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What is a primary focus of Human Resource Management (HRM)? A) Financial forecasting B) Employee recruitment and retention C) Marketing strategies D) Production efficiency E) Supply chain management
B) Employee recruitment and retention Explanation: A primary focus of Human Resource Management (HRM) is to manage employee recruitment and retention effectively, ensuring the organization has the right talent to meet its goals.
Which process involves identifying the specific tasks and responsibilities of a job? A) Recruitment B) Job analysis C) Performance appraisal D) Training and development E) Compensation policy
B) Job analysis Explanation: Job analysis is the process of identifying and detailing the specific tasks and responsibilities associated with a job, which is crucial for effective HR practices.
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p.2
Introduction to Human Resource Management (HRM)

What is a primary focus of Human Resource Management (HRM)?
A) Financial forecasting
B) Employee recruitment and retention
C) Marketing strategies
D) Production efficiency
E) Supply chain management

B) Employee recruitment and retention
Explanation: A primary focus of Human Resource Management (HRM) is to manage employee recruitment and retention effectively, ensuring the organization has the right talent to meet its goals.

p.2
Job Analysis

Which process involves identifying the specific tasks and responsibilities of a job?
A) Recruitment
B) Job analysis
C) Performance appraisal
D) Training and development
E) Compensation policy

B) Job analysis
Explanation: Job analysis is the process of identifying and detailing the specific tasks and responsibilities associated with a job, which is crucial for effective HR practices.

p.2
Performance Appraisal

What is the purpose of performance appraisal in HRM?
A) To determine salary increases
B) To assess employee performance and development needs
C) To plan recruitment strategies
D) To analyze job descriptions
E) To develop training programs

B) To assess employee performance and development needs
Explanation: Performance appraisal is conducted to evaluate employee performance and identify areas for development, ensuring that employees meet organizational standards and goals.

p.2
Training and Development

Which aspect of HRM focuses on providing employees with the skills needed for their jobs?
A) Recruitment
B) Job analysis
C) Training and development
D) Compensation policy
E) Selection

C) Training and development
Explanation: Training and development in HRM focuses on equipping employees with the necessary skills and knowledge to perform their jobs effectively, enhancing both individual and organizational performance.

p.2
Compensation Policy

What does the compensation policy in HRM primarily address?
A) Employee benefits and perks
B) Job responsibilities
C) Performance evaluations
D) Recruitment strategies
E) Training programs

A) Employee benefits and perks
Explanation: The compensation policy addresses how employees are rewarded for their work, including salary, benefits, and other perks, which is vital for attracting and retaining talent.

p.3
Human Resource Planning (HRP) Process

What is the primary goal of Human Resource Planning?
A) To increase employee turnover
B) To align workforce needs with organizational goals
C) To reduce training costs
D) To eliminate job positions
E) To focus solely on recruitment

B) To align workforce needs with organizational goals
Explanation: The primary goal of Human Resource Planning is to ensure that the workforce is aligned with the organization's strategic objectives, facilitating effective resource allocation and workforce management.

p.3
Human Resource Planning (HRP) Process

Which of the following is NOT a step in the Human Resource Planning process?
A) Assessing current HR capacity
B) Forecasting future HR needs
C) Evaluating employee performance
D) Developing HR strategies
E) Implementing HR policies

C) Evaluating employee performance
Explanation: While evaluating employee performance is important, it is not a direct step in the Human Resource Planning process, which focuses more on capacity assessment, forecasting, and strategy development.

p.3
Human Resource Planning (HRP) Process

What does HRP stand for?
A) Human Resource Performance
B) Human Resource Planning
C) Human Resource Policy
D) Human Resource Process
E) Human Resource Participation

B) Human Resource Planning
Explanation: HRP stands for Human Resource Planning, which involves systematic forecasting and planning of an organization's human resources to meet future demands.

p.3
Human Resource Planning (HRP) Process

What is a critical factor in successful Human Resource Planning?
A) Ignoring market trends
B) Inflexibility in workforce management
C) Understanding organizational goals
D) Reducing employee benefits
E) Limiting training opportunities

C) Understanding organizational goals
Explanation: A critical factor in successful Human Resource Planning is a thorough understanding of the organization's goals, which allows HR professionals to align workforce planning with strategic objectives.

p.3
Human Resource Planning (HRP) Process

Which of the following best describes workforce forecasting?
A) Predicting employee turnover rates
B) Analyzing past performance reviews
C) Estimating future HR needs based on organizational goals
D) Deciding on employee promotions
E) Conducting exit interviews

C) Estimating future HR needs based on organizational goals
Explanation: Workforce forecasting involves estimating future human resource needs based on the organization's strategic goals, ensuring that the right number of employees with the right skills are available.

p.17
Employee Turnover and Retention Strategies

How many voluntary quits were recorded for Assistant Product Managers in 2018?
A) 4
B) 6
C) 20
D) 10
E) 0

B) 6
Explanation: The data indicates that there were 6 voluntary quits for Assistant Product Managers in 2018.

p.17
Workplace Planning and Recruitment Strategies

What is the planned recruitment increase for Product Managers?
A) +2
B) +8
C) +15
D) +7
E) -6

B) +8
Explanation: The planned recruitment for Product Managers shows an increase of +8, indicating a strategic move to boost this role.

