Free Society for Human Resource Management MCQ Question and Answers — Questions and Answers

Question 1: Which of the following assertions regarding strikes is false?

Employee may strike to support a hot cargo clause (Correct answer)
Unions may not in favor of unfair labor practice.
A strike may be deemed unlawful because of misconduct by strikers/
Work slowdown are an illegal form of strike

Correct answer: Employee may strike to support a hot cargo clause

Hot cargo clauses are agreements between an employer and a union where the employer agrees not to handle, use, or deal in goods produced by another employer with whom the union has a dispute. These clauses are generally illegal under the National Labor Relations Act (NLRA) because they constitute secondary boycotts. Therefore, employees striking to support such a clause would be engaging in an unlawful strike.

Question 2: Which of the following communication delivery strategies is not regarded as top-down?

Bulletin board posting
Brown bag meetings (Correct answer)
Newsletters
Posters

Correct answer: Brown bag meetings

Top-down communication strategies involve information flowing primarily from management to employees, such as through newsletters, posters, or bulletin boards. Brown bag meetings, however, are typically informal gatherings where employees and managers can discuss topics, ask questions, and share ideas in a more interactive setting. This format encourages two-way communication and feedback, making it less purely 'top-down' than the other options.

Question 3: Which of the following is a typical issue throughout the organizational life cycle's growth phase?

poor communication between management and employees (Correct answer)
slow response to market changes
outsourcing
excessive bureaucracy

Correct answer: poor communication between management and employees

During the growth phase, organizations expand rapidly, often adding many new employees and potentially new layers of management. This rapid expansion can strain existing communication channels, leading to misunderstandings, lack of clarity, and a feeling of disconnect between management and the growing workforce. Addressing poor communication becomes a critical challenge to maintain morale and efficiency.

Question 4: Which of the following statements most accurately sums up what an employer can do when workers start organizing?

Employers may block employees who begin the process of unionization
Employers may threaten to replace workers who chose to unionize
Employers may explain problem with unionization to employees (Correct answer)
Employer may contact union leaders and forbid unionization

Correct answer: Employers may explain problem with unionization to employees

Under the National Labor Relations Act (NLRA), employers have the right to express their opinions about unions and unionization, as long as these expressions do not contain threats, coercion, or promises of benefits. They can explain the potential disadvantages or problems they foresee with unionization. However, employers cannot legally block, threaten, or forbid employees from organizing or contacting union leaders.

Question 5: What one of the following claims regarding the Delphi method is false?

It is a convenient form of qualitative analysis when participants are distant
The participants remain anonymous
It allows for a broad range of perspectives
It takes place in a single round (Correct answer)

Correct answer: It takes place in a single round

The Delphi method is an iterative forecasting technique that involves multiple rounds of questionnaires sent to a panel of experts. After each round, the facilitators provide a summary of the experts' forecasts and the reasons behind them, allowing experts to revise their earlier judgments. This multi-round process, with anonymous feedback, is designed to achieve a consensus or narrow the range of opinions, making the statement that it takes place in a single round false.

Question 6: A corporation wants to make its compensation procedures more flexible so that managers may correctly reward their staff for exceptional achievement. Which of the following pay policies is most likely to accomplish this goal?

Broadbanding (Correct answer)
Pay policy line
Pay grades
Market pricing

Correct answer: Broadbanding

Broadbanding consolidates a large number of traditional pay grades into a few wider pay bands. This approach provides managers with greater flexibility to reward employees for exceptional performance, skill development, and market value without requiring them to move into a different, higher pay grade. It simplifies the pay structure and encourages career development within a broader range.

Question 7: Which of the following can often have an impact on risk transfer?

Purchasing employment practices liability insurance to protect a business (Correct answer)
Being familiar with chances of risk and creating a financial buffer against future costs
Reviewing employment policies frequently to avoid the chances of an employee lawsuit
Taking advance action to consider potential risks and prevent problems from occurring

Correct answer: Purchasing employment practices liability insurance to protect a business

Risk transfer is a risk management strategy where the financial consequences of a potential loss are shifted from one party to another. Purchasing insurance, such as employment practices liability insurance (EPLI), is a classic example of risk transfer. The business pays a premium to an insurer, and in return, the insurer assumes the financial risk of certain employment-related lawsuits or claims.

