UNIT - III

Hrd system design principles, Competence management and

Leadership development, Performance management,
Intellectual capital development

MCQ QUESTION

1. What is the primary focus of HRD system design?

(a) Cost reduction
(b) Employee engagement
(c) Product development
(d) Marketing strategy

2. Which of the following is a key consideration in designing an effective HRD

system?
(a) Random decision-making
(b) Flexibility
(c) Lack of training programs
(d) Limited communication

3. What is the purpose of a needs assessment in HRD system design?

(a) To identify areas of cost-cutting
(b) To determine employee engagement levels
(c) To identify gaps in skills and knowledge
(d) To analyze marketing strategies

4. How does technology impact HRD system design?

(a) It has no impact
(b) It makes training obsolete
(c) It enhances training delivery and accessibility
 (d) It decreases employee engagement

5. What is the significance of aligning HRD goals with organizational objectives?

(a) It creates confusion
(b) It enhances employee autonomy
(c) It ensures HRD contributes to organizational success
(d) It limits adaptability

6. In HRD system design, what role does feedback play?

(a) It is unnecessary
(b) It hinders progress
(c) It provides insights for improvement
(d) It promotes secrecy

7. Which factor is crucial in promoting a culture of continuous learning in HRD?

(a) Resistance to change
(b) Complacency
(c) Supportive leadership
(d) Strict policies

8. What does the acronym "ROI" stand for in the context of HRD system design?
(a) Return on Investment
(b) Results of Inefficiency
(c) Role of Inclusion
(d) Revenue from Operations

9. What is the purpose of succession planning in HRD?

(a) To limit career growth
(b) To ensure a smooth transition of leadership
(c) To discourage employee development
(d) To reduce employee engagement
10. How can a learning management system (LMS) contribute to HRD system design?
(a) By hindering access to training materials
(b) By centralizing and managing training resources
(c) By discouraging collaborative learning
(d) By promoting isolation

11. What role does diversity and inclusion play in HRD system design?
(a) It creates division
(b) It limits innovation
(c) It enhances organizational performance
(d) It promotes discrimination

12. What is the significance of flexibility in HRD programs?

(a) It hinders adaptability
(b) It promotes a rigid structure
(c) It accommodates diverse learning needs
(d) It limits employee creativity

13. Which of the following is an external factor influencing HRD system design?
(a) Organizational culture
(b) Market trends
(c) Employee skills
(d) Internal policies

14. What does the term "blended learning" refer to in HRD?

(a) Learning in isolation
(b) A mix of different learning methods
(c) Strict classroom training
(d) Ignoring technology in training
15. How does HRD system design contribute to employee retention?
(a) By discouraging professional development
(b) By limiting communication
(c) By providing opportunities for growth and advancement
(d) By avoiding feedback

16. What is the role of leadership in promoting a learning culture in HRD?

(a) To discourage learning initiatives
(b) To limit communication
(c) To lead by example and encourage continuous learning
(d) To avoid involvement in HRD programs

17. Why is it essential to evaluate the effectiveness of HRD programs?

(a) It is unnecessary
(b) To ignore employee feedback
(c) To identify areas for improvement and ensure alignment with goals
(d) To discourage accountability

18. What is the purpose of a competency framework in HRD system design?

(a) To limit skill development
(b) To identify gaps in skills and knowledge
(c) To discourage diversity
(d) To eliminate feedback

19. How does HRD system design contribute to organizational agility?

(a) By promoting a rigid structure
(b) By limiting communication channels
(c) By fostering adaptability and continuous learning
(d) By avoiding technology integration
20. In HRD, what does the term "onboarding" refer to?
(a) Employee dismissal process
(b) Initial training and orientation for new employees
(c) Ignoring employee development
(d) Restricting access to learning resource

21. What is the primary goal of competence management?

(a) Employee dismissal
(b) Skill enhancement
(c) Office politics
(d) Workload reduction

22. What is a key benefit of effective competence management?

(a) Increased employee turnover
(b) Improved organizational performance
(c) Reduced communication
(d) Stagnant skill sets