p.27
Employee Turnover and Retention Strategies

How do you calculate the employee turnover rate if you have 45 employees at the start of the year and 55 at the end, with 5 employees leaving during the year?
A) (5/45) * 100
B) (5/55) * 100
C) (5/50) * 100
D) (5/40) * 100
E) (5/45 + 5/55) * 100

A) (5/45) * 100
Explanation: The turnover rate is calculated as the number of employees who left (5) divided by the number of employees at the start of the year (45), multiplied by 100 to get the percentage. Thus, the TR is (5/45) * 100.

p.24
Human Resource Planning (HRP) Process

Why is Succession Planning important for organizations?
A) It helps in reducing operational costs
B) It ensures a smooth transition of leadership
C) It focuses solely on employee training
D) It increases employee turnover rates
E) It eliminates the need for hiring new staff

B) It ensures a smooth transition of leadership
Explanation: Succession Planning is crucial because it prepares organizations for leadership changes, ensuring that there are qualified individuals ready to step into key roles, thus maintaining stability.

p.17
Labor Demand and Supply Assessment

What is the gap in supply for Chief Product Officers in 2020?
A) -1
B) -4
C) -13
D) +35
E) 0

A) -1
Explanation: The gap in supply for Chief Product Officers in 2020 is -1, indicating a slight shortage in this role.

p.12
Labor Demand and Supply Assessment

What does a labor surplus indicate?
A) There is a perfect balance of labor supply and demand
B) Labor Supply > Labor Demand
C) Labor Supply < Labor Demand
D) Labor Supply is equal to current employment
E) Labor Demand is decreasing

B) Labor Supply > Labor Demand
Explanation: A labor surplus occurs when there are more workers available than the jobs available, indicating an excess in the labor market.

p.20
Techniques for Forecasting HR Demand and Supply

What is a key characteristic of the Delphi technique?
A) It relies on historical data only
B) It involves only one expert's opinion
C) It seeks anonymous feedback from multiple experts
D) It is a quick decision-making tool
E) It focuses solely on financial forecasting

C) It seeks anonymous feedback from multiple experts
Explanation: The Delphi technique is characterized by gathering opinions from various experts anonymously to build a consensus on future developments.

p.12
Human Resource Planning (HRP) Process

What is the purpose of matching labor supply and demand?
A) To increase employee turnover
B) To ensure employee training
C) To create a balance between available workers and job openings
D) To reduce salaries
E) To promote internal hiring only

C) To create a balance between available workers and job openings
Explanation: Matching labor supply and demand is crucial to ensure that there is a balance between the number of available workers and the job openings within the organization.

p.12
Human Resource Planning (HRP) Process

Which factors are considered in assessing the internal labor market?
A) External economic conditions
B) Employee retirements, promotions, and transfers
C) Global labor trends
D) Competitor hiring practices
E) Industry salary standards

B) Employee retirements, promotions, and transfers
Explanation: The internal labor market assessment takes into account factors such as retirements, promotions, and transfers, which influence the availability of current employees for future roles.

p.13
Human Resource Planning (HRP) Process

What does the term 'employee inventory' refer to in HRM?
A) The total number of employees in the company
B) A list of employees with details like skills and salary levels
C) The number of new hires planned for the year
D) The number of employees who have left the company
E) The overall performance rating of employees

B) A list of employees with details like skills and salary levels
Explanation: Employee inventory refers to a comprehensive list of employees that includes their names, numbers, skills, education, languages spoken, salary levels, and performance ratings.

p.18
Workplace Planning and Recruitment Strategies

What is the result of Scenario 1 (S1) for recruitment and firing?
A) Increase in CPO by 1
B) Increase in PM by 4
C) Increase in APM by 13
D) Decrease in Operatives by 35
E) No changes

D) Decrease in Operatives by 35
Explanation: In Scenario 1 (S1), the action of recruitment and firing results in a decrease of 35 operatives, addressing the surplus in that role.

p.17
Human Resource Planning (HRP) Process

What is the position with the highest number of employees in 2018?
A) Chief Product Officer
B) Product Managers
C) Assistant Product Managers
D) Operatives
E) None of the above

D) Operatives
Explanation: In 2018, the operatives had the highest number of employees at 100, significantly more than the other positions listed.

p.5
Human Resource Planning (HRP) Process

What is the primary definition of Human Resource Planning (HRP)?
A) The process of recruiting employees
B) The strategic approach to managing an organization's workforce
C) The evaluation of employee performance
D) The training and development of staff
E) The management of employee benefits

B) The strategic approach to managing an organization's workforce
Explanation: HRP is defined as a strategic approach to managing an organization's workforce, ensuring that the right number of people with the right skills are in the right places at the right times.

p.20
Techniques for Forecasting HR Demand and Supply

What is the primary purpose of the Delphi method?
A) To analyze past business performance
B) To reach a consensus judgment among experts about future developments
C) To evaluate employee performance
D) To create marketing strategies
E) To determine financial budgets

B) To reach a consensus judgment among experts about future developments
Explanation: The Delphi method is structured to gather expert opinions to forecast future developments that may impact a business, such as labor demand.

p.15
Labor Demand and Supply Assessment

What does a hiring freeze indicate in HR management?
A) There is a labor surplus
B) There is a labor shortage
C) Recruitment from overseas is encouraged
D) Overtime is mandatory
E) Part-time workers are being used

A) There is a labor surplus
Explanation: A hiring freeze typically occurs when there is a labor surplus, signaling that the organization is not looking to fill open positions until the situation changes.

