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Human Resource Management Final Exam Sample Questions Answer Key

Ramesh C. Reddy

Editors Note:
 After spending time in prayer to the Lord Jesus to help me study for the exam, I have prepared my own sample exam multiple choice questions and fill in the blanks in anticipation of the real exam. I wanted to share them with you all on this site to help you study if you think it would be helpful. If you do not know what each term in the multiple choice means, I would go over those terms.

I do not know if the real exam will be easier than the one I prepared to help me study or if it will be harder. I did write 30 multiple choice questions and 15 fill in the blanks based on the notes and textbook for the 10 chapters. These questions do not cover all the material in the notes or textbook but are a good way to study.

Remember, our test does need a bit of memorization since that’s the only way we can get the fill in the blanks right so I would approach the multiple choice questions as fill in the blanks first. If you don’t know the answer, then look at the choices and try to figure out the answer. Have your notes and textbook ready! I do hope it helps you all to study!

Take this sample exam in test conditions and see how well you will do and where you need to brush up on!

Sample HRM questions Answer Key for Exam 2: Version #1 prepared by Ramesh C. Reddy

#1: Ch 9

All of the following are phases of career development except

  1. Performance Phase

  2. Direction Phase

  3. Assessment Phase

  4. Development Phase


#2:  Ch 7

Performance Appraisal is a primary HRM process that links employees and organizations and provides input for other processes through these means

  1. Identification, Measurement, Management

  2. Assessment, Direction, Development

  3. Recruitment, Selection, Onboarding

  4. Skill, Effort, Responsibility


#3: Ch 10

Total compensation is all forms of direct and indirect compensation paid or provided to the employee in recognition of employment status and performance. All of the following are forms of direct compensation except

  1. Base Pay

  2. Variable Pay

  3. Statutory Benefits

  4. Stock Benefits


#4: Ch 11

Groups can be rewarded in a “Pay for Peformance” plan in all of the following ways except

  1. Gainsharing

  2. Bonus

  3. Awards

  4. Merit


#5: Ch 12

Benefits that are required by law to provide to all employees are called

  1. Medical Benefits

  2. Direct Benefits

  3. Indirect Benefits

  4. Statutory Benefits


#6: Ch 12

All of the following are statutory benefits except

  1. Social Security

  2. Unemployment Insurance

  3. Medical Insurance

  4. Workers Compensation


#7: Ch 13

Communicating effectively is very important for organizations and it has been done mostly in these ways except

  1. Information dissemination

  2. Employer Feedback

  3. Employee Feedback

  4. EAP


#8: Ch 14

Protections and privileges negotiated for, and provided by, a legal and binding contract (e.g., union contract, employment contract, etc) for employees are called

  1. Statutory Rights

  2. Privileged Rights

  3. Contractual Rights

  4. Psychological Contract


#9: Ch 15

Typically, unions negotiate terms and conditions for represented employees in the areas of Wages, Hours, and Employment Conditions. Negotiation for ‘Hours’ are for

  1. Holidays, Vacation, Shifts, Overtime rates

  2. Flextime, Parental Leave, Vacation, Holidays

  3. Shifts, Flextime, Seniority Positions, Travel Pay

  4. Overtime, Promotions, Parental Leave, Shifts


#10: Ch 16

If a worker gets injured on the job while performing duties of his job, the employer is obligated to pay the expenses of the injured employee who may become unemployed under the statutory benefits of

  1. Unemployment Insurance

  2. Medical Insurance

  3. Workers Compensation Insurance

  4. Employers Compensation Insurance


#11: Ch 17

The second stage of internationalism where there is a limited need for impact on local HRM practices – communications, incentives, and product training is called

  1. Subsidiaries and Joint Ventures

  2. Transnational

  3. Export Operations

  4. Multinational


#12:  Ch 9

Phase of Career Development which is focused on helping employees to identify strengths and weaknesses that may affect future performance.

