(c) Trade Union Act, 1926
(d) Industrial Disputes Act, 1947
Ans. c
Q157. The HR strategic measurement system is-
(a) Core efficiency measures
(b) Strategic efficiency measures
Ans. c
Q158. The type of managerial decisions which effect the workers of an industry is –
(a) Economic decision – methods of automation, production, mergers, layoff, shutdowns
(b) Personnel decision – work distribution, recruitment, selection, appraisals, transfers, settlement of grievances
(c) Social decision – welfare measures, safety of workers, health, sanitation, work duration, work rules
Ans. d
Q159. The major HR functions are –
(i) Acquisition of Employees

(ii) Training & Development
(iii) Performance Management
(iv) Reward System
(a) i, ii, iii
(b) ii, iii, iv
(c) i, ii, iv
Ans. d
Q160. What is Human Resources Planning?
(a) A Process which anticipates & maps out the consequences of business strategy on an organisation human
resources
(b) Involves forecasting the number of employees required and then working out the best mode of obtaining them
as & when they are needed

Ans. c
Q161. Discipline management means-
(a) Creating an environment where employees voluntarily obey rules & regulation.
(b) Handling cases of misconduct & Indiscipline
(c) Counseling the employees the need to follow rules
Ans. d
Q162. The underlying assumption of organisational communication is –
(a) Humans act rationally because they have access to all the information to articulate
(b) Communication is a mechanical process in which a message is constructed and encoded by a sender
transmitted through some channel & then received & decoded by the receiver.
(c) Organisations are mechanical things in which the parts are interchangeable
Ans. d
Q163. CRM stands for —
(a) Customer Relationship Management
(b) Career Relationship Management
(c) Capital Relationship Management
(d) Care Relationship Management
Ans. a
Q164. What are the advantages of internal recruitment process?
(i) Less Costly
(ii) Candidates already oriented towards organisation
(iii) Organisations have better knowledge about internal candidates
(iv) Employee motivation & morale is enhanced
(v) Traditional approach, play safe
(vi) It abets raiding

(vii) Candidates current work may be affected
(viii) Politics plays greater roles
(a) i, ii, iii, iv
(b) iii, iv, v, vi
(c) v, vi, vii, viii
Ans. d
Q165. The essentials of a good selection practice are –
(i) Detailed job description & job specifications prepared in advance & endorsed by HR and Line Management
(ii) Trained panel of interviewers, with special emphasis on behavioural event viewing
(iii) Line Mangers involved at all possible stages
(iv) All newly appointed candidates are put through a well-designed training program
(a) i, ii, iii
(b) ii, iii, iv

(c) i, ii, iii, iv
(d) Only i and ii
Ans. c
Q166._____ can be focus on the strategic dimension of their function.
(a) Human Resource outsourcing
(b) Human Resource Management
(c) Human Resource business Process Outsourcing
(d) Performance Management outsourcing
Ans. b
Q167. Counseling is –
(a) An established process ensures better compliances to rules leading to more productive employees
(b) Is an elaborate process which includes intent listening and adopting positive approach to guide the employee
the right way
(c) Giving necessary advice and taking corrective steps in implementation of the rules
Ans. d
Q168. The advantage of workers participation in decision making is –
(i) Reduction in confrontation helps workers in adapting to change Which helps in implementing new methods
easily
(ii) Management and workers have better communication which helps the implemented decision to be effective
(iii) Reduction of conflicts & disputes due to joint decision, hence increase in productivity
(iv) All of the above
Ans. d
Q170. Compensation is –
(a) The remuneration received by an employee in return for his/her contribution to the organisation
(b) It is an organised practice that involves balancing of work- employee relation by providing monetary & non-
monetary benefits to the organisation

Ans. c
Q171. The Function of Shop Council is –
(a) Increase in Production
(b) Overall efficiency
(c) Elimination of wastages
Ans. d
Q172. Strategic compensation is –
(a) Determining & providing the compensation packages that are aligned with the business goals & objectives
(b) A process of determining the compensation package based on strategies
Ans. a
Q173. Employee Risk Assessment –
(a) Is a careful examination of what could harm the people, so that one can assess whether they have taken
enough precautions or should do more to prevent harm
(b) Helps to focus on the risks that really matter at the workplace, the ones with the potential to cause harm
Ans. c
Q174. Under________ method, checklist of statements of traits of employee in the form of Yes or No based
questions is prepared.
(a) Rating Scales
(b) Trait Analysis
(c) Forced choice
(d) Forced distribution
Ans. b
Q175. The uses of Performance Appraisal are –

(i) Promotions
(ii) Confirmations
(iii) Training & development
(iv) Compensation reviews
(v) Competency Building
(a) i, ii
(b) iii, iv, v
Ans. c
Q176. What is a 360 degree appraisal?
(a) It is a technique which involves systematic collection of performance data on an individual or group, derived
from a number of stakeholders like immediate supervisors, team members, customers, peers and self
(b) It is in a form of questionnaire which involves a group of people who gives useful information on how an
employee does a job
Ans. c
Q177. What are the Disadvantages of Assessment centers?
(i) Costly & time consuming
(ii) Ratings strongly influenced by assessee’s interpersonal skills
(iii) Good performers may feel suffocated in simulated situations
(iv) Non selected candidates will get affected
(a) i, ii, iii, iv
(b) iii, iv
(c) i, ii, iv
Ans. a
Q178. HRM Goals be defined as –

(i) To meet the needs of the business & management
(ii) To link human resource policies to the business goals & objectives
(iii) To find ways for human resources to “add value” to a business
(iv) To help business gain the commitment of employees to its values, goals & objectives
(a) i, ii, iii, iv
(b) ii, iii, iv
(c) I, iii, iv
Ans. a
Q179. Learning styles may be –
(a) Auditory
(b) Visual
(c) Kinesthetic
Ans. d
Q180. Motivation is –
(a) A psychological feature that arouses an organism to action toward a desired goal
(b) The reason for the action that gives purpose and direction to behaviour
(c) A psychological process that gives the behaviour purpose and direction, a predisposition to behave in a
purposive manner to achieve specific, unmet needs
Ans. d
Q181. The “Hierarchy of need” theory –
(i) Human beings have wants & desires which influences their behaviour. Only unsatisfied needs influence
behaviour
(ii) Prioritisation of needs is important
(iii) The person advances to the next level of need if the lower level is satisfied
(iv) Upward Progression will exhibit a person’s more individuality, humanness & psychological health
(a) i, ii
(b) iii, iv
Ans. c
Q182._______ is the attempt to build in to jobs a higher sense of challenge and achievement.
(a) Job Enlargement
(b) Job Enrichment
(c) Job Rotation
Ans. b
Q183. The objective of Training & Development is –
(a) To Improve Performance

(b) An attempt to improve the current or future employee performance by increasing an employee’s ability to
perform through learning, usually by increasing his / her skills and knowledge
Ans. c
Q184. Under_______ method usually employees are put on different jobs turn by turn where they learn all sorts of
jobs of various departments.
(a) Job Rotation
(b) Job Coaching
(c) Job Instruction
(d) Apprenticeships
Ans. a
Q185. What are the merits of Job enrichment?
(i) It benefits employee & organisation in terms of increased motivation, performance, satisfaction, job
involvement and reduced absenteeism
(ii) Additional features in job meet certain psychological needs of jobholders due to skill variety, identity,
significance of job , etc.
(iii) It also adds to employee self-esteem & self-control
(iv) Gives status to jobholder and acts as a strong satisfier in one’s life
(v) Examine the jobs selected with the conviction that changes can be introduced
(vi) Screen the list for hygiene suggestions and retain only ideas classed as motivators
(vii) Remove the generalities from the list retaining only specific motivators
(viii) Avoid employee involvement in the design process
(a) i, ii, iii, iv
(b) iii, iv, v, vi
(c) v, vi, vii, viii
Ans. a
Q186. Motivation can be –
(a) Intrinsic
(b) Extrinsic
Ans. c
Q187. CRR Stands for –
(a) Cash revenue ratio
(b) Cash reserve ratio
(c) Cost revenue ratio
Ans. b
Q188. ______________ is a verbal lecture presentation by an instructor to a large audience.
(a) Classroom lecture
(b) Audiovisual
(c) Simulation
(d) Laboratories
Ans. a
Q189. Which pair represents the quantitative methods of job evaluation?
(a) Ranking and point methods
(b) Job classification and factor comparison methods
(c) Factor comparison and point methods
(d) Job classification and point methods
Ans. c
Q190. The method of settling industrial disputes with direct state intervention does not include
(a) compulsory establishment of bipartite committees
(b) adjudication
(c) collective bargaining
(d) compulsory conciliation