p.18
Human Resource Planning (HRP) Process

What was the situation of the company in 2020 regarding CPO, PM, APM, and Operatives?
A) Surplus in all positions
B) Shortage in CPO, PM, APM and surplus in Operatives
C) Shortage in Operatives
D) No shortages or surpluses
E) Surplus in CPO and shortages in PM and APM

B) Shortage in CPO, PM, APM and surplus in Operatives
Explanation: In 2020, the company faced shortages in Chief Product Officer (CPO), Product Managers (PM), and Assistant Product Managers (APM), while having a surplus in Operatives, indicating a mismatch in workforce distribution.

p.16
Human Resource Planning (HRP) Process

What was the total number of employees in the operation department of Procter & Gamble in 2018?
A) 141
B) 120
C) 150
D) 130
E) 100

A) 141
Explanation: The total number of employees in 2018 was calculated as 1 (Chief Product Officer) + 10 (Product Managers) + 30 (Assistant Product Managers) + 100 (Operatives) = 141 employees.

p.7
Strategic Human Resource Management (SHRM)

How does SHRM relate to strategic business planning?
A) It is separate from strategic planning
B) SHRM decisions are built into the strategic business plan
C) It focuses only on HR compliance
D) It is concerned with only financial aspects
E) It ignores organizational culture

B) SHRM decisions are built into the strategic business plan
Explanation: In SHRM, decisions are integrated into the strategic business plan, ensuring that HR strategies support the overall direction and goals of the organization.

p.13
Human Resource Planning (HRP) Process

Which of the following is NOT considered an outflow in the HRP process?
A) Promotions
B) Layoffs
C) Voluntary quits
D) Retirements
E) Transfers out

A) Promotions
Explanation: Promotions are considered inflows as they involve moving existing employees to higher positions, whereas layoffs, voluntary quits, retirements, and transfers out are considered outflows.

p.7
Strategic Human Resource Management (SHRM)

What macro-concerns does SHRM address?
A) Employee personal issues
B) Quality, commitment, performance, culture, and management development
C) Daily task assignments
D) Recruitment of interns
E) Office layout design

B) Quality, commitment, performance, culture, and management development
Explanation: SHRM deals with macro-concerns such as quality, commitment, performance, culture, and management development, which are essential for the long-term success of the organization.

p.10
Workplace Planning and Recruitment Strategies

What does workplace planning involve?
A) Focusing on employee benefits
B) Identifying current and future personnel needs
C) Conducting market analysis
D) Implementing new technologies
E) Reducing operational costs

B) Identifying current and future personnel needs
Explanation: Workplace planning is about determining the current and future personnel needs of an organization and exploring effective methods for recruiting and retaining these individuals.

p.24
Techniques for Forecasting HR Demand and Supply

What does a Skills Inventory typically include?
A) Financial data of the company
B) Employee information related to KSA, experience, and career aspirations
C) Customer feedback and reviews
D) Company policies and procedures
E) Market trends and forecasts

B) Employee information related to KSA, experience, and career aspirations
Explanation: A Skills Inventory is designed to store employee information that pertains to Knowledge, Skills, and Abilities (KSA), as well as their experience and career aspirations, which helps in workforce planning.

p.15
Human Resource Planning (HRP) Process

What is a strategy for filling job vacancies when there is a labor shortage?
A) Layoffs
B) Hiring Freeze
C) Promotion from within
D) Inducements to quit
E) Reduced hours

C) Promotion from within
Explanation: When facing a labor shortage, promoting from within is a strategic approach to fill job vacancies, leveraging existing employees' skills and experience.

p.12
Human Resource Planning (HRP) Process

What is the first step in the HRP process for assessing labor demand?
A) Evaluating employee satisfaction
B) Assessing future workers needed
C) Conducting employee interviews
D) Analyzing past performance
E) Reviewing company finances

B) Assessing future workers needed
Explanation: The HRP process begins with assessing the labor demand, which involves determining the number of workers needed in the future to meet organizational goals.

p.29
Employee Turnover and Retention Strategies

Which of the following is considered a remedy for reducing turnover?
A) Increase work hours
B) Revise reward strategy
C) Limit employee involvement
D) Decrease training opportunities
E) Reduce salary benefits

B) Revise reward strategy
Explanation: Revising the reward strategy is suggested as a remedy to improve employee satisfaction and retention, addressing one of the root causes of turnover.

p.7
Strategic Human Resource Management (SHRM)

What is the primary focus of Strategic Human Resource Management (SHRM)?
A) Short-term staffing needs
B) Formulating and executing HR policies aligned with organizational strategy
C) Employee training programs only
D) Payroll management
E) Recruitment of temporary workers

B) Formulating and executing HR policies aligned with organizational strategy
Explanation: SHRM is primarily concerned with formulating and executing human resource policies that are aligned with the company's strategic aims, ensuring that the necessary employee competencies and behaviors are produced.

p.15
Employee Turnover and Retention Strategies

Which strategy involves reducing the number of hours worked by employees?
A) Overtime
B) Work sharing
C) Layoffs
D) Inducements to quit
E) Recruitment from outside

B) Work sharing
Explanation: Work sharing is a strategy used to reduce the number of hours worked by employees, allowing the organization to manage labor costs during periods of reduced demand.

p.23
Human Resource Planning (HRP) Process

What is the purpose of skills inventory in HR planning?
A) To evaluate employee performance
B) To track employee attendance
C) To assess the skills available within the organization
D) To manage employee benefits
E) To calculate payroll

