Human Resource Management Test Questions
Course Introduction
Human Resource Management introduces students to the essential principles and practices involved in managing people within organizations. The course explores the key functions of HR, such as recruitment and selection, training and development, performance management, compensation and benefits, and employee relations. Students will gain an understanding of the strategic role HR plays in supporting organizational objectives, fostering workplace diversity and inclusion, and ensuring compliance with labor laws and ethical standards. Through real-world case studies and practical exercises, students develop skills to effectively address human capital challenges and support a dynamic workforce.
Recommended Textbook
Compensation 11th Edition by George Milkovich
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18 Chapters
1611 Verified Questions
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Page 2
Chapter 1: The Pay Model
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Sample Questions
Q1) The objective of procedural fairness suggests the way a pay decision is made may be as important to employees as the results of that decision.
A)True
B)False
Answer: True
Q2) Causality is one of the most difficult questions to answer and continues to be an important and sometimes perplexing problem for researchers.
A)True
B)False
Answer: True
Q3) Cost is to change in the pay model as ______________ are to policy lines.
A) market definitions
B) surveys
C) descriptions
D) incentives
Answer: A
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Page 3
Chapter 2: Strategy: The Totality of Decisions
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Sample Questions
Q1) Flexible-generic job descriptions would most likely be used with a _____ strategy.
A) innovator
B) customer-focused
C) differentiated
D) cost-cutter
Answer: A
Q2) The social,competitive and regulatory environment factors are most important for which type of strategy?
A) Corporate
B) Business unit
C) HR
D) Strategic compensation
Answer: D
Q3) A strategy map contains strategies about all but which of the following?
A) External competitiveness
B) Management
C) HR alignment
D) Employee contributions
Answer: C
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Page 4
Chapter 3: Defining Internal Alignment
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Sample Questions
Q1) Equity theory research shows that an egalitarian pay structure will be seen as more fair than a hierarchical structure.
A)True
B)False
Answer: False
Q2) In firefighting and rescue squads and global software design teams,a(n)_____ structure is associated with higher performance.
A) hierarchical
B) institutional
C) egalitarian
D) tournament
Answer: C
Q3) Distributive justice is more important than procedural justice for employee acceptance of their pay.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Job Analysis
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Sample Questions
Q1) Both skills and competencies can be used as the basis for developing an internal structure.
A)True
B)False
Q2) The reliability and validity of quantitative methods of job analysis has significantly reduced the importance of human judgment in job analysis.
A)True
B)False
Q3) Job analysis is important for both managers and employees because it is
A) the basis for a work-related rationale for pay differences.
B) an important result of the job evaluation process.
C) required under the Fair Labor Standards Act.
D) required for performance appraisal.
Q4) List the major decisions in designing a job analysis.
Q5) Define interactions.
Q6) Most organizations do not regularly (annual or semi-annual)update their job analyses.
A)True
B)False
Page 6
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Chapter 5: Job-Based Structures and Job Evaluation
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Sample Questions
Q1) The job evaluation method that most resembles a bookcase is:
A) ranking.
B) the Hay plan.
C) point method.
D) classification.
Q2) The ______ method of job evaluation is the most commonly used method in the U.S.and Europe.
A) ranking
B) factor comparison
C) classification
D) point
Q3) Which of the following would not be used as a criterion pay structure?
A) Market rates for current jobs.
B) Union-negotiated rates.
C) Rates for job held predominately by males.
D) Federal government rates based on the minimum wages.
Q4) Which seems more important: the design process or the internal pay structure?
Q5) What are the two aspect of diversity in work?
Q6) How does job evaluation aid in the process of establishing an internally aligned pay structure?
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Chapter 6: Person-Based Structures
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Sample Questions
Q1) Basing pay on race or gender seems appalling today,but basing pay on someone's judgment of another person's integrity is considered the norm nowadays.
A)True
B)False
Q2) _________ are the observable behaviors that indicate the level of a competency.
A) Competency sets
B) Core competencies
C) Competency indicators
D) Behavior scale points
Q3) Which are the two reasons that make competencies a risky foundation for a pay system?
A)Number of stakeholders and lack of a global standard
B)Openness and non-quantifiable nature
C)Vagueness and subjectivity
D)Lack of motivation and abstract objectives
Q4) Compensable factors,skill blocks,and competency sets are all for the purpose of:
A) assessing relative value.
