Chapter 11: Development of Human Resources (CAIIB – Paper 1)
1. Which of the following is the correct definition of Human Resource Development (HRD)?
A. Managing payroll and administrative tasks
B. Recruiting employees for organizational growth
C. Developing skills, knowledge, and abilities of employees to enhance performance
D. Monitoring employee attendance
HRD focuses on improving the skills, knowledge, and capabilities of employees to achieve both individual and organizational goals.
2. Which of the following is NOT considered a subsystem of HRD?
A. Training and Development
B. Financial Accounting
C. Career Planning
D. Performance Appraisal
Financial Accounting is not an HRD subsystem; HRD subsystems include training, career planning, performance appraisal, and development programs.
3. The primary objective of HRD is to:
A. Enhance employee competencies and organizational effectiveness
B. Reduce organizational expenses
C. Ensure legal compliance only
D. Focus solely on recruitment processes
HRD aims to enhance the knowledge, skills, and abilities of employees, improving both individual performance and overall organizational effectiveness.
4. Which HRD subsystem focuses on systematically improving employees' knowledge and skills?
A. Career Planning
B. Performance Appraisal
C. Succession Planning
D. Training and Development
Training and Development is the HRD subsystem responsible for enhancing employees' knowledge, skills, and abilities systematically.
5. Performance appraisal in HRD primarily helps in:
A. Calculating payroll accurately
B. Assessing employee performance and identifying development needs
C. Hiring new employees
D. Maintaining employee attendance records
Performance appraisal evaluates employees' performance, providing feedback and identifying areas for training and development.
6. What is the primary role of Learning and Development (L&D) in an organization?
A. Managing employee payroll and benefits
B. Supervising day-to-day administrative tasks
C. Enhancing employees’ skills, knowledge, and competencies to meet organizational goals
D. Handling legal compliance issues
L&D focuses on developing employees’ capabilities, improving performance, and aligning workforce skills with organizational objectives.
7. Which of the following is a direct impact of effective Learning and Development programs?
A. Reduction in office space requirements
B. Improved employee performance and productivity
C. Increased taxation liabilities
D. Streamlined payroll processing
Effective L&D programs enhance employee knowledge and skills, leading to higher productivity, better performance, and organizational growth.
8. Which method is commonly used in Learning and Development to improve employee competencies?
A. Payroll audits
B. Legal compliance checks
C. Office layout redesign
D. Training programs, workshops, and e-learning sessions
L&D uses structured training, workshops, mentoring, and e-learning to enhance employees’ skills and knowledge.
9. The impact of continuous learning on employees includes all EXCEPT:
A. Guaranteed promotion regardless of performance
B. Increased job satisfaction and engagement
C. Enhanced adaptability to organizational changes
D. Improved decision-making and problem-solving skills
Continuous learning improves skills, engagement, adaptability, and decision-making, but it does not guarantee promotions automatically.
10. Which statement best describes the strategic role of Learning and Development in HRD?
A. L&D is only concerned with employee leisure activities
B. L&D aligns workforce capabilities with organizational strategy to drive growth
C. L&D focuses solely on compliance training
D. L&D ensures cost-cutting in all HR functions
Strategically, L&D ensures employees’ skills and knowledge support the organization’s goals and long-term growth objectives.
11. What is the primary goal of attitude development in employees?
A. To improve technical skills only
B. To ensure employees follow company rules strictly
C. To foster positive work behavior, motivation, and interpersonal relations
D. To monitor employee attendance
Attitude development aims to build positive work behavior, increase motivation, and improve relationships among employees, leading to better organizational performance.
12. Which of the following methods is commonly used for attitude development in employees?
A. Payroll management
B. Workshops, counseling, and team-building activities
C. Office layout redesign
D. Legal compliance checks
Attitude development is promoted through workshops, counseling sessions, mentoring, and team-building activities that shape positive employee behavior.