23. What is the purpose of a competency assessment?

(a) To discourage skill development
(b) To identify gaps in skills and knowledge
(c) To limit collaboration
(d) To promote isolation

24. How can organizations address competency gaps?

(a) Ignore them
(b) Develop targeted training programs
(c) Discourage feedback
(d) Limit professional development opportunities
25. What role does feedback play in competence management?
(a) It is unnecessary
(b) It hinders progress
(c) It provides insights for improvement
(d) It promotes secrecy

26. What is the significance of aligning individual competencies with organizational

goals?
(a) It creates confusion
(b) It enhances employee autonomy
(c) It ensures contributions to organizational success
(d) It limits adaptability

27. Which of the following is a key component of a competency framework?

(a) Ignoring skills
(b) Continuous learning
(c) Lack of feedback
(d) Rigid job roles

28. How does technology impact competence management?

(a) It has no impact
(b) It makes training obsolete
(c) It enhances training delivery and accessibility
(d) It decreases employee engagement

29. What is the role of leadership in competence management?

(a) To discourage skill development
(b) To limit communication
(c) To support and encourage skill development
(d) To avoid involvement in competence programs
30. What is the purpose of a skills inventory in competence management?
(a) To limit collaboration
(b) To identify and track employee skills
(c) To discourage professional development
(d) To promote isolation

31. How can organizations promote a culture of continuous learning in competence

management?
(a) Resist change
(b) Discourage collaboration
(c) Supportive leadership and learning opportunities
(d) Rigid job roles

32. What is the significance of cross-training in competence management?

(a) It limits skill diversity
(b) It promotes isolation
(c) It enhances adaptability and flexibility
(d) It hinders communication

33. How does diversity and inclusion contribute to competence management?

(a) It creates division
(b) It limits innovation
(c) It enhances organizational performance
(d) It promotes discrimination

34. What role does employee involvement play in competence management?

(a) It is unnecessary
(b) It hinders progress
(c) It fosters ownership and commitment
(d) It promotes isolation
35. Why is it important for organizations to link competence management with
performance management?
(a) To limit employee development
(b) To create confusion
(c) To ensure employees are stagnant
(d) To align individual contributions with organizational goals

36. What is the primary goal of leadership development?

(a) Employee dismissal
(b) Stagnant leadership skills
(c) Enhancing leadership capabilities
(d) Reducing collaboration

37. What is the significance of self-awareness in leadership development?

(a) It limits adaptability
(b) It promotes isolation
(c) It enhances leadership effectiveness
(d) It discourages feedback

38. What role does mentoring play in leadership development?

(a) It hinders progress
(b) It provides guidance and support for leadership growth
(c) It promotes isolation
(d) It limits communication

39. How can organizations encourage innovation in leadership development

programs?
(a) Resist change
(b) Discourage creativity
(c) Promote a culture of experimentation and learning
(d) Limit collaboration
40. What is the significance of emotional intelligence in leadership development?
(a) It promotes rigidity
(b) It hinders adaptability
(c) It enhances interpersonal skills and leadership effectiveness
(d) It discourages feedback

41. Why is it important for leaders to have effective communication skills?

(a) To create confusion
(b) To limit collaboration
(c) To foster a positive and transparent work environment
(d) To promote isolation

42. How does leadership development contribute to organizational culture?

(a) By promoting a rigid structure
(b) By limiting communication channels
(c) By shaping values, beliefs, and behaviors
(d) By avoiding technology integration

43. What role does resilience play in leadership development?

(a) It hinders progress
(b) It promotes isolation
(c) It enhances the ability to navigate challenges and setbacks
(d) It discourages feedback

44. What is the purpose of 360-degree feedback in leadership development?

(a) To limit communication
(b) To discourage collaboration
(c) To provide a comprehensive view of leadership effectiveness from multiple perspectives
(d) To promote isolation
45. How can organizations promote ethical leadership in leadership development
programs?
(a) By ignoring ethical considerations
(b) By limiting communication about ethical issues
(c) By integrating ethics training and fostering a culture of integrity
(d) By avoiding discussions on ethics