  1. Direction Phase

  2. Assessment Phase

  3. Development Phase

  4. Training Phase


#13: Ch 7

Measuring Peformance is based on a measurement approach that can be broken down to type of judgment and measurement focus. All of the following are ways to appraise performance based on measurement focus except

  1. Trait

  2. Behavior

  3. Outcome

  4. Relative


#14: Ch 10

The systematic process of making job valuation determinations about a job based upon its content and the way in which it actually functions within the organization is called

  1. Job Evaluation

  2. Job Determination

  3. Job Analysis

  4. Job Grading


#15: Ch 11

Pay-For-Performance System

A. Seeks to acknowledge differences in employee or group contributions

B. Responds to the fact that organizational performance is a function of individual or group performance

C. Uses pay to attract, retain and motivate (?) employees relative to their performance and contribution

D. All of the Above


#16: Ch 12

Established by this Act, these benefits known as retirement income, disability income, health benefits, and survivor benefits are the economic “safety net” for American workers:

  1. COBRA of 1939

  2. Social Security Act of 1935

  3. American Disability Act of 1973

  4. ERISA of 1975


#17: Ch 13

Communications is critical to establishing and sustaining a healthy employee relations environment. In communication these processes can occur in this order

  1. Communication Channel, Noise, Sender encodes msg, Noise, Receiver Decodes msg, Feedback

  2. Sender encodes msg, Communication Channel, Noise, Receiver Decodes msg, Feedback, and Noise

  3. Receiver Decodes Msg, Noise, Sender encodes msg, Noise, Communication Channel

  4. Sender decodes msg, Communication Channel, Noise, Receiver encodes msg, and Feedback, and Noise


#18: Ch 14

The common law rule that allows either employers or employees to end an employment relationship at any time for any cause is called Employment at Will. There have be exceptions to the Employment at Will made by courts. An exception is

      A.  Public policy exceptions

  1. Implied contracts

  2. Lack of good faith and fair dealing

  3. All of the above


#19: Ch 15

The National Labors Relations Board is concerned with making sure the Wagner Act is not violated. It is violated when employers

  1. Interfere with the right to form a union and to contract

  2. Interfere with the administration and financing of a company

  3. Refuse to bargain collectively in good faith

  4. Refuse to contract collectively with their employees


#20: Ch 16

Before Workers compensation was ratified, employees had a hard time collecting for their injuries because the burden of proof lay on the employees. One of the reasons it was hard to collect was because of

A. Presumption that employee accepted usual job risks for pay

B. Doctrine of Contributory Negligence that said employers were not liable for an employee’s own negligence

C. Fellow-Servant Rule that said employers were not responsible when another employee was negligent

D. All of the Above


#21: Ch 17

A cultural dimension that affects the success of HRM practices in most countries where relative emphasis is on hierarchical status is called

A. Individualism

B. Power Distance

C. Uncertainity Avoidance

D. Masculinity/Feminity


#22: Ch 9

The direction phase focuses the employee on determining the type of career and work that will best leverage strengths and weaknesses…and a general plan for achieving those objectives. One of the ways of making a determination is through

  1. Career Planning Workshops

  2. Succession Planning

  3. Individual Career Counseling

  4. Job Shadowing


#23: Ch 7

A number of potential problem areas may affect the quality of performance measurement results in performance appraisal such as

A. Rater error and bias (halo, range restriction, personal bias, and comparability)

B. Influence of ”liking”

C. Organizational politics

D. All of the above


#24: Ch 10

Requires recordkeeping and overtime pay for covered employees. Defines “exempt” and “nonexempt” employees for protection by this law. The law also is the basis for defining the minimum wage in the U.S.

  1. Internal Revenue Code

  2. Wages and Salary Act

  3. Fair Labors Standard Act

  4. Equal Minimum Pay Act


#25: Ch 11

A corporate-wide pay plan that uses a structured formula to allocate a portion of annual company profits to employees as a contribution to a retirement arrangement (e.g., 401(k)), or as a year-end cash payment.

