CAIIB ABM Module B UNIT 10 MCQ – Fundamentals of Human Resource Management

Correct Answer: B. Because organisations are fundamentally social systems combining people and technology. Organisations blend human elements and technological aspects, making the effective utilisation of people a complex and ongoing challenge.

Correct Answer: B. The skills, knowledge, and attitudes of its human resources. While technology can be replicated, the unique qualities of an organisation’s people provide a distinct competitive advantage.

Correct Answer: C. Fundamentally qualitative. Drucker observed that key organisational phenomena are qualitative, involving aspects like judgment, vision, and motivation, even if some areas involve technical quantification.

Correct Answer: B. A planned coordination of activities by people to achieve common objectives through assigned roles and authority. An organisation involves deliberate coordination, shared goals, defined functions, and a structure of authority.

Correct Answer: C. Competencies and strategic functions. When technology manages routine tasks, the focus shifts to employees’ abilities, skills, and their involvement in strategic activities.

Correct Answer: C. Because it involves changing people’s habits, mindsets, and established ways of thinking. The human element, including resistance to altering established behaviours and perceptions, makes implementation challenging.

Correct Answer: B. Human resources are capable of responding uniquely to treatment, and their response is not standard. Unlike passive resources, people react to how they are managed, and their responses vary, making people management dynamic.

Correct Answer: C. Management as well as social sciences. Understanding human behaviour in organisations draws from both management studies and broader social sciences.

Correct Answer: C. From being seen as merely administrative/welfare to being a strategic partner and business catalyst. HR is increasingly viewed not just for administrative tasks but as essential for business success, especially in the knowledge era.

Correct Answer: C. Human Capital. Following the agrarian era (land) and industrial era (machines), the current knowledge era emphasizes the value derived from people’s skills, knowledge, and abilities.

Correct Answer: B. Rational coordination, common goals, division of labour, and hierarchy of authority. Schein’s definition highlights the planned, structured nature of formal organisations designed to achieve specific objectives.

Correct Answer: C. Structural rigidities leading to slower decision-making. While structure provides uniformity, excessive structuring can create inflexibility and hinder the speed of decisions.

Correct Answer: C. His workers (‘vital machines’). Owen advocated for better conditions for workers, considering them a crucial investment that would lead to higher productivity.

Correct Answer: C. Scientific principles. Babbage believed in using scientific methods, like division of labour, to analyse and improve work processes for increased productivity and reduced costs.

Correct Answer: C. Money. This approach operated on the assumption that financial compensation was the primary motivator for employees to perform the tasks assigned by the organisation.

Correct Answer: B. Fatigue, boredom, social interaction needs, and group dynamics. This approach focused narrowly on the work task, neglecting natural human behaviours and social factors irrelevant to the defined job.

Correct Answer: B. The simplistic, mechanical approach of early management theories that treated people as replaceable. The failure to consider human needs and the view of workers as mere cogs led to unrest and the formation of unions to address worker issues.

Correct Answer: C. Human behaviour and social factors significantly impact work situations. These studies revealed the importance of social dynamics, relationships, and non-economic factors in the workplace, shifting focus from a purely rational-economic view.

Correct Answer: C. The ‘social man’. This movement emphasised the importance of social interactions, group relationships, and belongingness needs in motivating and managing people at work.

Correct Answer: C. Perceiving meaning in work, responsibility, and a sense of achievement. These researchers stressed intrinsic motivators related to growth needs, suggesting work should provide opportunities for accomplishment and personal satisfaction.

Correct Answer: B. At the end of the nineteenth and beginning of the twentieth century. The need for specialised departments, including one for people management, arose as organisations grew in size and number following the Industrial Revolution.

Correct Answer: B. To meet workers’ needs and prevent union formation. These early roles focused on worker welfare, marking the beginning of specialised human resource management distinct from line supervision.

Correct Answer: C. Time Office. Units like the Time Office or establishment sections in banks initially handled personnel-related administrative tasks, primarily focused on organisational maintenance.

