Unit 5: Introduction to HRM and Human Resource Planning - Practice Quiz

DEMGN581 60 Questions
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1 What does the abbreviation HRM stand for?

Objectives and functions of HRM Easy
A. Human Resource Management
B. Human Resource Marketing
C. Human Relations Model
D. Hiring and Recruitment Management

2 Which of the following is a managerial function of HRM?

Objectives and functions of HRM Easy
A. Planning
B. Recruitment
C. Compensation
D. Training

3 Which of the following is an operative function of HRM?

Objectives and functions of HRM Easy
A. Organising
B. Procurement
C. Directing
D. Controlling

4 The main objective of HRM is to:

Objectives and functions of HRM Easy
A. Reduce the number of employees
B. Maximise machine efficiency only
C. Effectively utilise human resources to achieve organisational goals
D. Increase advertising budgets

5 Which of the following is an external force affecting HRM?

External and Internal Forces of environment affecting HRM Easy
A. Government legislation
B. Organisational culture
C. Company strategy
D. Internal policies

6 Which of the following is an internal force affecting HRM?

External and Internal Forces of environment affecting HRM Easy
A. Organisational culture
B. Economic conditions
C. Technology in the market
D. Labour laws

7 Changes in technology in the industry are considered which type of force affecting HRM?

External and Internal Forces of environment affecting HRM Easy
A. Personal force
B. Internal force
C. Financial force
D. External force

8 Which of the following is generally an external economic factor affecting HRM?

External and Internal Forces of environment affecting HRM Easy
A. Company work policies
B. Top management style
C. Labour market conditions
D. Trade union of the company

9 What does HRP stand for?

Human Resource Planning: HRP process Easy
A. Human Resource Policy
B. Hiring Recruitment Plan
C. Human Relations Process
D. Human Resource Planning

10 Human Resource Planning mainly ensures the organisation has:

Human Resource Planning: HRP process Easy
A. The largest possible workforce
B. The cheapest possible workforce
C. Only permanent employees
D. The right people, in the right place, at the right time

11 In the HRP process, forecasting the demand for human resources refers to estimating:

Human Resource Planning: HRP process Easy
A. The number and type of employees needed in the future
B. The amount of raw materials required
C. The annual profit of the company
D. The market share of competitors

12 Comparing the forecasted demand and supply of human resources helps identify:

Human Resource Planning: HRP process Easy
A. Manpower gaps such as surplus or shortage
B. Customer satisfaction levels
C. The company's tax liability
D. The advertising budget

13 Which of the following is typically the first step in the HRP process?

Human Resource Planning: HRP process Easy
A. Distributing salaries
B. Recruiting new staff
C. Analysing organisational objectives
D. Conducting exit interviews

14 If the supply of employees exceeds the demand, the organisation faces a situation of:

Human Resource Planning: HRP process Easy
A. Balanced manpower
B. Surplus of manpower
C. Manpower freeze
D. Shortage of manpower

15 An internal source of supply of human resources includes:

Human Resource Planning: HRP process Easy
A. Job portals
B. Campus recruitment
C. Promotions and transfers of existing employees
D. Employment agencies

16 Which of the following is a common barrier to successful HRP?

Barriers and Prerequisites for Successful HRP Easy
A. Clear organisational objectives
B. Reliable HR information system
C. Inaccurate forecasting of workforce needs
D. Support from top management

17 Which of the following is a prerequisite for successful HRP?

Barriers and Prerequisites for Successful HRP Easy
A. Uncertain future conditions
B. Resistance from employees
C. Support from top management
D. Lack of accurate data

18 Employees may resist HRP mainly because they:

Barriers and Prerequisites for Successful HRP Easy
A. Enjoy additional paperwork
B. Fear job insecurity or change
C. Prefer more competitors
D. Want lower salaries

19 A reliable Human Resource Information System (HRIS) helps HRP by providing:

Barriers and Prerequisites for Successful HRP Easy
A. Better product design
B. Accurate and timely workforce data
C. Lower production costs directly
D. Higher advertising reach

20 For HRP to be successful, it should be closely linked with the organisation's:

Barriers and Prerequisites for Successful HRP Easy
A. Overall strategic plans
B. Parking arrangements
C. Office decoration
D. Canteen menu

21 A software company suddenly faces new labour laws mandating higher overtime pay and a shorter working week. Which category of HRM environmental force is directly influencing the company here?

External and Internal Forces of environment affecting HRM Medium
A. Internal organisational culture force
B. External legal-political force
C. External economic demand force
D. Internal structural force

22 A firm revises its recruitment strategy because rapid automation has reduced demand for manual roles while increasing demand for data analysts. Which external force is chiefly at work?

