Essentials of HRM 8th MCQ practice set

Q281: What is one of the problems of performance appraisal?
a) Low employee morale
b) High employee engagement
c) Accurate ratings
d) Consistent measurement

Answer

a) Low employee morale

Q282: Which of the following is a problem of performance appraisal?
a) Training and development
b) Goal setting
c) Managerial accountability
d) Lack of reliability

Answer

d) Lack of reliability

Q283: What is one of the problems of performance appraisal?
a) High employee turnover
b) Clear performance criteria
c) Inadequate communication
d) Consistent measurement

Answer

c) Inadequate communication

Q284: Which of the following is a benefit of international performance appraisal?
a) Improved employee motivation and job satisfaction
b) Reduced cross-cultural misunderstandings
c) Increased legal compliance
d) Decreased communication and feedback

Answer

a) Improved employee motivation and job satisfaction

Q285: Which of the following is an example of an international performance appraisal method?
a) Management by objectives (MBO)
b) Critical incident method
c) Forced distribution
d) Halo effect

Answer

b) Critical incident method

Q286: Which of the following is a challenge of international performance appraisal?
a) Differences in cultural values and norms
b) Similarities in language and communication styles
c) Limited availability of performance appraisal tools
d) Homogeneous employee skill sets

Answer

a) Differences in cultural values and norms

Q287: Which of the following is a recommended practice for international performance appraisal?
a) Use a standardized performance appraisal form for all employees
b) Ignore cultural differences to ensure fairness
c) Rely solely on the supervisor’s assessment
d) Provide training for managers on cross-cultural communication

Answer

d) Provide training for managers on cross-cultural communication

Q288: Which of the following is a potential consequence of ineffective international performance appraisal?
a) Improved employee retention
b) Increased cross-cultural understanding
c) Reduced organizational productivity
d) Enhanced legal compliance

Answer

c) Reduced organizational productivity

Q289: Which of the following terms refers to the payment and benefits that employees receive for their work?
a) Compensation and Rewards
b) Performance Management
c) Job Design
d) Organizational Development

Answer

a) Compensation and Rewards

Q290: Which of the following is not an example of direct compensation?
a) Base salary
b) Bonuses
c) Employee benefits
d) Stock options

Answer

c) Employee benefits

Q291: Which of the following compensation systems is based on individual employee performance?
a) Job-based pay
b) Skill-based pay
c) Competency-based pay
d) Performance-based pay

Answer

d) Performance-based pay

Q292: Which of the following is not a type of employee benefit?
a) Health insurance
b) Paid time off
c) Child care
d) Overtime pay

Answer

d) Overtime pay

Q293: Which of the following is an example of an indirect compensation?
a) Stock options
b) Base salary
c) Performance bonuses
d) Retirement plans

Answer

d) Retirement plans

Q294: Which of the following is an example of a non-monetary reward?
a) Cash bonuses
b) Stock options
c) Praise and recognition
d) Pay raises

Answer

c) Praise and recognition

Q295: Which of the following is not a characteristic of an effective compensation system?
a) Consistency with the organization’s strategy
b) Equitable distribution of rewards
c) Flexibility to adjust to changing circumstances
d) Excessive focus on seniority over performance

Answer

d) Excessive focus on seniority over performance

Q296: Which of the following is not a common type of pay structure?
a) Hourly pay
b) Salary pay
c) Commission pay
d) Gift pay

Answer

d) Gift pay

Q297: Which of the following is a disadvantage of using stock options as a form of compensation?
a) They can provide a strong incentive for employees to work harder.
b) They can be expensive for the organization to provide.
c) They can be difficult for employees to understand.
d) They can only be provided to senior executives.

Answer

b) They can be expensive for the organization to provide.

