CAIIB · Advanced Bank Management · Module B — Human Resources Management
CAIIB ABM Unit 10 — Fundamentals of Human Resource Management: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper I of the December 2026 cycle (Sunday 6 December 2026)
This is the free practice page for CAIIB ABM Unit 10 — Fundamentals of Human Resource Management (Module B — Human Resources Management). The CAIIB Mock Centre holds 148 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
ABM · Module B148 MCQs in the Mock Centre5 free belowPaper on 6 December
Key facts examiners test from this unit
The perspective: from labour management to HRM — people are the one resource competitors cannot copy; management thought moved from Taylor's rational-economic man to Mayo's social man to growth needs, and people management grew from welfare secretaries into HRM.
HRM and HRD: relationship, structure and functions — HRM is the umbrella for all people functions, delivered by line and staff together; HRD is its developmental sub-system, differing in approach and emphasis, not in conflict.
Role of HR professionals — the HR role changed in quality, from specialist staff officer to partner of line managers and the business, built on skills, attributes and, above all, values.
Changed since the textbook
Four Labour Codes brought into force (21 November 2025). The Government made the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 effective from 21 November 2025, rationalising 29 central labour laws. Among the Acts this unit names, the Industrial Disputes Act, 1947 is now part of the Industrial Relations Code, and the Factories Act, 1948 and the Inter-State Migrant Workmen Act, 1979 are part of the OSH Code. Source: PIB
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 148 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
The human-relations movement that followed the Hawthorne studies replaced which view of the worker?
Why (a): The textbook says the human-relations movement replaced the rational-economic man with the social man, focusing on relationships at work. (b) is wrong: It reverses the direction of change. (c) is wrong: These are not the textbook's terms for this shift. (d) is wrong: The textbook does not use "complex man" here.
Question 2 of 5
HRM provides a guiding principle for new people systems and a yardstick for what?
Why (b): The textbook says HRM provides a guiding principle for developing new systems and a yardstick to evaluate existing sub-systems. (a) is wrong: The wage bill is a budget figure; HRM's yardstick is for people systems. (c) is wrong: Ranking employees is done by appraisal, one sub-system; HRM is the yardstick for the sub-systems themselves. (d) is wrong: Staff strength is set by manpower planning, one sub-system; HRM judges the sub-systems.
Question 3 of 5
Under the new perspective, which competences are added to the "role of developing competence"?
Why (d): The role develops technical, managerial and processing competence, and the new perspective also includes helping and coping competence. (a) is wrong: Programming and data skills are technical competence, already part of the role, not the new addition. (b) is wrong: Selling and negotiating are business skills, not competences the HRD role sets out to build. (c) is wrong: Legal and audit competence belongs to compliance functions, not to the HRD role.
Question 4 of 5
Which Ulrich mandate asks HR to deliver administrative efficiency so that costs fall while quality is maintained?
Why (d): The administrative-expert mandate: be an expert in organising and executing work, delivering efficiency with quality. (a) is wrong: The strategic partner works on strategy execution. (b) is wrong: The employee champion represents employees and raises their contribution. (c) is wrong: The change agent shapes processes and culture for change.
Question 5 of 5
Why did the public sector pay more attention to strengthening the personnel function?
Why (b): The public sector, with an urge to demonstrate being a model employer, paid more attention to the function. (a) is wrong: Multinationals influenced their own subsidiaries. (c) is wrong: The ID Act applies to all employers; the public sector's extra effort came from wanting to be a model employer. (d) is wrong: Matching private pay is not the reason the textbook gives.
Practise all 148 questions on Unit 10. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the ABM Online Mock Centre unlocks all 4,600+ ABM questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.