Human Resource Management Raymond Noe 11e - Test Bank

Human Resource Management Raymond Noe 11e – Test Bank

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Sample Questions Are Posted Below

Human Resource Management, 11e (Noe)

Chapter 5 Human Resource Planning and Recruitment

1) The last step in the human resource planning process is forecasting.

Answer: FALSE

Explanation: The first step in the planning process is forecasting.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-01 Discuss how to align a company’s strategic direction with its human resource planning.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

2) A leading indicator is an objective measure that accurately predicts future labor demand.

Answer: TRUE

Explanation: A leading indicator is an objective measure that accurately predicts future labor demand.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

3) Statistical planning models are useful when there is a long, stable history that can be used to reliably detect relationships among variables.

Answer: TRUE

Explanation: Statistical planning models are useful when there is a long, stable history that can be used to reliably detect relationships among variables.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

4) The second step in human resource planning is goal setting and strategic planning.

Answer: TRUE

Explanation: The second step in human resource planning is goal setting and strategic planning. The purpose of setting specific quantitative goals is to focus attention on the problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

5) The purpose of setting specific quantitative goals is to focus attention on the problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus.

Answer: TRUE

Explanation: The purpose of setting specific quantitative goals is to focus attention on the problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

6) Hiring employees from external sources is a fast option to avoid an unexpected labor shortage; plus. its revocability is high.

Answer: FALSE

Explanation: There are several options to avoid an unexpected labor shortage. Hiring employees from external sources is a slow option to avoid an unexpected labor shortage, and its revocability is low.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

7) The typical organizational response to a labor shortage has been either hiring temporary employees or outsourcing, responses that are fast and high in revocability.

Answer: TRUE

Explanation: The typical organizational response to a labor shortage has been either hiring temporary employees or outsourcing, responses that are fast and high in revocability.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

8) A reason that downsizing efforts often fail is that employees who survive the purges often become narrow-minded, self-absorbed, and risk averse.

Answer: TRUE

Explanation: A reason that downsizing efforts often fail is that employees who survive the purges often become narrow-minded, self-absorbed, and risk averse.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

9) One of the reasons that organizations engage in downsizing is that many firms change the location of where they do business for economic reasons.

Answer: TRUE

Explanation: Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational effectiveness. One of the reasons for downsizing is that, for economic reasons, many firms change the location of where they do business.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

10) Jonah is a baby boomer and his boss is expecting that he will retire at age 65. This is an appropriate expectation.

Answer: FALSE

Explanation: A popular means of reducing a labor surplus is to offer an early retirement program. Although many Baby Boomers are approaching traditional retirement age, early indications are that this group has no intention of retiring anytime soon.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

11) An advantage of employing temporary workers is that it frees a firm from many of the administrative tasks and financial burdens associated with being the “employer of record.”

Answer: TRUE

Explanation: The use of temporary workers frees a firm from many of the administrative tasks and financial burdens associated with being the “employer of record.”

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

12) MediPlus is planning a large technology project. The company currently has a technology staff of two people who provide desktop support. The company has decided to contract with IT4U to get the job done. This is an example of outsourcing.

Answer: TRUE

Explanation: Whereas a temporary employee can be brought in to manage a single job, in other cases a firm may be interested in getting a much broader set of services performed by an outside organization; this is called outsourcing. Outsourcing is a logical choice when a firm simply does not have certain expertise and is not willing to invest time and effort into developing it.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

13) Typically, “call center” staffing is the only type of work that is being offshored.

Answer: FALSE

Explanation: Offshoring is a special case of outsourcing in which the jobs that move actually leave one country and go to another. The stereotype that “call center” staffing is the only type of work being offshored is increasingly invalid, as countries such as China, India, and those in eastern Europe try to climb the skill ladder of available work.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

14) Employers prefer hiring and training new employees rather than having to pay existing workers extra for overtime production.

Answer: FALSE

Explanation: Despite having to pay workers time-and-a-half for overtime production, employers see this as preferable to hiring and training new employees—especially if they are afraid that current demand for products or services may not extend to the future.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

15) A comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents in the relevant labor market is called a workforce utilization review.

Answer: TRUE

Explanation: The proportion of workers in protected subgroups can be compared with the proportion that each subgroup represents in the relevant labor market. This type of comparison is called a workforce utilization review. This process can be used to determine whether there is any subgroup whose proportion in the relevant labor market is substantially different from the proportion in the job category.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

16) Promote from-within policies make it clear to applicants that there are opportunities for advancement within the company.

Answer: TRUE

Explanation: Promote-from-within policies make it clear to applicants that there are opportunities for advancement within the company.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

17) Characteristics of a job vacancy are less important than recruiters or recruiting sources when it comes to predicting job choice.