Correct Answer: C. Chemical and pharmaceutical industries. The term ‘personnel officer’ gained usage in these specific industries around the 1960s, indicating a shift in terminology.

Correct Answer: D. Marketing and sales. Core people management activities include acquiring talent, building capabilities, measuring performance, and rewarding contributions; marketing is a separate function.

Correct Answer: B. Career management. Career management specifically involves planning how employees can progress and develop within the organisation over time.

Correct Answer: B. Identifying and developing leaders to replace key functionaries. Succession planning focuses on ensuring leadership continuity by preparing individuals for future key roles.

Correct Answer: B. During the socio-psychological upheavals in the late 1920s and early 1930s. Luthans notes that while personnel functions existed earlier, significant concern for the human element emerged during this period.

Correct Answer: B. A profit-minded approach and a social welfare viewpoint. One trend emphasized efficient resource utilisation (profit-minded), while the other focused on employee well-being (social welfare).

Correct Answer: C. Organisations have two primary goals: productivity and maintenance (employee satisfaction/wellness). The recognition that both productivity and employee well-being are essential goals has helped bridge the gap between the two traditional approaches.

Correct Answer: C. All people management functions, both old and new. HRM is presented as a comprehensive framework covering the entire spectrum of managing people within an organisation.

Correct Answer: C. It is both a line-and-staff function, involving every manager. HRM principles imply that while there is a specialised HR function (staff), managing people is also an integral part of every manager’s role (line).

Correct Answer: B. By changing the nomenclature of the function/department (e.g., from Personnel to HR). Shifts in department names often signify an evolution in the perceived role and scope of the people management function.

Correct Answer: B. Under (Personnel) Administration and Maintenance. These traditional, often routine, systems are generally grouped under administrative and maintenance categories within the broader HRM function.

Correct Answer: B. Induction, development, performance appraisal, and career planning. HRD focuses on the growth and development aspects of employees and the organisation.

Correct Answer: C. On the basis of effective people management and development. Effectively managing and developing human resources is seen as a key competitive differentiator for organisations.

Correct Answer: C. The right type of people with the right skills and attitude for the right jobs. Acquiring appropriate human resources is fundamental to meeting both current operational needs and future strategic requirements.

Correct Answer: C. HRD is considered a significant subsystem of HRM. HRD, focusing on development, is viewed as a key component within the broader framework of HRM.

Correct Answer: B. The need for ongoing improvement of skills and performance to meet organisational requirements. CPD highlights the importance of continuous learning and skill enhancement throughout an employee’s career.

Correct Answer: B. On organisational interventions for climate development, employee development linked to goals, and change management. HRD focuses more on strategic development initiatives, culture building, and aligning employee growth with organisational objectives.

Correct Answer: C. No, its importance has often been overlooked or realised later. The statement ‘People component of an organisation has always received due attention’ is considered false, implying its significance was not always recognised.

Correct Answer: C. No, other factors, like management approaches post-revolution, were more direct causes. The statement ‘Industrial revolution led to the rise of unions’ is false, suggesting subsequent management practices were the key trigger.

Correct Answer: C. They are very closely related and influence each other. The statement ‘Management theories and approach to people management are very closely related’ is true, indicating a strong connection.

Correct Answer: C. No, HRM evolved significantly beyond the scope of Scientific Management. The statement ‘Scientific Management approach is the foundation of today’s concept of Human Resource Management’ is false, as HRM incorporates broader, more humanistic perspectives.

Correct Answer: C. It represents both a quantitative expansion and a qualitative difference in approach. The statement ‘Labour Management to Human Resource Management is not just a quantitative expansion… but is qualitatively different’ is true, highlighting a fundamental change in philosophy.

Correct Answer: C. No, they represent different, though related, concepts or scopes within people management. The statement ‘Personnel Management and HRD are synonymous terms’ is false, indicating they are distinct.

Correct Answer: C. No, HRD and the human relations movement are not the same, though potentially related. The statement ‘HRD and human relations movement are not the same’ is true, suggesting differences in their scope or emphasis.