46. What is the role of cultural intelligence in leadership development?

(a) It hinders progress
(b) It promotes isolation
(c) It enhances the ability to work effectively across diverse cultures
(d) It discourages feedback

47. How does leadership development contribute to talent retention?

(a) By limiting professional development opportunities
(b) By promoting isolation
(c) By providing opportunities for growth and advancement
(d) By avoiding feedback

48. What is the purpose of leadership coaching in leadership development?

(a) To discourage leadership growth
(b) To limit communication
(c) To provide personalized guidance and support for leadership development
(d) To promote isolation

49. How can organizations support ongoing leadership development?

(a) By resisting change
(b) By limiting communication channels
(c) By providing continuous learning opportunities and resources
(d) By avoiding technology integration
50. What is the significance of agility in leadership development?
(a) It promotes a rigid structure
(b) It limits adaptability
(c) It enhances the ability to navigate change and uncertainty
(d) It discourages feedback

51. What is the primary goal of performance management?

(a) Employee dismissal
(b) Employee engagement
(c) Stagnant performance
(d) Continuous improvement

52. How often should performance evaluations ideally take place?

(a) Once a year
(b) Every five years
(c) Only during promotions
(d) Continuously throughout the year

53. What is the purpose of setting SMART goals in performance management?

(a) To limit employee development
(b) To create confusion
(c) To provide a clear framework for goal setting
(d) To discourage feedback

54. How does technology contribute to performance management?

(a) It has no impact
(b) It makes evaluations subjective
(c) It enhances data collection and analysis
(d) It discourages employee engagement
55. What role does ongoing feedback play in performance management?
(a) It is unnecessary
(b) It hinders progress
(c) It promotes continuous improvement
(d) It fosters isolation

56. How can organizations address poor performance effectively?

(a) Ignore it
(b) Provide constructive feedback and offer support for improvement
(c) Limit communication
(d) Avoid discussions about performance issues

57. What is the purpose of a performance improvement plan (PIP)?

(a) To discourage employee development
(b) To provide a structured approach for employees to enhance their performance
(c) To limit collaboration
(d) To promote isolation

58. Why is it important for performance goals to be aligned with organizational

objectives?
(a) To limit employee development
(b) To create confusion
(c) To ensure individual contributions contribute to overall organizational success
(d) To discourage feedback

59. How can organizations foster a performance-oriented culture?

(a) By resisting change
(b) By limiting communication channels
(c) By recognizing and rewarding high performance
(d) By avoiding technology integration
60. What is the role of employee self-assessment in performance management?
(a) To limit collaboration
(b) To promote isolation
(c) To provide employees with the opportunity to reflect on their own performance
(d) To discourage feedback

61. How does a 360-degree feedback process contribute to performance management?

(a) It limits communication
(b) It discourages collaboration
(c) It provides a comprehensive view of an employee's performance from multiple perspectives
(d) It promotes isolation

62. What is the purpose of a performance appraisal?

(a) To discourage employee development
(b) To limit collaboration
(c) To assess and document an employee's performance
(d) To promote isolation

63. Why is ongoing communication important in performance management?

(a) To limit employee development
(b) To foster a positive and transparent work environment
(c) To discourage feedback
(d) To create confusion

64. How can organizations ensure fairness and equity in performance evaluations?
(a) By ignoring fairness considerations
(b) By providing consistent and objective assessments
(c) By limiting communication
(d) By avoiding discussions about equity
65. What is the purpose of a performance rating scale?
(a) To discourage employee development
(b) To create confusion
(c) To provide a standardized way to evaluate and compare employee performance
(d) To promote isolation

66. How does performance management contribute to employee development?

(a) By limiting professional development opportunities
(b) By promoting isolation
(c) By identifying strengths and areas for improvement
(d) By avoiding feedback