Ans. c
Q191. Which area does not require much attention in international HRM?
(a) concepts of wages
(b) remuneration paid by competing organisations
(c) statutory regulation of wages in the host country
(d) level of standard of living in the host country
Ans. a
Q192. A detailed and systematic statement of physical and mental attributes of an individual who is to fill a job is
called
(a) job evaluation
(b) job description
(c) job specification
(d) job classification
Ans. c
Q193. Management of change is concerned with context of
a. Organisation (inner and outer) / time of sequence
b. Change
c. Process of implementing change
d. All above
e. Both (a) + (c)
Ans. (d)
Q194. Human capital plays constructive role in M & A process. What is required for its effectiveness?
a. ensuring effective communications
b. achieving cultural alignment + formation of mobile team of transition executives + (a) above
c. treating those leaving with same respect and attention as those staying
d. Both (b) + (c)
Ans. (d)
Q195. The responsibility of the Line Managers in HR is to create conditions and develop them in order to enable
employee to
a. acquire and develop new condition
b. perceive possible outcome of such new capabilities + (a)
c. assess the self-growth and enjoy the growth process + (b) above d.
d. These are the responsibility of HR Manager
Ans. (c)
Q196. What are the requirements of an innovative recruitment?
a. Just hire even without specific job profile
b. Right leadership + (a)
c. Cross border and homing pigeon + (b)
d. Making its own leaders + (c)
Ans. (d)
Q197. What is the purpose of promotion?

a. Greater use to organisation
b. Recognition of individual performance + (a)
c. Promote job satisfaction + (b)
d. Provide opportunities to enhance employee’s skills and activities + (c)
e. Only (a) + (b)
Ans. (d)
Q198. Discuss the pitfalls of 360° performance appraisal
a. Cannot work in controlled, hierarchical environment
b. Collection of feedback, a discounting task
c. Subjectivity in rating/different behaviour and their different findings / tough task to rate boss or colleagues / +
(a) + (b)
d. Postponement of performance appraisal indefinitely when negative feedback / bosses tend to become hard
towards subordinates and give lower scores in the name of, better administration
Ans. (c)
Q199. Maslow Theory of motivation is based on –

a. Human needs
b. Achievement
c. Power needs
d. Two factors
Ans. (a)
Q200. Off the job Training Method consists of –
a. Lecturers / conference / group discussions / e-learning
b. Apprenticeship / assistant to executives / job rotation
c. Step, by step training identified in a sequence
d. Training on similar to those actual practice
Ans. (a)
Q201. Advantages of e-learning are –
a. Self-paced, allows for consistency and incorporates built in guidance
b. All trainees ready for e-learning

c. Appropriate for leadership and cultural change
d. Lesser upfront cost and investment
Ans. (a)
Q202. Features of collective bargaining is / are –
a. Collectively / equal strength / sufficient flexibility
b. Negotiations voluntarily / continuous process / dynamic process / power relationship
c. Employer-employee do not retreat from their positions
d. Both (a) + (b) collective
Ans. (d)
Q203. What do you mean by factual grievance?
a. Legitimate needs remain unfulfilled
b. Legitimate needs are fulfilled but others are not
c. Wrong perception / wrong attitude / wrong information by employees

d. Both (b) + (c)
Ans. (a)
Q204. Causes of industrial disputes are –
a. Wages / Union rivalry / multiplicity of labour laws
b. Political interferences / unfair labour practices
c. Economic slowdown + (a) + (b)
d. Both (a) + (b)
Ans. (c)
Q205. Recruitment placement and employment in personnel management, includes various features, which are –
a. Job analysis / HR planning / placement of right candidate
b. Introduction and orientation / internal mobility
c. Training / managerial skills development / career path development
d. All above
e. Only (a) + (b)

Ans. (e)
Q206. Frauds can be committed by –
a. Bank Staff
b. Bank Staff in collusion with outsiders
c. Frauds done by customers or outsiders
d. All above
Ans. (d)
Q207. How does works councils differ from Joint Committees of workers?
a. Works councils consist of members elected by employees; joint committees consist of representative’s
employees and employer
b. Works councils consist of nominated members both by employees and employers and same is far Joint
Committees
c. Works councils consist of representatives of employees while joint committees elected members of employees
d. Both works councils and joint committee members are nominated by Labour Welfare Officer
Ans. (a)
Q208. Total Quality Management refers to deep commitment to quality of products and services. For this how the
employees are involved by the organisation?
a. Extensive training in problem solving
b. Group decision making and statistical methods
c. To take responsibility for improving quality
d. Only (b) + (c)
e. All above
Ans. (e)
Q209. What is the purpose of Job-enrichment to workers?
a. Relieve the bore down of workers
b. Source of self-satisfaction
c. Substitute for workers participation
d. Both (a) + (b) only
e. All above
Ans. (d)
Q210. When does empowering occurs when
a. Power goes to employees
b. Feeling of sense of ownership
c. Feeling of that jobs belong to them
d. All above
e. Only (a) + (c)
Ans. (d)
Q211. Define Strike
a. A spontaneous and concerted withdrawal of labour temporarily
b. Collective stoppage of work by a group of workers for pressurising their employer to accept their demands
c. Both (a) + (b)
d. Persons employed to discontinue to work, at the instance of their employers

Ans. (c)
Q212. Kinds of Industrial disputes is / are –
a. Strikes / Lockouts / Gherao / picketing and boycott
b. Picketing and boycott / gherao
c. Strikes and lockouts
d. Gherva / strikes
Ans. (a)
Q213. Describe the essential features of personnel management
a. Concerned with employees both as individual and group / development of human skills
b. Covers all categories of employees / applies in all type of organisation,
c. Aims at attaining the organisational goals / concerned mainly with managing HR work
d. Both (a) + (b) only
e. All above
Ans. (e)
Q214. Employees should believe that there is consistent response to rules’ violations, which means
a. Discipline administration without discrimination
b. Without favouritism
c. Consistently
d. All above
Ans. (d)
Q215. Effective Discipline is of which types?
a. Appreciable and non-approvable
b. Positive and Negative
c. Harsh and Soft
d. Excusable and non-excusable
Ans. (b)
Q216. HRD environment eventually means actions, tendencies and commitments which supports.
a. openness and risks taking
b. Proactivity and autonomy
c. Collides with each other
d. Only (a) + (b)
Ans. (d)
Q217. To achieve, workers increased productivity and organisational profitability, the role of a HRD manager is –
a. to assist employees in obtaining knowledge / skills
b. to play enabling role for providing the right context
c. Intervention on individual and organisational effectiveness
d. Both (a) and (b)
e. All above
Ans. (e)
Q218. Define the basic steps needed in BPR
a. Implementation of traditional process / designing and preparing a prototype of new process

b. Implementation of new process / reviewing and evaluating the progress.
c. Identification of I.T. levels / discarding the existing processes
d. Development of business vision keeping the old objectives
Ans. (b)
Q219. Members of the team take responsibility, for the team as a whole only if there is –
a. Co-operation
b. Support and trust
c. Common objective
d. Appropriate leadership
Ans. (d)
Q220. What are the expectations from HR department?
a. Change a fact of corporate life
b. Employee satisfaction
c. Employees commitment
d. All above
Ans. (d)
Q221. Important features of knowledge are –
a. Does not suffer from scarcity / location no longer matters
b. Trade business, laws, taxes etc., cannot be applied easily + knowledge is difficult to quantify
c. Both (b) + (a)
d. Knowledge is difficult to quantify + (a) above
Ans. (d)
Q222. What is the major change in Public Sector Banks, after globalisation?
a. Shed off their traditional attitude
b. resorted to aggressive marketing
c. Used better technology and customer orientation as against private sector banks
d. Success depends on the ability of banks for financial potential

