Fundamentals of Human Resource Management Raymond Noe 8e - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Fundamentals of HR Management, 8e (Noe) Chapter 5 Planning for and Recruiting Human Resources 1) In human resource planning, forecasting is an intermediary step. Answer: …
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Fundamentals of HR Management, 8e (Noe)
Chapter 5 Planning for and Recruiting Human Resources
1) In human resource planning, forecasting is an intermediary step.
Answer: FALSE
Explanation: The process of human resource planning consists of three stages: forecasting, goal setting and strategic planning, and program implementation and evaluation. The first step in human resource planning is forecasting.
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) Statistical models are used for forecasting labor demand because they are good at capturing “once-in-a-lifetime” changes.
Answer: FALSE
Explanation: Statistical models almost always have to be complemented with subjective judgments of experts. There are simply too many “once-in-a-lifetime” changes to consider, and statistical models cannot capture them.
Difficulty: 2 Medium
Topic: Labor Supply and Demand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) 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.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Labor Supply and Demand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) The second step in human resource planning is performance evaluation.
Answer: FALSE
Explanation: The second step in human resource planning is goal setting and strategic planning.
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The goals an organization sets in its human resource planning process should come directly from the analysis of its labor supply and demand.
Answer: TRUE
Explanation: The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses. The goals should come directly from the analysis of labor supply and demand.
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Downsizing can be used to reduce surplus labor because it yields fast results.
Answer: TRUE
Explanation: Downsizing reduces labor surpluses quickly; however, this action may cause the highest amount of suffering among employees who survive the job cuts.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) The negative effect of downsizing would be low among firms that use performance-related pay incentives.
Answer: FALSE
Explanation: The negative effect of downsizing is especially high among firms that engage in high-involvement work practices, such as the use of teams and performance-related pay incentives.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) Downsizing disrupts the social networks through which people are creative and flexible.
Answer: TRUE
Explanation: Downsizing leads to a loss of talent, and it often disrupts the social networks through which people are creative and flexible.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) The most widespread methods for eliminating labor shortages are reducing work hours and endorsing early retirement programs.
Answer: FALSE
Explanation: The most widespread methods for eliminating a labor shortage are hiring temporary and contract workers and outsourcing work.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) The use of temporary workers might provide an organization with additional administrative tasks and financial burdens.
Answer: FALSE
Explanation: Temporary employment offers lower costs to organizations. Using temporary workers frees the employer from many administrative tasks and financial burdens associated with being the “employer of record.”
Difficulty: 2 Medium
Topic: The Contingent Workforce
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
11) Contracting with another organization to perform a broad set of services is called outsourcing.
Answer: TRUE
Explanation: Contracting with another organization to perform a broad set of services is called outsourcing.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
12) To ensure success with an outsourcing strategy, companies should outsource work that requires tight security.
Answer: FALSE
Explanation: To ensure success with an outsourcing strategy, companies should avoid outsourcing any work that is proprietary or requires tight security.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
13) When implementing an HR strategy, the organization must hold some individual accountable for achieving the goals.
Answer: TRUE
Explanation: When implementing an HR strategy, the organization must hold some individual accountable for achieving the goals. That person also must have the authority and resources needed to accomplish those goals.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
14) The steps in a workforce utilization review are identical to the steps in the HR planning process.
Answer: TRUE
Explanation: The steps in a workforce utilization review are identical to the steps in the HR planning process.
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
15) 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: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
16) 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.
Answer: FALSE
Explanation: Bringing in outsiders via external recruitment may expose the organization to new ideas or new ways of doing business. An organization that uses only internal recruitment can wind up with a workforce whose members all think alike and therefore may be poorly suited to innovation.
Difficulty: 1 Easy
Topic: Internal and External Recruiting
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) In the context of recruitment sources, referrals are people who apply for a vacancy without prompting from the organization.
Answer: FALSE
Explanation: Referrals are people who apply for a vacancy because someone in the organization prompted them to do so. Direct applicants are people who apply for a vacancy without prompting from the organization.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
18) Many of the people reading classified ads are either over- or under-qualified for the position.
Answer: TRUE
Explanation: Many of the people reading classified ads are either over- or under-qualified for the position.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) In the context of recruitment sources, private employment agencies serve primarily blue-collar workers, while public employment agencies mostly serve white-collar workers.
Answer: FALSE
Explanation: In contrast to public employment agencies, which primarily serve the blue-collar labor market, private employment agencies provide much the same service for the white-collar labor market.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
20) Research suggests that realistic job previews have a strong and consistent effect on employee turnover.
