Deck 5: The HR Forecasting Process

Question 1

How can organizations reduce their HR costs?

A) if they use contingent workers whenever possible
B) if they pay overtime only when necessary
C) if they ensure that there are more than enough employees
D) if they take a long-run planning approach to HR issues

Answer 1

D

Question 2

What type of forecasting occurs in terms of two- to five-year segments?

A) current
B) short-run
C) medium-run
D) long-run

Answer 2

C

Question 3

What is the external HR supply, given that the organization has a workforce of 500, its historical annual replacement/loss rate is 7 percent, and its corporate downsizing policy will reduce staffing levels by 10 percent? Round to the closest whole number.

A) -85
B) -15
C) 15
D) 85

Answer 3

B

Question 4

What is created when the HR demand exceeds the current personnel resources available in the organization's workforce?

A) HR surplus
B) HR shortage
C) HR scarcity
D) HR supply

Question 5

What is the relationship between the accuracy of prediction and the number of forecasting techniques used?

A) direct
B) indirect
C) null
D) inverse

Question 6

What is the first element an organization needs to consider in deriving its external supply calculation for HR forecasting?

A) To meet its replacement needs.
B) To consider the change component.
C) To predict attrition and retirements.
D) To forecast HR demand accurately.

Question 7

According to the University of Sheffield's Effectiveness Program, which item was the most important influence on the organization's bottom-line performance?

A) technology
B) competitive strategy
C) research and development
D) people management

Question 8

If an organization wished to conduct HR forecasting for its operating cycle, which of the following time horizons should it use?

A) current forecast
B) short-run forecast
C) medium-run forecast
D) long-run forecast

Question 9

Which of the following is NOT a source of external HR supply for an organization?

A) current staff
B) competitors' employees
C) unemployed persons
D) university students

Question 10

Which of the following would NOT be considered a "designated group?

A) Immigrants
B) Women
C) Aboriginals
D) disabled people

Question 11

With reference to HR forecasting, how is the envelope analogy used?

A) It is a visual depiction used for HR communications.
B) It projects current HR supply and demand.
C) It sets the upper and lower boundaries for HR projections.
D) It is an estimate for a variety of HR assumptions.

Question 12

What type of forecasting is concerned with tracking internal change instituted by the organization's managers?

A) process-based
B) event-based
C) scenario-based
D) transaction-based

Question 13

If an organization does not incorporate information from the external environment, what impact will this have on HR forecasting?

A) Lack of specificity in HR forecasting from top management.
B) Elimination of personnel policies that are irrelevant to competitors.
C) Incompatibility between organizational goals and HR planning.
D) Avoidance of producing environmental scans with organizational input.

Question 14

With respect to HR forecasting, when would it be suitable to hire external candidates instead of considering internal recruits?

A) If the organization can hire external candidates for a lower salary than internal recruits.
B) If there is a novel, creative work process that differs substantially from current practice.
C) If HR forecasters predict higher attrition and retirement in the short-term
D) If none of the internal recruits are willing to switch jobs.

Question 15

Which of the following is NOT a categorization of forecasting models according to the textbook?

A) time-series models
B) cause-and-effect models
C) judgemental models
D) prediction models

Question 16

What type of forecasting is concerned with changes in the external environment?

A) process-based
B) event-based
C) internal-based
D) transaction-based

Question 17

Which of the following is NOT a reason that an organization will use external labour?

A) External candidates can introduce competitive insights and new operational techniques.
B) The organization wants to expand its operations through increased labour efficiency.
C) External candidates may be less expensive to hire relative to collective agreements.
D) The organization wants to shake up the organization with external candidates.

Question 18

What HR concept is defined as several HR estimates based on a variety of assumptions?

A) projection
B) prediction
C) predetermination
D) presumption

Question 19

According to the textbook, which of the following is NOT considered a useful global HR planning consideration that would encourage employee collaboration?

A) Maximize the use of technology.
B) Take advantage of differences in time zones.
C) Promote a multi-lingual workforce.
D) Use an HR Management System to eliminate duplicate costs.

Question 20

Which concept refers to a prohibition on all external recruiting activities?

A) attrition
B) hiring freeze
C) down-sizing
D) HR surplus

Question 21

The Conference Board of Canada forecasts that by 2020, there will be a labour shortage of more than one million workers.

Question 22

How many years are typically used for a medium-run HR forecast?

A) 1 to 2 years
B) 2 to 3 years
C) 3 to 5 years
D) 5 to 10 years

Question 23

Transaction-based forecasting is concerned with changes in the external environment.

