Succession planning is the process of: A. Firing underperforming leaders B. Identifying and developing future leaders C. Outsourcing CEO recruitment D. Reducing management layers Correct answer is: B. Identifying and developing future leaders
HR metrics such as “turnover rate” and “time to fill” are used for: A. Financial auditing B. Measuring HR effectiveness C. Product pricing D. Customer satisfaction surveys Correct answer is: B. Measuring HR effectiveness
The strategic significance of HRM lies in its role to: A. Reduce employee headcount B. Create competitive advantage through people C. Minimize training costs D. Outsource all HR functions Correct answer is: B. Create competitive advantage through people
Which type of organization is formed primarily to provide services without profit motive? A. Line organization B. Functional organization C. Non-profit organization D. Matrix organization Correct answer is: C. Non-profit organization
In a line organization, authority flows: A. From bottom to top B. Horizontally between departments C. Vertically from top to bottom D. In a circular manner Correct answer is: C. Vertically from top to bottom
A functional organization divides work based on: A. Geographical regions B. Specialized functions or departments C. Seniority of employees D. Gender of workers Correct answer is: B. Specialized functions or departments
Which organization type combines functional and project-based structures? A. Line organization B. Staff organization C. Matrix organization D. Committee organization Correct answer is: C. Matrix organization
The scalar chain principle in organization theory refers to: A. Unbroken chain of authority from top to bottom B. Equal pay for all employees C. Flexible working hours D. Informal communication networks Correct answer is: A. Unbroken chain of authority from top to bottom
Unity of command means an employee should report to: A. Multiple supervisors B. Only one superior C. The HR department D. External consultants Correct answer is: B. Only one superior
A structured interview is preferred over an unstructured one because it: A. Takes less time B. Is more consistent and legally defensible C. Requires no training for interviewers D. Focuses only on personality Correct answer is: B. Is more consistent and legally defensible