Ans. (a)
Q223. Essentials required in a good manager in an organisation, are –
a. Moral quotient
b. Should not sacrifice long term value
c. Spiritual quotient
d. All above
Ans. (d)
Q224. Psychological barriers in communication do not include –
a. Ill-considered judgements
b. Failure to listen oral or non-verbal communications
c. Loss by transmission and poor retention
d. Unwillingness to communicate upward
Ans. (d)
Q225. What is the object, under performance appraisal of the employee, in any organisation?
a. Avoid discrimination in ranking the personnel
b. Avoid professionalism to base the career of the personnel
c. To assess as per whims of the seniors
d. To assess as per exit policy of the organisation
Ans. (a)
Q226. The leadership function is exercised by
a. The formal leader only
b. Members other than the formal leader
c. Leaders to produce result
d. Members to have goal clarity
Ans. (b)
Q227. The main activities of change management are –
a. Filtering changes / managing changes / management reporting

b. Reviewing and closing of requests for change
c. All above
d. Providing management information
Ans. (c)
Q228. Feedback is a regular interaction with the employee and shows:
a. response to acts and omission or commission
b. opportunity to improve his/her performance + (a)
c. sort of summary of an employee’s work
d. non-performance / performance / contribution of the employee
Ans. (b)
Q229. What is the job of work analysis in competency mapping?
a. Helps to describe skills required to carry out a function
b. tasks / responsibilities and skill requirements for successful job

c. Workforce of the future in line with the vision
d. All above
Ans. (a)
Q230. Anything which gives satisfaction to the person is called –
a. Incentive
b. Reward
c. Achievement
d. Involvement
Ans. (b)
Q231. State any three common causes of indiscipline
a. Unfair management practices / communication barriers / Non-uniform disciplinary action
b. Divide and Rule Policy / absence of effective leadership / adequate attention to personnel problems
c. Delay in solving problems / frustration among individuals / mild pressures on subordinates

d. Dividing one’s own team / undertaking disciplinary actions leading to non-violent protests/provision of upward
communication.
Ans. (a)
Q232. What are the factors in the situation that influence perception?
(a) Interest and time
(b) Interest and social setting
(c) Work setting and time
(d) Experience and proximity
Ans. (c) Work setting and time
Q.233. Audits of managers are called ______________.
(a) Management inventory
(b) HR audit
(d) Skill, inventories

Ans. (a) Management inventory
Q.234. Favoritism shown to relatives by individuals in a position of authority, such as managers or supervisors is
known as ___________.
(a) Nepotism
(b) Favour
(c) Discrimination
(d) None of these
Ans. (a) Nepotism
Q.235. Judging someone on the basis of one’s perception of the group to which that person belongs, is known as
___________.
(a) Selective perception
(b) Halo effect
(c) Contrast effect
(d) Stereotyping
Ans. (d) Stereotyping
How much service must employees normally have to claim unfair dismissal?
Correct answer:
d) Two years
Question 2
If a qualified employee requests a written statement of the reasons for dismissal, the employer must provide one
within what time period?
Correct answer:
a) 14 days
Question 3
If a tribunal finds that an employer has not complied with its obligation to provide a written statement of reasons
for dismissal it must order that the employee receives which of the following?
Your answer:
c) 2 weeks' pay
Question 4
What is the legal effect of the ACAS Code of Practice?
Correct answer:
a) The Code itself does not have the force of law but a breach will be taken into account in assessing
compensation.
Question 5
For the purposes of being accompanied, a grievance hearing is one which:
Correct answer:
d) Concerns the performance of an employer's duty

Question 6
Re-employment can be ordered by a tribunal only if:
Question 7
Failure to comply with a re-employment order may result in an additional award of how much?
Your answer:
c) 26-52 weeks' pay
Question 8
The basic award of compensation is normally calculated in the same way as:
Correct answer:
a) A redundancy payment?
Question 9
The courts have established that a compensatory award should do which of the following?
Correct answer:
b) Reimburse the employee for losses suffered
Question 10
When must a claim for unfair dismissal normally arrive at an ET?
Correct answer:
c) Within 3 months of the effective date of termination

In which decade did HRM originate?
You did not answer the question.
Correct answer:
c) 1980s
Feedback:
1980s - the term originated in the USA in the early 1980s and offers the promise that the people management
function, where it exists, can meet the challenges faced by contemporary organizations and occupy a heightened
strategic role if its philosophies and practices are used.
Page reference: 7
Question 2
What are the ideas underpinning 'soft', 'commitment', or 'high-road' HRM practices?
Correct answer:
a) Labour needs to be treated as an asset to be invested in
Feedback:
These approaches stress the mutuality existing between employer and employee; see labour as an asset to be
invested in rather than treated as a cost, and view commitment to and investment in human capital activities as
central to competitive advantage.
Page reference: 10
Question 3
Which consulting company is associated with the concept of talent management?
Correct answer:
d) McKinsey
Feedback:
McKinsey and their 'War for Talent' reports are associated with this concept; arguing that the 'knowledge
economy' was placing a premium on talented employees.
Page reference: 10
Question 4
Why are employers interested in employee engagement?
Correct answer:
c) Because engaged employees are more motivated and prepared to give of their best to make the firm succeed
Feedback:
Engaged employees are argued to have a sense of personal attachment to their work and the company; they are
prepared to give of their best for the organization, and if the employer delivers on their commitments to staff, the
psychological contract is enhanced between both parties; enhancing mutual trust and the employee's sense of
fairness.
Page reference: 11
Question 5
Which of the following is a key HR role as defined by Ulrich et al (2009)?
Correct answer:
b) Business ally
Feedback:
Ulrich and his colleagues developed six key roles for HR practitioners, arguing that fulfilling them will lead to added
value for the function and for the organization. They are: credible activist, culture and change steward, talent
manager/organizational designer, strategy architect, operational executor, and business ally.
Page reference: 16-17
Question 6
The term 'emotional labour' is associated with which author?
Correct answer:
a) Arlie Hochschild
Feedback:
Emotional labour, and engaging in aspects of it, is increasingly seen as being a crucial component of the service
encounter, whether that occurs virtually or on a face to face basis. The term and the concept is associated with the
ground-breaking work of Hoschshild and her (1983) book, The Managed Heart.
Page reference: 13
Question 7
What does the term 'financialization' refer to?
Correct answer:
a) A process whereby financial markets and institutions gain greater influence over economic policy, economic
outcomes and the elevation of the financial sector over others.
Feedback:
It is a term used to describe the dominance of profit-making mechanisms that rely on financial transactions in the
global finance markets rather than trading and commodity/service production.
Page reference: 12
Question 8
Why do some commentators claim that it is unlikely that the UK economy will become a knowledge economy?
Correct answer:
c) Historically low levels of company investment into research and development.
Feedback:
Some commentators claim that due to low levels of company investment into research and development it is
unlikely that the UK economy will become a knowledge economy. Indeed, a low-skill strategy is arguably more
important, and more likely in many sectors.
Question 9
What measures are typically involved in the rationalizing of businesses?

Correct answer:
c) Downsizing and Delayering
Question 10
What kinds of practices outlined below are typically associated with non-standard working and flexibility?
Correct answer:
b) The reduction in distinctions between standard and unsocial hours or standard and extra hours
What is the main purpose of a business strategy?
Correct answer:
d) To secure and sustain competitive advantage within a given market for goods and services.
Feedback:
There are various definitions as to what strategy is. Usually definitions of the term will refer to the ways in which
an organization can secure competitive advantage over time and within competitive markets. Others will see
strategy as being the routine ways in which the organization overcomes problems it faces in its environment.
Whatever the definition chosen, a degree of contingency exists due to market dynamism.
Page reference: 23
Question 2
Which of these models is not a rational planning approach?
Correct answer:
c) Processual approach
Feedback:
The Corporate-level, strategic business unit level and operational level approaches are perceived to be the
different levels of a rational planning approach. All of these 'levels' suppose that a strategy can be developed
through a logical, systematic, and coherent decision-making practice that occurs within the organization and in
consultation with relevant external bodies. The Processual approach formulates strategy through a step by step
approach whereby strategies emerge in incremental steps over time.
Question 3
What type of rationality is evident in the processual approach?