C) To assess the skills available within the organization
Explanation: A skills inventory is used in HR planning to catalog and assess the skills and competencies of employees, which aids in understanding the current capabilities and future needs of the organization.

p.29
Employee Turnover and Retention Strategies

What practice can help improve employee engagement and potentially reduce turnover?
A) Increase isolation among teams
B) Employee opinion survey
C) Limit communication
D) Decrease training sessions
E) Ignore employee feedback

B) Employee opinion survey
Explanation: Conducting employee opinion surveys can help organizations gauge employee satisfaction and engagement levels, allowing for improvements that can reduce turnover.

p.20
Human Resource Planning (HRP) Process

What is the outcome of the managerial judgment method?
A) A detailed report on past performance
B) A proposal for future manpower requirements
C) A list of potential hires
D) A marketing strategy
E) A financial audit

B) A proposal for future manpower requirements
Explanation: The outcome of the managerial judgment method is a proposal that outlines the future manpower requirements of the enterprise, which is then submitted for approval.

p.5
Techniques for Forecasting HR Demand and Supply

What is one technique for forecasting HR supply?
A) Skills inventory
B) Job analysis
C) Performance evaluation
D) Employee training programs
E) Recruitment advertising

A) Skills inventory
Explanation: A skills inventory is a technique used for forecasting HR supply, as it involves assessing the skills and competencies of current employees to determine available resources for future needs.

p.16
Human Resource Planning (HRP) Process

What is the total number of voluntary quits expected in the upcoming years?
A) 30
B) 20
C) 10
D) 15
E) 6

B) 20
Explanation: The HR manager noted that there would be a total of 20 voluntary quits (0 Chief Product Officer, 4 Product Managers, 6 Assistant Product Managers, and 10 Operatives).

p.4
Human Resource Planning (HRP) Process

What is the primary goal of the Human Resource Planning (HRP) process?
A) To reduce employee turnover
B) To define and master the HRP process
C) To increase salaries
D) To improve workplace culture
E) To enhance marketing strategies

B) To define and master the HRP process
Explanation: The primary goal of the HRP process is to define and master the steps involved in effectively managing human resources within an organization.

p.4
Human Resource Planning (HRP) Process

Which of the following is a key approach in Human Resource Planning?
A) Ignoring labor market trends
B) Matching labor supply and demand
C) Focusing solely on recruitment
D) Reducing training programs
E) Increasing employee benefits

B) Matching labor supply and demand
Explanation: A key approach in Human Resource Planning is understanding and implementing strategies to match labor supply with demand, ensuring that the organization has the right number of employees with the right skills.

p.4
Techniques for Forecasting HR Demand and Supply

What should be identified to effectively forecast HR demand and supply levels?
A) Employee vacations
B) Methods and techniques
C) Company profits
D) Market competition
E) Office locations

B) Methods and techniques
Explanation: Identifying methods and techniques for forecasting HR demand and supply levels is crucial for effective human resource planning, enabling organizations to anticipate their workforce needs.

p.22
Techniques for Forecasting HR Demand and Supply

What is the primary purpose of regression analysis in human resource management?
A) To analyze employee satisfaction
B) To forecast demand for human resources
C) To evaluate employee performance
D) To assess training needs
E) To calculate salary increments

B) To forecast demand for human resources
Explanation: Regression analysis is specifically used to forecast the demand for human resources at a future point in time, utilizing various factors such as sales and production, making it a valuable tool in HR planning.

p.22
Techniques for Forecasting HR Demand and Supply

Which factors might be considered in regression analysis for forecasting HR demand?
A) Employee turnover rates
B) Sales and production
C) Job satisfaction surveys
D) Training program effectiveness
E) Organizational culture

B) Sales and production
Explanation: Factors such as sales and production are key inputs in regression analysis for forecasting HR demand, as they are functionally related to the need for human resources.

p.24
Human Resource Planning (HRP) Process

What is the primary purpose of Succession Planning?
A) To increase sales and profits
B) To identify, develop, and track key individuals for executive positions
C) To manage employee benefits
D) To conduct market research
E) To improve customer service

B) To identify, develop, and track key individuals for executive positions
Explanation: Succession Planning focuses on preparing and ensuring that key individuals are ready to fill executive roles, which is crucial for organizational continuity and leadership development.

p.27
Employee Turnover and Retention Strategies

What is the turnover rate (TR) for a company with 20 drivers if 5 drivers leave in one year?
A) 15%
B) 20%
C) 25%
D) 30%
E) 35%

C) 25%
Explanation: The turnover rate is calculated as the number of employees who left divided by the total number of employees at the start of the period. Here, 5 drivers left out of 20, resulting in a TR of 5/20 = 25%.

p.22
Techniques for Forecasting HR Demand and Supply

When is regression analysis most appropriately used in HR forecasting?
A) When variables are unrelated
B) When independent and dependent variables are functionally related
C) When predicting employee performance
D) When assessing employee engagement
E) When evaluating company policies

B) When independent and dependent variables are functionally related
Explanation: Regression analysis is effective when there is a functional relationship between independent and dependent variables, allowing for accurate forecasting of HR demand.

p.29
Employee Turnover and Retention Strategies

What is one of the main causes of employee turnover?
A) High job satisfaction
B) Poor handling of new recruits
C) Competitive salary
D) Strong employee engagement
E) Effective induction process

