Deck 5: Planning for and Recruiting Human Resources

Question 1

In the context of forecasting the demand for labor,leading indicators are relatively objective measures that accurately predict future labor demand.

Answer 1

True

Question 2

Downsizing can be used to reduce surplus labor because it yields fast results.

Answer 2

True

Question 3

The goals an organization sets in its human resource planning process should come directly from the analysis of its labor supply and demand.

Answer 3

True

Question 4

The steps in a workforce utilization review are identical to the steps in the HR planning process.

Question 5

In general,all companies have to make decisions in three areas of recruiting: personnel policies,recruitment sources,and the characteristics and behavior of the recruiter.

Question 6

Themost widespread methods for eliminating labor shortages are reducing work hours and endorsing early-retirement programs.

Question 7

Personnel policies influence the kinds of job applicants an organization attracts.

Question 8

To ensure success with an outsourcing strategy,companies should outsource work that requires tight security.

Question 9

When implementing an HR strategy,the organization must hold some individual accountable for achieving the goals.

Question 10

Work sharing is usually implemented in an effort to avoid labor shortages.

Question 11

In human resource planning,forecasting is an intermediary step.

Question 12

In the context of employing temporary and contract workers,if the person providing the service is a contractor and not an employee,the company is not supposed to directly supervise the worker.

Question 13

A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

Question 14

Contracting with another organization to perform a broad set of services is called outsourcing.

Question 15

The use of temporary workers might provide an organization with additional administrative tasks and financial burdens.

Question 16

Downsizing disrupts the social networks through which people are creative and flexible.

Question 17

Recruitment sources affect both the characteristics of vacancies and potential job applicants.

Question 18

The negative effect of downsizing would be low among firms that use performance-related pay incentives.

Question 19

Statistical models are used for forecasting labor demand because they are good at capturing "once-in-a-lifetime" changes.

Question 20

The second step in human resource planning is performance evaluation.

Question 21

Renton Inc.is phasing out its desktop computer repair center in Wisconsin.Meanwhile,the demand for repair of mobile devices-services it provides in Georgia and New Mexico-is growing rapidly.Betty,a human resource specialist at Renton headquarters in Atlanta,must plan to avoid a labor surplus in Wisconsin in a fast and effective way.She wishes to do so with minimal employee suffering in terms of layoffs and salary.Which of the following strategies would best help Betty accomplish her goal?

A) pay reductions
B) transfers
C) demotions
D) early retirement
E) hiring freeze

Question 22

Many of the people reading classified ads are either over- or under-qualified for the position.

Question 23

In the context of recruitment sources,referrals are people who apply for a vacancy without prompting from the organization.

Question 24

Organizations carry out human resource planning to

A) reduce hiring of workers from colleges and universities.
B) increase hiring costs to match industry standards.
C) avoid taking risks.
D) gain an advantage over competitors.
E) replace technology with highly skilled workers.

Question 25

James is the HR manager at Flenzel Inc. ,which is preparing for the launch of a new product line.The company needs to know how many new customer service representatives to add to help customers with questions and concerns about the existing,and new,products.To guide the company,James needs information about the number of employees currently providing customer service,the number likely to be in those jobs next year,and the numbers expected to move to other positions in the organization.The information will be easier to organize and interpret if James uses a(n)_____.

A) electronic recruiting process
B) transitional matrix
C) propensity analysis
D) due-process policy
E) multiple regression analysis

Question 26

In the context of forecasting the demand for labor,using trend analysis,inventory levels,changes in technology,and actions of competitors are examples of _____.

A) leading indicators
B) performance indicators
C) coincident pointers
D) transitional matrices
E) functional pointers

Question 27

Yienze Inc. ,a manufacturer of electronic goods,is experiencing financial losses.The company is also facing the problem of a labor surplus due to low demand for its products.In this context,which of the following would be the best way for Yienze to deal with this labor surplus?

A) The company must consider work sharing because it causes relatively less suffering to the employees.
B) The company must choose an early retirement option because it gives an option to employees to voluntarily leave the organization with suitable monetary compensation.
C) The company must freeze employee hiring and focus on natural attrition because it is a relatively fast way to reduce a labor surplus.
D) The company must consider downsizing because it is the quickest way to deal with a labor surplus that results in financial losses.
E) The company must consider retraining employees because it helps improve their interpersonal skills.

Question 28

Research suggests that realistic job previews have a strong and consistent effect on employee turnover.

Question 29

A chart that lists job categories held in one period and shows the proportion of employees in each of those categories in a future period is called a _____.