External and Internal Forces of environment affecting HRM Medium
A. Political force
B. Union force
C. Technological force
D. Cultural force

23 Which of the following is best classified as an internal force affecting HRM rather than an external one?

External and Internal Forces of environment affecting HRM Medium
A. Emergence of a competing employer in the region
B. New consumer protection legislation
C. Changes in the national unemployment rate
D. The organisation's business strategy and structure

24 During a recession, a manufacturer freezes hiring and delays wage increases. This HR decision is most directly a response to which external force?

External and Internal Forces of environment affecting HRM Medium
A. Legal force
B. Technological force
C. Demographic force
D. Economic force

25 An organisation must redesign its benefits and communication approach because it now employs four different generations of workers. Which external force explains this need?

External and Internal Forces of environment affecting HRM Medium
A. Political force
B. Economic force
C. Workforce demographic force
D. Structural force

26 A company introduces career counselling, training grants, and flexible schedules mainly to help employees grow and feel valued. Which HRM objective does this best serve?

Objectives and functions of HRM Medium
A. Societal objective
B. Personal (individual) objective
C. Financial objective
D. Functional objective

27 Ensuring the HR department itself does not become overstaffed or costlier than the value it provides reflects which HRM objective?

Objectives and functions of HRM Medium
A. Organisational objective
B. Personal objective
C. Societal objective
D. Functional objective

28 Recruitment, selection, training and performance appraisal are grouped under which category of HRM functions?

Objectives and functions of HRM Medium
A. Only strategic functions
B. Managerial and operative functions
C. Only welfare functions
D. Only advisory functions

29 A firm ensures its hiring practices comply with equal opportunity laws and contributes to community welfare. Which HRM objective is being addressed?

Objectives and functions of HRM Medium
A. Personal objective
B. Functional objective
C. Operative objective
D. Societal objective

30 Which pairing correctly matches an operative function of HRM with its purpose?

Objectives and functions of HRM Medium
A. Directing — auditing HR costs annually
B. Procurement — acquiring the right number and kind of people
C. Controlling — negotiating trade union contracts
D. Planning — conducting exit interviews

31 In the HRP process, comparing the forecasted demand for employees with the projected supply of employees is done to identify what?

Human Resource Planning: HRP process Medium
A. The recruitment source
B. The manpower gap (surplus or shortage)
C. The organisation's mission
D. The training budget

32 A company forecasts it will need 500 employees next year but internal supply analysis shows only 430 will be available. What is the most appropriate HR action?

Human Resource Planning: HRP process Medium
A. Freeze all hiring immediately
B. Take no action as supply exceeds demand
C. Plan recruitment and training to fill the shortage of 70
D. Plan layoffs to reduce headcount

33 Which technique is most appropriate for forecasting the future internal supply of employees by tracking movement across job categories over time?

Human Resource Planning: HRP process Medium
A. Delphi technique for demand
B. Break-even analysis
C. Markov analysis
D. SWOT analysis

34 Arrange the logical sequence of the HRP process from the options: (i) forecast demand, (ii) analyse organisational objectives, (iii) assess supply, (iv) match and plan action.

Human Resource Planning: HRP process Medium
A. ii → iii → i → iv
B. ii → i → iii → iv
C. iii → i → ii → iv
D. i → ii → iii → iv

35 An HR manager estimates future staffing needs by asking experienced departmental heads for their independent judgements and refining them over several rounds. Which demand forecasting method is being used?

Human Resource Planning: HRP process Medium
A. Delphi technique
B. Work-study method
C. Replacement charting
D. Ratio-trend analysis

36 If a firm's sales are expected to double and it historically employs 1 salesperson for every $20{,}000 of sales, ratio-trend analysis would estimate manpower need based mainly on what?

Human Resource Planning: HRP process Medium
A. The union membership levels
B. The historical ratio between sales and staffing
C. The number of retirements expected
D. The average age of employees

37 A well-designed HRP fails because line managers view it purely as an HR department task and refuse to share workforce data. This best illustrates which barrier to HRP?

Barriers and Prerequisites for Successful HRP Medium
A. Accurate forecasting
B. Lack of support and involvement from managers
C. Excess technological investment
D. Strong information systems

38 Which of the following is a genuine prerequisite for successful Human Resource Planning?

Barriers and Prerequisites for Successful HRP Medium
A. Complete elimination of environmental change
B. Avoiding involvement of line managers
C. Ignoring long-term organisational goals
D. A reliable HR information system and accurate data

39 A company's HRP repeatedly misses targets because forecasts assume a stable market, yet demand keeps fluctuating unpredictably. Which barrier does this reflect?