B) Poor handling of new recruits
Explanation: Poor handling of new recruits is identified as a significant cause of employee turnover, which can lead to dissatisfaction and a lack of integration into the organization.

p.24
Techniques for Forecasting HR Demand and Supply

Which of the following is NOT a component of a Skills Inventory?
A) Employee KSA
B) Employee experience
C) Employee salary
D) Career aspirations
E) Employee qualifications

C) Employee salary
Explanation: A Skills Inventory focuses on KSA, experience, and career aspirations, but does not typically include information about employee salary, which is not directly related to skills and capabilities.

p.15
Labor Demand and Supply Assessment

Which of the following is a method to address a labor surplus?
A) Recruitment from outside/overseas
B) Use of part timers or temporary workers
C) Voluntary early retirements
D) Work sharing
E) Use of overtime

C) Voluntary early retirements
Explanation: In cases of labor surplus, voluntary early retirements can effectively reduce the workforce without resorting to layoffs, making it a common strategy.

p.12
Labor Demand and Supply Assessment

What indicates a labor shortage?
A) Labor Supply = Labor Demand
B) Labor Supply < Labor Demand
C) Labor Supply > Labor Demand
D) Labor Supply fluctuates
E) Labor Supply is stable

B) Labor Supply < Labor Demand
Explanation: A labor shortage occurs when the demand for labor exceeds the supply, indicating that there are not enough workers available to meet the company's needs.

p.20
Human Resource Planning (HRP) Process

Who participates in the managerial judgment method?
A) Only HR personnel
B) Executives from various departments
C) External consultants
D) All employees
E) Customers and clients

B) Executives from various departments
Explanation: In the managerial judgment method, executives collaborate to determine future manpower requirements and submit their proposals for top management approval.

p.29
Employee Turnover and Retention Strategies

What factor is linked to job dissatisfaction that can lead to turnover?
A) High morale
B) Favorable salary
C) Unfavorable salary and terms
D) Strong leadership
E) Clear job descriptions

C) Unfavorable salary and terms
Explanation: Unfavorable salary and terms of employment are significant contributors to job dissatisfaction, which can ultimately lead to higher turnover rates.

p.13
Human Resource Planning (HRP) Process

What is the primary focus when assessing a company's future employee base?
A) Employee satisfaction
B) Employee base profile and number
C) Company profits
D) Market competition
E) Customer feedback

B) Employee base profile and number
Explanation: The assessment of the company's future employee base focuses on understanding the profile and number of employees, which is crucial for strategic planning in HRM.

p.18
Human Resource Planning (HRP) Process

What is the gap for the Chief Product Officer (CPO) position?
A) +1
B) -1
C) -4
D) -13
E) +35

C) -1
Explanation: The gap for the Chief Product Officer (CPO) position is indicated as -1, signifying a shortage of one individual in that role.

p.10
Human Resource Planning (HRP) Process

What is the primary purpose of Human Resource Planning (HRP)?
A) To increase employee salaries
B) To ensure the right amount and kind of people for future output
C) To conduct employee performance reviews
D) To implement training programs
E) To reduce employee turnover

B) To ensure the right amount and kind of people for future output
Explanation: HRP is defined as the process that organizations use to ensure they have the appropriate number and types of employees needed to deliver a specific level of output or services in the future.

p.29
Employee Turnover and Retention Strategies

What is a key factor in improving the employment and selection process to reduce turnover?
A) Hire without qualifications
B) Improve training
C) Limit candidate interviews
D) Reduce job expectations
E) Focus solely on experience

B) Improve training
Explanation: Improving training is critical in equipping recruits with the necessary skills and qualifications for their roles, which can help reduce turnover by ensuring employees feel competent and satisfied in their jobs.

p.11
Employee Turnover and Retention Strategies

Which of the following is NOT an objective of HRP?
A) Anticipate competencies development needs
B) Retain the best and key profiles
C) Forecast HR costs
D) Increase employee turnover
E) Prevent skills shortages

D) Increase employee turnover
Explanation: Increasing employee turnover is not an objective of HRP; rather, HRP seeks to minimize turnover and retain talent within the organization.

p.16
Workplace Planning and Recruitment Strategies

How many operatives were promoted to upper categories?
A) 5
B) 10
C) 15
D) 20
E) 30

B) 10
Explanation: The HR manager decided to promote 10 operatives to upper categories as part of the workforce planning.

p.16
Human Resource Planning (HRP) Process

What percentage increase in product managers did the HR manager conclude was necessary?
A) 20%
B) 30%
C) 40%
D) 50%
E) 10%

B) 30%
Explanation: The HR manager assessed that the company will need 30% more product managers than originally forecasted, indicating a significant increase in demand for this role.

p.28
Employee Turnover and Retention Strategies

In a company with 45 employees at the start of the year, 5 employees leave, and there are 55 at the end of the year. What is the employee turnover rate?
A) 5%
B) 10%
C) 20%
D) 25%
E) 30%

B) 10%
Explanation: The turnover rate is calculated as (number of employees who left / average number of employees) * 100. Average employees = (45 + 55) / 2 = 50. TR = (5 / 50) * 100 = 10%.

p.28
Employee Turnover and Retention Strategies

If a company has 20 drivers and 5 leave, how many drivers remain?
A) 10
B) 15
C) 20
D) 25
E) 30