A) labor review
B) trend analysis
C) forecast
D) leading indicator
E) transitional matrix

Question 30

Sasha,a production manager at ZestCorp Inc. ,must predict future labor demand using information about inventory levels from the past three years.Sasha will most likely use _____ to predict the demand.

A) yield ratio
B) workforce utilization review
C) trend analysis
D) cost per hire
E) capacity utilization analysis

Question 31

In the context of recruitment sources,private employment agencies serve primarily blue-collar workers,while public employment agencies mostly serve white-collar workers.

Question 32

Jonathan,the CEO of Maxofan Inc. ,finds that the company needs to eliminate a labor surplus to avoid financial difficulties.To deal with this problem,he chooses a strategy that gives him fast results.However,the amount of suffering caused to employees is high.Jonathan is most likely using the _____ strategy to reduce the labor surplus.

A) early retirement
B) downsizing
C) natural attrition
D) retraining
E) hiring freeze

Question 33

In the context of recruiter traits and behavior,the recruiter affects the nature of both the job vacancy and the applicants generated.

Question 34

The second step in human resource planning is _____.

A) forecasting labor shortage
B) forecasting labor surplus
C) goal setting and strategic planning
D) program implementation and evaluation
E) program goal setting

Question 35

Solenz Inc.is a relatively new company that employs 23 workers.When it finished a major contract,the owner realized that there wasn't enough work left for all the remaining workers.The company is negotiating contracts that could provide future work in a few months,but it currently must address its labor surplus in order to remain financially sound.Which of the following is the best strategy to deal with this labor surplus?

A) an early-retirement program
B) natural attrition
C) a hiring freeze
D) downsizing
E) work sharing

Question 36

In the context of human resource planning,the primary goal of forecasting is to

A) predict labor shortages or surpluses in specific areas of an organization.
B) determine labor supply.
C) set goals for hiring employees.
D) focus attention on a problem and provide a basis for measuring an organization's success.
E) eliminate large numbers of personnel with the goal of enhancing an organization's competitiveness.

Question 37

Identify a benefit of applying statistical forecasting methods.

A) They are particularly useful in dynamic environments.
B) Under the right conditions,they provide predictions that are much more precise than a human forecaster's subjective judgment.
C) They are particularly useful in predicting important events that have no historical precedent.
D) They are invariably better than the "best guesses" of experts.
E) They can be used by organizations as a substitute for relying on the subjective judgments of experts.

Question 38

Ron,an HR manager at Franton Inc. ,is preparing for a 5 percent increase in the production labor force next year.To do this,he needs to determine what the current number of production employees is and how the number is likely to change by the end of the year.To help with this analysis,Ron should use a _____.

A) transitional matrix
B) propensity analysis
C) trend analysis
D) multiple regression
E) leading indicator

Question 39

Tim,a human resource manager,has studied a transitional matrix to identify how his company has been filling its demand for lab technicians.Where else should Tim get information related to the labor supply?

A) the Bureau of Labor Statistics
B) the Equal Employment Opportunity Commission
C) the Occupational Safety and Health Administration
D) his company's marketing plan
E) statistical models that capture "once-in-a-lifetime" changes

Question 40

Which of the following is the first step in the human resource planning process?

A) forecasting
B) goal setting
C) program implementation
D) program evaluation
E) performance evaluation

Question 41

Which of the following best describes a phased-retirement program?

A) It refers to laying off older employees in small batches.
B) It refers to giving lucrative incentives to a large number of older employees to voluntarily retire.
C) It refers to reducing both the number of hours older employees work as well as the cost of these employees.
D) It refers to giving older employees a certain time limit to voluntarily retire.
E) It refers to offering alternative work locations and work responsibilities to older employees.

Question 42

Joe is the CEO of TexTel Inc. ,a company has a team-oriented culture in which people perform as groups and complete short-term projects to earn revenue.After studying his company's structure,Joe feels TexTel's current processes are inefficient.As a result,Joe decides to downsize the organization and then use the profits to enhance the organization's efficiency.What is a disadvantage of this approach?

A) Downsizing yields slow but long-term profits.
B) Downsizing is the simplest way to ensure current and future competitiveness.
C) Downsizing will interfere with the effectiveness of the organization's teamwork.
D) Downsizing often results in acquisition of companies by other organizations.
E) Downsizing requires moving to relatively expensive locations.

Question 43

Carmella,an HR manager at Crexion Inc. ,is dealing with labor shortage problems due to a sudden increase in production levels at the company.Among the following options,the fastest way to fix this problem is to _____.