Answer: FALSE
Explanation: Research suggests that realistic job previews have a weak and inconsistent effect on turnover.
Difficulty: 1 Easy
Topic: The Recruiters Role
Learning Objective: 05-06 Describe the recruiters role in the recruitment process, including limits and opportunities.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
21) Organizations carry out human resource planning to
Answer: D
Explanation: Organizations need to carry out human resource planning so as to meet business objectives and gain advantage over competitors. To do this, organizations need a clear idea of the strengths and weaknesses of their existing internal labor force.
Difficulty: 2 Medium
Topic: The Human Resource Planning Process
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
22) What is the first step in the human resource planning process?
Answer: A
Explanation: The first step in human resource planning is forecasting. In personnel forecasting, the HR professional tries to determine the supply of and demand for various types of human resources.
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) In the context of human resource planning, the primary goal of forecasting is to
Answer: A
Explanation: The primary goal of forecasting is to predict which areas of the organization will experience labor shortages or surpluses.
Difficulty: 2 Medium
Topic: The Human Resource Planning Process
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
24) Identify a benefit of applying statistical forecasting methods.
Answer: B
Explanation: Statistical methods capture historic trends in a company’s demand for labor. Under the right conditions, these methods predict demand and supply more precisely than a human forecaster can using subjective judgment. But many important events in the labor market have no precedent. When such events occur, statistical methods are of little use.
Difficulty: 2 Medium
Topic: The Human Resource Planning Process
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
25) 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.
Answer: C
Explanation: Trend analysis refers to constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year. These statistics are called leading indicators.
Difficulty: 3 Hard
Topic: Labor Supply and Demand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
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
Answer: A
Explanation: Leading indicators are objective measures that accurately predict future labor demand. They might include measures of the economy (such as sales or inventory levels), actions of competitors, changes in technology, and trends in the composition of the workforce and overall population.
Difficulty: 2 Medium
Topic: Labor Supply and Demand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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
Answer: E
Explanation: 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. It answers two questions: “Where did people who were in each job category go?” and “Where did people now in each job category come from?”
Difficulty: 1 Easy
Topic: Labor Supply and Demand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
28) 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)
Answer: B
Explanation: 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. A transitional matrix answers two questions: “Where did people who were in each job category go?” and “Where did people now in each job category come from?”
Difficulty: 3 Hard
Topic: Labor Supply and Demand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
29) 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
Answer: A
Explanation: 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. A transitional matrix answers two questions: “Where did people who were in each job category go?” and “Where did people now in each job category come from?”
Difficulty: 3 Hard
Topic: Labor Supply and Demand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
30) The second step in human resource planning is
Answer: C
Explanation: The second step in human resource planning is goal setting and strategic planning.
Difficulty: 1 Easy
Topic: Integrating Human Resource Planning and Strategic Planning
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
31) 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.
Answer: B
Explanation: In this scenario, Kevin is most likely using the downsizing strategy to deal with the company’s labor surplus. Downsizing delivers fast results to reduce labor surplus. However, the amount of suffering caused to employees is high in this strategy.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
32) 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?
Answer: D
Explanation: Although downsizing causes high employee suffering, in this scenario, the company should use downsizing to reduce its labor surplus. Yoza Inc. is facing severe losses and downsizing will also help save it from further financial difficulties.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
33) 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?
Answer: B
Explanation: Transfers can be used as a strategy to avoid the Minnesota labor surplus. Early retirement and hiring freezes are slow options, which do not fit the parameters Betsy has set. The remaining strategies are relatively fast, but pay reductions and demotions cause high amounts of suffering, while transfers cause only a moderate amount of suffering.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
34) 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?
Answer: E
Explanation: In this scenario, the company should use a work-sharing strategy, which will immediately reduce costs while causing less suffering to employees than layoffs would. Also, the company will still have workers in place when the work on new contracts begins.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
35) 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.
Answer: C
Explanation: Charlie has eight months to deal with the labor surplus problem. Therefore, he should use the hiring freeze strategy to deal with the surplus. It yields results slowly, causes less suffering for the employees, and achieves the objective of reducing the labor surplus.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
36) 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?
Answer: B
Explanation: Marcus and Olivia should consider natural attrition, which is when people leave an organization on their own. Unlike the other strategies, which produce fast results, natural attrition happens slowly. If two employees continue to leave the organization per month, Marcus and Olivia will reduce the labor surplus within two years.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
37) Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.