Correct answer:
c) Bounded
Feedback:
Bounded rationality is evident in the processual approach. This form of rationality involves an acceptance that
decision-makers can only process a limited number of ideas at one time and therefore no decision can be seen to
be entirely rational. Furthermore, there is a reluctance to try and find all relevant information, as witnessed in the
rational-planning approach. There is a tendency to accept the first satisfactory option rather than insisting on the
best.
Question 4
Which of the following is a 'best fit' approach?
Correct answer:
c) Competitive-advantage models
Feedback:
Competitive-advantage models are 'best fit' approaches. The approach asserts that if a certain set of HR policies
and practices are adopted then an organization will gain in competitive advantage. This involves gaining advantage
either through cost leadership, asserting differentiation through quality of produce or service, or through focus in a
'niche' market. The approach assumes that there is a 'best' option that ought to be adopted. However, it can be
argued that adopting one practice at the expense of others is a limited and narrow minded approach to linking
strategy, business performance and HRM practice.
Question 5
Which approach that seeks to link strategy, business performance and HRM policies and practices, assumes that
there are a number of HRM practices that are suitable for all organizations?
Correct answer:
a) Best practice
Feedback:
Best practice approach assumes that a number of HRM policies and practices are suitable for all organizations in
order to achieve greater business performance. Unlike the best fit approach, that presupposes that certain HRM
practices and policies suit different organizations. Although, they both claim that there is a certain superior set of
practices that ought to be adopted by organizations in order to achieve greater business performance.
Question 6
Which personnel association uses the idea of bundles of integrated HRM practices?
Correct answer:
c) Chartered Institute of Personnel and Development
Feedback:
The idea of bundles of integrated HRM practices lies at the heart of thinking on high-performance work practices,
an approach that has been promoted by the Chartered Institute of Personnel and Development (CIPD).
Page reference: 34
Question 7
Which country is associated with the universal best practice approach?
Correct answer:
b) US
Feedback:
The universal approach is referred to as the US-based HRM approach. This approach has been criticised for its
generalisations and over simplifications of different environments.
Page reference: 34
Question 8
Which approach towards HRM strategy does the Saatchi and Saatchi example illustrate?
Correct answer:
d) Resource based approach
Feedback:
The example illustrates the resource based approach. The greatest asset that the organization benefited from, was
the skills, knowledge and expertize that were embedded in the staff when Roberts took the decision that the
organization should become an ideas compnay.
Page reference: 24
Question 9
Focusing on core competencies means companies have the possibility of generating?
Correct answer:
a) Human capital advantage
Feedback:
Core competencies will lead organizations to advance in terms of human capital, which in turn may lead to the
other benefits listed.
Page reference: 37
Question 10
What is the primary limitation of the resource-based view?
Correct answer:
a) It overlooks the significance of the wider environment.
When employing immigrants, managers must be aware of?
Correct answer:
c) Relevant legislation
Feedback:
While all might be of at least some relevance, as for example culture and religion might require special facilities,
relevant legislation is the correct answer. Managers must ensure that any policies/procedures do not break the
law.
Page reference: 58
Question 2
The STEEPLE framework is flawed because:
Correct answer:
a) it can result in managers concentrating on the detail and missing the overview.
Feedback:
While all are true to some extent, the main problem with STEEPLE is the potential loss of seeing the whole picture
by being too focused on the separate elements.
Page reference: 45
Question 3
A derived demand is one whereby?
Correct answer:
a) The nature of demand changes depending on the demand for the organization's output and the method used to
produce the output.
Feedback:
An organization's demand for labour, whether measured in number of employees or employee hours, is 'derived
from' (that is, determined by) the demand for the organisation's output and the method used to produce the
output.
Page reference: 50
Question 4
The basis of liberal democracy is?
Correct answer:
b) Rights and responsibilities
Feedback:
While all these might be considered aspects of a liberal democratic society, the basis is rights and responsibilities
and Morris et al. (2002:177-8) elaborate by detailing the 5 elements that make up these rights and responsibilities.
Page reference: 52
Question 5
A representative democracy is characterized by?
Correct answer:
b) Adults electing representatives to act on their behalf at the different levels of the legislature.
Feedback:
A cornerstone of representative democracies is that all adults are able to elect a representative to act on their
behalf at different levels of the legislature.
Page reference: 52
Question 6
Community law within the EU is an independent legal order:
Correct answer:
d) which takes precedence over that of member states.
Feedback:
Community law is interpreted by the European Court of Justice, and its decisions take precedence over those of
member states. As such, the law is of major importance to organizations and can change relatively quickly; hence
organizations must keep themselves informed and be aware of legal decisions.
Page reference: 54
Question 7
Gross National Product is:
Correct answer:
b) GDP plus net property income earned abroad.
Feedback:
The income earned abroad may include profit, rent, interest etc.
Question 8
UK governments have favoured immigration because?
Correct answer:
b) It meets a demand.
Feedback:
Such influxes have implications for organizations in all sectors. In particular, it enables organizations to recruit
when skills are in scarce supply in the domestic labour market.
Page reference: 58
Question 9
Are Gilmore and Williams arguing that the role of technology in industrial development is:
Correct answer:
b) one amongst many other factors.
Feedback:
Gilmore and Williams argue that technology and globalization are inexplicably linked and as such technology is
one, and an important one, of the so called 'drivers' of globalization.
Page reference: 60
Question 10
Footloose companies are those that?
Correct answer:
c) Seek to locate in countries that offer markets, reduced resource costs and lower rates of corporation taxes.
Which organization is used as an example to illustrate a number of issues related to organizational context
throughout the chapter?
Correct answer:
a) Bass Taverns
Feedback:
Bass Taverns, a public house retailer is used to illustrate the outcomes of a number of changes to the
'organization's context' - referring to the internal dynamics of an organization.
Page reference: 69
Question 2
According to Child (2005), 'the vertical aspect of the division of labour provides...?'
Correct answer:
c) for a specialization of discretionary decision-making responsibilities through specifying levels in a hierarchy.
Feedback:
Provides for a specialization of discretionary decision-making responsibilities through specifying levels in a
hierarchy.
Page reference: 67
Question 3
Boundary crossing is an activity that:
Correct answer:
d) is focused upon achieving internal organizational integration between various organizational roles and units in
order to generate creativity and synergy.
Feedback:
Boundary-crossing is focused upon achieving internal organizational integration between various organizational
roles and units in order to generate creativity and synergy.
Page reference: 67
Question 4
Procedures provide for an important element of consistency in managerial?
Correct answer:
d) Decision-making
Feedback:
The existence of formal, bureaucratic procedures for dealing with HRM matters can be advantageous for
managers. Using procedures can help to legitimate management decisions by demonstrating that they have been
reached in an apparently fair manner. The decision to reject an employee's complaint about his/her treatment at
work is more likely to be accepted if it has been arrived at according to the rules and regulations extant in the
organization. Procedures provide for consistency in managerial decision-making.
Page reference: 68
Question 5
Why has the bureaucratic form of organization been fundamentally questioned?
Correct answer:
b) Organizations are experiencing acute pressure to change and pursue innovation as a means of securing business
growth.
Feedback:
A key focus of bureaucracy's critics is upon its alleged inflexibility. How relevant is the bureaucratic form of
organization in the twenty-first century, when flexibility, innovation, and creativity are often seen as the main
ingredients of organizational success?
Page reference: 68
Question 6
Processual change is best described as?
Correct answer:
a) A complex ongoing dynamic in which the politics, substance and context of change all interlock and overlap.
Feedback:
Dawson (2003: 14) argues that organizational change is best viewed as a process rather than an event - 'a complex
ongoing dynamic in which the politics, substance and context of change all interlock and overlap...'.
Page reference: 69
Question 7
Who famously adopted Taylor's Scientific Management approach?
Correct answer:
c) Henry Ford
Feedback:
Famously, motor-car manufacturers like Ford adopted and modified Taylor's ideas when introducing assembly-line
technology for the mass production of vehicles
Page reference: 73
Question 8
The most pertinent criticism of the empowerment concept concerns:
Correct answer:
b) the limited evidence for any shift towards a substantially more empowered workforce.
Feedback:
The main criticism of the empowerment concept is the limited evidence for any shift toward a substantially more
empowered workforce.
Page reference: 76
Question 9
What is the most effective and insidious use of power, according to Lukes (1974)?
Correct answer:
c) To prevent any form of conflict arising in the first place.
Feedback:
Lukes (1974: 23) asks: is it not 'the supreme exercise of power to get another to do what you want them to do by
controlling and shaping their wants?' Thus the 'most effective and insidious use of power is to prevent any conflict
arising in the first place'.
Page reference: 80
Question 10
As Morgan (1997:167) observes, 'conflict arises whenever interests collide'. There are three broad perspectives we
can draw upon to understand conflict in organizations. Which of these is not one of the three perspectives
identified?
Correct answer:
b) Practitioner
The chapter argues that one of the following attributes of potential employees is of heightened interest to
employers when recruiting. Which one is it?
Correct answer:
c) The candidate's ability to prepare for and cope with an uncertain future
Feedback:
One of the things recruiters have to do when assessing a candidate is to predict their ability to prepare for and
cope with an uncertain future - something that is very difficult to do. Organizations and their environments can
change and change rapidly, so seeking out adaptable staff is crucial.
Page reference: 90
Question 2
Selection is concerned with...?
Correct answer:
d) Applying appropriate techniques and methods to select a candidate.
Feedback:
Although recruitment and selection are seen as being inextricably intertwined and part of the same process, it is
useful to make a distinction between them. Recruitment activities aim to attract a pool of suitably qualified
candidates. Selection is concerned with applying appropriate techniques and methods with the view to select a
candidate.
Page reference: 90
Question 3
Which activities are not associated with workforce planning?
Correct answer:
c) Time keeping
Feedback:
The CIPD define workforce planning as a core process of HRM that is shaped by the organization's strategy and
ensures the right number of people with the right skills, in the right place at the right time to deliver the
organization's objectives.
Question 4
Why is job analysis so infused with organizational politics? Is it:
Correct answer:
a) Because it is a process which could lead to contraction of employees in a department and therefore diminishing
its power base.
Feedback:
Job analysis is often infused with organizational politics as managers rarely wish to see reductions in their staff, and
the kinds of questions asked often lead to justifications for employment; for example, arguing that additional
employees are needed to cope with higher workloads. Although individuals are recruited to a specific company, in
reality they are generally working for a department, and the department is unlikely to admit that it no longer has a
need for labour, as that will diminish its power base.
Page reference: 92
Question 5
What do rational processes to recruitment and selection typically ignore?
Correct answer:
d) The use of power and micropolitics by managers
Feedback:
The strength of the systems approach and its rational approach to recruitment and selection is that it takes into
account a variety of structural issues like the labour market (local, national or international), employee turnover,
wages, benefits and other aspects of the employment contract. What it fails to take into account is the ways by
which managers influence the processes to their own advantage.
Page reference: 93
Question 6
Which is the most popular method of recruiting applicants to jobs?

