Chapter 16: HRM and Information Technology (CAIIB – Paper 1)
1. What is the primary role of Information Technology in Human Resource Management?
A. To replace human employees entirely
B. To manage only payroll functions
C. To streamline HR processes, improve decision-making, and manage employee data efficiently
D. To focus solely on recruitment advertising
IT in HRM helps automate processes like recruitment, training, payroll, and performance appraisal, making HR decisions faster and more accurate.
2. Which of the following is a key feature of an HR Information System (HRIS)?
A. Centralized employee database for storing personal, professional, and performance data
B. Only managing employee attendance
C. Replacing managers in decision-making
D. Handling only payroll and benefits
HRIS is designed to store, retrieve, and analyze comprehensive employee information, aiding in better HR planning and management.
3. Which characteristic is commonly associated with workplace conflict?
A. Always leads to termination of employees
B. Only occurs in large organizations
C. Exists only between managers and subordinates
D. It arises from differences in goals, values, or perceptions and can be both positive and negative
Conflict in HRM is inevitable due to differing interests or perceptions. Constructive conflict can lead to innovation, while destructive conflict may harm productivity.
4. How does IT help in conflict management within HRM?
A. By eliminating all conflicts automatically
B. By tracking grievances, analyzing patterns, and providing data-driven solutions
C. By replacing managers in handling disputes
D. By outsourcing conflict resolution entirely
IT systems help HR departments monitor employee grievances, identify recurring issues, and provide analytical insights to resolve conflicts effectively.
5. What is a major benefit of HR database management using IT?
A. Faster retrieval of employee data, efficient reporting, and improved decision-making
B. Complete elimination of HR staff
C. Ensuring conflicts never arise
D. Only managing employee cafeteria services
An IT-based HR database allows managers to quickly access employee information, generate reports, and make informed HR decisions efficiently.
6. What is the main difference between HRIS and HRMS?
A. HRIS manages payroll, HRMS does not
B. HRMS is used only for large organizations, HRIS for small ones
C. HRIS focuses on storing and retrieving employee information, while HRMS integrates HR processes including payroll, recruitment, and performance management
D. HRMS replaces HR managers, HRIS does not
HRIS is mainly an information repository, whereas HRMS is a comprehensive system combining multiple HR functions for automation and better decision-making.
7. Which feature is common in both HRIS and HRMS?
A. Both replace HR managers completely
B. Both store and manage employee data efficiently for reporting and analysis
C. Both are limited to payroll management only
D. Both are only used for recruitment campaigns
Both HRIS and HRMS maintain organized employee data, making it easier to generate reports, analyze trends, and support HR decision-making.
8. How does HRMS improve efficiency in HR processes?
A. By reducing employee salaries
B. By eliminating the need for HR staff
C. By outsourcing HR completely
D. By automating tasks like payroll, leave management, recruitment, and performance appraisal
HRMS integrates multiple HR functions, reducing manual effort, minimizing errors, and ensuring consistent HR practices across the organization.
9. Which of the following is a benefit of using HRIS in HR decision-making?
A. Quick access to accurate employee data for strategic HR planning
B. Guaranteeing no employee conflicts
C. Eliminating the need for managers
D. Reducing IT costs to zero
HRIS provides timely and accurate employee data which helps managers make informed decisions about promotions, training, and workforce planning.
10. Which HRMS functionality helps in monitoring employee performance?
A. Payroll processing module
B. Performance appraisal and review module
C. Leave tracking module
D. Recruitment advertisement module
HRMS includes a performance management module that tracks employee goals, appraisals, and feedback to improve productivity and career development.
11. What is e-HRM?
A. Outsourcing all HR functions to external consultants
B. Manual record-keeping of employee data
C. The use of web-based technologies to support HR processes and deliver HR services electronically
D. Only managing payroll and leave applications online
e-HRM leverages internet and software technologies to streamline HR processes such as recruitment, training, payroll, and performance management electronically.
12. Which is a primary benefit of implementing e-HRM in organizations?
A. Eliminates the need for HR staff entirely
B. Improves accessibility, reduces administrative costs, and enhances HR decision-making
C. Guarantees conflict-free workplace
D. Outsources recruitment to external agencies only
e-HRM improves HR efficiency by automating routine tasks, providing online access to HR services, and enabling data-driven decision-making.
