Business 1.4

What is the main purpose of human resource management?

• To increase market share

• To manage product quality

• To manage employees effectively

• To oversee financial operations

Answer explanation

The main purpose of human resource management is to manage employees effectively. This involves recruiting, training, and maintaining a productive workforce, which is essential for organizational success.

Staff are considered an asset to a business because they:

• Increase productivity

• Require no training

• Decrease labor costs

• Work without benefits

Answer explanation

Staff are considered an asset because they increase productivity. Well-trained employees contribute to higher efficiency and output, which is essential for a business's success.

Which of the following is a staffing cost?

• Recruiting and training employees

• Developing new products

• Implementing new software

• Hiring consultants

Answer explanation

Recruiting and training employees are direct costs associated with staffing, making it a staffing cost. The other options relate to product development or consulting, not directly to staffing.

The introduction of a national minimum wage will have a direct impact on:

• Salary-based employees

• Wage-based employees

• Business owners

• Customers

Answer explanation

The introduction of a national minimum wage directly affects wage-based employees, as it sets a legal minimum for their pay, ensuring they receive at least that amount for their work.

Flexible working arrangements can lead to:

• Higher labor costs

• Increased employee productivity

• Increased resistance to change

• Greater control over employees

Answer explanation

Flexible working arrangements often enhance employee satisfaction and work-life balance, leading to increased employee productivity. This is a key benefit, as happier employees tend to perform better.

Multi-skilling refers to:

• Specializing in one area

• Training employees to perform multiple roles

• Reducing employee tasks

• Hiring more managers

Answer explanation

Multi-skilling involves training employees to perform multiple roles, enhancing flexibility and efficiency in the workplace. This is distinct from specializing in one area or reducing tasks.

Outsourcing can lead to:

• Lower labor costs

• Increased internal skills

• Higher control over quality

• Less ethical concerns

Answer explanation

Outsourcing often reduces labor costs as companies can hire workers in regions with lower wages. This is a primary motivation for outsourcing, while the other options do not typically result from this practice.

Which is an example of part-time work?

• Working from home every day

• Working two days a week

• Being hired for a full-time role

• Working during holidays only

Answer explanation

Working two days a week is an example of part-time work, as it involves fewer hours than a full-time schedule. The other options either imply full-time work or are not consistent with the definition of part-time.

Temporary working refers to:

• Permanent employees working remotely

• Employees working until the business needs them no longer

• Employees working on fixed contracts

• Seasonal employees hired permanently

Answer explanation

Temporary working refers to employees who are hired to meet immediate business needs and may be let go once those needs are fulfilled, making 'Employees working until the business needs them no longer' the correct choice.

Staff can be an asset because they:

• Work for free

• Enhance customer service

• Always work overtime

• Have no training needs

Answer explanation

Staff enhance customer service by providing support, addressing customer needs, and creating a positive experience, making them a valuable asset to any organization.