Free Human Resource Management MCQs with Answers

• A. internal equity
• B. external equity
• C. collective equity
• D. individual equity

Explanation: Equity theory commonly considers individual, internal and external equity when comparing rewards and contributions.

• A. long-term incentives
• B. short-term incentives
• C. pay scale
• D. ranking jobsDownload Reference Apps

Explanation: The right to purchase company shares at a specified price during a stated period is a stock option, which is classified as a long-term…

• A. base pay
• B. short-term incentives
• C. executive benefits
• D. long-term incentives

Explanation: Base pay covers an executive's fixed salary and guaranteed compensation, whereas incentives depend on performance or results.

• A. obtain job information
• B. select and group jobs
• C. select compensable factors
• D. rank jobs

Explanation: A ranking evaluation cannot begin until reliable information about each job has been collected.

• A. short-term of shareholder value
• B. compensation of company executive
• C. determination of stocks
• D. determination of investmentDownload Reference Apps

Explanation: Revenue growth is a business-performance measure used among short-term indicators of shareholder value, alongside results such as earnings…

• A. getting job information
• B. combining ratings
• C. ranking jobs
• D. selecting and grouping jobs

Explanation: When jobs are arranged or placed into clusters, the process is selecting and grouping jobs.

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

Explanation: Traditional compensation systems attach pay mainly to the job's duties, responsibilities, and evaluated worth, making them job-oriented.

• A. pay based on company's profit
• B. pay based on company's stocks
• C. pay based on competency
• D. pay based on time

Explanation: When pay is based on what an employee can do rather than the job title or position held, it is competency-based pay.

• A. comparable worth
• B. incomparable worth
• C. definable worth
• D. indefinable worth

Explanation: Comparable worth means providing equal pay for jobs requiring comparable skill, effort, responsibility, and working conditions, even when…

• A. non direct financial payment
• B. direct financial payments
• C. compensation
• D. pension benefits

Explanation: Incentives are payments directly linked to performance, output, or achievement, so they form part of direct financial compensation.

• A. classes
• B. grades
• C. rank jobs
• D. combine ratings

Explanation: A grade in job classification groups jobs that have broadly similar difficulty, responsibility, and value.

• A. employee's family name
• B. employee's competency
• C. employee's performance
• D. employee's equityMerchant Services & Payment Systems

Explanation: Modern skill- or competency-based pay focuses on the employee's knowledge, skills, and capabilities rather than merely the job title.

• A. conduct salary survey
• B. group similar jobs
• C. price each pay grade
• D. fine-time pay rates

Explanation: A salary survey supplies external market information needed before assigning competitive pay rates.

• A. salaries
• B. bonuses
• C. promotion
• D. shopping discountsJobs

Explanation: Managers and executives generally receive fixed salaries for performing their roles, although bonuses may be added as performance…

• A. pay for knowledge
• B. skill-based pay
• C. time based pay
• D. Both A and B

Explanation: Pay-for-knowledge rewards employees for acquiring relevant knowledge, while skill-based pay rewards the skills they develop and apply.

• A. wage curve
• B. salary curve
• C. job evaluation curve
• D. job description curve

Explanation: A wage curve shows the relationship between the relative value of jobs, usually measured by job evaluation points, and the average wages…

• A. incentives
• B. non direct payments
• C. direct payments
• D. salary increments

Explanation: Discounts on air tickets and bus fares are employee benefits provided indirectly rather than as cash wages or salary increments.

• A. time based pay
• B. performance based pay
• C. promotion
• D. salary increments

Explanation: When payment depends on the number of units produced, earnings are linked to output or performance rather than time worked.

• A. salary survey
• B. market survey
• C. equity survey
• D. motivation surveyUrdu Mcqs

Explanation: A salary survey compares the salaries paid by different employers for similar jobs, helping an organisation judge whether its pay is…

• A. wide range of jobs
• B. lesser range of job
• C. only one type of job
• D. unspecified job descriptionCompensation & Benefits

Explanation: Broad banding combines many narrow pay grades into a small number of broad bands, with each band covering a wide range of jobs.