A) use retrained transfers
B) focus on turnover reductions
C) hire new employees
D) hire temporary employees
E) focus on technological innovation

Question 44

Steve,the CEO at Winsfeld Inc. ,learns that his company is perceived as low-value by customers.He plans to combat this by hiring highly skilled and knowledgeable employees in order to improve Winsfeld's competitive standing.In this scenario,Steve will most likely be hiring

A) outsourced employees.
B) offshored employees.
C) employees with a core competency.
D) employees with a college degree.
E) temporary workers.

Question 45

Nicole,a human resource manager at an electronics firm,observes that many employees who are reaching the traditional retirement age are not interested in leaving the organization.Which of the following statements best explains the reason for this trend among older employees?

A) there are laws against gender discrimination
B) there is a rise in the availability of pensions
C) jobs are becoming less physically demanding
D) phased-retirement programs require employees to work longer hours
E) older workers generally don't have much debt

Question 46

Brendan and Angela are HR managers at Seattle Investments.They are expecting a labor surplus over the next two years resulting in the organization having 24 more employees than required.Typically,two employees leave the organization each month.Which of the following HR strategies should Brendan and Angela consider,taking into account the length of time they have available?

A) downsizing
B) natural attrition
C) pay reductions
D) demotions
E) transfers

Question 47

Which of the following are the most widespread methods for eliminating labor shortages?

A) downsizing and merging with other organizations
B) hiring temporary workers and outsourcing work
C) retrained transfers and turnover reduction
D) overtime and new external hires
E) overtime and retrained transfers

Question 48

El Eram Inc.is automating processes so the company can meet its demand with a smaller workforce.The CEO asks Monica,the vice president of human resources,for advice on how to address the resulting labor surplus.Monica studies the workforce and observes that many employees are in their 50s and 60s.Furthermore,these employees are the highest-paid workers in every job category.Based on this information,what should Monica suggest as the most effective way of addressing El Eram's labor surplus?

A) The workforce should be downsized,with layoffs focusing on the older employees.
B) Retrain the older employees in order to make them to work more productively.
C) Provide performance-based pay to increase production output by the employees.
D) Replace the employees with contract workers.
E) Offer early-retirement incentives to the employees in their 50s and 60s.

Question 49

Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.

A) Both strategies yield slow results for an organization.
B) Both strategies cause high suffering to the employees of an organization.
C) Both strategies can be applied for preventing labor shortages.
D) Both strategies are expensive to implement.
E) Both strategies encourage layoffs.

Question 50

Identify a disadvantage of using temporary and contract workers.

A) Revocability of this method is more difficult than other methods of avoiding labor shortage.
B) These kinds of workers cannot be hired through an agency.
C) These methods are a relatively slow solution to labor shortage.
D) These workers tend to be less committed to an organization.
E) These workers work well in key jobs,but not in those jobs that supplement permanent employees.

Question 51

Which of the following is a step a downsized company can take to counter negative employee emotions?

A) demonstrate that the employees that were downsized deserved it
B) build confidence in the company's plans for a stronger future
C) show the organization's commitment to its management
D) encourage employees to work harder,increasing their value and thus keeping them with the company longer
E) pursue a commitment to the customers over a commitment to the community

Question 52

Why is temporary employment popular with employers?

A) It gives employers flexibility in operations.
B) It allows employers to comply with the requirements of affirmative action imposed by the government.
C) The quality of work from temporary workers is usually far superior.
D) It is the most effective strategy for key customer service jobs.
E) Temporary workers are more committed to the organization.

Question 53

Bob,an HR manager at Delair Inc. ,is expecting a labor surplus for the company in the month of December.This gives Bob nearly eight months to deal with the problem.In order to reduce the labor surplus,Bob decides to use a _____ strategy,which causes less suffering for employees.

A) downsizing
B) demotion
C) hiring freeze
D) pay reduction
E) transfer

Question 54

A manufacturing company,hit by a slump in demand,is experiencing a labor surplus.The company expects the market to improve in six months,and it does not want to lay off any of its employees.Which of the following strategies is an equitable way to handle this issue and spread the burden more fairly?

A) demotions
B) outsourcing
C) reduced work hours
D) overtime
E) employing temporary workers

Question 55

Britt,a production manager at Frelix Inc. ,is expecting a labor shortage for a short period of time.He would like to avoid it with a strategy that can be easily eliminated in the future when there is optimal labor available for work.Which of the following options for avoiding a labor shortage would be the right solution for Britt?

A) hiring new employees
B) employing technological innovation
C) using retrained transfers
D) hiring temporary employees
E) reducing managerial staff

Question 56

Errol,a manager at a large holiday decoration store,is expecting increased sales during the upcoming holiday season.He knows that his current workforce will not be able to meet demand,putting him at risk of a labor shortage.Which of the following strategies would be the best option to help Errol avoid a labor shortage?