67. What is the role of recognition and rewards in performance management?

(a) To discourage high performance
(b) To limit communication
(c) To motivate and reinforce positive behavior and outcomes
(d) To promote isolation

68. How does performance management contribute to organizational growth?

(a) By limiting employee development
(b) By fostering a culture of continuous improvement and accountability
(c) By resisting change
(d) By avoiding technology integration

69. What is the significance of performance metrics in performance management?

(a) To discourage employee development
(b) To provide a measurable way to assess and track performance
(c) To limit collaboration
(d) To promote isolation
70. How can organizations effectively manage underperforming employees?
(a) By ignoring performance issues
(b) By providing constructive feedback and support for improvement
(c) By limiting communication
(d) By avoiding discussions about performance

71. What is the role of a performance improvement plan (PIP) in addressing

performance issues?
(a) To discourage employee development
(b) To limit collaboration
(c) To provide a structured approach for improvement with clear expectations
(d) To promote isolation

72. How does employee engagement relate to performance management?

(a) By limiting employee development
(b) By fostering a positive work environment and motivating employees
(c) By resisting change
(d) By avoiding technology integration

73. Why is continuous feedback preferable to annual reviews in performance

management?
(a) To discourage employee development
(b) To limit collaboration
(c) To provide timely insights and opportunities for improvement
(d) To promote isolation

74. What is the purpose of a performance development plan (PDP)?

(a) To discourage employee development
(b) To limit collaboration
(c) To outline goals and strategies for employee growth and improvement
(d) To promote isolation
75. How can organizations ensure that performance management is a fair and
transparent process?
(a) By ignoring fairness considerations
(b) By providing consistent and objective assessments
(c) By limiting communication
(d) By avoiding discussions about equity

76. What does the term "intellectual capital" refer to in organizational development?
(a) Physical assets
(b) Financial assets
(c) Knowledge and skills
(d) Employee uniforms

77. Why is intellectual capital considered a valuable asset for organizations?

(a) It limits innovation
(b) It fosters a culture of secrecy
(c) It enhances competitive advantage and innovation
(d) It discourages collaboration

78. How can organizations measure intellectual capital?

(a) Employee uniforms
(b) Financial statements
(c) Knowledge audits and assessments
(d) Physical assets

79. What role does continuous learning play in intellectual capital development?
(a) It hinders progress
(b) It promotes isolation
(c) It enhances knowledge and skills over time
(d) It discourages feedback
80. Why is knowledge sharing important for intellectual capital development?
(a) It fosters a culture of secrecy
(b) It limits collaboration
(c) It enhances collective knowledge and innovation
(d) It discourages employee engagement

81. How does technology contribute to intellectual capital development?

(a) It limits access to knowledge
(b) It fosters a culture of secrecy
(c) It enhances knowledge sharing and accessibility
(d) It discourages collaboration

82. What is the purpose of a knowledge management system in intellectual capital

development?
(a) To promote isolation
(b) To discourage collaboration
(c) To facilitate the creation, sharing, and use of knowledge
(d) To limit access to knowledge

83. How can organizations encourage a culture of innovation in intellectual capital

development?
(a) By resisting change
(b) By limiting communication channels
(c) By promoting creativity, experimentation, and risk-taking
(d) By avoiding technology integration

84. What is the role of leadership in intellectual capital development?

(a) To discourage knowledge sharing
(b) To limit communication
(c) To champion a culture of learning and knowledge sharing
(d) To avoid involvement in intellectual capital programs
85. What is the significance of diversity and inclusion in intellectual capital
development?
(a) It limits innovation
(b) It promotes a culture of secrecy
(c) It enhances perspectives and creativity
(d) It discourages collaboration

86. How does intellectual capital contribute to organizational resilience?

(a) By limiting knowledge sharing
(b) By fostering a culture of secrecy
(c) By enhancing the ability to adapt to change and uncertainty
(d) By discouraging employee engagement

87. What is the purpose of a knowledge map in intellectual capital development?

(a) To promote isolation
(b) To discourage collaboration
(c) To visually represent and organize organizational knowledge
(d) To limit access to knowledge

