Deck 5: Planning for and Recruiting Human Resources

Question 1

In human resource planning, forecasting is an intermediary step.

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

The second step in human resource planning is performance evaluation.

Answer 3

False

Question 4

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

Question 5

An organization that uses only external recruitment can wind up with a workforce whose members all think alike and therefore may be poorly suited to innovation.

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

Brandon, a production manager at Felix 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 option for avoiding a labor shortage would be the right solution for Brandon?

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

Question 22

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 23

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 24

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 25

Marcus and Olivia are HR managers at Tacoma 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 HR strategy should Marcus and Olivia consider, taking into account the length of time they have available?

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

Question 26

Damien, an HR manager at Guidelines 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, Damien should use a

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

Question 27

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 28

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 29

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 30

Yoza 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, what would be the best way for Yoza Inc. 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 31

Paul is the HR manager at FloGlow 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, Paul needs information about the number of employees currently providing customer service, the number likely to be in those jobs next year, and the number expected to move to other positions in the organization. The information will be easier to organize and interpret if Paul uses a(n)

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

Question 32

Kevin, the CEO of MedImpact 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. Kevin 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

Ernie, a manager at a large 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 strategy would be the best option to help Ernie avoid a labor shortage?

A) Ernie should hire new employees because he will most likely need additional workers after the holiday season to deal with an increasing sales trend.
B) Ernie should increase his current employees' pay during the holiday season so they will work harder to achieve sales targets.
C) Ernie 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) Ernie should hire temporary employees because he can let them go once the holiday season is over.
E) Ernie should consider increasing the prices of toys so he can make higher profits with fewer sales, thereby reducing the number of customers and consequently solving the labor shortage issue.

Question 34

Rantly Corp. is eliminating its desktop computer repair center in Minnesota. Meanwhile, the demand for mobile device repair-a service it provides in Florida and New Jersey-is growing rapidly. Betsy, a human resource specialist at the Rantly Corp. headquarters in Miami, must plan to avoid a labor surplus in Minnesota in a fast and effective way. She wishes to do so with minimal employee suffering in terms of layoffs and salary. Which strategy would best help Betsy accomplish her goal?

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

Question 35

Solarn 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. What 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

What 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 37

Nishi, a production manager at Havana Health, must predict future labor demand using information about inventory levels from the past three years. Nishi 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 38

Christina, an HR manager at Dixon 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 39

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

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

Question 40

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 41

Frank is the CEO of Telex Inc., a company that 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, Frank feels Telex's current processes are inefficient. As a result, Frank 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 42

What 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 43

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 44

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 45

Trinkets 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 46

Taryn, an HR manager at NetHint 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, Taryn 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 47

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 48

Betty heads the production department at Riffer Inc., a firm that stresses the importance of maintaining regular contact with customers. Betty is expecting a labor surplus in the future. Mike, a supervisor, recommends downsizing as an option to deal with this labor surplus, however, Betty rejects this option. Which statement will validate that Betty 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 49

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 eliminate only people who are replaceable.

Question 50

What 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 51

Tex 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, Tex Tools 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 Tex Tools 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 52

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 53

El Niro Inc. is automating processes so the company can meet its demand with a smaller workforce. The CEO asks Megan, the vice president of human resources, for advice on how to address the resulting labor surplus. Megan 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 Megan suggest as the most effective way of addressing El Niro'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 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 54

What 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 55

Jacob, the CEO at Einstein 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 Einstein's competitive standing. In this scenario, Jacob 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 56

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 Chinese company that is opening offices in the area. The Chinese 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 strategy 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 57

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 58

Which statement 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 59

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 strategy 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 60

Allie, 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 statement 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 61

________ 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 62

________ 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 63

What 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 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

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

A) Publicity about HealthAir 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 HealthAir as a place where talented people make a difference can attract talented job candidates.
D) People who learn about Cory's award will be less likely to expect that HealthAir has an employment-at-will policy.
E) This kind of image advertising will give more people the impression that HealthAir is a fun place to work.

Question 66

In order to cultivate a favorable picture of the organization, Shubert 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 67

Berns Inc. hires Allen 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 Allen 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 68

Which of the following is an internal source of recruitment?

A) employee referrals
B) direct applicants
C) employment agencies
D) job postings
E) personal interviews

Question 69

Which aspect 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

Question 70

Excel 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

The process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else an organization communicates with employees is referred to as

A) job posting.
B) external hiring.
C) employment referral.
D) a workforce utilization review.
E) direct sourcing.

Question 72

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

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

Question 73

Leo is a human resource specialist at a company with a promote-from-within policy. Based on that policy, what method should he include in his recruiting efforts to fill an open position for an accounting supervisor?

A) using the services of a private employment agency
B) inviting employees to refer a friend
C) sending recruiters to colleges
D) posting the job on the company's intranet
E) posting the job on the company's careers website

Question 74

What 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 75

People who apply for a vacancy without prompting from an organization are referred to as

A) direct applicants.
B) natural applicants.
C) internal applicants.
D) neutral applicants.
E) referred applicants.

Question 76

Which statement is correct regarding internal recruitment sources?

A) Research indicates that most organizational positions are filled internally.
B) Internal recruitment sources expose an organization to new ideas or new ways of doing business.
C) Internal recruiting minimizes the possibility of unrealistic employee expectations.
D) Employee referrals are the most common source of job applicants for internal recruitment.
E) Internal sources are the most appropriate for specialized upper-level positions.

Question 77

Tom, a supervisor at AutoMax 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 option would be best for dealing with this labor shortage?

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

Question 78

________ 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 79

Identify the benefit of relying on internal recruitment sources.

A) Internal candidates are likely to promote diversity in terms of race and sex.
B) Internal applicants minimize the impact of political considerations in the hiring decision.
C) Internal sources are generally cheaper and faster than other means.
D) Internal sources expose an organization to new ideas or new ways of doing business.
E) Current employees are well suited to recruit people for specialized upper-level positions.

Question 80

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.