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. Hiring and Recruitment Management
C. Human Resource Marketing
D. Human Relations Model

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

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

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

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

4 The main objective of HRM is to:

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

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. Technology in the market
B. Organisational culture
C. Economic conditions
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. External force
D. Financial force

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

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

9 What does HRP stand for?

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

10 Human Resource Planning mainly ensures the organisation has:

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

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

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

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

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

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

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

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. Inaccurate forecasting of workforce needs
B. Support from top management
C. Clear organisational objectives
D. Reliable HR information system

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

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

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. Lower production costs directly
B. Higher advertising reach
C. Better product design
D. Accurate and timely workforce data

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

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

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 economic demand force
C. External legal-political 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. Technological force
C. Cultural force
D. Union 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. Changes in the national unemployment rate
B. New consumer protection legislation
C. The organisation's business strategy and structure
D. Emergence of a competing employer in the region

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. Technological force
B. Legal force
C. Economic force
D. Demographic 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. Workforce demographic force
B. Structural force
C. Political force
D. Economic 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. Functional objective
B. Financial objective
C. Personal (individual) objective
D. Societal 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. Managerial and operative functions
B. Only strategic functions
C. Only advisory functions
D. Only welfare 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. Societal objective
D. Operative objective

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

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

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 manpower gap (surplus or shortage)
B. The organisation's mission
C. The recruitment source
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 layoffs to reduce headcount
D. Plan recruitment and training to fill the shortage of 70

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. Markov analysis
B. SWOT analysis
C. Break-even analysis
D. Delphi technique for demand

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 → i → iii → iv
B. ii → iii → i → 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. Replacement charting
B. Work-study method
C. Ratio-trend analysis
D. Delphi technique

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 number of retirements expected
B. The historical ratio between sales and staffing
C. The union membership levels
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. Excess technological investment
B. Accurate forecasting
C. Lack of support and involvement from managers
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. Uncertainty in the environment
B. Over-reliance on line managers
C. Too much data accuracy
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. Reduced top-management involvement
B. A shorter planning horizon
C. Fewer forecasting techniques
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. Economic, Internal Structural, and Cultural forces
B. Legal external, Internal capability, and Social internal forces
C. Internal Policy, Technological, and Economic forces
D. Legal-Political, Technological, and Social/Demographic external 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 and leadership style are internal (more controllable); competitor entry is external (largely uncontrollable)
B. Competitor entry is internal; trade union and leadership are external forces
C. Trade union is external; leadership style and competitor entry are internal
D. All three are external forces that HR cannot influence at all

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

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. Managing purely economic external forces in isolation
B. Aligning internal forces with the demands of the external environment
C. Eliminating all internal forces to focus on external ones
D. Controlling technological forces within the workforce

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

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 all objectives are subtypes of the organising function
C. It is correct because reconciliation always requires directing and controlling employees
D. Integrating individual and organisational goals is a personal/individual objective of HRM, not a managerial 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 (directing), Operative (integration), Operative (procurement)
C. Managerial, Managerial, Operative
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. Ignoring societal objectives invites legal and reputational costs that ultimately harm organisational objectives, so they are complementary
B. Societal objectives should replace organisational objectives entirely for ethical reasons
C. Organisational objectives are a subset of functional objectives, so the conflict is imaginary
D. Societal objectives are irrelevant because HRM only serves shareholders

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

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

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 balanced position requiring no action
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 surplus of 620; terminate all excess staff at once

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

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. Demand forecasting should never precede supply forecasting
B. Supply forecasts should rely exclusively on external labour market data
C. Trend extrapolation ignores changing conditions such as new technology and turnover shifts, producing unreliable supply estimates
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. 1 → 2 → 3 → 4 → 5
B. 2 → 5 → 1 → 3 → 4
C. 2 → 1 → 5 → 4 → 3
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. Begin internal development now and reserve external hiring as a supplementary near-term measure
B. Cancel the forecast because 3 years is too far ahead to plan
C. Only rely on external hiring since it is faster
D. Wait until the shortage occurs, then hire externally

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. Excessive investment in HR information systems
D. Over-reliance on external labour market data

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

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. Lack of top-management support; respond by firing the HR head
C. Inaccurate HRIS data; respond by abandoning HRP permanently
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 must exclude line managers to remain objective
B. HRP should be a continuous, flexible process subject to periodic review and adjustment
C. HRP should always be a one-time exercise to save costs
D. HRP should ignore attrition to keep forecasts stable