C202 Managing Human Capital Practice Questions - Set 1 - Part 1

Correct Answer: Attracting, hiring, developing, and retaining talent

The primary function of HRM is to attract, hire, develop, and retain the talent required for the organization's success. This ensures the organization has the necessary workforce to meet its goals effectively.

Correct Answer: Defining how the firm will compete in its marketplace

A business strategy outlines how a company will compete in its industry by identifying its target market, competitive advantage, and business operations to achieve success.

Correct Answer: The sum of all rewards an employee receives for time and effort

Total rewards encompass both intrinsic and extrinsic rewards, including salary, benefits, recognition, and opportunities for growth, given to employees in exchange for their contributions.

Correct Answer: A print or online material documenting HR policies

Employee handbooks contain a company's HR policies and procedures, ensuring employees understand workplace expectations and organizational rules.

Correct Answer: Intrinsic reward

Nonfinancial compensation includes rewards such as job satisfaction and personal achievement that are not tied to monetary value.

Correct Answer: To hire external vendors to perform tasks

Outsourcing allows organizations to focus on core competencies by hiring external vendors to perform tasks or processes, improving efficiency.

Correct Answer: Stock options

Direct financial compensation includes salary, wages, bonuses, and stock options that provide employees with monetary value.

Correct Answer: Doing something differently from competitors

Competitive advantage occurs when a company does something distinctively better than its competitors, leading to superior performance.

Correct Answer: Acting in a way consistent with ideal virtues

The virtue standard in ethics emphasizes acting with virtues such as civility, compassion, and benevolence, promoting moral character.

Correct Answer: Respecting and showing compassion for others

The common good standard focuses on ethical actions that show respect and compassion for all people, especially the most vulnerable.

Correct Answer: Human Resource Strategy

A Human Resource Strategy aligns HR practices with the overall business strategy to support organizational goals through talent management.

Correct Answer: Considering the interests of all people affected by the organization

The stakeholder perspective involves considering the interests and opinions of everyone affected by an organization’s actions, including employees, customers, and the community.

Correct Answer: Focusing on performance data and results

A performance culture emphasizes hiring, developing, and rewarding employees based on performance metrics, driving results and accountability.

Correct Answer: The values and assumptions that guide behaviors

Organizational culture refers to the shared values, beliefs, and assumptions that influence how members of the organization behave and interact.

Correct Answer: High commitment and involvement of employees

High-performance work systems encourage employee involvement and commitment, leading to better performance and higher productivity.

Correct Answer: To describe the highest values the organization aspires to

A code of ethics serves as a guide for decision-making by outlining the organization’s values and ethical principles that employees are expected to follow.

Correct Answer: Race

A protected class refers to groups such as race, sex, and religion that are legally safeguarded from employment discrimination under laws such as Title VII of the Civil Rights Act.

Correct Answer: To proactively eliminate discrimination and its past effects

Affirmative action involves taking steps to prevent discrimination and address the underrepresentation of certain groups in employment, particularly based on race, gender, and other protected characteristics.

Correct Answer: Unwanted conduct of a sexual nature in exchange for employment benefits

Quid pro quo harassment occurs when job benefits, such as promotions or raises, are conditioned on sexual favors, violating workplace ethics and law.

Correct Answer: To identify characteristics essential for job performance

A BFOQ refers to specific qualifications that are essential to perform a job, such as certain physical abilities or knowledge, and are legally allowed to be used as employment criteria.