Correct answer:
b) Corporate website
Feedback:
While all are some of the many methods used to attract applicants, the three most popular are the corporate
website, recruitment agencies, local press and employee referral schemes
Question 7
Which selection method remains the most used by organizations?
Correct answer:
a) Interviews
Feedback:
Whilst all four methods are popular, the interview remains the most frequently used method of selection.
Page reference: 100
Question 8
Which items below are forms of perceptual errors made during the selection process?
Correct answer:
a) Like-me judgements
Feedback:
Some of the most problematic forms of perceptual error are listed in box 5.8 and include the horns and halos
effect, first impressions, impression management and like-me judgements. In order to deal with them,
organizations are advised to train existing and would-be interviewers so that they are aware of their potential
biases.
Page reference: 102
Question 9
Which of the below is a form of interview used in candidate selection?
Correct answer:
b) The competency based interview
Feedback:
There are a variety of interviews that can occur within HRM activities and within the selection process. Three main
interviews are used within selection with the competency based interview being one of them. The others are the
biographical and situational.
Question 10
The interview is used as a method for determining?
Correct answer:
b) The degree of fit between the applicant and the demands of the jo
According to the Leitch Review of Skills (2006), the ability of firms to succeed in the face of growing international
competition depends increasingly on:
Correct answer:
d) Skilled labour
Feedback:
The Leitch Review of Skills, along with many governments and employers, assert that there is a positive correlation
between the possession of a skilled workforce, higher workplace productivity, and industrial competitiveness.
Page reference: 113

Question 2
What is the main reason employers give why employees are not fully proficient?
Correct answer:
a) Lack of experience
Feedback:
A lack of experience was given as at least part of the reason explaining almost three in four of all skills gaps. This
means that many of these deficiencies may be relatively short term and capable of being bridged over time or as a
result of training and development interventions.
Page reference: 114
Question 3
According to Gold (2007) where does the demand for skills tend to originate?
Correct answer:
c) Strategic-level decision-makers
Feedback:
Gold's research identified the strategic-level decision makers of an organization as the likely source demanding
greater skills. However, all of the options may demand the need for training and skills. Furthermore, training is not
often high on the agenda of management because of short-term pressures for meeting financial and other
performance targets. As such the demand for skills may be better pursued by other sources such as governments -
a recommendation of the Leitch Report.
Page reference: 115
Question 4
What best describes the Conservative governments' approach to learning in the 1980s?
Correct answer:
c) Voluntarism
Feedback:
The actions of the Conservative governments not only re-emphasised voluntarism, but also resulted in a range of
policies intended to generate an enterprise culture - as witnessed in the development of a new national curriculum
designed to meet the needs of employers.
Page reference: 116
Question 5
Which of the stages below are part of the Systematic Training Cycle?
Correct answer:
b) Design training
Feedback:
The four stages of the STC consist of evaluating training needs, designing training, delivery and evaluation.
Therefore, answer b is the correct answer.
Page reference: 121
Question 6
What is the main disadvantage of off-the-job learning ?
Correct answer:
a) It isn't always directly related to real organizational issues and needs
Feedback:
The main disadvantage of off-the-job-learning is that it is not always directly related to real organizational issues
and needs and can tend to be used to replicate existing practices which may be obsolete or need amending.
Page reference: 124

Question 7
During which decades did the STC emerge?
Correct answer:
a) 1950-1960s
Feedback:
The STC emerged during the 1950-60s so is over fifty years old, with questions increasingly being asked concerning
its continued relevance. Given the need to plan training policies and activities, this model helps ensure that
training interventions and objectives are appropriate and avoids 'wrong' training occurring because of its focus on
TNA.
Page reference: 121
Question 8
A cultural view of learning considers the values and norms of communities through...?
Correct answer:
d) Talk, practices and stories

Feedback:
Organizational learning following this approach is concerned with what people do in their local situation and how
learning takes place often more informally, but is situated within a given context and is a function of activity
occurring at the local level.
Page reference: 127
Question 9
What is a 'communities of practice' approach to organizational learning?
Correct answer:
b) An approach that focuses on the values, beliefs and norms of a social group.
Feedback:
'Communities of practice' is an approach to learning that has proved popular because it focuses on what groups
practice and on the values, beliefs, and norms that are shared through talk, practices and stories in a group, and
how these connect with the creation of skilled practitioners who are able to take new unskilled participants from
the unskilled periphery of the group to becoming a skilled involved member of it.
Page reference: 127
Question 10
Chase's study (1997) identified what issue as being the biggest obstacle to creating a knowledge-creating
company?
Correct answer:
b) Organizational culture
Question 1
The employee perspective on reward involves ensuring that the package of rewards is...
Correct answer:
b) Attractive
Feedback:
The employee perspective on reward tends to focus on how attractive the package is. Issues to go with
affordability or other issues that concern the employer are usually less concerning for staff.
Page reference: 133
Question 2
'New pay' is overtly...?