Correct Answer: C. They are related, with HRD often considered a part or subsystem of HRM. The statements ‘HRM and HRD are unrelated’ is false, and ‘HRD is a subsystem of HRM’ is true, defining their relationship.

Correct Answer: C. No, the relationship is generally considered the other way around, or they are overlapping concepts. The statement ‘HRM is a subsystem of HRD’ is false, supporting the view that HRD is part of the broader HRM.

Correct Answer: C. No, while related, they are generally considered distinct concepts with different focuses or scopes. The statement ‘HRD and HRM are more or less same concepts’ is false, highlighting their distinct nature.

Correct Answer: C. No, excessive structure can often create rigidities that slow down decision-making. The statement ‘Extensive structural approach speeds up decision making process’ is false, as over-structuring can impede agility.

Correct Answer: D. Recruitment and Selection. Based on typical classifications, acquiring employees (Recruitment and Selection) falls under administrative functions, while activities focused on growth (Training, Appraisal, Counselling) are developmental.

Correct Answer: C. Employee Appraisal. Activities like Performance Appraisal, Training, and Counselling focus on employee growth and are classified as developmental, distinct from administrative tasks like compensation or welfare.

Correct Answer: C. Volatility, Uncertainty, Complexity, Ambiguity. VUCA represents the characteristics of Volatility, Uncertainty, Complexity, and Ambiguity in the business environment.

Correct Answer: C. It has undergone significant qualitative change, shifting from traditional management to modern development. The evolution involves not just more activities but a fundamental shift in the nature and significance of the role towards development.

Correct Answer: C. Supervisors/managers on the shop floor. Before becoming specialised, basic people management tasks were considered part of the line supervisor’s or manager’s responsibilities.

Correct Answer: B. The influence of external, socio-legal factors requiring knowledge of employment laws. Awareness of legislation and its implications necessitated specialised knowledge, marking a shift towards a specialist function.

Correct Answer: C. The line managers. It became clear that line managers are crucial delivery points for HR functions and cannot be separated from people management responsibilities.

Correct Answer: C. The philosophical orientation, particularly towards human relations. While skills are important, the underlying attitude and philosophy towards people significantly impact the effectiveness of HR practices.

Correct Answer: C. Industrial Relations. Dealing with powerful bank unions required specialised industrial relations skills, making this function particularly important during that period.

Correct Answer: B. Make cooperative action easier and more meaningful, and improve understanding. This perspective aims to foster cooperation, reduce frustration, and align individual identity with organisational objectives.

Correct Answer: C. It is now being directed by the business strategy, making HR professionals business partners. HR is increasingly aligned with overall business goals, requiring HR professionals to understand and contribute to strategy.

Correct Answer: B. Strengthening operating/executive levels and consolidating organisational strengths. This role involves supporting and reinforcing the capabilities at different organisational levels.

Correct Answer: C. Role of Developing Competence. This role specifically focuses on enhancing various types of skills and abilities within the workforce.

Correct Answer: C. Creating necessary culture, diagnosing organisational problems, and taking corrective steps. This role focuses on managing organisational dynamics, culture, and adaptation to the environment.

Correct Answer: C. Democracy, liberalism, humanism, and shared control. HRM is seen as promoting values related to individual rights, participation, and humanistic approaches.

Correct Answer: C. Knowledge of performance appraisal systems. This falls under the technical knowledge required for the role, distinct from managerial or personality attributes.

Correct Answer: C. Faith in human beings and their capabilities. This represents a fundamental belief or attitude, categorised under personality traits crucial for the role.

Correct Answer: B. Banks often consider HRD a generalist discipline, appointing individuals from the general cadre. It’s observed that banks may not always treat HR as a specialised professional function requiring specific qualifications.

Correct Answer: C. Teamwork. Teamwork is identified as one of the key behavioural competencies required for HR heads, alongside others like communication and problem-solving.

Correct Answer: C. Strategic Thinking and Alignment. This is classified as a functional competency, focusing on aligning HR with broader business strategy.

