Free Human Resource Management MCQs with Answers

858 Human Resource Management MCQs from Management Sciences, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.

Human resource management deals with acquiring, developing, rewarding and retaining employees within an organisation. It includes job analysis, recruitment, selection, training, performance appraisal, compensation, career planning, labour relations and workplace discipline. Recruitment attracts applicants, while selection evaluates them and chooses the most suitable candidate.

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858 questions · page 22 of 43

  • A. HR strategy
  • B. performance appraisal
  • C. aligned reward strategy
  • D. aligned compensating strategy

Explanation: An aligned reward strategy creates a coordinated package of financial and nonfinancial rewards that supports organizational goals.

Correct answer: aligned reward strategy
  • A. long-term incentives
  • B. short-term benefits
  • C. executive perks
  • D. job ranking

Explanation: Supplemental insurance plans are commonly listed among executive perks, which are special benefits provided to senior executives in…

Correct answer: executive perks
  • A. job complexity
  • B. complexity in hiring
  • C. complexity in training
  • D. complexity in recruitment

Explanation: Span of control and an executive's management level reflect the complexity and scope of the job itself.

Correct answer: job complexity
  • A. salary compression
  • B. incentive compression
  • C. aligned reward strategy
  • D. bonuses compression

Explanation: Salary compression occurs when newly hired employees receive pay equal to or higher than that of experienced senior employees, often…

Correct answer: salary compression
  • A. long-term incentives
  • B. short-term incentives
  • C. pay scale
  • D. ranking jobs

Explanation: Short-term incentives, such as cash bonuses and stock awards tied to annual or immediate targets, reward performance over a short period.

Correct answer: short-term incentives
  • A. company size
  • B. company performance
  • C. company internal equity
  • D. both A and B

Explanation: Top-management compensation traditionally reflects both the scale of the organization and its results, since larger firms require broader…

Correct answer: both A and B
  • A. skills
  • B. efforts and responsibility
  • C. working conditions
  • D. all of above

Explanation: Equal-pay comparisons consider the job’s skill, effort, responsibility, and working conditions.

Correct answer: all of above
  • A. focal reviews
  • B. unvocal reviews
  • C. vocal reviews
  • D. local reviewsTry Asset Software

Explanation: A focal review evaluates employees at a common, predetermined time by comparing their performance with established standards.

Correct answer: focal reviews
  • A. pay plan based on knowledge
  • B. pay plan based on skills
  • C. pay plan based on tenure
  • D. pay plan based on performance

Explanation: Manual and blue-collar work commonly uses skill-based pay because earnings reflect the practical skills and abilities required to perform…

Correct answer: pay plan based on skills
  • A. competency based pay
  • B. time based pay
  • C. internship based salary
  • D. training based payGet Executive Coaching

Explanation: Competency-based pay rewards the skills, knowledge, abilities, and behaviors an employee possesses or demonstrates, rather than simply…

Correct answer: competency based pay
  • A. internal equity
  • B. external equity
  • C. procedural equity
  • D. all of above

Explanation: A sound pay-rate process seeks internal equity between jobs in the same organization, external equity with the labor market, and…

Correct answer: all of above
  • A. monetary funds
  • B. interest rate
  • C. inflation
  • D. deflation

Explanation: Salary compression occurs when inflation or strong market wage increases raise new employees’ starting pay close to that of experienced…

Correct answer: inflation
  • A. rank jobs
  • B. grades
  • C. classes
  • D. columnsHire Urban Planners

Explanation: A job grade groups different kinds of jobs that are judged to have approximately equal value or difficulty, such as secretaries…

Correct answer: grades
  • A. primary data
  • B. secondary data
  • C. collective equity
  • D. both A and B

Explanation: A salary survey can use primary data collected directly from employers and secondary data taken from existing reports or databases.

Correct answer: both A and B
  • A. combining ratings
  • B. ranking jobs
  • C. selection of compensable factors
  • D. grouping jobs

Explanation: When several evaluators rank jobs individually, their separate rankings are combined to produce an overall ranking.

Correct answer: combining ratings
  • A. external equity
  • B. internal equity
  • C. compensating equity
  • D. collective equity

Explanation: Salary surveys compare an organisation's pay with rates offered by other employers, helping maintain external equity.

Correct answer: external equity
  • A. collective equity
  • B. primary equity
  • C. secondary equity
  • D. internal equity

Explanation: Comparing the pay fairness of a sales manager with that of a production manager concerns relationships between jobs inside the same…

Correct answer: internal equity
  • A. rank jobs
  • B. grades
  • C. classes
  • D. columns

Explanation: In the classification method, jobs with similar duties, skills, effort, and responsibility are placed into common classes.

Correct answer: classes
  • A. job specification
  • B. job description
  • C. job evaluation
  • D. employee training

Explanation: Placing executive and management positions into a structured series of grades is part of job evaluation, which determines the relative…

Correct answer: job evaluation
  • A. direct financial payments
  • B. payroll
  • C. counseling
  • D. indirect financial payments

Explanation: Bonuses are paid in cash in addition to regular wages or salary, so they are direct financial payments.

Correct answer: direct financial payments