88. Why is it important for organizations to capture tacit knowledge in intellectual

capital development?
(a) To limit knowledge sharing
(b) To foster a culture of secrecy
(c) To harness valuable insights and expertise from employees
(d) To discourage collaboration
89. How does a community of practice contribute to intellectual capital development?
(a) By limiting access to knowledge
(b) By fostering a culture of secrecy
(c) By facilitating knowledge sharing and collaboration among employees with common interests
(d) By discouraging innovation
90. What is the role of intellectual property protection in intellectual capital
development?
(a) To discourage knowledge sharing
(b) To promote a culture of secrecy
(c) To safeguard organizational innovations and creations
(d) To limit collaboration

91. How can organizations leverage social learning for intellectual capital
development?
(a) By resisting change
(b) By limiting communication channels
(c) By encouraging informal learning through social interactions and collaboration
(d) By avoiding technology integration

92. What is the purpose of a lessons learned repository in intellectual capital

development?
(a) To promote isolation
(b) To discourage collaboration
(c) To capture and share insights from past experiences for organizational learning
(d) To limit access to knowledge

93. How can organizations ensure the transfer of knowledge when employees leave
the organization?
(a) By resisting change
(b) By limiting communication channels
(c) By implementing knowledge transfer programs and documentation
(d) By avoiding technology integration
94. What is the role of external networks in intellectual capital development?
(a) To limit innovation
(b) To foster a culture of secrecy
(c) To facilitate knowledge exchange and collaboration with external entities
(d) To discourage employee engagement

95. How does intellectual capital contribute to organizational agility?

(a) By limiting access to knowledge
(b) By fostering a culture of secrecy
(c) By enhancing the ability to adapt and respond quickly to changing conditions
(d) By discouraging collaboration

96. What is the significance of intellectual capital in attracting and retaining talent?
(a) It limits innovation
(b) It promotes a culture of secrecy
(c) It enhances the organization's appeal to skilled individuals
(d) It discourages collaboration

97. How does organizational culture impact intellectual capital development?

(a) By resisting change
(b) By limiting communication channels
(c) By shaping attitudes and behaviors towards knowledge sharing and learning
(d) By avoiding technology integration

98. Why is it important for organizations to invest in employee training and

development for intellectual capital development?
(a) To limit knowledge sharing
(b) To foster a culture of secrecy
(c) To enhance employee skills and contribute to organizational knowledge
(d) To discourage collaboration
99. What is the role of storytelling in knowledge sharing for intellectual capital
development?
(a) To promote isolation
(b) To discourage collaboration
(c) To convey complex information in a compelling and relatable manner
(d) To limit access to knowledge

