Human Capital Management Practice Exam
Course Introduction
Human Capital Management explores the strategies, policies, and practices organizations use to effectively recruit, develop, manage, and retain their most valuable asset: people. This course examines topics such as workforce planning, talent acquisition, employee training and development, performance management, compensation, and benefits. It also addresses the impact of technology, evolving labor markets, and diversity and inclusion initiatives on human capital strategies. Through case studies and practical applications, students learn to align human capital initiatives with organizational goals to drive performance and achieve competitive advantage.
Recommended Textbook
Human Resource Management 10th Edition by Raymond Noe
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16 Chapters
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1602 Flashcards
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Page 2
Chapter 1: Human Resource Management: Gaining a Competitive Advantage
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100 Verified Questions
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Sample Questions
Q1) A company whose employees have high engagement is likely to have _____ when compared to a company with low employee engagement.
A)lower retention
B)lower empowerment
C)poorer customer service
D)lower productivity
E)lower turnover
Answer: E
Q2) Among the functions performed by an HR department, feedback and coaching are categorized under the _____ function.
A)recruitment and selection
B)compensation and benefits
C)employee relations
D)personnel policies
E)performance management
Answer: E
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Page 3
Chapter 2: Strategic Human Resource Management
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Sample Questions
Q1) By tying pay to performance, a company can elicit specific activities and levels of performance from employees.
A)True
B)False
Answer: True
Q2) An organization's _____ is what it hopes to achieve in the medium- to long-term future, and it reflects how an organization's reason for being is operationalized.
A)goal
B)mission
C)strategy
D)vision
E)value
Answer: A
Q3) Companies going through downsizing often develop compensation programs that tie an individual's compensation to the company's success.
A)True
B)False
Answer: True
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Chapter 3: The Legal Environment: Equal Employment
Opportunity and Safety
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Sample Questions
Q1) The Occupational Safety and Health Act requires employers to keep records of deaths, injuries, and illnesses if they have _____ or more full-time or part-time employees.
A)100
B)50
C)51
D)11
E)25
Answer: D
Q2) Which of the following refers to an organization's efforts to make usable facilities readily accessible to individuals with disabilities?
A)Disparate treatment
B)Disparate impact
C)Reasonable accommodation
D)Pattern and performance
E)Quid pro quo
Answer: C
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Page 5
Chapter 4: The Analysis and Design of Work
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Sample Questions
Q1) Functional structures help support organizations that compete on differentiation or innovation, because flexible responsiveness is central to making this strategy work.
A)True
B)False
Q2) Which of the following is true about O*NET?
A)It is a private job-listing index that employers can use free of cost.
B)It uses a common language that generalizes job specifications across various occupations.
C)It relies exclusively on fixed job titles.
D)It relies exclusively on narrow task descriptions.
E)It is only beneficial for employers, not job seekers.
Q3) The _____ section in a position analysis questionnaire (PAQ)focuses on planning and information processing activities.
A)mental processes
B)information input
C)work output
D)job context
E)relationship analysis
Q4) List and describe the six sections of a position analysis questionnaire (PAQ).
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Chapter 5: Human Resource Planning and Recruitment
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Sample Questions
Q1) _____ is the planned elimination of large numbers of personnel designed to enhance organizational effectiveness.
A)Homesourcing
B)Downsizing
C)Retirement
D)Retraining
E)Work sharing
Q2) Which of the following is an advantage of relying on internal recruitment sources?
A)It is a good way to strengthen one's own company, while weakening one's competitors at the same time, because it increases diversity.
B)It generates a sample of applicants who are well known to the firm.
C)The applicants are relatively less knowledgeable about the company's vacancies and are hence easily trainable.
D)Because of the applicants' lack of knowledge about a particular position, their expectations are easy to meet.
E)It results in a workforce whose members all think alike and who therefore are more suited to innovation.
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Page 7
Chapter 6: Selection and Placement
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Sample Questions
Q1) As per the Age Discrimination in Employment Act, if any neutral-appearing practice happens to have adverse impact on those over 40, the employer must _____.
