Introduction to human resource management practice questions.

Which formula correctly calculates the labour turnover rate?

• (number of staff leaving / average number of staff) × 100
• (average number of staff / number of staff leaving) × 100
• (number of staff leaving / total revenue) × 100
• (number recruited / number leaving) × 100

Answer: (number of staff leaving / average number of staff) × 100

Labour turnover = (number of staff leaving during a period / average number employed) × 100, expressed as a percentage.

State which of the following best describes the main purpose of human resource management (HRM).

• To maximise short-term shareholder dividends only
• To recruit, develop, motivate and retain the workforce
• To set the prices of the firm's products
• To design the physical layout of the production line

Answer: To recruit, develop, motivate and retain the workforce

HRM is concerned with the effective management of people, planning, recruiting, training, motivating and retaining employees to meet organisational objectives.

A firm employs an average of 200 staff during a year, and 30 employees leave in that year. Calculate the labour turnover rate.

• 6.7%
• 15%
• 30%
• 150%

Answer: 15%

Labour turnover = (number of staff leaving ÷ average number of staff) × 100 = (30 ÷ 200) × 100 = 15%. The 6.7% distractor comes from inverting the fraction (200 ÷ 30).

Distinguish which of the following is an example of INTERNAL recruitment.

• Advertising the vacancy on an external job board
• Promoting an existing employee into the vacant post
• Hiring a candidate through a recruitment agency
• Recruiting a graduate directly from a university

Answer: Promoting an existing employee into the vacant post

Internal recruitment fills a post from within the existing workforce (e.g. promotion or transfer); the other options draw on candidates from outside the firm.

Suggest which factor is most likely to influence a firm's future workforce planning by DECREASING the number of employees it needs.

• Expansion into new overseas markets
• Investment in automation and new technology
• Rising demand for the firm's products
• The launch of an additional product line

Answer: Investment in automation and new technology

Automation replaces labour with capital, reducing staffing needs; growth in demand or markets typically increases workforce requirements.

Determine which of the following is a benefit of EXTERNAL recruitment compared with internal recruitment.

• It is usually cheaper and quicker to complete
• It brings new skills, ideas and experience into the business
• It is a strong motivator for existing employees seeking promotion
• The firm already knows the candidate's abilities well

Answer: It brings new skills, ideas and experience into the business

External recruitment introduces fresh talent and perspectives; being cheaper/faster, motivating existing staff and knowing the candidate are advantages of internal recruitment.