B) 15
Explanation: If 5 drivers leave from a total of 20, the number of drivers remaining is 20 - 5 = 15.

p.22
Techniques for Forecasting HR Demand and Supply

What is a key characteristic of the variables used in regression analysis?
A) They must be categorical
B) They must be unrelated
C) They must be functionally related
D) They must be qualitative
E) They must be fixed

C) They must be functionally related
Explanation: For regression analysis to be effective, the independent and dependent variables must have a functional relationship, enabling accurate predictions about HR demand.

p.27
Employee Turnover and Retention Strategies

If a company starts with 45 employees, ends with 55, and 5 employees left, what is the net change in the number of employees?
A) +5
B) +10
C) 0
D) -5
E) -10

A) +10
Explanation: The net change is calculated by subtracting the number of employees who left from the end count. Starting with 45 and ending with 55 results in a net change of +10 employees.

p.23
Techniques for Forecasting HR Demand and Supply

Which technique is commonly used for forecasting the supply of skills in an organization?
A) SWOT Analysis
B) PEST Analysis
C) Markov Analysis
D) Porter's Five Forces
E) Balanced Scorecard

C) Markov Analysis
Explanation: Markov Analysis is a statistical method used to forecast the supply of skills by analyzing the probabilities of movement between different states, making it a valuable tool in workforce planning.

p.5
Techniques for Forecasting HR Demand and Supply

Which technique is commonly used for forecasting HR demand?
A) Employee surveys
B) Trend analysis
C) Job rotation
D) Performance appraisals
E) Exit interviews

B) Trend analysis
Explanation: Trend analysis is a commonly used technique for forecasting HR demand, as it involves analyzing historical data to predict future workforce needs based on patterns and trends.

p.5
Strategic Human Resource Management (SHRM)

What is a key focus of Strategic Human Resource Management (SHRM)?
A) Compliance with regulations
B) Short-term staffing needs
C) Long-term organizational goals
D) Employee satisfaction surveys
E) Payroll management

C) Long-term organizational goals
Explanation: SHRM focuses on aligning human resource strategies with long-term organizational goals, ensuring that HR practices support the overall mission and vision of the organization.

p.16
Human Resource Planning (HRP) Process

How many employees are expected to retire in the upcoming years according to the HR manager's study?
A) 10
B) 4
C) 20
D) 1
E) 6

A) 10
Explanation: The HR manager's study indicated that there would be a total of 10 retirements across all positions (1 Chief Product Officer, 3 Product Managers, 6 Assistant Product Managers, and 10 Operatives).

p.18
Human Resource Planning (HRP) Process

According to the scenarios, how many operatives are in surplus?
A) 1
B) 4
C) 13
D) 35
E) 17

D) 35
Explanation: The scenario indicates a surplus of 35 operatives, highlighting the excess workforce in that particular category.

p.26
Techniques for Analyzing Labor Turnover Rates

What does the average used as a trend in Labor Turnover Rate indicate?
A) The total number of employees
B) The average salary of all employees
C) The historical turnover rates over time
D) The number of employees promoted
E) The number of employees transferred

C) The historical turnover rates over time
Explanation: The average used as a trend in Labor Turnover Rate reflects historical data on employee turnover, allowing organizations to identify patterns and make informed decisions regarding workforce management.

p.11
Human Resource Planning (HRP) Process

What is the purpose of anticipating competencies development needs in HRP?
A) To reduce training costs
B) To ensure the organization can adapt to changes
C) To increase the number of employees
D) To improve employee morale
E) To enhance marketing strategies

B) To ensure the organization can adapt to changes
Explanation: Anticipating competencies development needs allows organizations to prepare for future challenges and changes in the market, ensuring they remain competitive.

p.13
Human Resource Planning (HRP) Process

What is the first step in estimating the supply for HRM?
A) Analyzing employee performance
B) Assessing market trends
C) Estimating inflows and outflows
D) Conducting employee surveys
E) Evaluating compensation packages

C) Estimating inflows and outflows
Explanation: The first step in estimating the supply for HRM involves assessing the inflows and outflows of employees to understand the future employee base and plan accordingly.

p.9
Human Resource Planning (HRP) Process

What must change as an organization grows and develops according to the best fit approach?
A) The organization's mission
B) The organizational structure
C) HRM programs, practices, and procedures
D) The market competition
E) Employee salaries

C) HRM programs, practices, and procedures
Explanation: As an organization evolves, its human resource management programs and practices must adapt to meet its changing needs, emphasizing the importance of a tailored approach.

p.9
Strategic Human Resource Management (SHRM)

What is the significance of adopting a best fit approach in HRM?
A) It guarantees immediate success
B) It allows for flexibility in HR strategies
C) It eliminates the need for employee training
D) It standardizes HR practices across all organizations
E) It focuses solely on cost reduction

B) It allows for flexibility in HR strategies
Explanation: The best fit approach emphasizes the need for HR strategies to be adaptable and responsive to the specific context of the organization, enhancing overall effectiveness.

p.17
Techniques for Forecasting HR Demand and Supply

What was the demand for Operatives in 2020?
A) 100
B) 75
C) 42
D) 40
E) 29

B) 75
Explanation: The demand for Operatives in 2020 was recorded at 75, highlighting the need for this position.

p.26
Techniques for Analyzing Labor Turnover Rates

What does Markov analysis show regarding employees?
A) The number of new hires each year
B) The percentage of employees who remain in each job from one year to the next
C) The average salary of employees
D) The total number of employees in the organization
E) The training needs of employees

