CAIIB · ABM · Chapter 1

Fundamentals of Human Resource Management

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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Q

What is the primary objective of Human Resource Management in an organisation?

A

The primary objective of HRM is to attract, develop, motivate and retain employees so that the organisation can achieve its goals effectively.

Q

What is the formula for calculating the overall attrition rate in an organisation?

A

(Total separations / Total employees) × 100

Q

How does HRM differ from traditional Personnel Management?

A

HRM is a broader, strategic function focused on aligning people with organisational goals, whereas traditional Personnel Management was largely administrative and reactive in nature.

Q

A bank with 5,000 employees recorded 250 separations in a year. What is the overall attrition rate?

A

5.0%

Q

What does the term 'human resource' signify in the context of an organisation?

A

Human resource refers to the collective knowledge, skills, abilities, and potential of the people employed by an organisation to achieve its objectives.

Q

If 120 out of 5,000 employees resign in a year, what is the resignation-only attrition rate?

A

2.4%

Q

Which key function of HRM is concerned with identifying and filling vacancies in an organisation?

A

Recruitment and Selection is the HRM function concerned with identifying job vacancies, attracting suitable candidates, and selecting the most appropriate person for the role.

Q

How does Strategic HRM (SHRM) treat employees differently from traditional personnel management?

A

SHRM treats employees as strategic assets aligned with long-term business goals

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