Answer: A
Explanation: Both the natural attrition and early retirement strategies yield slow results and cause low suffering to the employees.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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
Answer: D
Explanation: In this scenario, Christina must use temporary employees to deal with labor shortage problems. Hiring temporary employees is relatively inexpensive, and it helps in dealing with sudden and temporary labor shortages.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
39) 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?
Answer: D
Explanation: To handle a labor shortage, one option organizations typically pursue is hiring temporary employees. In this option, the speed of results is high, and the ability to eliminate the strategy at a later date is high.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
40) 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?
Answer: D
Explanation: In this scenario, Ernie should hire temporary workers. This strategy can be implemented quickly, ensuring Ernie will avoid a labor shortage. This strategy also gives Ernie flexibility because it is easy to change after implementation; once the holiday season is over Ernie can let the temporary workers go.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
41) Identify the similarity between the outsourcing and overtime strategies for avoiding a labor shortage.
Answer: B
Explanation: Both the overtime and outsourcing strategies yield fast results and are easy to change after implementation, that is, they have high revocability.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
42) 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
Answer: D
Explanation: Organizations benefit from hiring and retaining employees who provide a core competency—that is, a set of knowledge and skills that make the organization superior to competitors and create value for customers.
Difficulty: 3 Hard
Topic: Integrating Human Resource Planning and Strategic Planning
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
43) 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
Answer: C
Explanation: Organizations are most likely to benefit from hiring and retaining employees who provide a core competency—that is, a set of knowledge and skills that make the organization superior to competitors and create value for customers.
Difficulty: 3 Hard
Topic: Integrating Human Resource Planning and Strategic Planning
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
44) 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?
Answer: D
Explanation: Although downsizing has an immediate effect on costs, much of the evidence suggests that it hurts long-term organizational effectiveness. This is especially true for certain kinds of companies, such as those that emphasize research and development and where employees have extensive contact with customers.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
45) 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?
Answer: C
Explanation: The negative effect of downsizing is especially high among firms that engage in high-involvement work practices, such as the use of teams and performance-related pay incentives. As a result, the more a company tries to compete through its human resources, the more layoffs hurt productivity.
Difficulty: 3 Hard
Topic: Integrating Human Resource Planning and Strategic Planning
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
46) Identify the correct statement regarding downsizing.
Answer: C
Explanation: Downsizing is the planned elimination of large numbers of personnel with the goal of enhancing an organization’s competitiveness. Downsizing leads to a loss of talent, and it often disrupts the social networks through which people are creative and flexible.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
47) What is a step a downsized company can take to counter negative employee emotions?
Answer: B
Explanation: Organizations may not take (or even know) the steps that can counter these reactions—for example, demonstrating how they are treating employees fairly, building confidence in the company’s plans for a stronger future, and showing the organization’s commitment to behaving responsibly with regard to all its stakeholders, including employees, customers, and the community.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
48) 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?
Answer: C
Explanation: An alternative to downsizing that is seen as a way to spread the burden more fairly is cutting work hours, generally with a corresponding reduction in pay. This is a more equitable way to weather a slump in demand.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
49) 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?
Answer: C
Explanation: The average age of the U.S. workforce is increasing. But even though many baby boomers are reaching traditional retirement age, indications are that this group has no intention of leaving the workforce soon. Reasons include improved health of older people, jobs becoming less physically demanding, insufficient savings, high levels of debt, lack of pensions, enjoyment of work (especially in the higher-paying occupations), and laws against age discrimination.
Difficulty: 3 Hard
Topic: Labor Supply and Demand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
50) 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?
Answer: E
Explanation: Another popular way to reduce a labor surplus is with an early retirement program. Under the pressures associated with an aging labor force, many employers try to encourage older workers to leave voluntarily by offering a variety of early retirement incentives. The more lucrative of these programs succeed by some measures. Research suggests that these programs encourage lower-performing older workers to retire.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
51) Which of the following best describes a phased-retirement program?
Answer: C
Explanation: In a phased-retirement program, an organization can continue to enjoy the experience of older workers while reducing the number of hours that these employees work, as well as the cost of those employees.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
52) What are the most widespread methods for eliminating labor shortages?
Answer: B
Explanation: The most widespread methods for eliminating a labor shortage are hiring temporary and contract workers and outsourcing work.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) Identify a disadvantage of using temporary and contract workers.
Answer: D
Explanation: Temporary and contract workers may not be as committed to an organization as the permanent employees in an organization.
Difficulty: 2 Medium
Topic: The Contingent Workforce
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
54) Why is temporary employment popular with employers?