13. What is the purpose of HR Research?
A. To collect, analyze, and interpret HR data to improve decision-making and HR practices
B. To replace HR managers in organizations
C. To automate payroll calculations only
D. To handle only recruitment advertisements
HR research involves systematic study of HR policies, practices, and employee behavior to provide insights for improving HR strategies and organizational performance.
14. Which technique is commonly used in HR Research?
A. Only payroll analysis
B. Outsourcing HR functions
C. Only training session feedback
D. Surveys, interviews, observations, and HR analytics
HR research employs qualitative and quantitative methods such as surveys, interviews, observations, and analytics to collect and analyze employee-related data.
15. How does e-HRM support HR Research?
A. By eliminating the need for HR policies
B. By providing digital access to HR data, facilitating analysis, and enabling data-driven insights
C. By handling only payroll and attendance
D. By outsourcing recruitment to external platforms
e-HRM systems maintain digital records of employee data which HR researchers can analyze to identify trends, forecast HR needs, and improve decision-making.
16. What is the primary purpose of Knowledge Management (KM) in HRM?
A. To replace all employees with AI systems
B. To manage payroll and leave records only
C. To capture, store, and share organizational knowledge for better decision-making and performance
D. To focus only on recruitment advertising
Knowledge Management in HRM ensures that valuable information and expertise are documented, shared, and utilized to improve HR decisions and organizational performance.
17. Which of the following is a key function of HR Knowledge Management systems?
A. Automating only payroll calculations
B. Capturing employee skills, training records, best practices, and expertise for easy retrieval
C. Eliminating HR staff entirely
D. Outsourcing recruitment to external agencies only
HR Knowledge Management systems store employee knowledge, skills, and organizational best practices to support training, development, and informed HR decisions.
18. How does Knowledge Management improve HR decision-making?
A. By eliminating conflicts in the workplace
B. By managing only attendance records
C. By automating recruitment ads
D. By providing easy access to critical HR knowledge, reducing redundancy, and supporting informed decisions
KM allows HR managers to access stored knowledge quickly, avoid repeating past mistakes, and make strategic decisions efficiently.
19. Which technology is often used to support Knowledge Management in HR?
A. Cloud-based HR portals, intranets, and HR analytics tools
B. Only paper-based filing systems
C. Manual attendance registers
D. Payroll calculators only
Knowledge Management uses digital platforms such as cloud portals and intranets to store, share, and analyze HR knowledge efficiently.
20. Which of the following is a benefit of HR Knowledge Management?
A. Complete elimination of HR staff
B. Enhanced learning, reduced redundancy, and improved decision-making
C. Ensuring employees never disagree
D. Only automating payroll calculations
By systematically capturing and sharing knowledge, HR departments can train employees effectively, avoid repeating mistakes, and make strategic HR decisions.
21. How does technology enhance training in HRM?
A. By replacing trainers completely
B. By focusing only on payroll and attendance
C. By providing e-learning platforms, virtual classrooms, simulations, and interactive modules for effective skill development
D. By outsourcing all training to external agencies
Technology allows organizations to deliver training anytime, anywhere, using digital tools such as e-learning portals, webinars, and simulations, improving learning outcomes.
22. Which of the following is a key advantage of technology-enabled training?
A. Eliminates HR managers
B. Consistent delivery, cost efficiency, and scalability across the organization
C. Guarantees conflict-free workplaces
D. Reduces employee engagement
Digital training platforms ensure consistent learning content, allow multiple employees to be trained simultaneously, and reduce logistical costs compared to traditional classroom sessions.
23. What is HR Analytics?
A. The systematic collection and analysis of HR data to improve workforce decisions and performance
B. Only tracking payroll transactions
C. Eliminating HR staff from organizations
D. Only maintaining attendance records
HR Analytics uses data to analyze workforce trends, predict outcomes, and make informed HR decisions related to recruitment, retention, performance, and employee engagement.
24. Which of the following is an application of HR Analytics?
A. Automating only payroll
B. Replacing managers entirely
C. Managing leave applications only
D. Predicting employee turnover, measuring training effectiveness, and optimizing workforce planning
HR Analytics leverages workforce data to forecast turnover, evaluate HR initiatives, and support strategic planning for better organizational outcomes.
25. How does technology support HR Analytics?
A. By eliminating the need for HR policies
B. By collecting, storing, and analyzing HR data through dashboards, reports, and predictive tools
C. By only managing payroll calculations
D. By handling recruitment advertisements only
Technology platforms in HR Analytics allow HR managers to track employee metrics, generate visual reports, and apply predictive analytics for data-driven decision-making.