13. Career Path Planning in HRD primarily helps employees to:
A. Understand growth opportunities and plan their career progression within the organization
B. Focus only on their current job responsibilities
C. Avoid taking part in training programs
D. Neglect performance appraisal feedback
Career Path Planning provides a structured approach for employees to identify growth opportunities and plan future roles within the organization.
14. Which HRD tool is directly linked to career path planning?
A. Payroll auditing
B. Legal compliance
C. Office administration
D. Succession planning and mentoring
Succession planning and mentoring help employees understand potential career paths and prepare for future roles within the organization.
15. The impact of effective career path planning on an organization includes:
A. Increased absenteeism
B. Higher employee motivation, retention, and alignment with organizational goals
C. Reduced employee skill levels
D. Decreased teamwork and collaboration
Effective career path planning motivates employees, improves retention, and ensures that employee growth is aligned with the organization’s strategic objectives.
16. Self-development in HRD primarily focuses on:
A. Completing routine administrative tasks efficiently
B. Following only the instructions of supervisors
C. Enhancing one’s own skills, knowledge, and competencies for personal and professional growth
D. Avoiding participation in organizational training programs
Self-development encourages employees to take initiative in improving their skills and knowledge, fostering continuous learning and career growth.
17. Which of the following is a key method to promote self-development among employees?
A. Only performance appraisals
B. Self-learning, mentoring, workshops, and online courses
C. Assigning repetitive tasks
D. Monitoring attendance strictly
Self-development can be encouraged through self-learning, mentoring programs, workshops, and online courses, allowing employees to upgrade their skills continuously.
18. Talent Management in HRD primarily aims to:
A. Attract, develop, retain, and deploy skilled employees effectively
B. Reduce the number of employees in the organization
C. Focus solely on administrative compliance
D. Monitor office attendance and punctuality
Talent management ensures that the organization attracts, develops, retains, and utilizes the right people to achieve strategic objectives.
19. Which HRD practice is closely linked with identifying high-potential employees for key roles?
A. Payroll processing
B. Legal compliance
C. Office administration
D. Succession planning and talent review
Succession planning and talent review processes help identify high-potential employees and prepare them for future key positions in the organization.
20. Effective talent management contributes to an organization by:
A. Increasing paperwork and compliance tasks
B. Enhancing productivity, engagement, and retention of skilled employees
C. Reducing learning opportunities for employees
D. Focusing solely on hierarchical promotions
Effective talent management ensures that employees are engaged, productive, and retained, supporting organizational performance and growth.
21. What is the main purpose of succession planning in HRD?
A. To monitor daily employee attendance
B. To handle payroll and benefits efficiently
C. To identify and prepare employees for future key positions in the organization
D. To reduce the number of employees in the organization
Succession planning ensures the organization has a ready pool of capable employees to fill critical roles when current leaders retire, resign, or are promoted.
22. Which of the following is a key step in effective succession planning?
A. Focusing only on current role responsibilities
B. Identifying high-potential employees and providing them with training and mentoring
C. Reducing workforce to save costs
D. Only updating payroll records
Effective succession planning involves identifying high-potential employees and equipping them with the skills, knowledge, and experience required for future leadership roles.
23. Which HRD practice is closely linked to succession planning?
A. Payroll processing
B. Office administration
C. Legal compliance
D. Talent review and career path planning
Succession planning is closely linked with talent review and career path planning to ensure high-potential employees are ready for key positions.
24. The impact of succession planning on an organization includes:
A. Increased employee turnover and dissatisfaction
B. Continuity in leadership and reduced disruption in operations
C. Reduced productivity of employees
D. Focus solely on administrative tasks
Succession planning ensures that the organization maintains leadership continuity, minimizes disruption, and retains critical talent for future growth.
25. Which of the following is a major benefit of succession planning for employees?
A. Guaranteed promotions regardless of performance
B. Increased workload without skill development
C. Clear understanding of career growth opportunities and preparation for future roles
D. Avoiding participation in training programs
Employees benefit from succession planning by understanding potential career paths, preparing for future roles, and developing the skills required for advancement.
