People Management Interview Questions
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People Management Questions and Answers
1. Subsistence allowance is paid to employee when he/she is:
(A) Suspended pending enquiry
(B) Retrenched
(C) Dismissed
(D) Superannuated
2. TAT stands for:
(A) Training Analysis Test
(B) Thematic Appreciation Test
(C) Thematic Application Test
(D) Thematic Apperception Test
3. Appointment of welfare officer under Factories Act, 1948 is compulsory where ………………. employees are employed.
(A) 50
(B) 500
(C) 1000
(D) 100
4. The advantages of employing various methods of job analysis is:
(A) Cost
(B) Accuracy
(C) Complexity
(D) Participation by job incumbents and managers
5. Conflicts of interest among stockholders, bondholders and managers is known as:
(A) Stockholder problem
(B) Bondholder problem
(C) Managerial problem
(D) Agency problem
6. When one divides “Riskless cash flows” by “Risky cash flows”, the result is:
(A) Risk adjusted discount rate
(B) Certainty equivalent coefficient
(C) Coefficient of variation
(D) Sensitivity coefficient
7. 15% Rs. 200 face value debenture is currently selling for Rs. 220, the annual current yield would be …………….. .
(A) 15%
(B) 13.64%
(C) 14.63%
(D) 16%
8. CAPM is used to calculate …………….. .
(A) Cost of debt capital
(B) Cost of index capital
(C) Cost of equity capital
(D) Cost of preference capital
9. Restructuring which refers to the changes in ownership, business mix, assets mix and alliances with a view to enhance the shareholder’s value is ………………… .
(A) Business Restructuring
(B) Asset Restructuring
(C) Ownership Restructuring
(D) Corporate Restructuring
10. Which of the following statements reflect the “Marketing Concept” Philosophy?
(A) “You will not find a better deal anywhere else”
(B) “Our organization does not have a marketing department, we have a customer department”
(C) “We are in the business of making and selling superior products”
(D) “In case of choice between profits and customer needs, profits will always win out”
11. ‘Circle,’ ‘wedge’, ‘clover leaf’ in sales are:
(A) General shapes of sales territories
(B) Types of sales quota
(C) Awards given to sales people to motivate them
(D) Control techniques used in sales
12. Bundling has proliferated in the services sector primarily because of:
(i) High fixed to variable cost ratio
(ii) Low fixed to variable cost ratio
(iii) High level of interdependent demand
The answer is:
(A) (i) and (ii) are correct
(B) (i), (ii) and (iii) are correct
(C) (i) and (iii) are correct
(D) (ii) and (iii) are correct
13. When we are seeking opinion from experienced executive members for forecasting demand we are using ……………………… .
(A) Delphi techniques
(B) Time series analysis
(C) Extrapolation method
(D) Retail simulation
14. The total combined customer lifetime values of all company’s current and potential customers is known as:
(A) Customer value
(B) Customer equity
(C) Customer lifetime value
(D) Customer gross value
15. Moving from the aggregate plan to a master production schedule requires:
(A) Rough cut capacity planning
(B) Sub-optimization
(C) Disaggregation
(D) Strategy formulation
16. What type of control chart is used to monitor the number of defects per unit?
(A) P-chart
(B) R-chart
(C) C-chart
(D) X-bar chart
17. While solving LPP through simplex method, if an artificial variable remains in the solution with a positive value after the optimal solution has been obtained, the problem:
(A) is infeasible
(B) is optimal
(C) needs a new basis
(D) has more than one solution
18. A project has three paths:
A-B-C has a length of 25 days
A-D-C has a length of 15 days
A-E-C has a length of 20 days
Which of the following statements is correct?
(A) A-D-C is the critical path
(B) A-B-C has the most slack
(C) The project duration is 25 days
(D) The project duration is 20 days
19. Which of the following is a decision making criterion that is used for decision-making under risk?
(A) Expected monetary value criterion
(B) Hurwicz criterion (of realism)
(C) Optimistic (maximax) criterion
(D) Equally likely criterion
20. What is the probability value of having 4 heads in 10 tosses of a fair coin?
(A) 0.621
(B) 0.205
(C) 0.815
(D) 0.935
21. In cluster sampling, clusters are:
(A) Heterogeneous among themselves
(B) Homogeneous within themselves
(C) Heterogeneous within themselves and Homogeneous among themselves
(D) Homogeneous within themselves and Heterogeneous among themselves
22. Z-test is used as a hypothesis testing technique when:
(A) Sample size is small
(B) Standard deviation is unknown
(C) Sample size is large but standard deviation is unknown
(D) Both (A) and (B)
23. A network uses a star topology if:
(A) Computers are arranged in a closed loop
(B) All computers are connected to a central point
(C) All computers are attached to a single long cable
(D) All computers are attached to multiple hierarchical cables
24. Which of the following is an example of Transaction Processing System (TPS)?
(A) Business Forecasting System
(B) Railway Reservation System
(C) Office Automation System
(D) Executive Information System
25. In BCG matrix what is the label of the horizontal axis?
(A) Relative market share
(B) Business strength
(C) Industry growth rate
(D) Market growth rate
26. The strategy that involves concentrating on consumer or end use applications that major firms have neglected refers to ……………… .