Barriers and Prerequisites for Successful HRP Medium
A. Over-reliance on line managers
B. Too much data accuracy
C. Uncertainty in the environment
D. Excessive integration with strategy

40 An organisation prepares detailed manpower plans but they gather dust because they were never linked to the corporate strategic plan. This points to the absence of which prerequisite?

Barriers and Prerequisites for Successful HRP Medium
A. Fewer forecasting techniques
B. Reduced top-management involvement
C. A shorter planning horizon
D. Integration of HRP with organisational strategy

41 A technology firm faces simultaneous pressures: a sudden rise in minimum wage legislation, rapid automation of its core processes, and a shift in workforce demographics toward Gen Z employees. Which classification best describes the nature of these three forces respectively?

External and Internal Forces of environment affecting HRM Hard
A. Internal Policy, Technological, and Economic forces
B. Legal-Political, Technological, and Social/Demographic external forces
C. Economic, Internal Structural, and Cultural forces
D. Legal external, Internal capability, and Social internal forces

42 An organisation's HR strategy is being reshaped by its own trade union demands, a newly appointed CEO's leadership style, and the entry of a global competitor into its market. When distinguishing controllable from uncontrollable forces, how should HR treat these three?

External and Internal Forces of environment affecting HRM Hard
A. Trade union is external; leadership style and competitor entry are internal
B. All three are external forces that HR cannot influence at all
C. Trade union and leadership style are internal (more controllable); competitor entry is external (largely uncontrollable)
D. Competitor entry is internal; trade union and leadership are external forces

43 During an economic recession, a firm freezes hiring, and simultaneously a new data-privacy law requires costly compliance systems. An analyst argues both are 'the same type of force.' Why is this argument flawed?

External and Internal Forces of environment affecting HRM Hard
A. Both are internal forces because the firm chose how to respond to them
B. The recession is a technological force and the law is an economic force
C. The recession is an economic force while the privacy law is a legal-political force; they are distinct external categories
D. Both belong to the social-cultural environment and cannot be separated

44 A multinational discovers that its rigid internal organisational structure prevents it from responding to fast-moving external labour market trends. This mismatch is best characterised as a failure of:

External and Internal Forces of environment affecting HRM Hard
A. Aligning internal forces with the demands of the external environment
B. Controlling technological forces within the workforce
C. Eliminating all internal forces to focus on external ones
D. Managing purely economic external forces in isolation

45 Two firms in the same industry face identical external forces, yet one adapts far better. The most defensible explanation rooted in HRM theory is that:

External and Internal Forces of environment affecting HRM Hard
A. External forces always affect all firms in exactly the same way regardless of internal factors
B. Differences in internal forces such as culture, resources, and management philosophy determine adaptive capacity
C. The adapting firm faced fewer legal-political forces than its rival
D. Only economic forces matter and the two firms differed on those alone

46 An HR manager claims that 'reconciling individual employee goals with organisational goals' is a managerial function rather than an objective of HRM. Why is this claim conceptually incorrect?

Objectives and functions of HRM Hard
A. Reconciliation is actually an operative function like procurement and development
B. It is correct because reconciliation always requires directing and controlling employees
C. Integrating individual and organisational goals is a personal/individual objective of HRM, not a managerial function
D. It is correct because all objectives are subtypes of the organising function

47 Classify the following in order: (i) conducting performance appraisals, (ii) planning HR requirements, (iii) maintaining employee welfare records. Which sequence correctly labels each as operative or managerial?

Objectives and functions of HRM Hard
A. Operative (procurement), Operative (development), Managerial (controlling)
B. Managerial, Managerial, Operative
C. Managerial (directing), Operative (integration), Operative (procurement)
D. Operative (development), Managerial (planning), Operative (maintenance)

48 A CEO argues that 'societal objectives' of HRM conflict with 'organisational objectives' and should therefore be dropped. Which counter-argument is most valid?

Objectives and functions of HRM Hard
A. Organisational objectives are a subset of functional objectives, so the conflict is imaginary
B. Ignoring societal objectives invites legal and reputational costs that ultimately harm organisational objectives, so they are complementary
C. Societal objectives are irrelevant because HRM only serves shareholders
D. Societal objectives should replace organisational objectives entirely for ethical reasons

49 In the objectives hierarchy of HRM, 'functional objectives' are said to require balance. Over-emphasising them typically leads to what problem?