B) collecting work content information.
C) determining what to value.
D) each of the three has a different purpose.
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Chapter 7: Defining Competitiveness
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Sample Questions
Q1) The mix or forms of pay compared to competitors is a part of _____________
A) internal alignment
B) contributions
C) competitiveness
D) management
Q2) An individual manager could be a factor affecting an employer's external competitiveness.
A)True
B)False
Q3) Stores that label each item's price or ads that list a job opening's starting wage are examples of bourses.
A)True
B)False
Q4) Among pay-mix alternatives,base pay is largest in _____.
A) work-life balance
B) security or commitment
C) performance driven
D) market match
Q5) How do managers tackle the fact that neither marginal product nor marginal revenue is directly measurable?
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Chapter 8: Designing Pay Levels, mix, and Pay Structures
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Sample Questions
Q1) Which of the following is often used to set pay ranges?
A) Median
B) Weighted mean
C) Quartiles and percentiles
D) Standard deviation
Q2) Salary data available to employees via the Internet are as reliable and accurate as other more traditional surveys.
A)True
B)False
Q3) The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.
A) job structure
B) broad banding
C) reference rate
D) market pricing
Q4) Explain the market pricing approach to compensation.
Q5) Setting your company's base pay to competitors' total compensation risks high fixed costs.
A)True
B)False
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Chapter 9: Pay-For-Performance: the Evidence
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Sample Questions
Q1) What are the implications for performance-based pay based on the theory of reinforcement?
Q2) Line of sight means that employees believe they can influence performance targets.
A)True
B)False
Q3) Employees' assessment of their ability to perform required job is called
A) equity.
B) instrumentality
C) expectancy
D) reinforcement
Q4) All of the following except ____ require periodically "re-earning" the added pay.
A) success sharing plan
B) lump-sum bonus
C) profit-sharing plan
D) cost of living
Q5) Briefly explain the concept of cafeteria-style or flexible compensation.
Q6) Explain the expectancy theory of motivation.
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Chapter 10: Pay-For-Performance Plans
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Sample Questions
Q1) Recently,the private sector has shown more interest and innovation using merit pay than the public sector.
A)True
B)False
Q2) Individual incentives yield higher productivity gains.
A)True
B)False
Q3) The authors argue that for merit pay to live up to its potential,all of the following should be done except _________
A) use more peer than supervisor raters.
B) improve the accuracy of appraisals.
C) allocate enough merit money to truly reward performance.
D) ensure merit pay differentiates across performance levels.
Q4) A major problem of group incentive plans is performance targets are not correctly set.
A)True
B)False
Q5) How can merit pay systems be better managed?
Q6) What is the difference between success-sharing plans and risk-sharing plans?
Q7) Why do companies prefer lump-sum pay over merit pay increases?
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Chapter 11: Performance Appraisals
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Sample Questions
Q1) A major difference between rankings and ratings is ratings use an absolute versus a relative scale.
A)True
B)False
Q2) Some experts argue applying the principles of Total Quality Management can improve performance appraisals.
A)True
B)False
Q3) Overall performance in both the standard rating scale and MBO is the weighted average of ratings on all dimensions.
A)True
B)False
Q4) How do you define a good appraisal format?
Q5) Keeping a performance diary helps employers defend against discrimination charges stemming from performance ratings.
A)True
B)False
Q6) Describe the paired comparison method of appraisal.
Q7) What is the significance of promotions as a pay-for-performance tool?
Page 13
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Chapter 12: The Benefit Determination Process
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Sample Questions
Q1) A major reason for the proliferating cost of benefit programs is the narrow focus of benefit administrators.
A)True
B)False
Q2) Which are the four major administration issues regarding in setting up a benefit package?
Q3) Employee benefits may be accurately described as a costly entitlement of the American workforce.
A)True
B)False
Q4) Illustrate the issue of communication of benefits to the employees.
Q5) The __________ act requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.
A) Patient Protection and Affordable Care Act
B) Family and Medical Leave Act
C) Health Maintenance Organization Act
D) No act requires these actions.
Q6) What is the importance of the demographic approach in determining employee preferences?
Page 14
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Chapter 13: Benefit Options
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Sample Questions
Q1) Which of the following benefits is a federally administered program?