Correct answer:
b) Managerialistic
Feedback:
New pay is overtly managerialistic and, in the absence of any regulation through employee representation,
promotes a unitary employment relationship. However, in contrast to managerially driven new pay, skills or labour
market shortages empower employees to determine reward arrangement, and this contextual factor clearly
undermines any prescription in reward approaches.
Question 3
A pluralist approach to pay determination occurs in what fraction of organizations?
Correct answer:
a) 1/5
Feedback:
Pay determination is increasingly unilaterally determined by management, and the UK trend is towards pay for
performance. The contrasting pluralist approach where pay is co-determined occurs in only around one-fifth of
organizations. However it needs to be recognized that the decline in pay bargaining is largely confined to the
private sector, where there was a pay-bargaining incentive in only 11 percent of organizations in 2004. In the
public sector, and reflecting higher levels of trade-union membership, pay was co-determined in over three-
quarters of organizations.
Question 4
Market related pay is based on what type of economics?
Correct answer:
d) Classic economic theory
Feedback:
Market-related pay is based on classical economic theory, where pay decisions are influenced by market supply
and demand for labour. Where supply of labour exceeds demand, this will tend to suppress levels of pay;
conversely, where the demand for work or skills of a particular kind exceeds supply, there will be a tendency for
upward pressure on pay.
Page reference: 142
Question 5
What type of approach has Gilmore and Williams taken towards pay and reward?

Correct answer:
a) Contingency
Feedback:
Gilmore and Williams follow the contingency approach towards pay and reward, arguing that there are no perfect
solutions for all organizations or industries and no quick fixes. However, emerging and declining trends exist and
reflect the contextual as well as the contingent nature of reward and in no way dampen enthusiasm for pursuing
'perfection' in reward systems.
Page reference: 147
Question 6
What is the average percentage of employee financial benefits of the total pay cost organizations spend?
Correct answer:
b) 10-20%
Feedback:
Average costs of employee financial benefits are 10-20% of total pay costs, although they can be as much as 30-
40% in some cases. There is a compelling argument for the active management of the benefits package to ensure
that reward strategy objectives are met and value for money is achieved.
Page reference: 147

Question 7
Which French-owned telecommunications manufacturer is used as an example by Gilmore and Williams of an

organization that introduced flexible benefits for its 600 employees?
Correct answer:
b) Alcatel Telecom
Feedback:
Alcatel Telecom introduced flexible benefits for its 600 employees and installed electronic kiosks in the workplace
to enable staff to monitor and modify their benefits.
Page reference: 148
Question 8
Final salary pension schemes =?
Correct answer:
c) The number of years of employee service applied to final salary on retirement to produce a pension entitlement.
Feedback:
Final salary pension schemes pay benefits that are determined by taking the number of years of employee service
and applying them to final salary on retirement to produce a pension entitlement. Final-salary arrangements
therefore provide defined benefits. In contrast, money-purchase schemes pay benefits that are determined by the
value of a pot of money that is accumulated through employee and/or employer contributions and investment
decisions.
Page reference: 148
Question 9
How much, on average, do women earn less, per hour, than men?
Correct answer:
a) 10%
Feedback:
More than 40 years on from the Equal Pay Act reaching the statute book, women still earn around 20 per cent less
per hour than men, combining full-time and part-time earnings (Metcalf, 2009). Depending upon how comparisons
are made (see below for pay gap measures) the gender pay gap is around 25 per cent in the private sector, and 19
per cent in the public sector. According to the Chartered Management Institute (CMI, 2011) the gap between the
pay of male and female managers has widened by £500 to over £10,000. Female managers reported being paid an
average £31,895 per year, compared with £42,441 for men doing the same job.
Page reference: 149
Question 10
The greater individualization of pay can be a problem in certain situations...

Correct answer:
c) When the company's share price dips.
What is the name of the body responsible for upholding and enforcing workplace health and safety in the UK?
Correct answer:
a) HSE
Feedback:
The Health and Safety Executive (HSE) is the body responsible for upholding and enforcing workplace health and
safety standards in the UK. It claims that ensuring employee safety and well-being is a critical factor in
organizational success.
Page reference: 169
Question 2
How many days were not worked in 2010-11 as a result of work-related injury or ill-health according to the HSE?

Correct answer:
b) 26.4 million
Feedback:
The HSE has calculated that in 2010-11 some 26.4 million days were not worked due to work-related injuries or ill-
health with much of this being attributable to work-related stress, depression, or anxiety.
Page reference: 169
Question 3
What disorder/problem do office workers commonly suffer from?
Correct answer:
a) Musculoskeletal disorders
Feedback:
The most common problem that office workers suffer from is musculoskeletal in nature - affecting the body's
muscles, nerves, joints and tendons. It is seen in repetitive strain injuries, carpal tunnel syndrome, and tendonitis.
The areas affected are usually the back, neck, shoulders and upper limbs.
Page reference: 171

Question 4
The CIPD's (2011) Learning and Talent Management Survey found that talent management schemes were more
likely to be found in which companies?
Correct answer:
b) Private sector firms employing 5,000 or more staff
Feedback:
The survey found that talent management activities and schemes were more prevalent within larger companies
employing 5,000 or more staff. Larger organizations use this method to secure manager/leader succession whereas
smaller ones use it to attract and retain key talent.
Page reference: 167
Question 5
How much money is work-related stress estimated to cost the UK economy?
Correct answer:
d) 3.7 billion pounds

Feedback:
The 13 million days lost at work costs some £3.7 billion annually. Moreover, an additional cost to some
organizations has come from the increase in personal injury claims brought against them by employees who have
suffered from the adverse effects of work-related stress.
Page reference: 169
Question 6
What Act primarily makes up the statutory framework for health and safety at work in the UK?
Correct answer:
d) Health and Safety at Work Act (HASAWA)
Feedback:
In the UK, it is the Health and Safety at Work Act (HASAWA) 1974.
Page reference: 169
Question 7
The HSE emphasizes which of the following activities?

Correct answer:
b) Education, advice and information
Feedback:
The HSE increasingly emphasizes the importance of education, advice and information in promoting improved
workplace health and safety.
Question 8
What is the most common form of organizational intervention designed to improve employee well-being?
Correct answer:
a) Secondary and tertiary
Feedback:
The most common forms of response are the tertiary and secondary, and focus on the individual employee.
Tertiary approaches tend to rely on programmes that encourage healthy lifestyles, or provide general education on
how to cope with stress. Secondary interventions operate by improving the coping strategies of individuals through
the replacement of maladaptive coping styles with successful ones, with the aim of making individuals less
vulnerable to stress. Primary responses are rarer and involve action taken directly by the employer to deal with
well-being issues. These might include the redesign of jobs, employee consultation, or alterations to management
style.

Question 9
What are the main aims of Employee Assistance Programmes?
Correct answer:
b) To address team and individual performance and well-being in the workplace.
Feedback:
According to the EAPA, EAPs address team and individual performance in the workplace - they are strategic
initiatives designed to produce organizational benefit through a systems-led approach and human asset
management.
Page reference: 174
Question 10
Which form of flexibility is concerned with where organizations deploy their human resources?
Correct answer:
d) 800 million Locational flexibility

what situation might redundancy not be considered as unfair dismissal?
Correct answer:
a) When you can demonstrate changing business circumstances mean fewer employees are required.
Feedback:
Under UK law, redundancy is a potentially fair reason for dismissing staff. In other words, if employers can
demonstrate that a genuine redundancy situation exists then they should be protected against claims for unfair
dismissal from redundant employees. However, redundancy is considered unfair if, for example, there has been a
failure to consult employees. The key issue is that an employer has to be able to demonstrate that changing
business circumstances mean that fewer employees are required, not that there has been a reduction in the
amount of work.
Page reference: 180
Question 2
Organizational-wide restructuring processes frequently cause redundancies via offshoring. This refers to:-
Correct answer:
b) Transfer of organizational functions to other locations.