A) Errol should hire new employees because he will most likely need additional workers after the holiday season to deal with an increasing sales trend.
B) Errol should consider increasing his current employees' pay during the holiday season so they will work harder to achieve sales targets.
C) Errol should keep his store closed during non-peak hours to compensate for labor shortages.This will ensure his current employees work harder during peak hours.
D) Errol should hire temporary employees because he can let them go once the holiday season is over.
E) Errol should consider increasing the prices of toys so that he can make higher profits with fewer sales,thereby reducing the number of customers and consequently solving the labor shortage issue.

Question 57

Janet,an HR manager at SensNet Inc. ,hires employees who provide a specific set of knowledge and skills that will give her company advantage over its competitors.In the context of strategic planning,Janet is

A) outsourcing a broad set of services.
B) using propensity analysis.
C) seeking leading indicators.
D) hiring individuals with a core competency.
E) using trend analysis.

Question 58

Identify the correct statement regarding downsizing.

A) Downsizing improves long-term organizational effectiveness.
B) The negative effect of downsizing is especially low among firms that engage in high-involvement work practices.
C) Downsizing often disrupts the social networks through which people are creative and flexible.
D) The negative impact of downsizing is especially low for those organizations that emphasize research and development.
E) Downsizing campaigns only eliminate people who are replaceable.

Question 59

Identify the similarity between the outsourcing and overtime strategies for avoiding a labor shortage.

A) Both strategies yield slow results.
B) Both strategies have high revocability.
C) Both strategies are expensive to implement.
D) Both strategies involve contracting with another organization to perform a broad set of services.
E) Both strategies can be used for reducing labor surplus.

Question 60

Wilma heads the production department at Riden Inc. ,a firm that stresses the importance of maintaining regular contact with customers.Wilma is expecting a labor surplus in the future.John,a supervisor,recommends downsizing as an option to deal with this labor surplus,however,Wilma rejects this option.Which of the following statements will validate that Wilma made the right decision?

A) Downsizing cannot be used to reduce the number of managers.
B) Downsizing would result in increased operational costs.
C) Downsizing cannot provide an immediate solution to labor surplus.
D) Downsizing would hurt long-term organizational effectiveness.
E) Downsizing would harm the hierarchy of top management.

Question 61

Grexel Tools applies its in-depth understanding of the challenges facing manufacturers to design and build custom machine tools that are highly valued by business customers.To maintain its competitive advantage,Grexel also wants to avoid spending more than is necessary on administrative activities such as managing employee benefits.What would be the most effective way for Grexel to minimize administrative expenses without sacrificing quality?

A) hiring new employees with administrative skills
B) downsizing the workforce so fewer administrators are needed
C) moving to a location where raw materials are abundant
D) outsourcing administrative work to an organization that specializes in these services
E) hiring temporary workers to fill permanent job positions

Question 62

Trotta Inc. ,a manufacturer of widgets,has entered into a contract with a third party to perform services related to processing orders,managing inventory levels,and shipping products to customers.The company is engaged in

A) offshoring.
B) consolidating.
C) licensing.
D) acquiring.
E) outsourcing.

Question 63

A small company that manufactures special-order wood furniture has kept its employees busy on a 40-hours-a-week schedule for the past two years.The company just received a large contract from a Japanese company that is opening offices in the area.The Japanese company has given a month's time for completion of its order.To complete the contract in the required one month,the furniture company needs additional skilled labor on short notice.Which of the following strategies might the company use if it wants to avoid this short-term labor shortage while finding a simple and cost-effective solution?

A) retrained transfers
B) overtime
C) technological innovation
D) new external hires
E) turnover reductions

Question 64

In the context of managing human resources,the process of _____ creates a buffer between planning and the actual selection of new employees.

A) recruiting
B) evaluating
C) inducting
D) outsourcing
E) training

Question 65

In order to cultivate a favorable picture of the organization,Rhodes Group,a financial services corporation,advertises itself to potential applicants by using the slogan,"Investing in you no matter what road you take." This scenario is an example of _____ advertising.

A) viral
B) image
C) proactive
D) saturation
E) signature

Question 66

Which of the following best describes outsourcing?

A) It refers to contracting with another organization to perform a broad set of services.
B) It refers to finding cheap resources in another country to gain a competitive advantage.
C) It refers to using a temporary or contract employee to fill a single job vacancy.
D) It refers to buying the necessary raw materials needed to conduct business from external suppliers.
E) It refers to moving operations away from the home location to decrease cost savings.