Answer: A
Explanation: Temporary employment is popular with employers because it gives them flexibility they need to operate efficiently when demand for their products changes rapidly.
Difficulty: 2 Medium
Topic: The Contingent Workforce
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
55) Which statement best describes outsourcing?
Answer: A
Explanation: Outsourcing refers to contracting with another organization to perform a broad set of services.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) 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
Answer: E
Explanation: Outsourcing refers to contracting with another organization to perform a broad set of services.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
57) Organizations use outsourcing as a way to
Answer: B
Explanation: Organizations use outsourcing as a way to operate more efficiently and save money. They choose outsourcing firms that promise to deliver the same or better quality at a lower cost.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
58) 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?
Answer: D
Explanation: Organizations use outsourcing as a way to operate more efficiently and save money. They choose outsourcing firms that promise to deliver the same or better quality at a lower cost. One reason they can do this is that the outside company specializes in the service and can benefit from economies of scale. Costs also are lower when the outsourcing firm is located in a part of the world where wages are relatively low.
Difficulty: 3 Hard
Topic: Integrating Human Resource Planning and Strategic Planning
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
59) What is a challenge associated with an outsourcing strategy?
Answer: C
Explanation: Outsourcing may be a necessary way to operate as efficiently as competitors, but it does pose challenges. Quality-control problems, security violations, and poor customer service have sometimes wiped out the cost savings attributed to lower wages.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
60) 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?
Answer: B
Explanation: Organizations facing a labor shortage may be reluctant to hire employees, even temporary workers, or to commit to an outsourcing arrangement. Especially if the organization expects the shortage to be temporary, it may prefer an arrangement that is simpler and less costly. Under some conditions, these organizations may try to garner more hours from the existing labor force, asking them to go from part-time to full-time status or to work overtime.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
61) 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?
Answer: E
Explanation: Under some conditions, organizations may try to garner more hours from the existing labor force, asking them to go from part-time to full-time status or to work overtime. Employers see overtime pay as preferable to the costs of hiring and training new employees. The preference is especially strong if the organization doubts that the current higher level of demand for its products will last long. Overtime therefore is best suited for short-term labor shortages.
Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
62) What is an element in the final stage of human resources planning?
Answer: E
Explanation: The final stage of human resource planning involves implementing strategies and evaluating outcomes.
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
63) 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
Answer: D
Explanation: Implementation that ties planning and recruiting to an organization’s strategy and to its efforts to develop employees becomes a complete program of talent management. Today’s computer systems have made talent management more practical.
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
64) 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.
Answer: C
Explanation: In this scenario, Vino is carrying out the recruiting process. An activity carried on by an organization with the primary purpose of identifying and attracting potential employees is referred to as recruiting.
Difficulty: 2 Medium
Topic: Define Recruitment
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
65) In the context of managing human resources, the process of ________ creates a buffer between planning and the actual selection of new employees.
Answer: A
Explanation: In human resource management, recruiting consists of any practice or activity carried on by an organization with the primary purpose of identifying and attracting potential employees. It thus creates a buffer between planning and the actual selection of new employees.
Difficulty: 1 Easy
Topic: Define Recruitment
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
66) ________ influence the kinds of job applicants an organization reaches.
Answer: B
Explanation: Recruitment sources influence the kinds of job applicants an organization reaches.
Difficulty: 1 Easy
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
67) Which aspect of recruitment is most likely to affect the nature of the positions that are vacant?
Answer: B
Explanation: An organization’s personnel policies are its decisions about how it will carry out human resource management, including how it will fill job vacancies. These policies influence the nature of the positions that are vacant. According to the research on recruitment, it is clear that characteristics of the vacancy are more important than recruiters or recruiting sources for predicting job choice.
Difficulty: 1 Easy
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
68) What is true of companies that use a “lead-the-market” pay strategy?
Answer: A
Explanation: Pay is an important job characteristic for almost all applicants. Organizations have a recruiting advantage if their policy is to take a “lead-the-market” approach to pay—that is, pay more than the current market wages for a job.
Difficulty: 2 Medium
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
69) ________ 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.
Answer: E
Explanation: Employment at will is an employment principle, which holds 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.
Difficulty: 1 Easy
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
70) 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
Answer: C
Explanation: In this scenario, the relationship between Allen and the company is based on the employment-at-will policy. This policy holds that if there is no specific employment contract stating otherwise, the employer or employee may end an employment relationship at any time.
Difficulty: 3 Hard
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
71) ________ formally lay out the steps an employee may take to appeal an employer’s decision to terminate that employee.
