WGU D351 – Functions of Human Resource
Management
Practice Exam – 100 Questions with Correct
Answers and Explanations
Complete Study Guide for the Objective
Assessment (2025/2026)
ABOUT THIS EXAM
This comprehensive practice exam is designed for students preparing for the WGU D351: Functions of
Human Resource Management objective assessment. The course covers the fundamental functions of
HR including strategic HR management, workforce planning, talent acquisition, employee development,
total rewards, employee relations, and legal/ethical compliance.
Key Competencies Assessed:
• Strategic Human Resource Management
• Workforce Planning and Talent Acquisition
• Learning and Development
• Total Rewards (Compensation and Benefits)
• Employee Relations and Engagement
• HR Metrics and Analytics
• Legal and Ethical Compliance
SECTION 1: STRATEGIC HUMAN RESOURCE MANAGEMENT (Questions 1-15)
Question 1
What is the primary purpose of strategic human resource management?
A) To minimize labor costs at all expenses
B) To align HR practices with organizational goals and objectives
C) To ensure compliance with all employment laws
D) To maximize employee satisfaction regardless of cost
,Correct Answer: B
Strategic human resource management (SHRM) is the process of aligning HR strategies, policies, and
practices with the organization's overall business strategy and goals. The purpose is to ensure that HR
activities support the organization's mission, vision, and objectives, thereby contributing to competitive
advantage and organizational success. While compliance, cost management, and employee satisfaction
are important, they must be balanced within the strategic framework .
Question 2
Which of the following is an example of a HR metric that measures organizational effectiveness?
A) Number of job postings
B) Revenue per employee
C) Days to fill a position
D) Number of training sessions offered
Correct Answer: B
Revenue per employee is a key HR metric that measures organizational effectiveness and productivity. It
indicates how efficiently an organization generates revenue relative to its workforce. While days to fill
measures recruitment efficiency, and number of job postings or training sessions are activity metrics,
revenue per employee directly links HR outcomes to business performance .
Question 3
Which HR function involves analyzing and evaluating jobs to determine their relative worth within an
organization?
A) Recruitment and selection
B) Training and development
C) Job analysis and job evaluation
D) Performance management
Correct Answer: C
Job analysis is the systematic process of collecting information about the duties, responsibilities, and
requirements of a job. Job evaluation uses this information to determine the relative worth of jobs within
an organization, which forms the basis for establishing pay structures. Job analysis and evaluation are
foundational HR activities that inform recruitment, selection, training, compensation, and performance
management .
Question 4
,A company is experiencing high turnover among its sales staff. Which HR function would be MOST
directly responsible for addressing this issue?
A) Recruitment
B) Employee relations
C) Compensation and benefits
D) All of the above
Correct Answer: D
High turnover can result from multiple factors, including poor recruitment (hiring the wrong people),
inadequate compensation or benefits (pay not competitive), and poor employee relations (low
engagement, poor management). Therefore, multiple HR functions must collaborate to diagnose and
address turnover causes. Retention strategies require a holistic approach across all HR domains .
Question 5
Which of the following best describes the difference between HRM and personnel management?
A) HRM is administrative; personnel management is strategic
B) Personnel management focuses on compliance; HRM focuses on strategic alignment
C) There is no difference; the terms are interchangeable
D) HRM only applies to large organizations
Correct Answer: B
Traditional personnel management focused primarily on administrative tasks, record-keeping, and
ensuring compliance with employment laws. Modern human resource management (HRM) takes a more
strategic approach, aligning HR practices with organizational goals, treating employees as valuable
assets, and focusing on how HR contributes to competitive advantage. While the terms are sometimes
used interchangeably, HRM represents a more strategic evolution of the function .
Question 6
The HR department at a manufacturing company is considering outsourcing payroll processing. This
decision falls under which HR function?
A) Recruitment
B) HR technology and administration
C) Employee relations
D) Training and development
Correct Answer: B
Payroll processing is an administrative HR function that is often outsourced to specialized providers. HR
technology and administration includes decisions about which HR activities to perform in-house versus
, outsourced, as well as selecting and implementing HR information systems (HRIS). Outsourcing
administrative tasks allows HR professionals to focus on more strategic activities .
Question 7
What is the primary role of the HR department in organizational strategic planning?
A) To approve all strategic decisions
B) To ensure that the organization has the human capital needed to execute the strategy
C) To set organizational goals and objectives
D) To control labor costs regardless of strategic needs
Correct Answer: B
HR's primary role in strategic planning is to ensure that the organization has the right people, with the
right skills, in the right positions, at the right time to execute the business strategy. This includes
workforce planning, talent acquisition, development, and succession planning. HR does not set
organizational strategy (senior leadership does) but must align HR strategy with business strategy .
Question 8
A company is implementing a new customer relationship management (CRM) system. Which HR
function is MOST responsible for ensuring employees can use the new system effectively?
A) Recruitment
B) Training and development
C) Compensation
D) Employee relations
Correct Answer: B
Training and development is responsible for providing employees with the knowledge and skills needed
to perform their jobs effectively. Implementing a new CRM system requires training employees on how to
use the system, which falls under the training and development function. This includes needs assessment,
training design and delivery, and evaluation of training effectiveness .
Question 9
Which of the following is an example of a transactional (administrative) HR activity?