100. How does intellectual capital contribute to organizational sustainability?

(a) By limiting innovation
(b) By fostering a culture of secrecy
(c) By ensuring the organization's ability to thrive over the long term
(d) By discouraging employee engagement
 ANSWERS
1. (c) Product development
2. (b) Flexibility
3. (c) To identify gaps in skills and knowledge
4. (C) It enhances training delivery and accessibility
5. (c) It ensures HRD contributes to organizational success
6. (c) It provides insights for improvement
7. (c). Supportive leadership
8. (a)Return on Investment
9. (b) To ensure a smooth transition of leadership
10. (b) By centralizing and managing training resources
11. (c) It enhances organizational performance
12. (c) It accommodates diverse learning needs
13. (b) Market trends
14. (b) A mix of different learning methods
15.(c) By providing opportunities for growth and advancement.
16.( c) To lead by example and encourage continuous learning
17.(c)To identify areas for improvement and ensure alignment with goals
18. (b) To identify gaps in skills and knowledge
19.( c) By fostering adaptability and continuous learning
20. (b) Initial training and orientation for new employees.
21. (b) Skill enhancement
22. (b) Improved organizational performance
23. (b) To identify gaps in skills and knowledge
24. (b) Develop targeted training programs
25. (c) It provides insights for improvement
26. (c) It ensures contributions to organizational success
27. (b) Continuous learning
28. (c) It enhances training delivery and accessibility
29. (c)To support and encourage skill development
30. (b) To identify and track employee skills
31. (c) Supportive leadership and learning opportunities
32. (c) It enhances adaptability and flexibility
33. (c) It enhances organizational performance
34. (c) It fosters ownership and commitment
35. (d) To align individual contributions with organizational goals
36. (c) Enhancing leadership capabilities
37. (c) It enhances leadership effectiveness
38. (b) It provides guidance and support for leadership growth
39. (c) Promote a culture of experimentation and learning
40. (c) It enhances interpersonal skills and leadership effectiveness
41. (c) To foster a positive and transparent work environment
42. (c) By shaping values, beliefs, and behaviors
43. (c) It enhances the ability to navigate challenges and setbacks
44. (c) To provide a comprehensive view of leadership effectiveness from multiple perspectives
45. (c) By integrating ethics training and fostering a culture of integrity
46. (c) It enhances the ability to work effectively across diverse cultures
47. (c) By providing opportunities for growth and advancement
48. (c) To provide personalized guidance and support for leadership development
49. (c) By providing continuous learning opportunities and resources
50. (c) It enhances the ability to navigate change and uncertainty
51. (d) Continuous improvement
52. (d) Continuously throughout the year
53. (c) To provide a clear framework for goal setting
54. (c) It enhances data collection and analysis
55. (c) It promotes continuous improvement
56. (b) Provide constructive feedback and offer support for improvement
57. (b) To provide a structured approach for employees to enhance their performance
58. (c) To ensure individual contributions contribute to overall organizational success
59. (c) By recognizing and rewarding high performance
60. (c) To provide employees with the opportunity to reflect on their own performance
61. (c) It provides a comprehensive view of an employee's performance from multiple perspectives
62. (c) To assess and document an employee's performance
63. (b) To foster a positive and transparent work environment
64. (b) By providing consistent and objective assessments
65. (c) To provide a standardized way to evaluate and compare employee performance
66. (c) By identifying strengths and areas for improvement
67. (c) To motivate and reinforce positive behavior and outcomes
68. (b) By fostering a culture of continuous improvement and accountability
69. (b) To provide a measurable way to assess and track performance
70. (b) By providing constructive feedback and support for improvement
71. (c) To provide a structured approach for improvement with clear expectations
72. (b) By fostering a positive work environment and motivating employees
73. (c) To provide timely insights and opportunities for improvement
74. (c) To outline goals and strategies for employee growth and improvement
75. (b) By providing consistent and objective assessments
76. (c) Knowledge and skills
77. (c) It enhances competitive advantage and innovation
78. (c) Knowledge audits and assessments
79. (c) It enhances knowledge and skills over time
80. (c) It enhances collective knowledge and innovation
81. (c) It enhances knowledge sharing and accessibility
82. (c) To facilitate the creation, sharing, and use of knowledge
83. (c) By promoting creativity, experimentation, and risk-taking
84. (c) To champion a culture of learning and knowledge sharing
85. (c) It enhances perspectives and creativity
86. (c) By enhancing the ability to adapt to change and uncertainty
87. (c) To visually represent and organize organizational knowledge
88. (c) To harness valuable insights and expertise from employees
89. (c) By facilitating knowledge sharing and collaboration among employees with common interests
90. (c) To safeguard organizational innovations and creations
91. (c) By encouraging informal learning through social interactions and collaboration
92. (c) To capture and share insights from past experiences for organizational learning
93. (c) By implementing knowledge transfer programs and documentation
94. (c) To facilitate knowledge exchange and collaboration with external entities
95. (c) By enhancing the ability to adapt and respond quickly to changing conditions
96. (c) It enhances the organization's appeal to skilled individuals
97. (c) By shaping attitudes and behaviors towards knowledge sharing and learning
98. (c) To enhance employee skills and contribute to organizational knowledge
99. (c) To convey complex information in a compelling and relatable manner
100. (c) By ensuring the organization's ability to thrive over the long term