B) The percentage of employees who remain in each job from one year to the next
Explanation: Markov analysis is specifically used to track and show the percentage and actual number of employees who remain in each job over time, along with their movements such as promotions, demotions, or exits.

p.26
Employee Turnover and Retention Strategies

What is the Labor Turnover Rate?
A) The number of employees hired in a year
B) The proportion of employees who leave in a given period of time
C) The number of employees promoted in a year
D) The average age of employees in the organization
E) The total number of employees in the organization

B) The proportion of employees who leave in a given period of time
Explanation: The Labor Turnover Rate, also referred to as the wastage or separation rate, measures the proportion of employees who exit the organization within a specified timeframe.

p.15
Human Resource Planning (HRP) Process

What is a common approach to match labor supply with labor demand?
A) Subcontracting
B) Internal transfers and redeployment
C) Layoffs
D) Use of temporary workers
E) Hiring Freeze

B) Internal transfers and redeployment
Explanation: Internal transfers and redeployment are effective methods for matching labor supply with labor demand, utilizing existing employees to fill new roles as needed.

p.26
Techniques for Analyzing Labor Turnover Rates

How is the Labor Turnover Rate calculated?
A) Nb of new hires * 100 / Total complement of staff
B) Nb of leavers * 100 / Total complement of staff
C) Total employees - Nb of leavers
D) Nb of promotions * 100 / Total complement of staff
E) Nb of transfers * 100 / Total complement of staff

B) Nb of leavers * 100 / Total complement of staff
Explanation: The Labor Turnover Rate is calculated by taking the number of employees who leave (leavers) multiplied by 100 and then divided by the total complement of staff, providing a clear percentage of turnover.

p.23
Employee Competencies and Organizational Objectives

Which of the following is NOT typically included in succession planning?
A) Identifying potential leaders
B) Developing training programs
C) Evaluating employee performance
D) Creating a skills inventory
E) Increasing employee benefits

E) Increasing employee benefits
Explanation: While increasing employee benefits may be a part of overall employee satisfaction strategies, it is not a direct component of succession planning, which focuses on leadership development and readiness.

p.13
Human Resource Planning (HRP) Process

Which of the following factors would NOT contribute to the inflow of employees?
A) New hires
B) Transfers in
C) Retirements
D) Return from absence leaves
E) Promotions

C) Retirements
Explanation: Retirements contribute to the outflow of employees as they represent employees leaving the organization, whereas new hires, transfers in, returns from absence leaves, and promotions contribute to inflows.

p.28
Employee Turnover and Retention Strategies

What is the turnover rate (TR) if a company has 20 drivers and 5 leave in a year?
A) 10%
B) 20%
C) 25%
D) 30%
E) 50%

B) 25%
Explanation: The turnover rate is calculated by dividing the number of employees who left (5) by the average number of employees (20) and multiplying by 100. TR = (5 / 20) * 100 = 25%.

p.9
Best Fit vs. Best Practice in HRM

What assumption does the best fit approach challenge?
A) HRM practices are irrelevant to organizational performance
B) There is a universal set of best HRM practices
C) All organizations face the same challenges
D) HR strategies do not need to change
E) Employee satisfaction is not important

B) There is a universal set of best HRM practices
Explanation: The best fit approach challenges the notion that a single set of best practices is applicable to all organizations, advocating instead for context-specific HR strategies.

p.5
Human Resource Planning (HRP) Process

What is one of the primary objectives of HRP?
A) To minimize employee turnover
B) To ensure compliance with labor laws
C) To align workforce capabilities with organizational goals
D) To increase employee salaries
E) To enhance workplace diversity

C) To align workforce capabilities with organizational goals
Explanation: A key objective of HRP is to ensure that the skills and capabilities of the workforce are aligned with the strategic goals of the organization, facilitating effective achievement of those goals.

p.11
Human Resource Planning (HRP) Process

What is one of the primary objectives of Human Resource Planning (HRP)?
A) Increase employee salaries
B) Prevent skills shortages
C) Reduce employee turnover
D) Enhance workplace diversity
E) Improve customer service

B) Prevent skills shortages
Explanation: One of the main objectives of HRP is to prevent skills shortages by anticipating future needs and ensuring the organization has the necessary competencies available.

p.7
Strategic Human Resource Management (SHRM)

Which of the following is a key feature of SHRM?
A) Focus on daily operational tasks
B) Alignment with organizational intentions about future direction
C) Emphasis on employee benefits only
D) Concentration on external hiring processes
E) Short-term project management

B) Alignment with organizational intentions about future direction
Explanation: A key feature of SHRM is its alignment with the organization's intentions regarding future direction, ensuring that HR strategies support long-term goals.

p.11
Employee Turnover and Retention Strategies

Which objective of HRP focuses on maintaining a competitive workforce?
A) Forecast HR costs
B) Retain the best and key profiles
C) Increase recruitment efforts
D) Enhance training programs
E) Improve employee satisfaction

B) Retain the best and key profiles
Explanation: Retaining the best and key profiles is crucial for maintaining a competitive workforce and ensuring the organization has the talent necessary for success.

p.23
Workplace Planning and Recruitment Strategies

What is the primary goal of succession planning?
A) To increase employee turnover
B) To prepare for future leadership needs
C) To reduce training costs
D) To enhance recruitment strategies
E) To manage payroll effectively

