Human Resource Management Functions Questions and Answers

Answer: B

The Ten 'C' model of HRM was advanced by Alan Price.

The model uses the ten words that start with C to set out the main concerns of human resource management, such as communication, competence, commitment and cost effectiveness, and it is attributed to Alan Price in his writing on HRM.

Katz and Kahn are known for the open systems view of organisations, Chester Barnard for his study of the functions of the executive, and Max Weber for the theory of bureaucracy.

Answer: B

The key defines recruitment as the total number of applications received.

Recruitment is the process of searching for prospective employees and encouraging them to apply for jobs, so that a pool of candidates is created. Its outcome is measured by the applications received for the vacancies.

The total number of inquiries is a looser measure of interest. The number of persons shortlisted is a result of the selection process, and the number of selections made is the final outcome of selection and not of recruitment.

Answer: C

The correct sequence of the steps in job analysis is (b), (d), (c), (a).

The analyst first selects the job to be analysed. The job is then broken into its various parts or tasks, and the requirements for each part are then found out, such as skills, effort and responsibility. The job description report is prepared last, from the data collected.

Any sequence that writes the description before the requirements are known, or that breaks the job into parts before selecting it, reverses the logical order.

Answer: D

Quality management belongs to the production or operations function, which controls the quality of goods or services, and is not a function of the personnel department. So it is the item that is not a personnel function.

Employment activities (recruitment, selection and placement), manpower adjustment (transfers, promotions, retrenchment and similar changes) and grievance handling are all standard functions of the personnel department.

Answer: B

The safety net is a part of the New Economic Policy of 1991. Because the reforms were expected to cause loss of jobs through restructuring, the government provided a safety net in the form of the National Renewal Fund of 1992, which paid for the retraining and redeployment of displaced workers and for compensation to those who lost their jobs.

The accident prevention and safety policy deals with the physical safety of workers, corporate social responsibility with the duty of business to society, and employee adjustment policy with the handling of surplus staff inside a firm. None of these is the policy that carried the safety net.

Answer: D

The assertion is right and the reason is a logical explanation of it. After the reforms of 1991 opened markets and allowed foreign direct investment, domestic firms faced strong competition from firms better placed than themselves, and they had to cut costs and rationalise their human resources, for instance through voluntary retirement schemes.

The first option calls the reason wrong, the second calls the assertion wrong and the third calls both wrong, but each of these denies a well-known effect of the reforms.

Answer: C

The key treats trade union problems as not a contributory factor for the outsourcing of human resource functions. The commonly given reasons are strategic (to concentrate on core activities), financial (to save costs) and competitive (to match rivals who have outsourced).

The question is loosely worded, since firms are sometimes said to outsource to avoid union disputes, so a reviewer may wish to check it, but among the options only the third is not one of the standard reasons.

Answer: B

The statement that technical upgradation cannot be a reason for downsizing is not correct. New technology and automation reduce the number of workers needed, and so they are a common reason for downsizing.

The other statements are correct: mergers and acquisitions create overlapping jobs and lead to downsizing, downsizing helps to get rid of deadwood, and cost cutting is a major reason for it.

Answer: D

The types of HRM strategy that are listed are the task-focused strategy, the development-oriented strategy and the turnaround strategy. A “placating” strategy is not one of these, so it is the item that is not a type.

The first three each describe a recognised approach: concentrating on getting the task done, developing people, and reversing a poor position, as in a turnaround. The key counts only these.

Answer: D

The statement that performance and knowledge management are not related to strategic HRM is not correct. They are linked to strategic HRM, since performance management ties individual goals to the strategy and knowledge management develops the knowledge of the workforce as an asset.

The other statements are correct: employer branding through HRM practices, competency mapping and measurement of HR with the balanced scorecard are all recent trends.