Deck 5: Planning for and Recruiting Human Resources

Question 1

The second step in human resource planning is performance evaluation.

Answer 1

False
Explanation: The second step in human resource planning is goal setting and strategic planning.

Question 2

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

Answer 2

False
Explanation: The most widespread methods for eliminating a labor shortage are hiring temporary and contract workers and outsourcing work.

Question 3

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

Answer 3

False
Explanation: To ensure success with an outsourcing strategy, companies should avoid outsourcing any work that is proprietary or requires tight security.

Question 4

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 5

In human resource planning,forecasting is an intermediary step.

Question 6

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

Question 7

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 8

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

Question 9

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

Question 10

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

Question 11

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 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

Steve,a production manager at Winsfeld Inc.,finds that productivity in the organization is low compared to the cost of labor.He plans to reduce labor costs by hiring highly skilled labor that results in greater productivity at lower costs.In the context of determining labor surplus and shortage,which of the following should Steve focus on to accomplish his goal?

A) Conducting trend analysis
B) Implementing propensity measures
C) Employing workers with a core competency
D) Implementing training methods
E) Using leading indicators

Question 23

Janet,an HR manager at SensNet Inc.,hires employees who have a specific set of 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 24

Brendan and Angela are HR managers at Seattle Investments.They are expecting a labor surplus over the next two years when the organization will have 24 more than the required number of employees.Typically,two employees leave the organization each month.In this scenario,which of the following is the best way to deal with the predicted labor surplus?

A) They must consider downsizing because it is the fastest way to fix a labor surplus.
B) They must consider natural attrition because the company has enough time to deal with the labor surplus without causing suffering to the employees.
C) They must reduce employees' pay as this will lead to demotivated employees quitting the organization; consequently, the labor surplus problem will be solved.
D) They must choose a hiring freeze strategy because it slows down the attrition rate.
E) They must consider demoting low-performing employees, which will eventually solve labor surplus problem.

Question 25

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

Question 26

James,a new HR manager at Flenzel Inc.,aims to understand the proportion of employees in the public relations department to decide if the company needs to hire new employees.James most likely needs to use a(n)_____ to achieve his objective.

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

Question 27

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

Question 28

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 29

Betty,a production manager at Renton Inc.,needs to avoid a labor surplus in the company in a fast and effective way.She wishes to do so with minimal suffering to the employees in terms of lay-offs and salary.Which of the following strategies will help Betty accomplish her goal?

A) Pay reductions
B) Transfers
C) Demotions
D) Early retirement
E) Retraining

Question 30

Errol,a manager at a large toy store,is expecting increased sales during the holiday season.He knows that he will experience a labor shortage during this time.Which of the following options is most suitable for Errol's situation to avoid a labor shortage?

A) Errol must hire new employees because he will most likely need additional workers after the holiday season to deal with the increased sales trend.
B) Errol must consider increasing workers' pay during the holiday season so that his employees work harder to achieve sales targets.
C) Errol must keep his store closed during non-peak hours to compensate for labor shortages. This will ensure his employees work harder during peak hours.
D) Errol must hire temporary employees because he can let them go once the holiday season is over.
E) Errol must 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 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

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 33

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 judgmental methods.
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 34

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

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

Question 35

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 36

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

Question 37

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 38

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 39

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 40

Ron,an HR manager at Franton Inc.,needs to determine how the number of administrative staff increased in the last two years.He observed that there was a decrease in the accounting department by the same number of staff.In the context of determining labor supply in the accounting department,Ron must use a(n)_____.

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

Question 41

Joe,the CEO of TexTel Inc.,studies the structure of his organization and finds that many of its processes are inefficient.His company has a team-oriented culture in which people perform as groups and complete short-term projects to earn revenue.He decides to downsize the organization to increase profits and use the profits to enhance the organization's efficiency.Emily,the company's HR manager,thinks downsizing is detrimental to the organization's growth.Which one of them is right?

A) Joe is right because downsizing yields slow but long-term profits.
B) Joe is right because downsizing is the simplest way to ensure current and future competitiveness.
C) Emily is right because downsizing will affect the organization's team culture and result in poor productivity.
D) Emily is right because downsizing often results in acquisition of companies by other organizations.
E) Emily is right because downsizing requires moving to relatively expensive locations.

Question 42

Nicole,a manager at an electronics firm,believes that the firm has to create many early-retirement programs with incentives to minimize a labor surplus,as the employees who are reaching the traditional retirement age are not interested in leaving the organization.Which of the following statements explains the reason for this trend among older employees?

A) There are many laws against gender discrimination.
B) There is a rise in the value of older workers' retirement assets.
C) Jobs are becoming less physically demanding.
D) Phased-retirement programs fail to allow employees to work a reduced number of hours.
E) Retirement programs tend to offer benefits only to older female employees and fail to cover older male employees.

Question 43

Jackson,a production manager at Crenzel Inc.,is expecting a labor shortage in the next six months due to increased demand for the company's products during the holiday season.He thinks the best way to deal with this labor shortage is to hire new employees.However,Pamela,the HR manager,thinks this idea would prove expensive and would lead to a labor surplus in the future.Which of the following statements,if true,supports Pamela's argument?

