

Personnel Management Exam Preparation Guide
Course Introduction
Personnel Management is an essential course that explores the fundamental principles and practices involved in managing an organizations workforce. It covers topics such as recruitment, selection, training, performance evaluation, compensation, employee relations, and legal issues related to employment. Emphasizing both strategic and operational aspects, this course equips students with the skills needed to effectively attract, retain, and develop employees, ensuring alignment with organizational goals while fostering a positive and productive work environment.
Recommended Textbook
Human Resource Management Gaining a Competitive Advantage 8th Edition by Raymond A. Noe
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16 Chapters
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Chapter 1: Human Resource Management: Gaining a Competitive Advantage
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Sample Questions
Q1) Discuss the purpose, application process, and the advantages of the Malcolm Baldrige National Quality Award.
Answer: The Baldrige award, created by public law, is the highest level of national recognition for quality that a U.S. company can receive. To become eligible for the Baldrige: (1)the company fills out detailed application with basic information about the company location, markets and products, as well as in-depth presentation of how the company addresses specific criteria related to quality improvement and (2)the board of examiners evaluates the application. All applicants receive written feedback summarizing company strengths and needs for improvements. Three awards may be given annually in each of five categories: manufacturing, service, small businesses, education, and health care. Overall research suggests, the award has had a positive impact on overall company performance, including better employee relations, increased productivity, customer satisfaction, and market share.
Q2) Because the workforce is predicted to become more uniform in terms of age, ethnicity, and racial background, it is likely that one set of values will characterize all employees.
A)True
B)False
Answer: False
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Chapter 2: Strategic Human Resource Management
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Q1) Which of the following is true regarding intended and emergent strategies?
A)The new focus on strategic human resource management has tended to focus primarily on emergent strategies.
B)Intended strategies and emergent strategies are very similar to each other in the way they are developed.
C)Intended strategies are the result of the rational decision-making process used by top managers as they develop a strategic plan.
D)Emergent strategies can be thought of as what organizations intend to do as opposed to what they actually do.
E)Most emergent strategies are identified by those who are at the top of the organizational hierarchy.
Answer: C
Q2) _____ is defined as the skillful employment and coordination of tactics.
A)Strategy
B)Human resource management
C)Mission
D)Internal analysis
E)Business modeling
Answer: A
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Page 4
Chapter 3: The Legal Environment: Equal Employment
Opportunity and Safety
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Sample Questions
Q1) The Occupational Safety and Health Act assigned the responsibility for inspecting employers, applying the standards, and levying fines to the _____.
A)Department of Health
B)National Institute for Occupational Safety and Health
C)Centre for Disease Control and Prevention
D)Occupational Safety and Health Review Commission
E)Department of Labor
Answer: E
Q2) The provision of the Occupational Health and Safety Act that states that an employer has an overall obligation to furnish employees with a place of employment free from recognized hazards is known as the general duty clause.
A)True
B)False
Answer: True
Q3) Conditions such as obesity and substance abuse are covered under the Americans with Disabilities Act.
A)True
B)False
Answer: False

Page 5
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Chapter 4: The Analysis and Design of Work
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Q1) Which of the following is true about team-based job design?
A)The team-based job design is dying in the present day company situations.
B)Team members are not allowed to back each other up.
C)Although in a team, members cannot share work when one member becomes overloaded.
D)Some members lean too much on other team members.
E)Teams are a panacea for every situation.
Q2) The final stage of a work-flow analysis is identifying the work _____.
A)outputs
B)inputs
C)processes
D)relationships
E)finances
Q3) Which of the following approaches to job design entails performing time-and-motion studies?
A)Motivational approach
B)Mechanistic approach
C)Biological approach
D)Perceptual-motor approach
E)Traditional approach
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Chapter 5: Human Resource Planning and Recruitment
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Q1) Yield ratios express the:
A)output yielded by a new hire in relation to the cost of recruiting the new hire.
B)percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.
C)price paid for a share relative to the annual net income or profit earned by the firm per share.
D)the cost of hiring new employees as against promoting internal employees to vacant positions.
E)quality of new hires by comparing the cost of training the new recruits to the cost of hiring them.
