Free Human Resource Management MCQs with Answers

• A. time based pay
• B. performance based pay
• C. bonuses
• D. promotion

Explanation: Piecework links earnings to the quantity of output produced, making it performance-based pay.

• A. person oriented
• B. job oriented
• C. tenure oriented
• D. evaluation oriented

Explanation: Competency-based pay rewards the knowledge, skills, abilities, or competencies possessed by an employee, so it is person-oriented.

• A. salary survey
• B. market survey
• C. equity survey
• D. HR survey

Explanation: A salary survey collects information on the salary and wage rates paid for specific jobs, usually by comparing employers in the same…

• A. job evaluation
• B. job grading
• C. pay grading
• D. job ranking

Explanation: Job evaluation systematically compares jobs by classifying, ranking or assigning points to determine their relative worth and pay…

• A. direct financial payments
• B. salary increments
• C. paid counseling
• D. non direct financial paymentTry Asset Software

Explanation: Employer-paid insurance is an indirect or non-direct financial payment because it provides an employee benefit rather than being paid as…

• A. working capital
• B. human capital
• C. compensation capital
• D. size of working capital

Explanation: An executive’s education, skills and experience are forms of human capital because they represent productive capabilities embodied in a…

• A. competencies
• B. job description
• C. job specification
• D. job evaluation

Explanation: Competencies are observable skills, knowledge, abilities or behaviours that enable effective job performance.

• A. base pay
• B. long-term
• C. executive benefits
• D. all of aboveMcqs Practice Tests

Explanation: Top executive compensation commonly combines base pay, long-term incentives or rewards, and executive benefits.

• A. mission
• B. vision
• C. strategic goals
• D. compensation strategyCompare HR Software

Explanation: Compensation and reward systems should reinforce the organisation’s strategic goals by encouraging behaviours and results that support…

• A. alternation ranking method
• B. point method
• C. ranking method
• D. job classificationCompare HR Software

Explanation: In the alternation ranking method, the evaluator selects the highest-ranked employee or job, then the lowest-ranked one, and continues…

• A. short-term of shareholder value
• B. long-term shareholder value
• C. economic value added
• D. managerial job evaluationHire Resume Writers

Explanation: Operating profit margin reflects current operating performance and is therefore used as a short-term shareholder-value measure.

• A. time based pay
• B. performance based pay
• C. bonuses
• D. salary incentives

Explanation: A sales commission changes with the sales results achieved by an employee, so it rewards output rather than time spent at work.

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

Explanation: An aligned reward strategy combines pay, incentives and benefits so that employee behaviour supports organisational objectives.

• A. pay plan based on knowledge
• B. pay plan based on title of job
• C. pay plan based on tenure
• D. pay plan based on performance

Explanation: Payment for learning Windows-related knowledge rewards the skills or knowledge an employee acquires, even before measuring job…

• A. employer's ability to pay
• B. employer's ability to hire
• C. employer's ability to train employees
• D. employer's ability to growGet Executive Coaching

Explanation: Total profit and rate of return indicate whether an organisation has the financial capacity to meet compensation costs.

• A. job classification
• B. job evaluation method
• C. job ranking technique
• D. pay ranges

Explanation: Pay ranges allow managers to set different pay rates within the same grade, giving the employer flexibility to recognise experience…

• A. group similar jobs
• B. price each pay grade
• C. fine tune pay rates
• D. determining the worth of each job

Explanation: Once jobs have been evaluated for internal and external equity, similar jobs are grouped into pay grades before each grade is assigned a…

• A. working capital
• B. human capital
• C. compensation capital
• D. size of working capitalCompare HR Software

Explanation: Human capital is the value of employees' knowledge, skills, education and experience, including relevant study and work background.

• A. intuitive approaches
• B. systematic approaches
• C. mathematical approaches
• D. logical approaches

Explanation: Jobs may be compared through intuitive methods, based on overall judgement, or systematic methods, which apply defined criteria and…

• A. job description
• B. job specification
• C. job evaluation
• D. ranking methodHire Resume Writers

Explanation: The ranking method orders jobs from highest to lowest according to their relative difficulty or value without assigning numerical points.