
HR is at the heart of every successful organization—and as a student preparing for examinations or seeking employment, understanding the complexity of Human Resource Management (HRM) is essential. From compensation strategies and training methods to legal protections and performance evaluations, these 10 multiple-choice questions reflect the real-world challenges and decisions HR professionals face daily.
Answering them will not only test your knowledge but also deepen your understanding of how HR shapes business outcomes and employee experiences. Whether you’re gearing up for an HRM exam or stepping into your first HR role, mastering these topics ensures you’re ready for both the classroom and the workplace.
Let’s explore them in detail, with tips and trusted academic support from StudyCreek.com and DissertationHive.com.
The principal distinction of both equity and exchange philosophies of compensation consists in their fundamental principles:
Equity depends on fairness, paying attention to that internal consistency and equity in pay structures.
➡️ Exchange, however, is grounded in employee value, prioritizing what a worker brings to the organization in market terms.
Understanding this distinction is vital for compensation planning and fairness analysis.
The unique aspect of Zappos is that the company gives a bribe in the form of 2000 dollars to new workers to hand up their job and retain only those who are really dedicated. This extreme strategy will keep strong employees and strengthen their cultural alignment.
This is a seminal legislation that allows the employees to form unions without getting penalized, which comprises one of the key elements in U.S. labor law. It has made collective bargaining more effective and has led to just labor practices.
The Occupational Safety and Health Act (OSHA) mandates hazard prevention and safety gear use—but does not require employers to monitor employees’ personal health habits, making this a common exam trap.

The aspect of internal and external sourcing forms the core parts of the recruiting process where it assists firms to detect internal talents or to outsource them. By knowing this the recruitment from orientation or job design will be distinguished.
Some examples are demonstration, apprenticeship and sink-or-swim. All these techniques put emphasis on learning in the moment and this is highly useful in a rapid work situation.
A Demonstration Method When Vanessa studies company duties through an online manual, she is engaging in a demonstration method—a self-guided, visual form of learning used in many corporate settings.
Bonuses, contest rewards, and profit-sharing are all examples of incentive pay. These motivate performance beyond base salary and are commonly used in sales and executive roles.
Benefits usually amount to 20-30 percent of the basic pay of an employee. This points out the fact that compensation is not limited by the wages only as it encompasses insurance, retirement, etc.
It is a performance evaluation mechanism that measures the performance of a worker by soliciting the opinion of peers, subordinates, clients, and the employee himself or herself- a standard and balanced structure of review in current performance management.
HRM concepts are not just for passing exams—they’re blueprints for managing people ethically and effectively. Whether you’re studying for an HR test or writing a research paper, you can get expert academic support from StudyCreek and high-quality writing services at DissertationHive. Don’t risk your grade—access professional help now.
SAMPLE QUESTION
Question 1. 1. What is the main difference between the equity and exchange philosophies of compensation
The equity philosophy is based on available budget; the exchange philosophy is based on profit margins.
The equity philosophy is based on fairness; the exchange philosophy is based on employee value.
The equity philosophy is based on profit margins; the exchange philosophy is based on available budget.
The equity philosophy is based on employee value; the exchange philosophy is based on fairness.
Question 2. 2. What is unique about staffing practices at the online shoe company Zappos? (Points : 1)
New hires are trained by employees of other successful shoe companies.
Employees are trained to do every job in the company.
Trainees are offered up to $2,000 to quit the company at any time.
The CEO personally trains every single employee.
Question 3. 3. Which of the following laws give workers the right to join a union without fear of discrimination or retribution? (Points : 1)
The Norris–LaGuardia Act of 1932
The Wagner Act of 1935
The Taft-Hartley Act of 1948
The Landrum-Griffin/Labor-Management Reporting and Disclosure Act of 1959
Question 4. 4. The Occupational Safety and Health Act (OSHA) requires employers to do all of the following EXCEPT (Points : 1)
provide protection from at-work hazards
notify supervisors of hazardous conditions
monitor employees’ health habits
enforce the use of safety equipment
Question 5. 5. Internal sourcing and external sourcing are part of the process of __________________. (Points : 1)
recruiting
employee orientation
employee selection
job design
Question 6. 6. Which of the following methods constitute on-the-job training methods? (Points : 1)
demonstration; apprenticeship; and sink-or-swim
simulation; film and classroom; and vestibule
demonstration; film and classroom; and sink-or-swim
sink-or-swim; vestibule; and apprenticeship
Question 7. 7. Vanessa starts her new job as a marketing strategist for Orion Food and Beverage today. As part of her orientation, she is told to study the position duties on her own, and she uses an online training manual to familiarize herself with company processes. What kind of employee training method is Vanessa most likely engaged in? (Points : 1)
film and classroom
simulation
vestibule
demonstration
Question 8. 8. Bonuses, contest prizes, and profit sharing are examples of which type of compensation? (Points : 1)
incentives
base pay
benefits
exchange
Question 9. 9. Benefit packages typically comprise about _______% of an employee’s base pay. (Points : 1)
5–10
10–15
15–20
20–30
Question 10. 10. Which of the following scenarios describes the 360-degree assessment technique? (Points : 1)
David’s performance is evaluated by his work over the last calendar year.
David’s performance is evaluated using a BARS scale.
David’s performance is evaluated based on the areas in which he has made the most progress.