Q2) Image advertising is often effective because job applicants develop ideas about the general reputation of the firm and then this spills over to influence their expectations about the nature of specific jobs at the organization.
A)True
B)False
Q3) Discuss the employment-at-will policies and due process policies.
Q4) Explain forecasting and the different types of forecasting methods.
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Chapter 6: Selection and Placement
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Q1) Which of the following is the most accurate definition of concurrent validity?
A)It is an estimate of whether a test appears to measure a certain criterion.
B)It is performed by demonstrating that the questions or problems posed by the test are a representative sample of the kinds of situations or problems that occur on the job.
C)It assesses the validity of a test by administering it to people already on the job and then correlating test scores with existing measures of each person's performance.
D)It seeks to establish an empirical relationship between test scores taken prior to being hired and eventual performance on the job.
E)It refers to the degree to which a measure is correlated with other measures that it is theoretically predicted to correlate with.
Q2) Much of the work in personnel selection involves measuring characteristics of people to determine who will be accepted for job openings.
A)True
B)False
Q3) What are the major controversies surrounding drug tests? What can employers do to overcome the problems associated with these tests?
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Chapter 7: Training
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Sample Questions
Q1) Which of the following are components found in a typical behavior modeling session?
A)Presentation of the key behaviors, videotape of a model, practice opportunities, and a planning session.
B)Videotape of a model, planning session, one-on-one coaching, and practice opportunities.
C)Presentation of key behaviors, videotape of a model, participation in a case study group, and planning session.
D)Lecture, videotape of a model, on-the-job coaching, and practice opportunities.
E)Virtual classrooms, customer argument demonstrations, and web-based training.
Q2) Describe the five types of training outcomes.
Q3) Organizational socialization is the process by which new employees are transformed into effective members of the company and involves three phases: anticipatory socialization, encounter, and settling in.
A)True
B)False
Q4) Describe apprenticeship as a training technique.
Q5) As a manager, how would you go about choosing a training method?
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Chapter 8: Performance Management
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Q1) Which of the following is a means of measuring and feeding back productivity information to personnel with the main goal of motivating employees to higher levels of productivity?
A)Management by objectives
B)ProMES
C)Assessment centers
D)Critical incidents
E)Multi-criteria decision analysis
Q2) A _____ rater error is one in which a rater gives middle or average ratings to all employees despite their performance.
A)horns
B)leniency
C)central tendency
D)strictness
E)contrast
Q3) Discuss the various rater errors in performance management.
Q4) Output is a factor to consider in analyzing poor performance.
A)True
B)False
Q5) Discuss the ways a manager can improve the performance feedback process.
Page 10
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Chapter 9: Employee Development
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Sample Questions
Q1) Which of the following is the first step in the development planning system?
A)Reality check
B)Self-assessment
C)Goal setting
D)Action planning
E)Employee appraisal
Q2) When a company allows employees to take a full-time operational role at another company it is known as a(n):
A)expatriate assignment.
B)transfer.
C)sabbatical.
D)externship.
E)promotion.
Q3) Describe the exercises used in assessment centers.
Q4) The Myers-Briggs Type Indicator is tool used by managers to improve interpersonal communication within teams.
A)True
B)False
Q5) Discuss mentoring and group mentoring.
Q6) Describe job enlargement and job rotation.
Page 11
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Chapter 10: Employee Separation and Retention
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Q1) Consistency, bias suppression, information accuracy, correctability, representativeness, ethicality are the six determinants of:
A)perceptual justice.
B)interactional justice.
C)procedural justice.
D)alternative dispute resolution.
E)task justice.
Q2) Within the organization, a systematic survey program allows the company to check for differences between units and _____ best practices that might be generalized across units.
A)benchmark
B)avoid
C)discontinue
D)reevaluate
E)change
Q3) A systematic survey program allows a company to check for differences between units and hence benchmark "best practices" that might be generalized across units.
A)True
B)False
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Page 12

Chapter 11: Pay Structure Decisions
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Q1) Which of the following pays is similar to pay structures based on individual characteristics such as skill or knowledge but usually refers to a plan that covers exempt employees?
