C202 Managing Human Capital

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Your Total Mastery Bundle: Ready C202 Managing Human Capital : Practice Questions & Answers

Free C202 Managing Human Capital Questions

1.

What is the primary purpose of calculating Return on Investment (ROI) in the context of human capital management?

  • To evaluate the effectiveness of employee training programs

  • To assess the financial viability of strategic staffing initiatives

  • To determine the alignment of organizational values with employee performance

  • To measure employee engagement levels across different departments

Explanation

Explanation:

Calculating Return on Investment (ROI) in human capital management is primarily done to assess the financial viability and effectiveness of strategic staffing initiatives. ROI helps organizations determine whether investments in recruitment, training, and development generate measurable benefits relative to their costs. By quantifying the financial impact of human capital initiatives, organizations can make informed decisions about resource allocation and optimize workforce performance.

Correct Answer:

To assess the financial viability of strategic staffing initiatives


2.

With this risk strategy, an organization can shift the consequence of a risk and responsibility for its management to a third party that is internal or external to the organization (outsourcing), or it can move it to another department within the same company.

  • Risk transference

  • Risk mitigation

  • Risk acceptance

  • Risk avoidance

Explanation

Explanation:

Risk transference is the strategy where an organization shifts the responsibility and potential consequences of a risk to another party. This can involve outsourcing the risk to external vendors or assigning it to another internal department capable of managing it. By transferring risk, the organization reduces its direct exposure while ensuring that the risk is still managed effectively.

Correct Answer:

Risk transference


3.

What is the main purpose of human capital management's personnel control?

  • To manage employee recruitment processes

  • To facilitate the creation of reports based on HRM data

  • To oversee employee performance evaluations

  • To develop training programs for employee development

Explanation

Explanation:

Personnel Controlling within Human Capital Management primarily focuses on analyzing HR data and generating reports to support strategic and operational decision-making. It provides insights into workforce costs, resource allocation, productivity, and other key HR metrics. This function helps management evaluate the effectiveness of HR processes and make informed decisions, rather than directly managing recruitment, performance, or training.

Correct Answer:

To facilitate the creation of reports based on HRM data


4.

Performance Management includes all of the following EXCEPT....

  • direction-sharing

  • goal alignment

  • focus on identifying problems

  • ongoing performance monitoring and feedback

Explanation

Explanation:

Performance Management is a continuous process that involves setting goals, aligning them with organizational objectives, providing feedback, and monitoring employee performance to improve productivity and development. While it may identify areas for improvement, the primary focus is not on problem identification but on enhancing performance and development. Therefore, focusing solely on identifying problems is not consistent with the proactive and developmental nature of performance management.

Correct Answer:

focus on identifying problems


5.

The employee self-service function allows employees to do what?

  • Handle management functions

  • Change their personal data

  • Configure the software

  • Run management reports

Explanation

Explanation:

The employee self-service (ESS) function in SAP HCM enables employees to manage their own HR-related information, including updating personal data such as addresses, contact details, and emergency contacts. ESS empowers employees to make changes directly in the system without relying on HR personnel for routine updates, improving efficiency and data accuracy. It is not designed for management functions, software configuration, or generating management reports.

Correct Answer:

Change their personal data


6.

Talent management includes the following elements:

  • Talent planning Resourcing

  • Talent development

  • Talent pool

  • All of the above

Explanation

Explanation:

Talent management is a comprehensive approach to attracting, developing, retaining, and utilizing employees effectively. It encompasses multiple elements: talent planning and resourcing to ensure the organization has the right people in the right roles; talent development to enhance skills, competencies, and career growth; and talent pools to identify and maintain a pipeline of qualified candidates for current and future organizational needs. Together, these elements ensure a strategic and integrated approach to managing human capital.

Correct Answer:

All of the above


7.

The formal way a company divides labor, groups employees, and assigns responsibilities is known as what?

  • organizational structure

  • subsidiaries

  • conglomerates

  • business structure

Explanation

Explanation:

The formal way a company divides labor, groups employees, and assigns responsibilities is referred to as the organizational structure. It defines how roles, responsibilities, and authority are arranged within the company, establishing reporting relationships and workflow processes. Organizational structure ensures clarity in operations, coordination of tasks, and alignment with business objectives.

Correct Answer:

organizational structure


8.

What is the primary purpose of using Ad-hoc Query in Human Capital Management?

  • To automate the recruitment process for new hires

  • To analyze and extract specific personnel data for reporting purposes

  • To manage employee performance evaluations

  • To create organizational structures within the company

Explanation

Explanation:

Ad-hoc Query in Human Capital Management (HCM) is a tool used to analyze and extract specific personnel data from the system for reporting purposes. It allows HR professionals and managers to generate customized reports quickly without needing pre-defined queries, supporting data-driven decision-making. This function focuses on retrieving and analyzing HR data rather than automating processes or managing performance directly.

Correct Answer:

To analyze and extract specific personnel data for reporting purposes


9.

What is the primary purpose of performance appraisal in human resource management?

  • To evaluate and enhance employee performance

  • To prepare for workforce reduction

  • To manage payroll expenses

  • To discipline employees

Explanation

Explanation:

The primary purpose of performance appraisal in human resource management is to evaluate and enhance employee performance. Appraisals provide structured feedback, identify strengths and areas for improvement, and inform decisions regarding promotions, rewards, and development plans. This process is essential for aligning employee performance with organizational goals and supporting career growth.

Correct Answer:

To evaluate and enhance employee performance


10.

The human capital management module of an ERP such as SAP would include all of the following components except:

  • Talent management

  • Workforce process management

  • Workforce development

  • Workforce termination management

Explanation

Explanation:

The HCM module of an ERP like SAP typically includes components such as talent management (managing recruitment, training, and career development), workforce process management (handling HR processes and workflows), and workforce development (enhancing employee skills and capabilities). Workforce termination management is not a standard HCM component; while HR systems handle terminations administratively, it is not considered a core functional component of HCM in the way talent management or workforce development is.

Correct Answer:

Workforce termination management


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