Question 24

HR forecasting is more reactive than proactive.

Question 25

Given the effects of the Fukushima nuclear disaster caused by the Tōhoku earthquake and tsunami on the external environment, what type of forecasting would HR professionals utilize to incorporate catastrophic circumstances and their consequences?

A) transaction-based forecasting
B) process-based forecasting
C) event-based forecasting
D) critical-based forecasting

Question 26

Which of the following is NOT related to attrition?

A) Retirements
B) voluntary turnover
C) Terminations
D) Deaths

Question 27

Which of the following is NOT an internal factor that will affect HR demand?

A) downsizing management
B) vacations and sick days
C) planned redundancy
D) training and development

Question 28

What is the external HR supply, given that the organization has a workforce of 1 500, its historical annual replacement/loss rate is 5 percent, and its desired future growth rate is 12 percent? Round to closest whole number.

A) -255
B) -105
C) 105
D) 255

Question 29

What techniques do HR managers use to encourage employee collaboration for global forecasting?

A) Minimize use of technology like e-mail and teleconferencing.
B) Schedule work to take advantage of time zone differences.
C) Eliminate all duplicating personnel for greater efficiency.
D) Incorporate specific cultures related to contingent workers.

Question 30

Forecasting in terms of two to five years represents a short-run forecast.

Question 31

Why are some individuals categorized into designated groups?

A) because they are exceptionally skilled and need challenges
B) because of their fragile emotional states
C) because they require special attention
D) because they need to be protected from discrimination

Question 32

An advantage to internal recruitment is that the employee does not need extensive socialization within the organization.

Question 33

Models used in HR forecasting typically fall into one of three categories. What do cause-and-effect models assume?

A) that there is an ongoing relationship between independent and dependent variables
B) that the extrapolated trends will most influence future supply and demand
C) that the time horizon used for the models is most conducive to short-term forecasts
D) that the subjective judgment of experts supports the forecasts

Question 34

HR forecasting is referred to as the "heart" of the HR planning process.

Question 35

HR demand requirements must be found from either internal or external supplies of personnel.

Question 36

A serious problem develops in some organizations when the personnel planning process becomes connected to the overall business goals of the organization.

Question 37

Which of the following external factors affect HR forecasting?

A) managerial appraisals
B) competitor's HR policies
C) executive career planning
D) training and development

Question 38

Effective HR forecasting focuses on a comparison between the organization's current stock of workforce knowledge, skills, and abilities and the numbers and skill competencies desired in the workforce in the future.

Question 39

HR supply is defined as the organization's projected requirement for human resources.

Question 40

Which concept refers to a proposed sequence of events with its own set of assumptions and associated program details?

A) contingency plans
B) Predictions
C) Projections
D) Scenarios

Question 41

A projection is a single numerical estimate of HR requirements associated with a specific time horizon and set of assumptions.

Question 42

HR forecasting will determine the supply of human resources but not the demand.

Question 43

List and briefly describe the HR programs that can be implemented to address HR surpluses AND HR shortages.

Question 44

According to the textbook, projections from many institutions have shown that it is going to be a "buyers" market in the not-too-distant future with respect to acquiring talent in Canada.

Question 45

Forecasting activity for HR planning can be subdivided into two categories: transaction-based and event-based.

Question 46

What is HR forecasting? Briefly describe the advantages that accrue to organizations from instituting effective HR forecasting procedures.

Question 47

Worksharing is a provincial government program that aims to help organizations mitigate temporary layoffs through a redistribution of work, earnings, and leisure time.

Question 48

HR shortage = HR demand < HR internal supply.

Question 49

Male university graduates who are disabled would constitute a "designated group" with respect to hiring in Canada.

Question 50

A projection incorporates several HR estimates based on few assumptions.

Question 51

Attrition is the process of reducing an HR surplus by allowing the size of the workforce to decline naturally due to lay-offs and other forms of involuntary turnover.

Question 52

Forecasting is an accurate reflection of future states and is an activity that strongly favours quantitative and easily codified techniques.

Question 53

Effective HR forecasting relies on obtaining a fine balance between global and local control of the process.

Question 54

List the FIVE steps in HR forecasting in their appropriate order.

Question 55

Persons who have invisible disabilities would constitute a "designated group" with respect to hiring in Canada.

Question 56

Identify the THREE different categories of HR forecasting activity and their relationship to the HR planning process.

Question 57

Identify and describe the key personnel categories that are given the most attention by forecasters.

Question 58

The forecasting term "envelope" is synonymous with the term "projection."