(A) Vacant niche strategy
(B) Specialist strategy
(C) Content follow strategy
(D) Distinctive image strategy
27. The three hardware areas in the McKinsey’s 7S framework are:
(A) Staff, skills and style
(B) Strategy, structure and systems
(C) Staff, skills and systems
(D) Skills, strategy and shared values
28. Environmental and organisational appraisal are carried out in the stage of:
(A) Strategy evaluation
(B) Strategy formulation
(C) Strategy implementation
(D) Strategy control
29. The sequence of activities representing the strategy process is:
(A) Strategic analysis, strategy selection, strategy implementation strategic control
(B) Select strategy, generate options, analyse strategy, implement strategy
(C) Deliberate strategy, analyse, choose, implement
(D) Appraisal of strength and weakness, choice of strategy, implementation, feedback
30. An important pitfall encountered in the process of selecting a new venture is:
(A) Awareness of legal issues
(B) Real insight into the market
(C) Non-real insight into the market
(D) Adequate understanding of technical requirements
31. ………………….. is a mental image of a possible and desirable future state of an organization.
(A) Vision
(B) Traits
(C) Power
(D) Leadership
32. According to RBI, a small scale unit is considered sick, if it has incurred cash loss in the previous accounting year and is likely to continue to incur cash loss to the extent of …………… of its net worth.
(A) 100%
(B) 75%
(C) 60%
(D) 50%
33. In entrepreneurial training programmes Japanese industrialists lay emphasis on ………………… .
(A) Technological upgradation
(B) Formal training
(C) On the job training
(D) Informal training
34. A desire to affect the behaviour of other individuals and to control and manipulate the surroundings refers to:
(A) nAch
(B) nPow
(C) nAff
(D) nAct
35. Most companies begin the process of establishing organisational ethics programmes by developing:
(A) Ethics training programmes
(B) Ethics enforcement mechanisms
(C) Code of conduct
(D) Mandatory disclosure
36. OECD is:
(A) Organisation for Economic Cooperation and Development
(B) Organised Economic and Corporate Development
(C) Organisation for Ecological Cooperation and Development
(D) Organised Ethical and Corporate Discussion
37. What occurs when an employee exposes an employer’s wrong doing to outsiders?
(A) Fraud
(B) Whistle blowing
(C) Plagiarism
(D) Mayhem
38. ‘Desirable corporate governance: A code’ was released in:
(A) March 1982
(B) April 1995
(C) March 1980
(D) April 1998
39. The word ‘Triple Bottom line’ involves:
(A) Revenue, legal, ethical reporting
(B) Financial, Social, Environmental Corporate reporting
(C) Environmental, Moral, Profit reporting
(D) Financial, Social, Ethical Corporate reporting
40. What measures can a government take to reduce unemployment?
(A) Monetary measures
(B) Increase in imports
(C) Fiscal measures
(D) Decrease government spending
41. Which of the following answer choices is the best definition of attitudes?
(A) Attitudes are the yardstick by which one measures one’s actions
(B) Attitudes are the emotional part of an evaluation of some person, object or event
(C) Attitudes are evaluative statements of what one believes about something or someone
(D) Attitudes are a measure of how the worth of an object, person or event is evaluated
42. Human Resource Department is:
(A) Line department
(B) Authority department
(C) Service department
(D) Functional department
43. Which of the following is true for IRR method of capital budgeting?
(I) IRR is that rate where NPV equals zero
(II) IRR is that rate where PV of cash inflows equal PV of cash outflows
(III) IRR considers time value of money
(IV) IRR and ARR give similar results
(A) (I), (II) and (III)
(B) (I), (II) and (IV)
(C) (I), (III) and (IV)
(D) (II), (III) and (IV)
44. Zapping is the technique ………………. .
(A) to change the TV channels to avoid seeing commercials
(B) to view only select advertisements on TV
(C) to influence audience through a specific TV commercial screened frequently
(D) to have intentional display of a particular advertisement at regular intervals
45. The difference between the actual demand for a period and the demand forecast for that period is called:
(A) Mean square error
(B) Bias
(C) Weighted Arithmetic Mean
(D) Forecast error
46. What condition is required before the central limit theorem justifies approximating the sampling distribution of the mean with a normal distribution?
(A) n < 30
(B) n > 30
(C) nq > 8
(D) 1 > n < N
47. Which of the following statements about organization’s mission is false?
(A) They reflect a company’s purpose
(B) They indicate what a company intends to contribute to society
(C) They define a company’s reason for existence
(D) They are formulated after strategies are known
48. Y.C. Deveshwar, M.S. Banga, K.V. Kamath are examples of:
(A) Entrepreneurs
(B) Business tycoons
(C) Intrapreneurs
(D) Social entrepreneurs
49. Which of the following arguments are against social responsibility of business?
(A) Businesses can do better by creating better public image
(B) Businesses must respond to social demands
(C) Businesses should set-up socially desirable standards of living
(D) Businesses should manage only in the interest of shareholders
50. BARS stands for:
(A) Best Administered Rating System
(B) Behaviourally Administered Ranking Strategy
(C) Best Attitudinal Review System
(D) Behaviourally Anchored Rating Scale