Feedback:
One form of restructuring that has become increasingly commonplace concerns the transfer of organizational
functions to locations in countries like India where staff are much less costly to employ. Such 'offshoring' of jobs, as
it is often known, can be an important source of redundancies among the workforce of firms that adopt such an
approach.
Page reference: 182
Question 3
What does attrition in the context of redundancy mean?
Correct answer:
c) Reduction in staff numbers without making job cuts
Feedback:
If the situation demands fewer posts are required, some form of attrition is a popular alternative to redundancies.
Attrition, which means letting staff numbers fall without the need for direct intervention to cut existing jobs, can
encompass a number of methods, principally early retirement schemes, whereby older staff are encouraged to
leave before their normal retirement age with the offer of an appropriate financial incentive, and so-called 'natural
wastage', which involves not replacing staff when they voluntarily resign their positions.
Page reference: 186
Question 4
The main problem with using early retirement and natural wastage as alternatives to redundancy is?
Correct answer:
d) It can be a very slow means of downsizing an organization.
Feedback:
While all might be potentially problematic, the main problem with the use of early retirement and natural wastage
is that they are potentially very slow means of downsizing an organization.
Page reference: 186
Question 5
Factors which are important when encouraging people to choose voluntary redundancy include:-
Correct answer:
a) A recognition that redevelopment is unlikely.
Feedback:
While all might apply with unscrupulous employers, one of the factors that apply is the recognition that
redeployment is unlikely. The other factors include the opportunity to 'escape' increasingly onerous and
unappealing jobs; and the prospect of an attractive severance payment.
Page reference: 188
Question 6
Under what circumstances do statutory obligations on employers not apply?
Correct answer:
a) When there are less than 20 people in the organization.
Feedback:
In the UK there are certain statutory obligations on employers when redundancies arise, concerning employee
consultation and severance payments for staff who lose their jobs. In situations where an employer proposes to
dismiss twenty or more employees within a ninety day period, and a 'collective redundancy' situation arises, at
least thirty days before the first dismissals are due (ninety days where it is proposed to dismiss 100 or more
employees) they are obliged to inform and consult with either the representatives of the recognized unions, where
they exist, or in non-union firms with elected staff representatives of the affected employees.
Question 7
The traditional approach favoured by trade unions for selecting employees for redundancy was...?
Correct answer:
c) Last in first out (lIFO)
Feedback:
The traditional approach, one that tended to be supported by trade unions, was to use the length of an employee's
services as the principal selection criterion. Under the principle of 'last in, first-out' (LIFO), staff with the least
experience in the organization are the ones chosen to go first.
Page reference: 191
Question 8
Which of the following is not a type of in-house support for dismissed employees?
Correct answer:
a) Skills training by consultants.
Feedback:
In the UK, they are under a statutory obligation to give employees who are under notice of redundancy a
reasonable amount of time off work to look for alternative employment or to make arrangements for training
related to future employment. Typically, in-house support might encompass providing advice on redundancy
payments, disseminating information about current vacancies elsewhere, the provision of job search training,
giving general financial advice, and offering careers guidance.
Page reference: 194

Question 9
What is a major problem with outplacement services?
Correct answer:
d) Their tendency to be targeted mainly at managerial staff.
Feedback:
Although all may be problems of outplacement services, the tendency to target managerial staff make them
irrelevant to the experience of many redundant workers. Outplacement interventions may not be all that effective
at securing alternative employment for the workers that use them. In many cases, they seem to be operated as a
part of a 'damage limitation' exercise.
Page reference: 194
Question 10
Following the contemporary trend, what is the focus of redundancy exercises?
Correct answer:
d) To focus on 'surviving staff'.

The diversity approach originated in the early 1990s in response to arguments from?
Correct answer:
d) American writers concerned that equal opportunities did not embrace all disadvantaged groups.
Feedback:
The diversity approach originated in the early 1990s in response to arguments from American writers that the
equal-opportunities approach to eradicating discrimination did not adequately cover all disadvantaged groups, and
those represented (such as women and non-white employees) were treaded as homogeneous (often stereotyped)
groups.
Page reference: 205
Question 2
The social justice argument is based upon the belief that?
Correct answer:
d) Everyone should have the right to equal access to employment.

Feedback:
The social justice argument is based on the belief that everyone should have the right to equal access to
employment, and when employed should have equal access to training and development, as well as being free of
any direct or indirect discrimination, and harassment or bullying. This is often viewed as the moral argument for
treating people with fairness and dignity.
Page reference: 205
Question 3
In which decade where anti-discrimination laws introduced in the UK?
Correct answer:
c) 1970s
Feedback:
Anti-discrimination law was introduced in the UK in the 1970s initially on the grounds of sex and race, but this has
been extended to include age, religion or belief, sexual orientation, and disability. The main thrust of the legislation
has been to protect identified groups from discrimination.
Page reference: 207
Question 4
What is positive action?

Correct answer:
a) Arrangements which enable those who come from disadvantaged or excluded groups to compete on more
equal grounds in employment.
Feedback:
Positive action is lawful; its aim is to ensure that people from previously excluded groups can compete on equal
terms with other applicants or employees. It is intended to make up for the accumulated effects of past
discrimination and proactively to combat the stereotypes that may exist.
Page reference: 207
Question 5
The Equality Act 2010 requires that:
Correct answer:
c) Organizations should ensure that their employees are protected from discrimination and harassment by third
parties.
Feedback:
The Act protects people in a variety of situations not just in employment and is intended to protect all employees
from being discriminated against on the grounds that are not relevant to the job. It also affords protection for
employees from third party discrimination and harassment, for example by protecting shop workers from abuse
from customers.
Question 6
What is the unemployment rate for ethnic minority people?
Correct answer:
c) 11%
Feedback:
The rate of unemployment for ethnic minorities is over 11 per cent-twice the overall average. A black person is
three times more likely to be out of work than a white person.
Page reference: 212
Question 7
What proportion of countries around the world have no comprehensive equality laws in place?
Correct answer:
d) 80 per cent
Feedback:
Yet the legal responses to the problems of inequality in most countries are sparse - approximately 80 per cent of
countries globally having no comprehensive equality law.
Page reference: 209
Question 8
How many people in the UK could use their skills more fully if more flexible working was available?
Correct answer:
c) 6.5 million
Feedback:
It is claimed that 6.5 million people in the UK could be using their skills more fully if increased flexible working was
available, either by working at a level at which they used to work or by simply returning to the workforce.
Page reference: 216
Question 9
The glass ceiling is a term referring to?

Correct answer:
c) Advancement of an employee is limited due to discrimination
Feedback:
The term 'glass ceiling' refers to situations where the advancement of a person within the hierarchy of an
organization is limited.
Page reference: 214
Question 10
Difficulties in defining bullying, have led to the development of what types of initiatives?
Correct answer:
a) Dignity-at-work
The most widely publicized example of a UK public service that has undergone modernization aimed at improving
performance is?
Correct answer:
d) The National Health Service
Feedback:
The National Health Service (NHS) is probably the most widely publicized example of a UK public service that has
undergone 'modernization' and, continues to experience significant and on-going change aimed at improving
performance.
Page reference: 227
Question 2
The term Performance management was first used in which decade by Beer and Ruh?
Correct answer:
b) 1970s
Feedback:
The term 'performance management', though, tends to be favoured when referring to specific methods,
processes, or arrangements for linking people management to organizational goals. It was first used in the 1970s
by Beer and Ruh (1976), but did not come into common use until the early 1990s.
Page reference: 224
Question 3
Which theory concerns the use of objectives to manage performance?
Correct answer:
b) Goal theory
Feedback:
The principle of using objectives to manage performance is described by Locke's 'goal theory'.
Page reference: 225
Question 4
The early models of HRM acknowledged that increasing demands on organizations and organizational managers
meant a greater focus on tackling what effectively?
Correct answer:
a) Employee performance
Feedback:
The early HRM models acknowledged the increasing demands on organizations and the management of these
organizations to effectively manage employee performance. These models were not only a response by HR to a
changing business environment, namely increasing competition, return on investment, value for money, and so on,
but they also promoted the HR agenda of positioning itself at the centre of managing performance.
Page reference: 228
Question 5
Boxall and Purcell's People and Performance model uses the formula performance = f(A, M, O). What do the A, M,
O stand for?
Correct answer:
c) Ability, motivation and opportunity
Feedback:
At the heart of the People and Performance model is the fundamental proposition that performance is a function
of ability, motivation, and opportunity (see Boxall and Purcell 2011), expressed as:
Performance = f (A, M, O)
Page reference: 230
Question 6
HPWP stands for?