Correct Answer: B. Functional HRM specialist. The study found that Indian HRM professionals primarily identified with the role of a functional specialist, closely followed by the strategic business partner role.

Correct Answer: B. High degree of freedom from bias. Impartiality and objectivity are crucial for maintaining fairness and justice in dealing with different groups within the organisation.

Correct Answer: C. Passing credit for success to others and owning responsibility for failures. This trait involves humility, focusing on team success rather than personal glory, and taking accountability.

Correct Answer: C. The role has undergone a qualitative change in its nature and focus. The statement ‘The role of the HR Functionaries has undergone qualitative change’ is considered true, indicating a fundamental shift beyond just adding more tasks.

Correct Answer: C. It is a shared responsibility between HR functionaries and other managers (like line managers). The statement ‘HR functionaries have total responsibilities about the management of human resource’ is false, implying responsibility is shared.

Correct Answer: C. They are responsible for the development of HR-related systems. The statement ‘HR functionaries are responsible for development of HR-related systems’ is true, indicating this is a key part of their role.

Correct Answer: C. Yes, possessing qualifications in HRM is deemed necessary for HR professionals. The statement ‘HR professionals must have qualifications in HRM’ is indicated as true within the provided context’s evaluation framework.

Correct Answer: B. They should actively participate and share responsibility in managing HR. The statement ‘Line Managers should not meddle with the management of HR’ is false, indicating their necessary involvement.

Correct Answer: C. No, their role extends beyond just HR activities and involves participation in strategic planning. The statement ‘Role of HR professionals is confined to HR activities… hence they should not be involved in strategic planning’ is false, highlighting their broader strategic involvement.

Correct Answer: C. As functions that are integrated and connected with other parts of the organisation. The statement ‘HR functions no longer remained the isolated functions’ is true, emphasizing their integration within the organisation.

Correct Answer: C. HR functions are closely related to and should align with the business strategy. The statement ‘HR functions do not have any relationship with the business strategy’ is false, underscoring the essential link between HR and strategy.

Correct Answer: B. When HR strategy is integrated with business strategy. Effectiveness is enhanced when HR activities are aligned with and informed by the overall business direction.

Correct Answer: B. Because the success of strategic approaches largely depends on corresponding human resource capabilities. Achieving long-term goals requires aligning the workforce’s skills and abilities with strategic objectives.

Correct Answer: B. The process of linking HRM with strategic objectives to improve business performance. SHRM involves aligning HR practices with the organisation’s strategic goals to enhance overall performance and culture.

Correct Answer: B. Because employees have larger stakes and their involvement in strategy formulation leads to better implementation. Involving employees, who are key partners, in strategy development fosters commitment and success.

Correct Answer: B. HR policies and practices are developed to meet challenges emerging from the internal and external environment. SHRM anticipates and prepares for future challenges by aligning HR practices proactively.

Correct Answer: B. Partners in strategy execution. Ulrich suggests HR should move beyond traditional roles to actively partner with management in implementing business strategies.

Correct Answer: C. Expertise in how work is organised and executed, ensuring administrative efficiency. HR should become expert in work design and process efficiency to reduce costs while maintaining quality.

Correct Answer: B. To be a champion representing employee concerns AND working to increase employee contribution. HR should advocate for employees while simultaneously working to enhance their commitment and performance.

Correct Answer: B. Acting as agents of continuous transformation and improving capacity for change. HR is seen as playing a key role in shaping processes and culture to enhance organisational adaptability.

Correct Answer: B. Primarily as policy police and regulatory watchdogs handling paperwork. Ulrich contrasts his proposed roles with the more common administrative and compliance-focused reality of HR in many firms.

Correct Answer: C. Recruiting, training programmes, or diversity initiatives. Even when empowered, traditional HR activities might lack direct connection to the organisation’s core business objectives.

Correct Answer: B. Helping the organisation better serve customers or increase shareholder value. The new agenda emphasizes HR’s role in contributing concretely to the organisation’s bottom line and customer focus.