Answer: D
Explanation: Due-process policies formally lay out the steps an employee may take to appeal an employer’s decision to terminate that employee.
Difficulty: 1 Easy
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
72) 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?
Answer: A
Explanation: Due-process policies formally lay out the steps an employee may take to appeal an employer’s decision to terminate that employee. Job applicants are more attracted to organizations with due-process policies, which imply greater job security and concern for protecting employees, than to organizations with employment-at-will policies, which hold that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time.
Difficulty: 3 Hard
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
73) 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.
Answer: B
Explanation: Besides advertising specific job openings, organizations may advertise themselves as a good place to work in general. Advertising designed to create a generally favorable impression of the organization is called image advertising.
Difficulty: 3 Hard
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
74) 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?
Answer: C
Explanation: Advertising designed to create a generally favorable impression of the organization is called image advertising. Image advertising is particularly important for organizations in highly competitive labor markets that perceive themselves as having a bad image. Research suggests that the image of an organization’s brand influences the degree to which a person feels attracted to the organization. This attraction is especially true if the person’s own traits seem to match those of the organization. Publicity is not paid advertising, but in this example, it is communication that serves a similar purpose: creating a favorable impression of the company.
Difficulty: 3 Hard
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
75) Which of the following is an internal source of recruitment?
Answer: D
Explanation: Job posting refers to communicating information about a vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else an organization communicates with employees.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
76) 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
Answer: A
Explanation: Job postings refer to 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.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
77) 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?
Answer: D
Explanation: To promote from within involves recruiting employees who already hold other positions in the organization—that is, using internal sources. Organizations recruit existing employees through job posting, or communicating information about the vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the organization communicates with employees.
Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
78) Identify the benefit of relying on internal recruitment sources.
Answer: C
Explanation: Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.
Difficulty: 2 Medium
Topic: Internal and External Recruiting
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
79) Which statement is correct regarding internal recruitment sources?
Answer: C
Explanation: Internal recruitment sources generate applicants who are well known to an organization. In addition, these applicants are relatively knowledgeable about the organization’s vacancies, minimizing the possibility they will have unrealistic expectations about the job.
Difficulty: 2 Medium
Topic: Internal and External Recruiting
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
80) People who apply for a vacancy without prompting from an organization are referred to as
Answer: A
Explanation: People who apply for a vacancy without prompting from an organization are referred to as direct applicants.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
81) Jim applies for a job at Texture Inc. because his friend Chris, who is a manager there, prompts him to do so. In this scenario, Jim is a(n)
Answer: D
Explanation: Referrals are people who apply for a job vacancy because someone in the organization prompted them to do so.
Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
82) Most direct applicants to an organization have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application. This process is termed
Answer: C
Explanation: Most direct applicants have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application, a process called self-selection. Self-selection, when it works, eases the pressure on the organization’s recruiting and selection systems.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
83) Which statement is true about referrals?
Answer: C
Explanation: Referrals fall under the category of external sources of recruitment. Referrals and direct applications cost much less than formal recruiting efforts and are among the best sources of new hires. The major downside of referrals is that they limit the likelihood of exposing an organization to different viewpoints. Furthermore, sometimes referrals contribute to hiring practices that are or that appear unfair, an example being nepotism, or the hiring of relatives.
Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
84) Evelyn, the HR manager at Freton Inc., recruits her cousin Gia as production manager in the company. This move results in resentment among several of the company’s employees. By hiring her cousin, Evelyn has engaged in the practice of hiring relatives, or
Answer: B
Explanation: Nepotism is the practice of hiring relatives. This is often considered an unfair practice and can result in resentment among employees.
Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
85) Sean works in the human resource department of a well-known and highly respected maker of athletic equipment. He suggests that the company expand its recruiting by placing job advertisements on popular websites for job seekers. However, his supervisor says this has become a poor use of the company’s recruiting dollars. Which is the most likely reason for the supervisor’s objection?
Answer: B
Explanation: A drawback of the big job websites is that they can provide too many leads of inferior quality because they are so huge and serve all job seekers and employers, not a select segment.
Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
86) Which statement is true of executive search firms?
Answer: E
Explanation: For managers or professionals, an employer may use the services of a type of private agency called an executive search firm (ESF). People often call these agencies “headhunters” because, unlike other employment agencies, they find new jobs for people almost exclusively already employed. ESFs serve as a buffer, providing confidentiality between the employer and the recruit.
Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
87) Fernando, a human resource executive, is meeting with the executive team to discuss the need to fill a soon-to-be-vacant position for vice president of the company’s Medical Devices Division. Normally, he posts vacancies on the company’s website, but he encourages the team to allocate funds to hire an executive search firm (ESF) for filling this position. Which statement best supports Fernando’s recommendation?
Answer: C
Explanation: For managers or professionals, an employer may use the services of a type of private agency called an executive search firm. For job candidates, dealing with ESFs can be sensitive. Typically, executives do not want to advertise their availability, because it could trigger a negative reaction from their current employer. ESFs serve as a buffer, providing confidentiality between the employer and the recruit. That benefit may give an employer access to candidates it cannot recruit in other, more direct ways.
Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
88) The most important source of recruits for entry-level professional and managerial vacancies is
Answer: A
Explanation: On-campus interviewing is the most important source of recruits for entry-level professional and managerial vacancies.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
89) In the context of evaluating the quality of a recruitment source, yield ratios express the
Answer: C
Explanation: In terms of evaluating the quality of a recruitment source, a yield ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.
Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
90) Alice helped a sales manager place an ad on job boards and hire five new salespeople. She calculates that the total cost to recruit and select these employees was $200,000. What was the cost per hire for this recruiting effort?
Answer: A
Explanation: To compute the cost per hire, find the cost of using a particular recruitment source for a particular type of vacancy. Then divide that cost by the number of people hired to fill that type of vacancy (200,000 ÷ 5 = 40,000).
Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
91) Herbert, an HR manager at Maxtier Inc., hires 50 employees in five months. He used different sources of recruitment to recruit these employees. He wants to know which kind of source delivered the most new hires for the money. To answer that question, Herbert should determine the
Answer: E
Explanation: In this scenario, the cost per hire would allow Herbert to compare the costs of different recruitment sources. To compute this amount, Herbert should find the cost of using a particular recruitment source for a particular type of vacancy. Then he should divide that cost by the number of people hired to fill that type of vacancy. A low cost per hire means that the recruitment source is efficient; it delivers qualified candidates at minimal cost.
Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
92) Milo determines that his company spent $15,000 to hire three new programmers through employee referrals and another $75,000 to hire five new programmers through a private employment agency. Which statement is correct about these recruiting efforts?
Answer: E
Explanation: To compute the cost per hire, find the cost of using a particular recruitment source for a particular type of vacancy. Then divide that cost by the number of people hired to fill that type of vacancy. With this method, the cost per hire for referrals was $5,000 ($15,000 ÷ 3 = $5,000), which is lower than the $15,000 cost per hire for the employment agency ($75,000 ÷ 5 = $15,000).
Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
93) Janine, a trainer at Keller Inc., wants to find out how many candidates moved from the initial interview stage to the training selection stage in the past month. To find out, she needs to compare the
Answer: A
Explanation: A yield ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.
Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
94) Maria is a recruiter with a bachelor’s degree in business administration. She is well respected among her peers for her professional standards and understanding of the HR field. However, she has noticed that when she recruits engineers for her company, they sometimes seem unresponsive to her. The most likely reason for this is because Maria
Answer: B
Explanation: According to some studies, applicants perceive HR specialists as less credible and are less attracted to jobs when recruiters are HR specialists. The evidence does not completely discount a positive role for personnel specialists in recruiting. It does indicate, however, that these specialists need to take extra steps to ensure that applicants perceive them as knowledgeable and credible. In general, applicants respond positively to recruiters whom they perceive as warm and informative.
Difficulty: 3 Hard
Topic: The Recruiters Role
Learning Objective: 05-06 Describe the recruiters role in the recruitment process, including limits and opportunities.
Bloom’s: Analyze
AACSB: Communication
Accessibility: Keyboard Navigation
95) Maxim is an HR manager at a large accounting firm. He hires and trains the firm’s staff of recruiters. Maxim hires people with education in human resource management and a warm attitude that displays a positive interest in people. How else should he equip the recruiters so that they have success in this kind of work?
Answer: D
Explanation: In general, applicants respond positively to recruiters whom they perceive as warm and informative. “Warm” means the recruiter seems to care about the applicant and to be enthusiastic about the applicant’s potential to contribute to the organization. “Informative” means the recruiter provides the kind of information the applicant is seeking. The evidence of impact of other characteristics of recruiters—including their age, sex, and race—is complex and inconsistent.