A. Gainsharing

B. Profit Sharing

C. ESOP Sharing



#26: Ch 12

For companies with this many or more, employees, the Family and Medical Leave Act requires that qualified employees (one yr. of service and not highly compensated) be given up to12 weeks of unpaid leave for birth or adoption of a child, care of a sick spouse, child, or parent, and extended care for the health of an employee whose illness may interfere with job performance

  1. 25

  2. 50

  3. 75

  4. 100



#27: Ch 13

All of the following are ways for information dissemination to occur except

  1. Employee Handbooks

  2. Employee Attitude Surveys

  3. Employee Websites

  4. HR Websites


#28: Ch 14

Management interventions that give employees multiple opportunities to correct undesirable behavior is called

  1. Progressive Discipline

  2. Regressive Discipline

  3. Positive Discipline

  4. Negative Discipline


#29: Ch 15

Passed in 1947 to re-balance the power between labor and management and to ensure a healthy, sustainable labor-management environment. The Act empowered the NLRB to remedy six unfair union labor practices

  1. Wagner Act

  2. National Labor Fair Standards Act

  3. Taft-Hartley Act

  4. Landrum-Griffin Act


#30: Ch 16

Today, this many states have Workers Compensation Laws that are designed to provide a “no fault” recourse for affected employees, provide prompt and reasonable medical coverage for effected employees and income to them and their families, and encourage and promote workplace safety

  1. 45

  2. 46

  3. 47

  4. 48


#31: Ch 17

A staff management strategy that hires management from home country to manage a non-home country operation is known as the

A. Geocentric Approach

B.  Ethnocentric Approach

C. Polycentric Approach

D. Nationalistic Approach


#32: Ch 9

Many professional, career-minded people marry, or have close relationships with, another person with a similar commitment to meeting career objectives. They are said to face challenges based on a

  1. Individualistic Career

  2. Professional Career

  3. Dual Career

  4. Family-based Career


#33: Ch 7

Effective _________ of the most appropriate employee performance dimensions is a key to the success of the performance appraisal process.

  1. Identification

  2. Management

  3. Measurement

  4. Appraisal


#34: Ch 10

Comparable Worth is a pay concept that calls for comparable pay for jobs that require comparable levels of skill, effort, responsibility and have comparable working conditions…even if the job content is different.


#35: Ch 11

Employee Stock Ownership Plan (ESOP) is a corporate-wide pay plan that rewards employees with stock grants or stock options based upon a structured formula


#36: Ch 12

Health Insurance Portability and Accountability Act (HIPPA)  protects an employee’s to transfer between medical plans without a gap in coverage due to a pre-existing condition provided he/she has been covered by the previous plan for one month, or more…at 12 months there is guaranteed full coverage.


#37: Ch 13

Appeals Procedures are structured processes that allow an employee to voice disagreement over a management decision or action and to work with management toward resolution


#38: Ch 14

Positive Discipline is a counseling-based process that encourages employees to assume responsibility for their own behavior.


#39: Ch 15

Landrum-Griffin Act was passed in 1959 to protect union members from corrupt union leadership and mismanagement.


#40: Ch 16

Passed in 1970, OSHA extended the protection of employees in the workplace by imposing three major requirements on employers.


#41: Ch 17

A staffing approach that takes management staff from host country is polycentric in its approach to staffing.


#42: Ch 9

Career Development is an ongoing and formalized effort that recognizes employees as valuable organizational resources and focuses on developing them to their fullest, practical performance potential.


#43: Ch 7

Fundamental Employee Performance Dimensions are broken down into the WHAT and HOW dimensions.


#44: Ch 10

Total compensation is all forms of direct and indirect compensation paid or provided to the employee in recognition of employment status and performance.


#45: Ch 11

Corporate Pay Plans tend to work best in larger organizations where gainsharing may not be viable.


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