A)show business necessity to avoid a guilty verdict
B)make accommodations despite facing hardships
C)facilitate pre-mature retirement for the employees
D)compensate the employee prior to court trials
E)provide special incentives to the suffering employees
Q2) _____ ability refers to a person's capacity to invent solutions to many diverse problems.
A)Quantitative
B)Reasoning
C)Technical
D)Comprehension
E)Verbal
Q3) Reliability refers to the measuring instrument rather than to the characteristic itself.
A)True
B)False
Q4) List the seven classes of physical ability tests.
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Chapter 7: Training
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Sample Questions
Q1) To enhance the employee conscientiousness factor that influences the motivation to learn, an organization should:
A)share their performance appraisal information with them.
B)encourage them to provide feedback to each other.
C)provide resources necessary for training content to be used in their work.
D)communicate the need for learning.
E)provide remedial training to them.
Q2) Processes, checklists, flowcharts, formulas, and definitions are examples of _____.
A)experiential knowledge
B)tacit knowledge
C)informal training tools
D)explicit knowledge
E)on-the-job learning
Q3) Which of the following is true of informal learning?
A)It is initiated by the management of an organization.
B)It involves training and development programs.
C)It occurs in a planned setting for facilitating knowledge.
D)It occurs as a result of gathering explicit knowledge.
E)It is motivated by a personal intent to develop.
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Page 9
Chapter 8: Performance Management
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Sample Questions
Q1) The extent to which a performance measure is deemed to be satisfactory or adequate by those who use it is known as its reliability.
A)True
B)False
Q2) Competencies are sets of skills, knowledge, abilities, and personal characteristics that enable employees to successfully perform their jobs.
A)True
B)False
Q3) A _____ is a quality control technique that lists causes of a problem in decreasing order of importance.
A)cause-and-effect diagram
B)control chart
C)Pareto chart
D)process-flow analysis
E)histogram
Q4) Discuss the various rater errors in performance management.
Q5) Discuss the ways a manager can improve the performance feedback process.
Q6) Discuss the strategic purposes of performance management.
Q7) What are competencies? Explain a competency model.
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Chapter 9: Employee Development
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Sample Questions
Q1) In a(n)_____, a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period.
A)interview
B)in-basket simulation
C)role-play
D)focused interview
E)leaderless group discussion
Q2) Which of the following is true of different career patterns?
A)An expert career pattern involves a lifelong commitment to a field or specialization.
B)A traditional career pattern involves movement across many disciplines.
C)Career patterns involving movement across disciplines are on the decline.
D)A traditional career pattern does not follow any hierarchy.
E)A spiral career pattern involves limited movement across fields or occupations.
Q3) A sponsorship is a part of career support that a mentor provides to his or her protégé.
A)True
B)False
Q4) List five characteristics of a successful formal mentoring program.
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11
Chapter 10: Employee Separation and Retention
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Sample Questions
Q1) An employee who engages in absenteeism is displaying job dissatisfaction through
A)behavioral change
B)psychological withdrawal
C)physical withdrawal
D)whistle-blowing
E)arbitration
Q2) Identify the differences and similarities between job involvement and organizational commitment.
Q3) Organizational commitment is the degree to which employees identify themselves with their jobs.
A)True
B)False
Q4) Whereas employee wellness programs deal with employees who have developed problems at work because of health-related issues, employee assistance programs (EAPs)take a proactive and preemptive focus on trying to prevent health-related problems in the first place.
A)True
B)False
Q5) Explain job withdrawal and its three levels of progression.
Page 12
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Chapter 11: Pay Structure Decisions
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Sample Questions
Q1) According to the _____, a person compares her own ratio of perceived outcomes to perceived inputs to the ratio of a comparison other.
A)reinforcement theory
B)predicted outcome value theory
C)social exchange theory
D)equity theory
E)expectancy theory
Q2) Which of the following occupations is exempt from the Fair Labor Standards Act (FLSA)?