A) Workers' compensation
B) Social Security
C) Unemployment insurance
D) Occupational Safety and Health Act
Q2) An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:
A) full vesting after three years.
B) full vesting after six years.
C) full vesting after seven years.
D) to offer portability rights.
Q3) Work-related injuries are covered by workers' compensation but not industrial diseases such as black lung and asbestosis.
A)True
B)False
Q4) Medicare is not part of social security.
A)True
B)False
Q5) What is the purpose of the HIPAA?
Q6) What is the central challenge of social security payments? How are they tackled?
Page 15
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Chapter 14: Compensation of Special Groups
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Sample Questions
Q1) Members of boards of directors are not categorized as candidates for special compensation.
A)True
B)False
Q2) ERISA and the tax code specify that the average value of benefits for low-paid employees must be at least 75 percent of those of highly paid employees.
A)True
B)False
Q3) Stockholder anger about executive compensation has led to a higher proportion of outside members on boards of directors.
A)True
B)False
Q4) The most recent trend in executive compensation is an increased use of stock options.
A)True B)False
Q5) Describe the types of long-term incentives for executives.
Q6) Explain any one element of an executive compensation package in detail.
Q7) What is a tally sheet and what is it used for?
Page 16
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Chapter 15: Union Role in Wage and Salary Administration
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Sample Questions
Q1) Briefly summarize the impact of unions on general wages levels.
Q2) Benefits account for nearly 38 percent of total compensation for unionized workers.
A)True
B)False
Q3) A study of unions in 114 companies concluded that _____.
A) unions made a difference in wages in half of the companies
B) unions made a difference in wages in only a few industries
C) unions made a difference in wages across all studies and time periods
D) unions were not responsible for any differences in wages
Q4) Wage concessions have become more prominent in recent years.
A)True
B)False
Q5) What are the different dimensions of the structuring of wage packages?
Q6) (517)Which of the following statements regarding unions is not true?
A) Union membership has fallen from approximately 20 to 12 percent since 1983.
B) Approximately 37 percent of the public sector and 7 of the private are unionized.
C) Since 1977, unions have been losing more certification elections.
D) Since 1977, the number of certification elections has declined.
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Chapter 16: International Pay Systems
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Sample Questions
Q1) Which of the following countries has the highest number of people in the workforce belonging to unions?
A) Japan
B) Sweden
C) Italy
D) The United Kingdom
Q2) Generally,it is difficult to compare total compensation of a U.S.firm with a foreign competitor.
A)True
B)False
Q3) Distinguish between expatriates,local nationals,and third-country nationals with examples.
Q4) Toyota and Toshiba,leading Japanese manufacturers,use very similar pay systems.
A)True
B)False
Q5) Traditionally,Japan's employment relationships were supported by _____.
A) lifetime security within the company
B) performance-based pay systems
C) centralized unions representing workers within a single company
D) performance-based promotion systems
Page 18
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Chapter 17: Government and Legal Issues in Compensation
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Sample Questions
Q1) The overall effect of immigration is an increase in wages for low skilled workers.
A)True
B)False
Q2) Denial of jobs,promotions,or training opportunities to qualified women or minorities are examples of _____ discrimination.
A) access
B) valuation
C) disparate treatment
D) preferential treatment
Q3) The Davis-Bacon Act _____.
A) states that income from most stock plans need not be included in calculating overtime pay
B) increases border of proof on employers to rebut some discrimination claims
C) requires that mechanics and laborers on public construction projects be paid the "prevailing wage" in an area
D) extends prevailing-wage concept to manufacturers or suppliers of goods for government contracts
Q4) Distinguish between access discrimination and valuation discrimination.
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Chapter 18: Management: Making It Work
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Sample Questions
Q1) Replacing merit grids with _____ eliminates the link between the pay increase and the employees' salary position in the range and performance rating.
A) banding
B) skill- or competency-based plans
C) job evaluation
D) bonuses
Q2) Broad bands provide managers greater discretion in pay for their subordinates than in grades and ranges.
A)True
B)False
Q3) Under the contract pay system,each worker was paid according to a uniform contract for each company.
A)True
B)False
Q4) An individual employee cannot earn more pay than the maximum of the pay grade of their current job.
A)True
B)False
Q5) What is the turnover effect? Explain how it is calculated with an example.
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