Correct Answer: B. Identifying competency gaps that arise due to change. HR is crucial in spotting the difference between required and existing employee skills and abilities in a changing environment.

Correct Answer: C. The difference between required capabilities and existing employee knowledge, skills, and abilities. It refers to the shortfall in skills needed to meet organisational or individual goals.

Correct Answer: B. By obtaining appropriate resources, training, development, and other means. HR actively works with management to bridge these gaps through various interventions like training and resource allocation.

Correct Answer: C. Flexibility and quick adaptation to the changed environment. Organisations that can adapt quickly and flexibly to changes are more likely to succeed.

Correct Answer: B. A strong understanding of the functionalities of different departments and staying updated. To act strategically, HR needs a broad understanding of how different parts of the business operate.

Correct Answer: C. Strong consultative skills. Effective communication and partnership across the organisation require HR to develop strong advisory and consultative abilities.

Correct Answer: C. In increasingly consultative partnerships and strategic leadership roles. The evolution of HR emphasizes its move towards strategic advice, partnership, and leadership, beyond basic administration.

Correct Answer: B. Accomplishing overall organisation objectives. The core idea of Strategic HRM is to align people management practices with the achievement of the organisation’s broader goals.

Correct Answer: B. As the conscience of the Banks, performing a reactive & pro-employer role. The traditional view saw HR in a more limited, reactive capacity compared to the strategic partnership role.

Correct Answer: B. Acting as enablers and centres of excellence, supporting line managers. The shift involves HR becoming a support system and strategic resource for line managers, rather than the first point of contact for all issues.

Correct Answer: C. Line managers heading departments other than HR. The model suggests delegating routine employee matters to line managers, allowing HR to focus on core policies and strategic support.

Correct Answer: B. Resilience to meet corporate business goals. HR policies must be designed to support and contribute to the achievement of the bank’s overall business objectives.

Correct Answer: C. How to assess the return on investment (ROI) in human capital. Understanding the financial impact and value contribution of human resources is crucial for strategic involvement in business processes.

Correct Answer: B. An intensively focused professional course like Master of Human Resource Management (MHRM). Specialised, integrated programmes are suggested to equip HR professionals with the necessary depth of knowledge beyond general business studies.

Correct Answer: B. Exposure to Seminars, Training & Development, and networking opportunities. Continuous learning through various external and internal avenues helps HR professionals stay updated and expand their horizons.

Correct Answer: B. By understanding how to achieve excellence in people processes, organisational processes, and business transformation. Achieving competitive advantage involves optimising various processes where HR plays a key role.

Correct Answer: B. Delivering value to the external customer. The new Business-HR effort includes focusing attention on how HR contributes to delivering value to the organisation’s clients.

Correct Answer: B. Sufficient expertise/knowledge on Information Technology. Given the rapid changes and technological integration in business, IT literacy is crucial for HR professionals.

Correct Answer: B. A vision, open mind, and an urge for continuous learning and acquiring new abilities. A positive attitude towards development and a willingness to learn are key for adapting to new roles.

Correct Answer: B. Establishing gender parity, pay equality, mentorship, and workplace safety. Recent priorities reflect a broader concern for diversity, equality, employee development, and well-being.

Correct Answer: A. Organisations view hiring in more holistic terms, considering factors beyond just immediate skills. Both employers and job seekers consider a wider range of factors, including cultural fit and growth opportunities.

Correct Answer: C. Artificial Intelligence (AI) powered solutions and data analytics. Technology, including AI and data analysis, is playing a larger role in automating and improving HR processes.

Correct Answer: B. It has reduced the time taken by automating the initial screening of applications. AI helps streamline recruitment by handling high-volume tasks like initial application review.

Correct Answer: B. To track metrics and improve employee experience, hiring, retention, and productivity. Data analytics provides insights to make informed decisions aimed at enhancing workforce effectiveness and satisfaction.

Correct Answer: B. Understanding regarding retention, recruitment, development, engagement, satisfaction, and performance. Analysing employee data helps HR understand various aspects of the employee lifecycle and workplace dynamics.