Q298: Which of the following is an example of a legally required employee benefit?
a) Health insurance
b) Retirement plans
c) Social Security
d) Wellness programs

Answer

c) Social Security

Q299: What is the term used to describe the remuneration and benefits received by top-level managers in a company?
a) Employee compensation
b) Executive compensation
c) Sales compensation
d) Bonus compensation

Answer

b) Executive compensation

Q300: Which of the following factors typically influence the level of executive compensation?
a) Company performance
b) Industry benchmarks
c) CEO tenure
d) All of the above

Answer

d) All of the above

Q301: Which type of executive compensation is typically tied to the company’s financial performance and is designed to incentivize executives to improve the company’s profitability?
a) Stock options
b) Base salary
c) Annual bonus
d) Perks and benefits

Answer

c) Annual bonus

Q302: Which of the following is an argument in favor of high executive compensation?
a) It helps attract and retain top talent
b) It improves company morale and employee motivation
c) It promotes income equality in society
d) It reduces the risk of financial scandals

Answer

a) It helps attract and retain top talent

Q303: Which type of executive compensation is typically paid out in the form of company stock and gives executives the right to buy or sell shares at a specific price in the future?
a) Base salary
b) Annual bonus
c) Restricted stock units
d) Stock options

Answer

d) Stock options

Q304: Which of the following refers to the financial benefits and other rewards provided to employees who work in international settings?
a) International compensation
b) Domestic compensation
c) Local compensation
d) Expat compensation

Answer

a) International compensation

Q305: Which type of international compensation provides additional pay to employees to compensate for differences in the cost of living between their home country and the country where they are working?
a) Base pay
b) Mobility premium
c) Cost-of-living adjustment
d) Performance bonus

Answer

c) Cost-of-living adjustment

Q306: Which type of international compensation provides financial incentives to employees to encourage them to relocate to a foreign country?
a) Base salary
b) Performance bonus
c) Relocation allowance
d) Hardship allowance

Answer

c) Relocation allowance

Q307: Which type of international compensation compensates employees for the inconvenience, difficulty, or danger associated with living and working in a foreign country?
a) Hardship allowance
b) Mobility premium
c) Cost-of-living adjustment
d) Base pay

Answer

a) Hardship allowance

Q308: Which type of international compensation is designed to encourage employees to stay with the company for a longer period of time and may include stock options or deferred compensation?
a) Base pay
b) Performance bonus
c) Long-term incentive
d) Mobility premium

Answer

c) Long-term incentive

Q309: Which of the following refers to the additional perks and incentives provided by an employer to their employees, in addition to their regular salary?
a) Fringe Benefits
b) Fringe Benefit Tax (FBT)
c) Both a and b

Answer

a) Fringe Benefits

Q310: Which of the following is a tax levied by the government on certain fringe benefits provided by an employer to their employees?
a) Fringe Benefits
b) Fringe Benefit Tax (FBT)
c) Both a and b

Answer

b) Fringe Benefit Tax (FBT)

Q311: Which of the following is a potential positive effect of a well-designed reward system?
a) Decreased employee motivation
b) Increased employee turnover
c) Improved employee engagement
d) Increased absenteeism

Answer

c) Improved employee engagement

Q312: What type of reward system is based on rewarding employees based on their individual performance?
a) Team-based reward system
b) Skill-based reward system
c) Performance-based reward system
d) Seniority-based reward system

Answer

c) Performance-based reward system

Q313: Which of the following is NOT a factor to consider when designing a reward system?
a) Organizational culture
b) Employee demographics
c) Financial constraints
d) Geographic location

Answer

d) Geographic location

Q314: Which of the following is a potential negative effect of an improperly designed reward system?
a) Increased employee motivation
b) Decreased employee turnover
c) Reduced employee satisfaction
d) Improved employee morale

Answer

c) Reduced employee satisfaction

Q315: What type of reward system is based on rewarding employees for achieving specific goals or targets?
a) Incentive-based reward system
b) Equity-based reward system
c) Recognition-based reward system
d) Benefit-based reward system

Answer

a) Incentive-based reward system

Q316: What is the purpose of an HR Audit?
A. To improve employee morale
B. To increase profits
C. To ensure compliance with employment laws
D. To reduce employee turnover