Difficulty: 2 Medium
Topic: The Recruiters Role
Learning Objective: 05-06 Describe the recruiters role in the recruitment process, including limits and opportunities.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
96) Jill is a recruiter for Kinnack Inc. When she interviews job candidates, she works hard to provide background information about the job’s positive and negative qualities. She aims to be sure every detail is accurate, so that any employees hired will feel they got what they expected and will want to stay on with the company. Jill’s behavior is an example of providing a
Answer: B
Explanation: In this scenario, Jill is providing a realistic job preview—accurate background information about a job’s positive and negative qualities.
Difficulty: 3 Hard
Topic: The Recruiters Role
Learning Objective: 05-06 Describe the recruiters role in the recruitment process, including limits and opportunities.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
97) Amber wants to apply for a job vacancy. She calls the recruiter who advertised this vacancy to learn more about the job. The recruiter gives some background information about the positive and negative qualities of the job to Amber. Which term refers to the job information given by the recruiter?
Answer: D
Explanation: Realistic job previews provide background information about jobs’ positive and negative qualities.
Difficulty: 3 Hard
Topic: The Recruiters Role
Learning Objective: 05-06 Describe the recruiters role in the recruitment process, including limits and opportunities.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
98) A start-up software company hires Kiera as its first human resource manager. Whenever a new position needs to be filled, Kiera sits down with the supervisor to gather facts that will be included in a realistic job preview. Kiera knows that the impact of job previews on candidates is limited, but she believes the effort is important anyway. Which statement best explains Kiera’s decision to provide realistic job previews?
Answer: E
Explanation: Although realistic job previews have only a weak association with reduced turnover, the cost of the effort is low, and they are relatively easy to implement. Consequently, employers should consider using them as a way to reduce turnover among new hires.
Difficulty: 2 Medium
Topic: The Recruiters Role
Learning Objective: 05-06 Describe the recruiters role in the recruitment process, including limits and opportunities.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
99) Antoine is proud of his team of warm, knowledgeable, and ethical recruiters at Luvia Insurance. They are sure to give realistic job previews, and they keep up to date on the company’s policies so they can provide applicants with accurate answers to a host of questions. However, it sometimes takes a while to fill positions. And over the past year, Antoine has observed that the number of applicants who accept offers has fallen. He follows up with several who turned down offers and learns that they took jobs elsewhere because they developed an unfavorable opinion of Luvia Insurance. Which situation most likely explains this problem?
Answer: B
Explanation: Recruiters should provide timely feedback. Applicants dislike delays in feedback. They may draw negative conclusions about the organization, such as the organization doesn’t care about their application.
Difficulty: 3 Hard
Topic: The Recruiters Role
Learning Objective: 05-06 Describe the recruiters role in the recruitment process, including limits and opportunities.
Bloom’s: Evaluate
AACSB: Communication
Accessibility: Keyboard Navigation
100) Define forecasting. Describe one method each for forecasting labor demand and supply.
Answer: The attempts to determine the supply of and demand for various types of human resources, or to predict areas within an organization where there will be labor shortages or surpluses, is referred to as forecasting. An organization might use trend analysis to predict labor demand, constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year. These statistics are called leading indicators—objective measures that accurately predict future labor demand. The analysis of a transitional matrix is a statistical procedure that can be used for analyzing labor supply. This 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. It answers two questions: “Where did people who were in each job category go?” and “Where did people now in each job category come from?”
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.; 05-02 Determine the labor demand for workers in various job categories.
Bloom’s: Remember
AACSB: Analytical Thinking
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101) What are early retirement programs? What is a phased-retirement program and what are its benefits?
Answer: Early retirement programs allow the older workers to retire ahead of the retirement age. Under the pressures associated with an aging labor force, many employers try to encourage older workers to leave voluntarily by offering a variety of early retirement incentives. The more lucrative of these programs succeed by some measures. Research suggests that these programs encourage lower-performing older workers to retire. Sometimes they work so well that too many workers retire. But many are not willing to retire early. Reasons include improved health of older people, jobs becoming less physically demanding, insufficient savings, high levels of debt, lack of pensions, enjoyment of work (especially in higher-paying occupations), and laws against age discrimination. Many organizations are moving from early retirement programs to phased-retirement programs. In a phased-retirement program, the organization can continue to enjoy the experience of older workers while reducing the number of hours that these employees work, as well as the cost of those employees. This option also can give older employees the economic and psychological benefit of easing into retirement, rather than being thrust entirely into a new way of life.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
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102) Discuss the challenges associated with temporary workers and contract workers.