A) Developing a succession plan for key leadership positions
B) Designing a performance management system
C) Processing employee payroll and benefits enrollment
D) Creating a diversity and inclusion strategy
Correct Answer: C
Management
Practice Exam – 100 Questions with Correct
Answers and Explanations
Complete Study Guide for the Objective
Assessment (2025/2026)
ABOUT THIS EXAM
This comprehensive practice exam is designed for students preparing for the WGU D351: Functions of
Human Resource Management objective assessment. The course covers the fundamental functions of
HR including strategic HR management, workforce planning, talent acquisition, employee development,
total rewards, employee relations, and legal/ethical compliance.
Key Competencies Assessed:
• Strategic Human Resource Management
• Workforce Planning and Talent Acquisition
• Learning and Development
• Total Rewards (Compensation and Benefits)
• Employee Relations and Engagement
• HR Metrics and Analytics
• Legal and Ethical Compliance
SECTION 1: STRATEGIC HUMAN RESOURCE MANAGEMENT (Questions 1-15)
Question 1
What is the primary purpose of strategic human resource management?
A) To minimize labor costs at all expenses
B) To align HR practices with organizational goals and objectives
C) To ensure compliance with all employment laws
D) To maximize employee satisfaction regardless of cost
,Correct Answer: B
Strategic human resource management (SHRM) is the process of aligning HR strategies, policies, and
practices with the organization's overall business strategy and goals. The purpose is to ensure that HR
activities support the organization's mission, vision, and objectives, thereby contributing to competitive
advantage and organizational success. While compliance, cost management, and employee satisfaction
are important, they must be balanced within the strategic framework .
Question 2
Which of the following is an example of a HR metric that measures organizational effectiveness?
A) Number of job postings
B) Revenue per employee
C) Days to fill a position
D) Number of training sessions offered
Correct Answer: B
Revenue per employee is a key HR metric that measures organizational effectiveness and productivity. It
indicates how efficiently an organization generates revenue relative to its workforce. While days to fill
measures recruitment efficiency, and number of job postings or training sessions are activity metrics,
revenue per employee directly links HR outcomes to business performance .
Question 3
Which HR function involves analyzing and evaluating jobs to determine their relative worth within an
organization?
A) Recruitment and selection
B) Training and development
C) Job analysis and job evaluation
D) Performance management
Correct Answer: C
Job analysis is the systematic process of collecting information about the duties, responsibilities, and
requirements of a job. Job evaluation uses this information to determine the relative worth of jobs within
an organization, which forms the basis for establishing pay structures. Job analysis and evaluation are
foundational HR activities that inform recruitment, selection, training, compensation, and performance
management .
Question 4
,A company is experiencing high turnover among its sales staff. Which HR function would be MOST
directly responsible for addressing this issue?
A) Recruitment
B) Employee relations
C) Compensation and benefits
D) All of the above
Correct Answer: D
High turnover can result from multiple factors, including poor recruitment (hiring the wrong people),
inadequate compensation or benefits (pay not competitive), and poor employee relations (low
engagement, poor management). Therefore, multiple HR functions must collaborate to diagnose and
address turnover causes. Retention strategies require a holistic approach across all HR domains .
Question 5
Which of the following best describes the difference between HRM and personnel management?
A) HRM is administrative; personnel management is strategic
B) Personnel management focuses on compliance; HRM focuses on strategic alignment
C) There is no difference; the terms are interchangeable
D) HRM only applies to large organizations
Correct Answer: B
Traditional personnel management focused primarily on administrative tasks, record-keeping, and
ensuring compliance with employment laws. Modern human resource management (HRM) takes a more
strategic approach, aligning HR practices with organizational goals, treating employees as valuable
assets, and focusing on how HR contributes to competitive advantage. While the terms are sometimes
used interchangeably, HRM represents a more strategic evolution of the function .
Question 6
The HR department at a manufacturing company is considering outsourcing payroll processing. This
decision falls under which HR function?
A) Recruitment
B) HR technology and administration
C) Employee relations
D) Training and development
Correct Answer: B
Payroll processing is an administrative HR function that is often outsourced to specialized providers. HR
technology and administration includes decisions about which HR activities to perform in-house versus
, outsourced, as well as selecting and implementing HR information systems (HRIS). Outsourcing
administrative tasks allows HR professionals to focus on more strategic activities .
Question 7
What is the primary role of the HR department in organizational strategic planning?
A) To approve all strategic decisions
B) To ensure that the organization has the human capital needed to execute the strategy
C) To set organizational goals and objectives
D) To control labor costs regardless of strategic needs
Correct Answer: B
HR's primary role in strategic planning is to ensure that the organization has the right people, with the
right skills, in the right positions, at the right time to execute the business strategy. This includes
workforce planning, talent acquisition, development, and succession planning. HR does not set
organizational strategy (senior leadership does) but must align HR strategy with business strategy .
Question 8
A company is implementing a new customer relationship management (CRM) system. Which HR
function is MOST responsible for ensuring employees can use the new system effectively?
A) Recruitment
B) Training and development
C) Compensation
D) Employee relations
Correct Answer: B
Training and development is responsible for providing employees with the knowledge and skills needed
to perform their jobs effectively. Implementing a new CRM system requires training employees on how to
use the system, which falls under the training and development function. This includes needs assessment,
training design and delivery, and evaluation of training effectiveness .
Question 9
Which of the following is an example of a transactional (administrative) HR activity?
A) Developing a succession plan for key leadership positions
B) Designing a performance management system
C) Processing employee payroll and benefits enrollment
D) Creating a diversity and inclusion strategy
Correct Answer: C