Answer

C. To ensure compliance with employment laws

Q317: Which of the following is NOT typically included in an HR Audit?
A. Review of personnel files
B. Analysis of employee benefits
C. Evaluation of HR policies and procedures
D. Examination of financial statements

Answer

D. Examination of financial statements

Q318: Who typically conducts an HR Audit?
A. Outside consultants
B. Human Resources department
C. Senior management
D. All of the above

Answer

D. All of the above

Q319: What is the outcome of an HR Audit?
A. A detailed report of findings and recommendations
B. Increased employee salaries
C. Expanded employee benefits
D. A reduction in work hours

Answer

A. A detailed report of findings and recommendations

Q320: Which of the following is a benefit of conducting an HR Audit?
A. Increased employee turnover
B. Improved compliance with employment laws
C. Reduced need for employee training
D. Higher profit margins

Answer

B. Improved compliance with employment laws

Q321: Which of the following functions involves the calculation and distribution of employee salaries, wages, and bonuses?
A. HR
B. Accounting
C. HR Accounting
D. Marketing

Answer

C. HR Accounting

Q322: Which of the following is responsible for tracking and managing employee benefits, such as health insurance and retirement plans?
A. HR
B. Accounting
C. HR Accounting
D. Sales

Answer

C. HR Accounting

Q323: Which of the following is responsible for the creation and maintenance of employee records and documentation, such as employment contracts and tax forms?
A. HR
B. Accounting
C. HR Accounting
D. Operations

Answer

C. HR Accounting

Q324: Which of the following functions involves the tracking and analysis of employee time and attendance data?
A. HR
B. Accounting
C. HR Accounting
D. IT

Answer

C. HR Accounting

Q325: Which of the following is responsible for ensuring compliance with labor laws and regulations related to payroll and employee benefits?
A. HR
B. Accounting
C. HR Accounting
D. Customer Service

Answer

C. HR Accounting

Q326: What is HRIS?
A) Home Repair Improvement Service
B) Human Resource Information System
C) Health Resource Information System
D) Historical Records Information System

Answer

B) Human Resource Information System

Q327: Which of the following is not a feature of HRIS?
A) Attendance tracking
B) Performance management
C) Inventory management
D) Payroll processing

Answer

C) Inventory management

Q328: Which of the following benefits can be achieved by implementing HRIS?
A) Improved employee productivity
B) Reduced administrative workload
C) Enhanced decision making
D) All of the above

Answer

D) All of the above

Q329: Which type of HRIS module is used to manage employee benefits?
A) Payroll management
B) Time and attendance tracking
C) Performance appraisal
D) Benefits administration

Answer

D) Benefits administration

Q330: Which of the following is a potential drawback of using HRIS?
A) Increased data accuracy
B) Reduced paperwork
C) Increased reliance on technology
D) Better employee engagement

Answer

C) Increased reliance on technology

Q331: What is a potential benefit of using a Human Resource Information System (HRIS)?
a) Increased efficiency in HR processes
b) Decreased need for employee training
c) Reduced need for HR staff
d) Improved employee morale

Answer

a) Increased efficiency in HR processes

Q332: Which of the following is a potential limitation of using an HRIS?
a) Reduced errors in HR processes
b) Increased accessibility of HR information
c) Decreased administrative costs
d) Limited customization options

Answer

d) Limited customization options

Q333: What is a potential benefit of using an HRIS for recruitment?
a) Increased candidate diversity
b) Decreased need for job postings
c) Reduced time-to-hire
d) Improved candidate quality

Answer

c) Reduced time-to-hire

Q334: Which of the following is a potential limitation of using an HRIS for performance management?
a) Increased consistency in performance evaluations
b) Decreased manager bias
c) Reduced administrative burden
d) Limited ability to capture qualitative feedback

Answer

d) Limited ability to capture qualitative feedback

Q335: What is a potential benefit of using an HRIS for training and development?
a) Increased employee engagement
b) Reduced need for training materials
c) Improved supervisor effectiveness
d) Decreased training costs

Answer

d) Decreased training costs

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