PHR Business Management 2 — Questions and Answers
Question 1: Which HR alignment approach links workforce strategy directly to the organization's long-term business objectives?
- Strategic HR management (Correct answer)
- Transactional HR processing
- Administrative recordkeeping
- Reactive staffing
Correct answer: Strategic HR management
Strategic HR management aligns people practices with long-term business goals rather than just handling transactions.
Question 2: A company analyzes internal strengths and weaknesses alongside external opportunities and threats. What tool is this?
- SWOT analysis (Correct answer)
- PEST analysis
- Balanced scorecard
- Gap analysis
Correct answer: SWOT analysis
SWOT examines internal strengths/weaknesses and external opportunities/threats.
Question 3: Which organizational structure groups employees by function such as marketing, finance, and HR?
- Functional structure (Correct answer)
- Divisional structure
- Matrix structure
- Flat structure
Correct answer: Functional structure
A functional structure organizes employees by specialized departments or functions.
Question 4: What is the primary purpose of a business case in HR project proposals?
- Justify investment by showing costs and expected benefits (Correct answer)
- List all employee names
- Replace the annual budget
- Document disciplinary actions
Correct answer: Justify investment by showing costs and expected benefits
A business case justifies a project by weighing costs against expected benefits and ROI.
Question 5: Which metric measures the financial return generated relative to the cost of an HR initiative?
- Return on investment (ROI) (Correct answer)
- Turnover rate
- Span of control
- Headcount ratio
Correct answer: Return on investment (ROI)
ROI compares the gain from an initiative to its cost, expressed as a percentage.
Question 6: A code of conduct primarily serves to:
- Set expected standards of ethical behavior (Correct answer)
- Calculate payroll taxes
- Schedule employee shifts
- Track inventory levels
Correct answer: Set expected standards of ethical behavior
A code of conduct establishes the ethical standards and behavior expected of employees.
Question 7: Which leadership style involves making decisions unilaterally with little employee input?
- Autocratic (Correct answer)
- Democratic
- Laissez-faire
- Servant
Correct answer: Autocratic
Autocratic leaders make decisions on their own with minimal input from others.
PHR Business Management 2
Which HR alignment approach links workforce strategy directly to the organization's long-term business objectives?