A)First responders
B)Executives
C)Firefighters
D)Paramedics
E)Police
Q3) Discuss some of the concerns over the Equal Employment Opportunity (EEO)regulation.
Q4) Internal job worth can be measured using the administrative tool of job evaluation.
A)True
B)False
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Chapter 12: Recognizing Employee Contributions With Pay
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Sample Questions
Q1) In _____ programs, annual compensation increases are usually linked to performance appraisal ratings.
A)skill-based pay
B)gainsharing
C)merit pay
D)incentive pay
E)cost-based pay
Q2) Which of the following theories suggests that high employee performance not followed by a monetary reward will make future high performance less likely?
A)Herzberg's Two-factor theory
B)Reinforcement theory
C)Freud's Psychoanalytical theory
D)McGregor's Theory X
E)Theory Z
Q3) How can executive pay be linked to organization performance?
Q4) Pay plans are typically used to energize, direct, or control employee behavior.
A)True
B)False
Q5) What are individual incentives? How are they different from merit pay?
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Chapter 13: Employee Benefits
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Sample Questions
Q1) _____ plans do not promise a specific benefit level for employees upon retirement.
A)Defined benefit
B)Term benefit
C)Defined contribution
D)Flexi benefit
E)Cash balance
Q2) The unemployment insurance program is financed largely through federal and state taxes on _____.
A)employees
B)employers
C)retired personnel
D)general public
E)employment agencies
Q3) Which one of the following is an active wellness program?
A)Raising awareness of health-related issues
B)Counselors providing tailored programs
C)Centers for physical fitness
D)Athletic trainers present in company gyms
E)Informing people on health-related topics
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Page 15
Chapter 14: Collective Bargaining and Labor Relations
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Sample Questions
Q1) Arbitrating the actual writing or setting of contract terms is called _____ arbitration.
A)contract
B)bracketed
C)pendulum
D)rights
E)interest
Q2) According to John Dunlop, an effective industrial relations system eliminates conflict.
A)True
B)False
Q3) The duty of fair representation is mandated by the _____.
A)Landrum-Griffin Act
B)Davis-Bacon Act
C)Healey Act
D)Wagner Act
E)Hartley Act
Q4) Under what conditions is the management of a company most able to take a strike?
Q5) Describe the industrial relations model developed by Harry Katz and Thomas Kochan.
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Chapter 15: Managing Human Resources Globally
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Sample Questions
Q1) What led to the formation of the European Economic Community (EEC)? Describe how the EEC has affected the global economy.
Q2) Which of the following is likely to be valued in a culture with a short-term orientation?
A)Thrift
B)Saving
C)Persistence
D)Focus on future
E)Tradition
Q3) Traditionally, _____ has been almost the sole variable used in deciding whom to be sent on overseas assignments.
A)interpersonal skill
B)managerial competence
C)communication skill
D)technical competence
E)language competence
Q4) A host country is a country in which an organization's headquarters is located.
A)True
B)False
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Chapter 16: Strategically Managing the HRM Function
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Sample Questions
Q1) The payroll check is issued based on a payment voucher that is generated from the general accounting ledger.
A)True
B)False
Q2) Which of the following is true of the audit approach?
A)It typically collects key indicators and customer satisfaction measures.
B)It primarily deals with the determination of the dollar value of a function.
C)It involves the use of statistics and finance, and hence is more demanding than the analytic approach.
D)It uses utility analysis to estimate the financial impact of employee behavior.
E)It focuses on the processes involved in the HRM functional areas rather than the outcomes.
Q3) Which of the following represents a traditional structure of HRM function?
A)Functional directors reporting to the VP of HRM
B)Functional specialists acting as consultants in development of systems
C)HRM generalists with dual reporting relationships
D)Individuals leveraging information technology
E)Generalists taking responsibility for helping line executives
Q4) List the roles of a chief human resource officer (CHRO).
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