A) Hiring new employees requires more effort than other strategies to deal with labor shortages.
B) The demand for products will fall after the holiday season.
C) Hiring new employees is a tedious process compared to hiring temporary employees.
D) The labor shortage will remain constant after the holiday season is over.
E) The process of hiring new permanent employees tends to be quick.

Question 44

Which of the following observations is true of utilizing the services of independent contractors?

A) Core competencies can be effectively outsourced to contractors.
B) A company is not supposed to directly supervise the contractors.
C) It is a relatively slow process with low revocability.
D) An organization can achieve increased quality though the costs are more.
E) It provides an organization with increased control over the operations.

Question 45

Gary,the CEO of El Eram Inc.,is dealing with an aging labor force problem,which is reducing productivity across the organization.The most effective way of dealing with this situation is to _____.

A) downsize by firing older employees with compensation
B) encourage older employees to work more productively by retraining them
C) provide performance-based incentives to increase production output and delay their retirement
D) enhance their work by employing innovative technological processes
E) encourage lower-performing older workers to leave voluntarily by offering early-retirement incentives

Question 46

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 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 47

Why is temporary employment popular with employers?

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

Question 48

Yienze Inc.,a manufacturer of electronic goods,is experiencing financial losses,and company management is trying to less the fiscal losses.The company is also facing the problem of labor surplus due to low demand for its products.In this context,which of the following is the best way 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 49

Which of the following is true of temporary workers?

A) Temporary employment involves higher costs.
B) Using temporary workers frees an employer from many administrative tasks.
C) Use of temporary workers is not suitable for small companies because extensive testing of the employees needs to be done before these companies get employees from an agency.
D) Most temporary workers need to be trained by the employers every time they join a new organization.
E) Temporary employment is not suitable for those employers who need to operate efficiently even when demand for their products changes rapidly.

Question 50

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 51

Britt,a production manager at Frelix Inc.,is expecting a labor shortage for a short period of time.He needs 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 52

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 relatively less committed to the organization.
E) These workers work well in key jobs but not in those jobs that supplement permanent employees.

Question 53

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 is the ideal option for dealing with this labor shortage?

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

Question 54

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 55

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

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

Question 56

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 57

Solenz Inc.is a relatively new company that employs 23 workers.The company is facing a labor surplus problem with approximately 3 more employees than it needs.Which of the following is the best strategy to deal with this labor surplus?

A) The company must use an early retirement strategy because it helps old employees retire sooner, thereby solving the labor surplus issue.
B) The company must focus on natural attrition whereby employees leave the company on their own, as this will reduce the burden of firing surplus employees.
C) The company must freeze their hiring practices, which will result in balancing the number of employees and the demand for work over a period of time.
D) The company must implement pay reductions as this will help the company get rid of less motivated employees.
E) The company must implement work sharing, which will take up the time of extra workers and help complete projects faster.

Question 58

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 59

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 increase cost savings.

Question 60

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 that results in spreading the burden more fairly?

A) Demotions
B) Outsourcing
C) Reduced work hours
D) Overtime
E) Employing temporary workers

Question 61

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 62

Grexel Tools Inc.is a large manufacturing company with branches in different countries in Asia.The company desires to gain competitive advantage by reducing unnecessary process costs.Which of the following is most suitable for this company to gain competitive advantage?

A) The company must hire new employees who have job skills that enhance productivity.
B) The company must consider downsizing by reducing the workforce.
C) The company must move to a location where raw materials are abundant.
D) The company must outsource their work to a location where they can get inexpensive labor that still provides quality output.
E) The company must hire temporary workers to fill permanent job positions.

Question 63

Identify the benefit of relying on internal recruitment sources.

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

Question 64

Nazir,an HR manager at Solomon Beverages,recognizes 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 65

_____ 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 66

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 is best suited to avoid this short-term labor shortage if the company desires to find a simple and cost-effective solution?

A) Retrained transfers
B) Overtime
C) Technological innovation
D) New external hires
E) Turnover reductions

Question 67

Trotta Inc.,a manufacturer of widgets,has entered into a contract with a third party to perform a few functions of its supply chain management.The company is engaged in:

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

Question 68

Identify the correct statement 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 most appropriate for specialized upper-level positions.

Question 69

In the context of options for reducing a labor surplus,identify the similarity between natural attrition and early retirement strategies.

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 70

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

A) They would pay more than the current market wages for a job.
B) They have a recruiting disadvantage.
C) They would 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 71

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 72

_____ 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 73

_____ 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 74

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

Question 75

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

Question 76

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 77

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 78

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 79

Rhodes Group,a financial services corporation,advertises itself to cultivate a favorable picture of the organization by using the slogan,"Investing innovatively." This scenario is an example of _____ advertising.

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

Question 80

In the context of options for avoiding a labor shortage,identify the similarity between outsourcing and overtime strategies.

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.