Correct Answer: C. Organisations that nurture talent, provide growth opportunities, and offer a supportive work culture. Modern candidates value factors like development, culture, and support alongside compensation.

Correct Answer: C. Employer branding. Communicating the organisation’s culture and values to attract and retain talent (employer branding) has become a key focus for HR.

Correct Answer: C. Promoting more women to executive positions and supporting further education. Actions like promoting diversity in leadership and encouraging skill development contribute to a positive and supportive environment.

Correct Answer: C. No, while significant, the Act was not the sole starting point; earlier forms or influences existed. The statement ‘Industrial Disputes Act was the beginning of management of people in India’ is false, implying other developments or precursors existed.

Correct Answer: C. Indians were visible as personnel and welfare officers, though not yet prominent as industrialists. The statement ‘At the time of independence, Indians were not among the industrialists but personnel and welfare officers were visible’ is true.

Correct Answer: C. No, these represented different facets or components within the broader field of Personnel Management, rather than being synonyms. The statement ‘Labour welfare, industrial relations, personnel administration were synonymous to Personnel Management’ is false.

Correct Answer: B. By the 1960s. The statement ‘The Personnel Management was accepted as a profession by 1960s’ is true, indicating its recognition as a specialised field by that time.

Correct Answer: C. Some visionary Indian organisations had adopted HRM-like approaches much earlier, even before the term was common. The statement ‘Some Indian organisations had adopted HRM approach long time ago even when it was not talked about’ is true.

Correct Answer: C. It reflected global trends like the impact of the industrial revolution and welfare movements, adapted to the Indian socio-legal context. India experienced similar broad stages influenced by global events but shaped by specific national factors like legislation and industrial structure.

Correct Answer: B. The significant role of the public sector aiming to be ‘model employers’ post-independence. Factors like specific laws (Factories Act, ID Act), the public sector’s role, and actions of visionary industrialists shaped HRM’s unique evolution in India.

Correct Answer: B. Welfare -> Personnel Administration/IR -> HRM incorporating HRD -> Strategic HRM. The function typically evolved from basic welfare to administrative/legal focus, then incorporating developmental aspects (HRD) under HRM, and finally towards strategic integration.

Correct Answer: C. Because approaches to managing people (HRM) evolved in response to and alongside broader management thinking about work and organisations. Shifts in management thought directly influenced how organisations perceived and managed their employees.

Correct Answer: C. The Hawthorne Studies highlighting social factors at work. The Hawthorne Studies were a landmark, revealing the impact of social and psychological factors, moving beyond purely mechanistic views.

Correct Answer: B. PM, IR, and HRD are all sub-components or perspectives encompassed within the broader field of HRM. HRM is generally seen as the overarching function, with PM and IR representing earlier or specific aspects, and HRD focusing on the developmental dimension.

Correct Answer: B. HRD emphasises employee development, organisational climate, and proactive interventions, unlike PM’s often reactive, administrative focus. HRD has a distinct developmental and strategic orientation compared to traditional PM.

Correct Answer: B. A shift from purely administrative roles towards becoming strategic business partners. The role is evolving towards greater strategic integration, requiring business acumen alongside HR expertise.

Correct Answer: B. Administrative, developmental (HRD), strategic partnership, and potentially employee relations functions. A comprehensive HR structure addresses maintenance, development, and strategic alignment needs.

Correct Answer: C. It’s a shared responsibility, with HR often providing frameworks/tools and line managers implementing day-to-day coaching and development. Effective development involves collaboration between HR and line management.

Correct Answer: C. Acquisition (recruitment/selection), Development (training), Motivation (compensation/rewards), and Maintenance (welfare/relations). These core functions cover the lifecycle of employee management within an organisation.

Correct Answer: C. SHRM integrates HR strategy with overall business strategy for value creation, unlike traditional HRM’s often administrative or reactive focus. Strategic integration and proactive value contribution are hallmarks of SHRM.