Question 67

_____ influence the kinds of job applicants an organization reaches.

A) Personnel policies
B) Recruitment sources
C) Characteristics of the recruiter
D) Financial sources
E) Industry competitors

Question 68

Gordon,a supervisor at AutoMate Inc. ,realizes that a couple of months from now,he might experience a labor shortage for approximately two weeks due to increased demand for the company's products.Which of the following options would be best for dealing with this labor shortage?

A) Gordon should hire new employees because it is a simple process.
B) Gordon should depend on technological innovation because it helps replace human labor with machines.
C) Gordon should use outsourcing because it reduces internal costs.
D) Gordon should encourage employees to stay with the company.
E) Gordon should encourage employee overtime because it helps to increase productivity for a short period of time.

Question 69

Nazir,an HR manager at Solomon Beverages,identifies and attracts potential job seekers to his organization.In the context of HRM functions,Nazir is carrying out the _____ process.

A) promoting
B) appraising
C) recruiting
D) forecasting
E) disbanding

Question 70

Premiere Software is having difficulty filling all its positions for systems analysts.The company's human resource manager suggests introducing a kind of personnel policy known as a due-process policy.How is that most likely to help with recruitment?

A) This policy implies greater job security and concern for employees.
B) Due-process implies that employees won't be bound to a contract.
C) Implementing a due-process policy suggests that the organization is innovative and fun.
D) Applicants know a due-process policy always leads to a lead-the-market pay strategy.
E) The due-process policy supports a "promote from within" practice,which will encourage current employees to apply.

Question 71

In the context of HR planning,implementation that ties planning and recruiting to an organization's strategy and to its efforts to develop employees becomes a complete program of

A) reengineering.
B) total quality management.
C) benchmarking.
D) talent management.
E) workforce utilization.

Question 72

_____ states that if there is no specific employment contract saying otherwise,the employer or employee may end an employment relationship at any time,regardless of cause.

A) Due-process policy
B) Employment flexibility
C) Rule of fair treatment
D) Rule of law
E) Employment at will

Question 73

Which of the following is true of companies that use a "lead-the-market" pay strategy?

A) They pay more than the current market wages for a job.
B) They have a recruiting disadvantage.
C) They recruit fewer employees than needed and depend on overtime.
D) They provide relatively better working conditions to employees compared to competitors.
E) They usually have low pay,coupled with overtime and flex-time.

Question 74

_____ formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee.

A) Leading indicators
B) Trend analyses
C) Transitional matrices
D) Due-process policies
E) Employment-at-will contracts

Question 75

Which of the following is a challenge associated with an outsourcing strategy?

A) labor shortage
B) increased cost
C) quality-control problems
D) lack of necessary technology
E) diseconomies of scale

Question 76

Organizations use outsourcing as a way to

A) reduce a labor surplus.
B) operate more efficiently and save money.
C) replace labor with technology.
D) ease the transition from temporary worker to employee.
E) hold onto good employees during a labor surplus until they can be hired back.

Question 77

Berzen Inc.hires John as a supervisor in the company.They have an implied understanding that both the employer and the employee have the right to end their relationship at any time they desire.In the context of personnel policies,the relationship between the company and John is based on the _____.

A) promote-from-within policy
B) lead-the-market strategy
C) employment-at-will policy
D) nepotistic agreement
E) benevolent agreement

Question 78

Which of the following is an element in the final stage of human resources planning?

A) estimating labor demand
B) forecasting labor supply
C) estimating labor surplus or shortage
D) strategic planning
E) evaluating outcomes

Question 79

A physicist at AdVanTech recently received an award for several patents he earned that enabled AdVanTech to help slow climate change by reducing carbon emissions.Shelby,AdVanTech's vice president of human resources,is eager to get news coverage of the physicist's award.She knows that,in addition to drawing positive attention to the company,the publicity will support recruitment.Which statement best supports Shelby's thinking?

A) Publicity about AdVanTech will create more opportunities for advancement within the company.
B) A lead-the-market pay strategy requires that people be familiar with the company's track record.
C) Creating the impression of AdVanTech as a place where talented people make a difference can attract talented job candidates.
D) People who learn about the physicist will be less likely to expect that AdVanTech has an employment-at-will policy.
E) This kind of image advertising will give more people the impression that AdVanTech is a fun place to work.

Question 80

Which of the following aspects of recruitment is most likely to affect the nature of the positions that are vacant?

A) recruitment sources
B) personnel policies
C) recruiter traits
D) recruiter behavior
E) applicant characteristics