Free Human Resources Basics MCQs with Answers

• A. Managing an organisation's financial investments
• B. Planning and managing people at work
• C. Controlling the production machinery
• D. Promoting products to target customers

Explanation: Human resource management involves planning, acquiring, developing, rewarding and retaining employees.

• A. To determine the market price of a product
• B. To calculate the organisation's annual profit
• C. To identify job duties and requirements
• D. To measure customer satisfaction levels

Explanation: Job analysis systematically identifies a job's duties, responsibilities, working conditions and required qualifications.

• A. Job specification
• B. Training schedule
• C. Selection test
• D. Job description

Explanation: A job description states the tasks, responsibilities, reporting relationships and conditions of a job.

• A. Recruitment attracts applicants, while selection chooses among them
• B. Recruitment trains applicants, while selection evaluates salaries
• C. Recruitment dismisses workers, while selection promotes managers
• D. Recruitment audits records, while selection prepares budgets

Explanation: Recruitment is the process of finding and encouraging suitable people to apply for a vacancy.

• A. Negotiating a long-term loan with a bank
• B. Introducing a new employee to the organisation
• C. Preparing a firm's sales forecast
• D. Auditing the firm's inventory records

Explanation: Orientation, or onboarding, familiarises a new employee with the organisation, job, policies, colleagues and workplace.

• A. The organisation's historical accounts
• B. A competitor's future strategy
• C. The employee's present job
• D. A customer's personal budget

Explanation: Training usually focuses on knowledge and skills needed for an employee's current job or immediate duties.

• A. Job rotation
• B. Exit interviewing
• C. Piece-rate payment
• D. 360-degree feedback

Explanation: 360-degree feedback collects performance information from several groups who interact with the employee.

• A. Basic salary
• B. Medical leave
• C. Flexible working hours
• D. Employee recognition

Explanation: Basic salary is direct financial compensation because it is paid to the employee for performing work.

• A. Transfer of products between warehouses
• B. Movement of employees into and out of an organisation
• C. Change in the ownership of company shares
• D. Rotation of cash between bank accounts

Explanation: Employee turnover refers to employees leaving an organisation and being replaced by others over a period.

• A. To calculate the cost of office equipment
• B. To reduce the number of customer complaints
• C. To prepare people for important future positions
• D. To replace all temporary workers immediately

Explanation: Succession planning identifies and develops employees who may fill key positions when vacancies arise.

• A. Employee handbook
• B. Job evaluation
• C. Performance standard
• D. Job specification

Explanation: A job specification lists the education, skills, experience and other qualities needed to perform a job.

• A. An interview conducted only by the department manager
• B. An interview using planned questions for each candidate
• C. An interview allowing candidates to select the questions
• D. An interview based entirely on informal conversation

Explanation: A structured interview uses predetermined questions and often a common scoring method for all candidates.

• A. Produces the same result repeatedly
• B. Can be completed in a short time
• C. Costs less than other selection methods
• D. Measures qualities related to job performance

Explanation: Validity means that a selection method accurately measures or predicts qualities relevant to successful job performance.

• A. A sense of achievement from completing meaningful work
• B. A monthly salary paid through the payroll system
• C. A cash bonus awarded for exceeding a target
• D. A medical allowance included in the benefits package

Explanation: Intrinsic rewards arise from the work itself, such as achievement, responsibility or personal growth.

• A. Basic wages paid for regular hours
• B. Employer-provided health insurance
• C. Commission earned on completed sales
• D. A cash payment for overtime work

Explanation: Indirect compensation consists of benefits provided in addition to direct pay, such as health insurance, pensions or paid leave.

• A. To approve the organization's annual budget
• B. To determine the market price of company products
• C. To provide a channel for resolving employee complaints
• D. To assign production targets to each department

Explanation: A grievance procedure gives employees an established process for raising and resolving workplace complaints.

• A. Government agencies inspect workplace equipment
• B. Customers negotiate prices with competing suppliers
• C. Managers assign tasks to individual employees
• D. Employees and management negotiate employment conditions

Explanation: Collective bargaining involves negotiations between an employer and employee representatives, often a trade union, over wages and working…

• A. The number of employees promoted during a year
• B. The frequency of employees being absent from work
• C. The length of time employees remain in one position
• D. The proportion of applicants hired after interviews

Explanation: Absenteeism concerns employee absence from scheduled work, whether measured by days, hours or incidents.

• A. The same duties in a different work location
• B. Less responsibility and lower organizational status
• C. Greater responsibility and higher status
• D. Temporary duties without a change in position

Explanation: A promotion normally moves an employee upward to a job with greater responsibility, authority and status, often with increased pay.

• A. To prepare annual financial statements
• B. To negotiate contracts with labor unions
• C. To design products for target customers
• D. To store and process employee-related data

Explanation: An HRIS stores and processes information such as employee records, attendance, payroll data and leave balances.