Answer: Temporary and contract workers offer flexibility to the employer. However, to use this source of labor effectively, employers need to overcome some disadvantages. In particular, temporary and contract workers may not be as committed to the organization, so if they work directly with customers, that attitude may spill over and affect customer loyalty. Therefore, many organizations try to use permanent employees in key jobs and use temporary and contract workers in ways that clearly supplement—and do not potentially replace—the permanent employees. Also, if the person providing the service is a contractor and not an employee, the company is not supposed to directly supervise the worker. The company can tell the contractor what criteria the finished assignment should meet but not, for example, where or what hours to work. This distinction is significant, because under federal law, if the company treats the contractor as an employee, the company has certain legal obligations related to matters such as overtime pay and withholding taxes.
Difficulty: 2 Medium
Topic: The Contingent Workforce
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
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103) List and discuss two personnel policies that are especially relevant to recruitment.
Answer: Several personnel policies are especially relevant to recruitment:
Difficulty: 2 Medium
Topic: Recruitment Strategy
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Bloom’s: Understand
AACSB: Analytical Thinking
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104) What are internal sources of recruitment? What are the advantages and disadvantages of using these sources?
Answer: Internal sources of recruitment are employees who currently hold other positions in the organization. Organizations recruit existing employees through job posting, or communicating information about the vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the organization communicates with employees. Managers also may identify candidates to recommend for vacancies. Policies that emphasize promotions and even lateral moves to achieve broader career experience can give applicants a favorable impression of the organization’s jobs. The use of internal sources also affects what kinds of people the organization recruits. For the employer, relying on internal sources offers several advantages. First, it generates applicants who are well known to the organization. In addition, these applicants are relatively knowledgeable about the organization’s vacancies, minimizing the possibility they will have unrealistic expectations about the job. Finally, filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization. Despite the advantages of internal recruitment, organizations often have good reasons to recruit externally. For entry-level positions and perhaps for specialized upper-level positions, the organization has no internal recruits from which to draw. Also, bringing in outsiders may expose the organization to new ideas or new ways of doing business. An organization that uses only internal recruitment can wind up with a workforce whose members all think alike and therefore may be poorly suited to innovation. Finally, companies that are able to grow during a slow economy can gain a competitive edge by hiring the best talent when other organizations are forced to avoid hiring, freeze pay increases, or even lay off talented people.
Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Understand
AACSB: Analytical Thinking
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105) Explain the second step in human resource planning.
Answer: The second step in human resource planning is goal setting and strategic planning. The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization’s success in addressing labor shortages and surpluses. The goals should come directly from the analysis of labor supply and demand. They should include a specific figure indicating what should happen with the job category or skill area and a specific timetable for when the results should be achieved.
Difficulty: 1 Easy
Topic: The Human Resource Planning Process
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
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106) Describe two of the four ways companies can downsize.
Answer: 1. Reducing costs—Labor is a large part of a company’s total costs, so downsizing is an attractive place to start cutting costs.
Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Remember
AACSB: Analytical Thinking
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107) How can employers overcome the challenges of outsourcing?
Answer: To ensure success with an outsourcing strategy, companies should follow these guidelines: (1) Learn about what the provider can do for the company, not just the costs. Make sure the company has the necessary skills, including an environment that can meet standards for clear communication, on-time shipping, contract enforcement, fair labor practices, and environmental protection. (2) Do not outsource any work that is proprietary or requires tight security. (3) Start small and monitor the work closely, especially in the beginning, when problems are most likely. (4) Look for opportunities to outsource work in areas that promote growth, for example, by partnering with experts who can help the organization tap new markets.
Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Bloom’s: Understand
AACSB: Analytical Thinking
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108) In terms of external sources of recruitment, who are direct applicants and referrals?
Answer: Direct applicants are people who apply for a vacancy without prompting from an organization. Referrals are people who apply because someone in the organization prompted them to do so.
Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques
Learning Objective: 05-05 List and compare sources of job applicants.
Bloom’s: Understand
AACSB: Analytical Thinking
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109) Suppose you are a human resource executive for a hospital. What characteristics would you look for in your recruiters to increase the positive impact they have on job candidates?
Answer: Student answers will vary.
In general, applicants respond more positively to recruiters whom they perceive as warm and informative. In addition, at least according to one study, they perceive HR specialists as less credible and are less attracted to jobs when recruiters are HR specialists. Thus, HR specialists need to take extra steps to ensure that applicants perceive them as knowledgeable and credible. The impact of other characteristics, such as age, sex, and race, is complex and inconsistent.
Difficulty: 2 Medium
Topic: The Recruiters Role
Learning Objective: 05-06 Describe the recruiters role in the recruitment process, including limits and opportunities.
Bloom’s: Understand
AACSB: Analytical Thinking
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Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
