Leading and Managing People/PMAN102/Strategic Human Resources Management/Quiz

The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: The Changing Role of Human Resources Management.

The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Leading and Managing People (PMAN102) micro-course. Please consult the Certify participation page for more information.

True - false questions

Indicate whether the following statements are true or false:

• Human resources management includes employee selection, placement, job design, and compensation which all need to be aligned with a company’s overall strategy.
  • TRUE
    • Yes.
  • FALSE
    • No. Human resources management plays an important role in a company’s overall strategy and includes all these aspects.
• Since organizations have to spend money to enable, develop and motivate human capital, there is often a decrease in overall accounting profits.
  • TRUE
    • No. There is often an increase in overall accounting profits.
  • FALSE
    • Yes. There is often an increase in overall accounting profits.
• Human resources management is concerned with governance to ensure the right rules, practices, policies, structures and communications systems are in place to create a high-performing organization.
  • TRUE
    • Yes.
  • FALSE
    • No. Governance is an important role of human resource management for given reason.
• The technical or operational aspects of human resource management usually have a much larger effect on a company’s success than the strategic aspects.
  • TRUE
    • No. The strategic aspects usually have a much larger effect on a company’s success than the technical or operational aspects.
  • FALSE
    • Yes. The strategic aspects usually have a much larger effect on a company’s success than the technical or operational aspects.

Multiple choice questions

• Which THREE of the following statements about strategic human resource management (SHRM) are correct? (Select all that apply - there are three correct answers)
  • SHRM ensures that an organization’s human resources are in the right place at the right time to secure competitive advantage.
    • Yes. This statement is correct.
  • SHRM is an integral part of the control portion of the planning-organizing-leading-controlling (P-O-L-C) framework.
    • Yes. This statement is correct.
  • SHRM anticipates trends and predicts impacts to inform the day-to-day operational planning of an organization.
    • Incorrect. It focuses on long-term strategic planning, not day-to-day operational planning.
  • SHRM involves systems thinking, team learning, shared vision, mental modes and personal mastery.
    • Yes. This statement is correct.
• Which ONE of the following statements about human capital is false? (Select one answer)
  • A company’s human capital asset is the collective sum of the attributes, life experience, knowledge, inventiveness, energy and enthusiasm that its people choose to invest in their work.
    • Incorrect. This statement is in fact true, not false.
  • The human capital strategy of a company needs to be fully aligned with its business strategy so that company goals and outcomes are met.
    • Incorrect. This statement is in fact true, not false.
  • Companies that invest in human capital through education and training usually benefit by improved levels of quality and production.
    • Incorrect. This statement is in fact true, not false.
  • Human capital is a tangible asset or quality that is listed on a company's balance sheet.
    • Yes. This statement is incorrect because human capital is intangible and is not found on a company’s balance sheet.
• Which TWO of the following statements about diversity management are correct? (Select all that apply - there are two correct answers)
  • It involves actively appreciating and using the differing perspectives and ideas that individuals bring to the workplace.
    • Yes. Actively promoting diversity helps to increase creativity and innovation in the workplace.
  • It involves hiring staff of different expertise, gender, age and background to avoid the problems of groupthink.
    • Yes. A diverse workforce leads to varying, unique ways of understanding and solving problems.
  • It promotes weekly diversity workshops and training for all employees.
    • Incorrect. Although it’s beneficial to provide dedicated time and place for discussing diversity topics when appropriate, weekly meetings and workshops should not be compulsory.
  • It encourages employees to acknowledge and focus on each others’ similarities, since differences have no bearing on organizational productivity and goal achievement.
    • Incorrect. It encourages the acknowledgement of differences which leads to a more respectful workplace and results in increased organizational productivity and goal achievement.
• Which THREE statements are correct about employee rewards and compensation? (Select all that apply - there are three correct answers)
  • Legally, compensation includes salaries and benefits but not incentives and allowances.
    • Incorrect. It includes salaries, benefits, incentives and allowances.
  • The most effective reward and compensation systems align with objective, outcome-based evaluations of employee performance.
    • Yes. This statement is correct.
  • An adequate compensation and rewards program is key to encouraging peak performance of employees, reducing turnover and company loyalty.
    • Yes. This statement is correct.
  • Employee benefits may include retirement plans, health life insurance, life insurance, disability insurance, vacation and employee stock ownership plans.
    • Yes. This statement is correct.