A)Internal equity pay
B)Market survey pay
C)Competency-based pay
D)Job-based pay
E)External equity pay
Q2) When compensable factors are weighed using expert judgments about the importance of each factor, a(n)_____ weight is said to be assigned.
A)statistical
B)multiple regression
C)a priori
D)empirical
E)factorial
Q3) What labor-related factors should be considered when deciding where to locate production?
Q4) What is skill-based pay and what are its advantages?
Q5) Describe external equity pay comparisons and internal equity pay comparisons.
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Chapter 12: Recognizing Employee Contributions With Pay
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Q1) In agency theory, the _____ seeks to direct the behavior of the _____.
A)owner; principal
B)agent; principal
C)buyer; agent
D)agent; owner
E)principal; agent
Q2) Pay and benefits are examples of intrinsic rewards.
A)True
B)False
Q3) Agency costs can arise when _____.
A)principals and agents have different goals
B)ownership of a company is not separated from organizational control
C)most stockholders are involved the day-to-day operations of companies
D)payments are not rolled into base pay
E)there is information symmetry between the agent and the principal
Q4) Linking annual pay increases to performance appraisal ratings refers to incentive pay system.
A)True
B)False
Q5) Differentiate between outcome-oriented contracts and behavior-based contracts.
Page 14
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Chapter 13: Employee Benefits
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Q1) The _____ specifies that employees with disabilities must have equal access to whatever health insurance coverage the employer provides other employees.
A)ADA
B)ADEA
C)FLSA
D)ERISA
E)COBRA
Q2) Which of the following is a characteristic of a health maintenance organization (HMO)?
A)A focus on curable medicine
B)Provision of benefits on a reimbursement basis
C)Employee selection of preferred physicians
D)Payment of physicians on a fee-for-service basis
E)Physicians paid depending on the number of patients seen
Q3) What potential risks do employers run when they choose to offer a flexible benefits (cafeteria-style)plan?
Q4) U.S. companies increasingly provide some form of child care support to their employees. Discuss.
Q5) Discuss the concepts of HMOs and PPOs.
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Chapter 14: Collective Bargaining and Labor Relations
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Q1) Associate union membership is linked to an employee's workplace and provides representation in collective bargaining.
A)True
B)False
Q2) Which of the following is true of the various stages in negotiations?
A)Less people are present in the early stages of negotiations whereas more people join in at the later stages.
B)Union negotiators often present an extensive list of proposals during the middle stages of the negotiations.
C)In the final stages, negotiators and neutral third parties enter the process.
D)During the final stages, each side must make a series of decisions, even though the outcome is uncertain.
E)In the initial stage, negotiators from each side may have one-on-one meetings or small-group meetings where public relations pressures are reduced.
Q3) The right-to-work laws make union shops, maintenance of membership, and agency shops legal.
A)True
B)False
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Chapter 15: Managing Human Resources Globally
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Q1) _____ refers to the set of important assumptions that members of a community share.
A)Culture
B)Ambiance
C)Confidence
D)Climate
E)Human capital
Q2) Describe the structure of companies existing at a domestic level.
Q3) Countries with low human capital attract facilities that require _____.
A)low skills and low wage levels
B)low skills and high wage levels
C)high skills and high capital
D)high skills and low capital
E)high wage levels and high capital
Q4) Cost-of-living allowances are payments that offset the differences in expenditures on day-to-day necessities between the host country and the parent country.
A)True
B)False
Q5) Discuss the importance of cross-cultural trainings for expatriate managers.
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Chapter 16: Strategically Managing the HRM Function
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Q1) HRM function effectively consists of three divisions: the centers for expertise, the field generalists, and the service center.
A)True
B)False
Q2) Which of the following is true about the reengineering process?
A)Information technology applications are mandatory for process redesign.
B)Reengineering is critical to ensuring that there is no loss from employing human resources.
C)Applying new technology to an inefficient process will improve effectiveness.
D)Reengineering cannot be used to review specific HRM practices but only HRM department functions.
E)Process redesign enables HRM function to deliver HRM services more efficiently and effectively.
Q3) Service centers often leverage information technology to efficiently deliver employee services.
A)True
B)False
Q4) Discuss the three activities of HRM.
Q5) Discuss the steps included in the reengineering process.
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