Question 8: HR strategies are typically in line with ___ in strategic human resource management.

Business strategy (Correct answer)
Marketing strategy
Finance strategies
Economic strategies

Correct answer: Business strategy

In strategic human resource management, HR strategies are fundamentally designed to support and enable the overall business strategy of the organization. This alignment ensures that HR practices, policies, and programs contribute directly to achieving the company's strategic objectives, such as market expansion, innovation, or cost leadership. HR is seen as a strategic partner, not just an administrative function.

Question 9: Typically, the strategic management process involves ___ steps.

Four (Correct answer)
Five
Six
Seven

Correct answer: Four

While specific models may vary slightly, a commonly recognized strategic management process involves four key steps: strategy formulation (developing the strategy), strategy implementation (putting the strategy into action), strategy evaluation (assessing performance against objectives), and strategic control (making adjustments as needed). This iterative process ensures continuous improvement and adaptation.

Question 10: Treating employees as precious human resources is the basis of the _______ approach

Hard HRM
Soft HRM (Correct answer)
Medium HRM
None of these

Correct answer: Soft HRM

Soft HRM emphasizes treating employees as valuable assets and partners, focusing on their development, commitment, and involvement. This approach views human resources as a source of competitive advantage and seeks to foster a positive organizational culture through empowerment, communication, and training. It contrasts with 'Hard HRM,' which treats employees more as a resource to be managed efficiently for cost control.

Question 11: Strategic management of human resources entails.

Planning, foresight and analytical decision making
Setting employment standards and policies
Linking human resources with strategic objectives to improve performance
All of the above (Correct answer)

Correct answer: All of the above

Strategic management of human resources is a holistic approach that encompasses all these elements. It involves proactive planning, foresight, and analytical decision-making to align HR practices with organizational goals. This includes setting employment standards and policies, and critically, linking human resources with strategic objectives to enhance overall organizational performance and achieve competitive advantage.

Question 12: What are the ways that long-term objectives can be Accomplished.

Strategies (Correct answer)
Policies
Strength
Opportunities

Correct answer: Strategies

Strategies are the specific plans, actions, and approaches an organization employs to achieve its long-term objectives. While policies provide guidelines and strengths and opportunities are internal/external factors, strategies are the actionable roadmaps that dictate how an organization will allocate resources and pursue its goals over an extended period.

Question 13: The primary goal of a company's mission statement is to

create a good human relations climate in the organization
define the organization's purpose in society (Correct answer)
define the operational structure of the organization
generate good public relations for the organization

Correct answer: define the organization's purpose in society

A company's mission statement clearly articulates its fundamental purpose, defining what the organization does, for whom, and why it exists. It provides a concise overview of the company's core business, values, and objectives, guiding its operations and strategic decisions. It essentially answers the question, 'What business are we in?'

Question 14: The system that is intended to give helpful data while making decisions about human resources

Benefits analysis System
HRIS (Correct answer)
Decisional Information System
Intergrating HR

Correct answer: HRIS

A Human Resource Information System (HRIS) is a software solution designed to manage and automate various HR functions, such as payroll, benefits administration, talent management, and employee data. Its primary purpose is to provide HR professionals and managers with accurate, timely, and comprehensive data to support informed decision-making regarding human resources.

Question 15: Which of the following is not a component of an organization's external environment?

social factors
political factors
legal factors
Organizational Culture (Correct answer)

Correct answer: Organizational Culture

An organization's external environment consists of factors outside its direct control that can influence its operations and strategies, such as social, political, economic, technological, and legal factors. Organizational culture, on the other hand, refers to the shared values, beliefs, and practices within the company itself, making it an internal environmental component.

Question 16: The method by which a corporation produces its goods using the best practices in a related industry is referred to as

Primary Ratio
Secondary Ratio
Tertiary Ratio
Bench marking (Correct answer)

Correct answer: Bench marking

Benchmarking is the process of comparing an organization's performance, processes, or products to those of leading companies (best-in-class) in the same or a related industry. The goal is to identify best practices, understand how top performers achieve their results, and then adapt these insights to improve one's own operations and achieve a competitive edge.

Free Society for Human Resource Management MCQ Question and Answers

Which of the following assertions regarding strikes is false?