Objectives and functions of HRM Hard
A. Managerial functions replace all operative functions
B. Personal objectives of employees are perfectly satisfied
C. HRM consumes resources disproportionate to the organisation's actual needs, reducing overall efficiency
D. The organisation automatically fulfils all societal objectives

50 An organisation excels at procurement and development but neglects integration and maintenance. According to the operative functions framework, the most likely long-term consequence is:

Objectives and functions of HRM Hard
A. Skilled employees are acquired and trained but disengage and leave due to poor motivation and retention
B. The firm fails to recruit any qualified candidates at all
C. Societal objectives dominate and crowd out development
D. HR loses its managerial planning capability entirely

51 A firm forecasts demand for 500 employees next year and projects that internal supply, after accounting for promotions, transfers, retirements, and attrition, will be 620. What is the correct HRP action and its label?

Human Resource Planning: HRP process Hard
A. A surplus of 620; terminate all excess staff at once
B. A shortage of 120; launch aggressive external recruitment immediately
C. A surplus of 120; plan actions such as redeployment, hiring freeze, or voluntary retirement
D. A balanced position requiring no action

52 In estimating internal supply, an analyst uses a Markov analysis showing that 80% of Level-2 staff remain, 10% get promoted to Level-3, and 10% exit. Starting with 200 Level-2 employees, how many are projected to remain at Level-2?

Human Resource Planning: HRP process Hard
A.
B.
C.
D.

53 A planner completes demand forecasting and supply forecasting but skips the step of comparing the two before designing action plans. Which core HRP step has been violated, and why does it matter?

Human Resource Planning: HRP process Hard
A. Environmental scanning; without it forecasts cannot begin
B. Objective setting; without it the organisation has no mission
C. Monitoring and control; without it plans cannot be implemented
D. Gap analysis (matching demand and supply); without it action plans lack a defined target

54 A firm's HRP shows demand rising steadily while supply forecasts use only historical trend extrapolation. An expert warns this may fail. The most valid reason is:

Human Resource Planning: HRP process Hard
A. Trend extrapolation ignores changing conditions such as new technology and turnover shifts, producing unreliable supply estimates
B. Demand forecasting should never precede supply forecasting
C. Supply forecasts should rely exclusively on external labour market data
D. Trend extrapolation is always more accurate than any judgmental method

55 Arrange the logical HRP sequence: (1) forecast HR demand, (2) analyse organisational objectives, (3) implement and monitor action plans, (4) assess HR gap, (5) forecast HR supply. Which order is correct?

Human Resource Planning: HRP process Hard
A. 2 → 1 → 5 → 4 → 3
B. 2 → 5 → 1 → 3 → 4
C. 1 → 2 → 3 → 4 → 5
D. 1 → 5 → 2 → 4 → 3

56 A company projects a shortage of 50 specialists in 3 years. Training an internal candidate takes 2 years; external hiring takes 6 months. Considering lead time, the most sound HRP action is:

Human Resource Planning: HRP process Hard
A. Only rely on external hiring since it is faster
B. Begin internal development now and reserve external hiring as a supplementary near-term measure
C. Wait until the shortage occurs, then hire externally
D. Cancel the forecast because 3 years is too far ahead to plan

57 An HRP initiative fails despite accurate forecasts. Investigation reveals line managers viewed HRP as 'HR's job alone' and provided no operational input. Which barrier does this best illustrate?

Barriers and Prerequisites for Successful HRP Hard
A. Lack of support and involvement from line and top management
B. Absence of any forecasting technique
C. Over-reliance on external labour market data
D. Excessive investment in HR information systems

58 Two prerequisites for successful HRP are often confused: 'integration with strategic planning' and 'adequate HR information system.' A firm has excellent data but plans in isolation from corporate strategy. What is the predictable outcome?

Barriers and Prerequisites for Successful HRP Hard
A. HRP eliminates the need for any corporate strategy
B. HRP produces accurate numbers that are misaligned with business direction, making them strategically useless
C. HRP automatically succeeds because information systems guarantee results
D. HRP becomes impossible because data is the only requirement

59 A rapidly changing industry makes long-range HR forecasts frequently inaccurate, discouraging managers from planning at all. Which barrier is this, and what is the appropriate response?

Barriers and Prerequisites for Successful HRP Hard
A. Uncertainty/environmental turbulence; respond with shorter horizons and flexible, regularly revised plans
B. Inaccurate HRIS data; respond by abandoning HRP permanently
C. Lack of top-management support; respond by firing the HR head
D. Excessive employee involvement; respond by centralising all decisions

60 A firm treats HRP as a rigid, one-time annual exercise that produces a fixed plan filed away until the next year, regardless of mid-year market shocks, technological disruption, or unexpected attrition spikes that materially alter its workforce needs. Which prerequisite is being violated?

Barriers and Prerequisites for Successful HRP Hard
A. HRP should always be a one-time exercise to save costs
B. HRP must exclude line managers to remain objective
C. HRP should ignore attrition to keep forecasts stable
D. HRP should be a continuous, flexible process subject to periodic review and adjustment