Correct answer:
c) High Performance Work Practices
Feedback:
Purcell describes these practices as 'performance-related HR practices', also known as 'high-performance work
practices' (HPWPs).
Page reference: 230
Question 7
The concept of Management by Objectives (MBO) was first introduced by?
Correct answer:
d) Drucker in 1955
Feedback:
Management by objectives (MBO) emphasizes the relevance of goals or objectives in managing performance, and
requires the use of performance appraisals to link organizational objectives with employee goals and development
(Drucker 1955).
Page reference: 225
Question 8
Performance appraisals are designed to motivate workers by providing them with feedback, recognition, and
what?
Correct answer:
d) Praise
Feedback:
The purpose of appraisal is to provide an opportunity to communicate with employees about all aspects of their
individual performance, identify opportunities for training, learning, and development, and to motivate them by
providing feedback, recognition, and praise, including links to extrinsic reward as appropriate.
Page reference: 233
Question 9
Performance appraisals are designed to motivate workers by providing them with feedback, recognition, and
what?
Correct answer:
d) Praise
Feedback:
The purpose of appraisal is to provide an opportunity to communicate with employees about all aspects of their
individual performance, identify opportunities for training, learning, and development, and to motivate them by
providing feedback, recognition, and praise, including links to extrinsic reward as appropriate.
Page reference: 233
Question 10
What lies behind the growing popularity of the VAB approach?
Correct answer:
b) The focus on how performance is achieved
Feedback:
The use of a values, attitudes, and behaviour (VAB) approach is growing in popularity as a method for reviewing
employee performance management because it focuses on (discretionary) behaviour and how performance is
achieved.
Page reference: 241
Question 11
What is the main reason why managers have become so interested in the absence rates of their employees?

Correct answer:
b) Reducing labour costs
Feedback:
More importantly, however, tackling employee absence effectively is often viewed as a key means of generating
improved standards of performance by employees (Edwards 2005). Absence, then, is often viewed primarily as a
performance issue, not least because controlling it effectively helps to reduce labour costs, particularly in
environments where employers are concerned to eliminate slack.
Page reference: 241
Question 12
What factor does the TUC (2005) claim is a particular source of sickness absence in the public sector?
Correct answer:
b) Stressful and dangerous jobs
Feedback:
However, the Trades Union Congress (TUC) argues that overall sickness absence in the UK is relatively low by
international standards. The relatively high level of sickness absence in the public sector can be explained by the
fact that workers there are often employed in stressful or dangerous jobs. Around a fifth of public sector workers
attend work even though they are ill, often because of pressure from managers.
Page reference: 245
Question 13
The CIPD's 2010 survey demonstrates that absences from work of four weeks or longer make up what proportion
of the days not worked due to sickness absence?
Correct answer:
d) 1/5
In which decade was joint regulation greatly diminished?
Correct answer:
c) 1980s
Feedback:
Since the 1980s the once dominant system of joint regulation has greatly diminished in importance across the
industrialized world, particularly in the UK and the United States.
Page reference: 251
Question 2
What percentage of employees were covered by collective bargaining by 2004?
Correct answer:
d) 35%
Feedback:
In 1980, over two-thirds of employees had their pay set by collective bargaining. By 2004 this had fallen to 35 per
cent (Kersley et al. 2006); a decline which persisted in the second half of the 2000s (Achur 2011).
Page reference: 252
Question 3
The management of employment relations has been increasingly influenced by what perspective?
Correct answer:
c) Unitary perspective
Feedback:
As a result of the growing dominance of employers' interests, the management of employment relations has been
increasingly influenced by a unitary perspective.
Page reference: 257
Question 4
A large part of the effectiveness of the high-commitment approach depends on what?
Correct answer:
a) How effectively line managers put it into practice in particular workplaces.
Feedback:
Moreover, when it comes to the effectiveness of high-commitment practices the behaviour of line managers
seems to be of crucial importance; a large part of the success of the high-commitment approach depends on how
well front-line managers implement and operate it in specific workplaces (Purcell et al. 2009).
Page reference: 260
Question 5
The 2004 ICE Regulations apply to organizations with how many employees?
Correct answer:
d) Fifty or more
Feedback:
The 2004 Information and Consultation with Employees (ICE) Regulations, which implemented the European
Union's 2002 Information and Consultation Directive, apply to all firms with fifty or more employees.
Page reference: 263
Question 6
In what year was a statutory union recognition introduced?
Correct answer:
b) 2000
Feedback:
The introduction of a statutory union recognition procedure in 2000 seems to have stimulated an increase in the
extent of recognition activity, and has provided the unions with a catalyst for organizing workers.
Page reference: 266
Question 7
What is the main problem with the statutory recognition deals signed since 2000 under the Employment Relations
Act 1999?
Correct answer:
c) New agreements have tended to come in sectors of the economy where unions already have a strong presence.
Feedback:
Generally, new agreements have tended to come through consolidation in sectors of the economy, like
manufacturing, where unions are already relatively strong, rather than in growing areas of the economy, such as
services, where their presence is weak.
Page reference: 266
Question 8
Negotiations are an important aspect of the collective-bargaining process, what do they ensure?
Correct answer:
a) That conflict is contained within manageable boundaries.
Feedback:
Negotiations are an important aspect of the collective bargaining process; by helping to resolve disputes, they
ensure that conflict is contained within manageable boundaries, preventing it from having overly disruptive effects
on the organization.
Page reference: 269
Question 9
In which year was the lowest number of strikes recorded?
Correct answer:
d) 2010
Feedback:
The lowest number of strikes-just 88-was recorded in 2010.
Page reference: 267
Question 10
As revealed by the Office for National Statistics, how many working days were lost in the UK as a result of the strike
activity that took place in 2010?
Correct answer:
c) 365

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Which of the following is an objective of employee discipline?

All of the above

The threat of punishment as a key to imposing discipline is the basis of

Which of the following is not a disciplinary action against employees?

Which of the following statements indicates a good disciplinary system?

An employee must be reprimanded in private.

(a) Frederick Herzberg

(b) David McClelland

(d) Edwin B. Flippo

Q.3. Employee referral is______________ .

(a) an internal method of recruitment

(b) an indirect method of recruitment

(c) third party method of recruitment

(d) an internet recruiting

(a) an internal method of recruitment

(b) an indirect method of recruitment

(c) third party method of recruitment

(d) direct recruiting

Q.5. _____________ is an extended work sample.

(a) Intelligence test

(c) Personality test

(d) Interest test

(a) resort to snap judgment

(d) halo effect

Ans. (b) stereotyping

Q.7. Assigning a specific rank and responsibility to an employee is known as__________.

Q.8. Inputs to the selection process include all but_____________.

(a) job analysis

(d) job applicants

(a) Intelligence test

(b) Preference test

(d) Interest test

(a) job posting

(b) gate hiring

(c) campus recruitment

Q.12. Job posting is______________ .

(a) posting of an employee

(b) a method of Recruitment

(c) is an appraisal technique

(d) an internet recruitment

(a) Employee referrals

(b) Job Posting

(c) Employment detail

(d) Job Opening

(a) internal equity

(b) external equity

(c) both internal and external equity

(d) none of these

(a) base pay

(b) variable pay

(d) all of these

(a) Internal equity

(b) External equity

(c) INDIVIDUAL equity

(d) Both (a) and (b)

(b) Rent allowance

(c) Increment in salary

(d) Dearness allowance

(b) Minimum wage

(c) Living wage

(d) All of these

Q.19. The minimum wage can be fixed by______________ .

(d) all of these