Human Resource Management MCQs
HRM MCQs are a valuable resource for candidates preparing for human resource-related tests and professionals aiming to enhance their HR knowledge. These questions cover essential HRM areas such as job analysis, recruitment and selection, training and development, performance management, motivation theories, labor laws, compensation, and organizational behavior. Ideal for MBA HRM students and aspirants of PPSC, FPSC, NTS, and private sector HR roles, this category strengthens your theoretical and practical understanding of managing people at work. HRM MCQs also help learners explore modern HR practices and strategic human resource planning in organizations. Consistent practice ensures better preparation for interviews, entrance exams, and HR-related roles in public and private sectors.
Q: Employee absenteeism can be reduced by
A) Withholding leave
B) Increasing workloads
C) Creating a positive work environment
D) Ignoring complaints
✅ Correct Answer: C
Explanation: A supportive workplace improves morale and reduces unauthorized absences.
Q: Industrial relations primarily deal with
A) Employer-employee relationships
B) Customer complaints
C) Stock prices
D) Machine repairs
✅ Correct Answer: A
Explanation: Good industrial relations ensure smooth communication and conflict resolution in the workplace.
Q: Incentives are designed to
A) Increase absenteeism
B) Encourage better performance
C) Cause confusion
D) Demotivate staff
✅ Correct Answer: B
Explanation: Incentives motivate employees by rewarding excellence and effort.
Q: The HR department handles
A) Product deliveries
B) Cloud services
C) Employee lifecycle management
D) Retail logistics
✅ Correct Answer: C
Explanation: HR oversees recruitment, training, payroll, and retention of employees.
Q: A demotion involves
A) Higher pay
B) Assignment to a lower rank
C) Position upgrade
D) Foreign posting
✅ Correct Answer: B
Explanation: Demotions reduce responsibility or status due to performance or restructuring.
Q: Outsourcing HR functions can lead to
A) Higher hiring costs
B) Focus on core business activities
C) Greater internal control
D) Increased operational load
✅ Correct Answer: B
Explanation: Outsourcing frees time for core functions and reduces administrative workload.
Q: An example of indirect compensation
A) Basic salary
B) Commission
C) Health insurance
D) Overtime pay
✅ Correct Answer: C
Explanation: Indirect compensation includes non-cash benefits like insurance or paid leave.
Q: An HR audit aims to
A) Evaluate HR policies and practices
B) Eliminate departments
C) Predict profits
D) Sell company assets
✅ Correct Answer: A
Explanation: HR audits review compliance, effectiveness, and alignment of HR processes with goals.
Q: Job enlargement involves
A) Salary increment
B) Office relocation
C) More variety in tasks
D) Downgrading responsibilities
✅ Correct Answer: C
Explanation: Job enlargement increases task variety at the same level to reduce boredom.
Q: A high turnover rate suggests
A) Low recruitment
B) High employee satisfaction
C) High profits
D) Frequent resignations
✅ Correct Answer: D
Explanation: Turnover indicates how often employees leave and need replacement, often reflecting dissatisfaction.