David’s performance is evaluated by peers, subordinates, customers, and himself.
ANSWER
Title: HR In-depth: Answers and insights to concept mastery in strategic human resource management
Student Name:
Name of Course: Human Resource Management
Instructor: [Name of the instructor]
Date:
Introduction
Human resource management (HRM) is an ever-changing industry, which requires an in depth knowledge in terms of understanding compensation focus, staffing practices, employee regulations, articulation of trainings as well as evaluation of performances. When students are doing HR examinations or planning careers, it is important to be competent in major differences and principles.
This paper addresses 10 essential HR exam questions, offering accurate answers and supporting explanations grounded in academic and professional standards.
Proper Answer: The equity philosophy rests on equitability; the exchange philosophy rests on the value of the employees.
Philosophy of equity in compensation worries itself with fairness within the company- is the compensation fair according to the employees toward other persons within the company (Milkovich, Newman, & Gerhart, 2020). Conversely, the exchange philosophy considers the input that an individual brings to a company in terms of determining what the employee can get depending on the competitiveness of the company and the input of the employee.
Trainees are given up to 2000 to leave the company anytime.
Zappos has been famous with regard to its innovative HR practices especially the package provided to the trainees: a chance to leave with a financial gift. Such a policy, called as The Offer, aims at the cultural fit by letting remain a really interested employee (Hsieh, 2010). It is a unique process of engaging employees and retention.
Answer: The Wagner Act of 1935.
Wagner Act (sometimes referred to as the National Labor Relations Act) guarantees the rights of workers to organize in unions and indulge in collective bargaining activities, without fear of reprisals (Kaufman, 2019). This law transformed the relations between labor and management in the United States radically.
Proper Answer: Maintain an eye on health lifestyles of employees.
The Occupational Safety and Health Act (OSHA) establishes certain requirements, concerning a secure working environment, hazard reporting, and safety rule enforcement, to be adopted by employers (OSHA, 2021). The law, however, does not require the monitoring of personal health habits of the employees by the employers which may in itself violate privacy rights.
Correct Answer: Recruiting.
The recruitment process includes internal and external sourcing. Internal sourcing deals with the promotion or transfer of the already hired employees whereas, external sourcing deals with hiring the candidates not in the business (Dessler, 2020). The two techniques are important in workforce planning.
Correct Answer: Demonstration; apprenticeship; and sink-or-swim.
These methods are practical training strategies where employees learn through direct experience. Demonstrations provide visual learning, apprenticeships offer guided skill development, and sink-or-swim forces learning through immediate job performance (Noe et al., 2020).
Answer: Demonstration.
The situation of Vanessa utilizing an online training manual is within the sphere of demonstration training, which is a self-directed training method that gives employees an opportunity to learn about job requirements using visual aids or written procedures (Aguinis & Kraiger, 2009).
Right Answer: Rewards.
Examples of incentive compensation are bonuses, profiting-sharing, and rewards in a competition and their purpose is to encourage the actions towards high performance and to align the employees with the organizational objectives (Milkovich et al., 2020).
These are distinct from base pay or benefits.
Correct Answer: 20-30 per cent.
In general, the employee benefit packages of 20-30 percent of the base wage of an employee consist of health insurance, retirement plans, and paid leave (SHRM, 2022). This breakdown is necessary in assessing the total cost of compensation.
The right answer is that the performance of David is measured based on the assessment of peers, subordinates, customers and self-assessment.
360 degree assessment is a performance appraisal method that considers opinions of everyone and all the levels within the company and also those one the outside (London & Smither, 1995). It is an approach that creates a balanced assessment giving rise to growth and responsibility.
The following ten questions point out primary HR principles that every student will have to understand- compensation practices and the rules of the law, training approaches and performance measurement. The understanding of why we provide each question helps the students not only in relation to exams, but it also gives them the opportunity to solve real-life challenges, concerning HR. In case of study or professional help needed or custom services, websites such as StudyCreek, com and DissertationHive com are available and helpful with quality and competent services on advisory in human resource studies.
Aguinis, H. and Kraiger, K. (2009). Advantages of training and development to the individuals and teams, organizations, and the society. Annual Review of Psychology, 60, 451Schaffer 2009, 474. https://doi.org/10.1146/annurev.psych.60.110707.163505
Dessler, G. (2020). Human resource management (16 th ed.). Pearson.
Hsieh, T. (2010). Delivering happiness, a way to profits, passion and purpose. Business Plus.
Kaufman, B. E. (2019). The history of American labor law and of industrial relations. Industrial Relations Journal, no. 50 (1), 3-23.
London, M. and Smither, J. W. (1995). Does multi-source feedback alter the perception of the goal fulfillment, self-judgments and performance? Personnel Psychology, 48 (4): 803(839), 1995 doi:10.1111/j.1744-6570.1995.tb01782.x.
Milkovich, G. T., Newman, J. M., and Gerhart, B. ( 2020). Compensation (13 th ed.). McGraw-Hill Education.
Noe, R. A., Hollenbeck, J. R.,Gerhart, B., & Wright, P. M. (2020). Introduction to human resource management (8 th ed.). McGraw-Hill Education.
U.S. Department of Labor Occupational Safety and Health Administration (OSHA). (2021). Workers rights and protections.
Society for Human Resource Management (SHRM). (2022). Employee benefits: the core of the employee value proposition. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/default.aspx
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