CAIIB · Advanced Bank Management · Module B — Human Resources Management
CAIIB ABM Unit 16 — HRM and Information Technology: 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 16 — HRM and Information Technology (Module B — Human Resources Management). The CAIIB Mock Centre holds 202 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 B202 MCQs in the Mock Centre5 free belowPaper on 6 December
Key facts examiners test from this unit
IT and HRM in the information age — IT reduces the number of people needed, not HR's importance; HR must change mindsets and apply IT to its own work.
HR information, HRIS and HRMS — HRIS stores and analyses employee data for objective decisions; HRMS is the wider software suite that runs HR.
e-HRM and HR research — e-HRM puts HR on the web for managers and employees; HR research evaluates HR practices with evidence.
Changed since the textbook
Digital Personal Data Protection Rules, 2025 notified: employee data in HRIS and HRMS (13 November 2025). The Digital Personal Data Protection Act, 2023 governs digital personal data, including the employee data that banks hold in their HRIS and HRMS. Section 7(i) of the Act lets an employer process an employee's personal data without consent for the purposes of employment, or to safeguard the employer from loss or liability (for example, to prevent corporate espionage or protect trade secrets). Source: PIB explainer on the DPDP Rules, 2025 (November 2025)
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 202 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
A bank's branches, zonal offices and head office each keep their own copy of officers' records and re-enter every change. Which HRIS design fixes this?
Why (c): Conventionally the same employee data was collected and kept at several levels, so every change was re-entered and the copies drifted apart. A single shared database, updated once where the change happens and used by every level, removes the duplication. (a) is wrong: Reconciliation keeps the duplication and adds work. (b) is wrong: Separate databases still mean re-entering each change. (d) is wrong: Yearly re-collection repeats the effort and leaves records out of date in between.
Question 2 of 5
Which benefit of an HRMS concerns the protection of company data?
Why (d): An HRMS comes with built-in security, including authentication measures that restrict access to authorised users and protect company data. (a) is wrong: Self-entry saves HR time. (b) is wrong: Reminders save managers' time. (c) is wrong: Workflows improve user experience.
Question 3 of 5
A bank's research team compares its HR practices directly with those of another bank to find where it performs poorly. Which approach is this?
Why (c): In the comparative approach, the organisation directly compares itself with another to identify areas of poor performance. (a) is wrong: That checks deviations from laws and policies. (b) is wrong: That uses the bank's own records. (d) is wrong: Academic research is not an applied approach.
Question 4 of 5
What is the first step in implementing a knowledge management programme?
Why (d): Before selecting a tool or defining a process, establish objectives: envision the ideal end state and document the business problems and drivers. (a) is wrong: That is step 8. (b) is wrong: That is step 4. (c) is wrong: That is step 6.
Question 5 of 5
Which question would business intelligence tools, rather than analytics, answer?
Why (b): Querying, reporting, OLAP and alerts answer what happened, how many, how often, where the problem is and what action is needed. (a) is wrong: "why" is an analytics question. (c) is wrong: Prediction is analytics. (d) is wrong: Optimisation is analytics.
0 of 5 answered.
Traps in this unit
HR must adopt IT first and become a learning set-up.
HRIS is a type of HRMS, not the reverse.
HR performance is evaluated by applied research.
Practise all 202 questions on Unit 16. 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.