B) To prepare for future leadership needs
Explanation: Succession planning is aimed at ensuring that there are qualified individuals ready to fill key positions in the organization as they become available, thereby maintaining leadership continuity.

p.11
Human Resource Planning (HRP) Process

What does HRP aim to forecast to prevent financial loss?
A) Employee satisfaction
B) HR costs
C) Training needs
D) Market trends
E) Customer preferences

B) HR costs
Explanation: HRP aims to forecast HR costs to avoid significant financial loss, allowing organizations to plan budgets and allocate resources effectively.

p.20
Techniques for Forecasting HR Demand and Supply

In what context is the Delphi method particularly useful?
A) For training employees
B) For assessing employee satisfaction
C) For forecasting future labor demand
D) For evaluating current employees
E) For creating advertising campaigns

C) For forecasting future labor demand
Explanation: The Delphi method is particularly useful for forecasting future labor demand, as it aggregates expert insights on developments that could affect a business.

p.7
Strategic Human Resource Management (SHRM)

What does SHRM define?
A) Areas for immediate hiring needs
B) Areas in which specific HR strategies need to be developed
C) Employee termination processes
D) Salary structures only
E) Office policies

B) Areas in which specific HR strategies need to be developed
Explanation: SHRM defines the areas where specific HR strategies must be developed to align with the organization's strategic aims, ensuring that human resource management contributes effectively to overall business objectives.

p.10
Human Resource Planning (HRP) Process

Which of the following is NOT a focus of HRP?
A) Ensuring the right number of employees
B) Determining future output levels
C) Conducting employee satisfaction surveys
D) Recruiting the right kind of people
E) Planning for future services

C) Conducting employee satisfaction surveys
Explanation: While HRP focuses on ensuring the right quantity and quality of personnel for future needs, conducting employee satisfaction surveys is not a primary focus of HRP.

p.9
Best Fit vs. Best Practice in HRM

Which theory supports the 'best fit' approach in HRM?
A) Classical theory
B) Contingency theory
C) Behavioral theory
D) Systems theory
E) Human relations theory

B) Contingency theory
Explanation: The best fit approach aligns with contingency theory, which posits that HR strategies should be congruent with the specific context and circumstances of the organization.

p.23
Techniques for Forecasting HR Demand and Supply

What does a Markov Analysis help HR professionals determine?
A) Employee satisfaction levels
B) Future skill requirements
C) Probabilities of employee movement within roles
D) Training effectiveness
E) Recruitment costs

C) Probabilities of employee movement within roles
Explanation: Markov Analysis assists HR professionals in predicting the likelihood of employees transitioning between different roles or positions, which is critical for effective workforce planning.

p.10
Workplace Planning and Recruitment Strategies

What is a key aspect of effectively implementing workplace planning?
A) Reducing training costs
B) Exploring cost-effective recruitment methods
C) Increasing employee turnover
D) Focusing solely on internal promotions
E) Limiting external hiring

B) Exploring cost-effective recruitment methods
Explanation: A significant aspect of workplace planning is to explore the most appropriate and cost-effective methods to recruit and retain the necessary personnel for the organization.

p.28
Employee Turnover and Retention Strategies

What is the average number of employees during the year if a company starts with 45 and ends with 55?
A) 45
B) 50
C) 55
D) 60
E) 70

B) 50
Explanation: The average number of employees is calculated by adding the starting and ending number of employees and dividing by 2. Average = (45 + 55) / 2 = 50.

p.28
Employee Turnover and Retention Strategies

In the second example, what is the change in the number of employees from the start to the end of the year?
A) -5
B) 0
C) +5
D) +10
E) +20

C) +10
Explanation: The change in the number of employees is calculated by subtracting the starting number from the ending number: 55 - 45 = +10.

p.18
Workplace Planning and Recruitment Strategies

What does Scenario 2 (S2) involve in terms of promotions and firing?
A) Increase in all positions
B) Promotion of CPO and decrease in Operatives
C) Promotion of PM and APM
D) Firing of 17 operatives
E) No firing involved

D) Firing of 17 operatives
Explanation: Scenario 2 (S2) involves promotions and results in the firing of 17 operatives, indicating a strategy to balance workforce needs.

p.10
Human Resource Planning (HRP) Process

What does HRP help organizations to prepare for?
A) Seasonal hiring fluctuations
B) Future output or service levels
C) Employee retirement plans
D) Changes in management
E) Office relocations

B) Future output or service levels
Explanation: HRP is essential for organizations to prepare for the future by ensuring they have the right personnel in place to meet expected levels of output or services.

p.9
Best Fit vs. Best Practice in HRM

What does the phrase 'best fit is more important than best practice' imply in HRM?
A) All organizations should use the same HR practices
B) HR strategies should align with the specific context of the organization
C) Best practices are guaranteed to improve performance
D) HRM practices should remain static over time
E) There are no effective HR strategies available

B) HR strategies should align with the specific context of the organization
Explanation: The phrase suggests that HR strategies must be tailored to fit the unique circumstances and needs of the organization, rather than relying solely on universal best practices.

p.16
Workplace Planning and Recruitment Strategies

According to the HR manager, how many total operatives will the company need?
A) 30
B) 40
C) 50
D) 60
E) 70

B) 40
Explanation: The HR manager concluded that a total of 40 operatives would be needed, reflecting the company's changing workforce requirements.

Study Smarter, Not Harder
Study Smarter, Not Harder