Answer: FALSE

Explanation: If the research on recruitment makes one thing clear, it is that characteristics of a vacancy are more important than recruiters or recruiting sources when it comes to predicting job choice.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

18) Research indicates that job applicants find companies with due process policies less attractive than companies with employment-at-will practices.

Answer: FALSE

Explanation: Research indicates that job applicants find companies with due process policies more attractive than companies with employment-at-will policies.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

19) Image advertising is often effective because job applicants develop ideas about the general reputation of the firm and then this spills over to influence their expectations about the nature of specific jobs at the organization.

Answer: TRUE

Explanation: Even though it does not provide any information about any specific job, image advertising is often effective because job applicants develop ideas about the general reputation of the firm and then this spills over to influence their expectations about the nature of specific jobs or careers at the organization.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

20) Referrals are people who apply for a vacancy without prompting from the organization.

Answer: FALSE

Explanation: Direct applicants are people who apply for a vacancy without prompting from the organization.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

21) Jan is a veteran HR manager and she still prefers to solicit applications through newspaper advertisements. Her argument is that she will get better candidates. Is she correct?

Answer: FALSE

Explanation: Advertisements to recruit personnel are ubiquitous, even though they typically generate less desirable recruits than direct applications or referrals—and do so at greater expense.

Difficulty: 3 Hard

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Apply

AACSB: Analytic

Accessibility: Keyboard Navigation

22) Public employment agencies serve primarily the blue-collar labor market; private employment agencies perform much the same service for the white-collar labor market.

Answer: TRUE

Explanation: Public employment agencies serve primarily the blue-collar labor market; private employment agencies perform much the same service for the white-collar labor market.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

23) Newspaper ads generate the largest number of recruits, and many of these are qualified for the position.

Answer: FALSE

Explanation: Newspaper ads generate the largest number of recruits, but relatively few of these are qualified for the position.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

24) Recruiters tend to be viewed by job seekers as more credible when they are personnel specialists rather than subject matter experts in the job being filled.

Answer: FALSE

Explanation: Some studies indicate that applicants find a job less attractive and the recruiter less credible when he or she is a personnel specialist.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-06 Explain the recruiter’s role in the recruitment process; the limits the recruiter faces; and the opportunities available.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

25) When applicants’ reactions to recruiters are examined, age and gender are the two traits that stand out the most.

Answer: FALSE

Explanation: Two traits stand out when applicants’ reactions to recruiters are examined. The first, which could be called “warmth,” reflects the degree to which a recruiter seems to care about the applicant and is enthusiastic about her potential to contribute to the company. The second characteristic could be called “informativeness.”

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-06 Explain the recruiter’s role in the recruitment process; the limits the recruiter faces; and the opportunities available.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

26) The first step in the human resource planning process is

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

Answer: A

Explanation: The human resource planning process consists of forecasting, goal setting and strategic planning, and program implementation and evaluation. The first step in the planning process is forecasting.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-01 Discuss how to align a company’s strategic direction with its human resource planning.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

27) The process of attempting to ascertain the supply of and demand for various types of human resources is called

A) outsourcing.
B) downsizing.
C) delegation.
D) forecasting.
E) implementation.

Answer: D

Explanation: In personnel forecasting, an HR manager attempts to ascertain 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 align a company’s strategic direction with its human resource planning.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

28) Which of the following is true of statistical forecasting methods that capture historic trends?

A) They are useful for predicting events in the labor market that have no historic precedent.
B) They are particularly useful in situations where there is no long, stable history.
C) They provide predictions that are much more precise than judgmental methods.
D) They remove the need for subjective judgments of experts.
E) They include variables such as intuition and guesswork in economic decision-making.

Answer: C

Explanation: Statistical methods are excellent for capturing historic trends in a company’s demand for labor, and under the right conditions they give predictions that are much more precise than those that could be achieved through subjective judgments of a human forecaster.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-01 Discuss how to align a company’s strategic direction with its human resource planning.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

29) How do statistical forecasting methods differ from judgmental forecasting methods with regard to the labor market?

A) Judgmental methods are not useful in situations that have no historic precedent.
B) Statistical methods are the best option for events that have no historic precedent.
C) Forecasting using judgmental methods is always more precise than forecasting using statistical methods.
D) Statistical methods are excellent for capturing historic trends.
E) Judgmental methods are better than statistical methods for events that have historic precedent.

Answer: D

Explanation: Statistical methods are excellent for capturing historic trends in a company’s demand for labor, and under the right conditions, they give predictions that are much more precise than those that could be achieved through subjective judgments of a human forecaster.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-01 Discuss how to align a company’s strategic direction with its human resource planning.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

30) Which of the following is the definition of a leading indicator?

A) It is an informal way of measuring the purchasing power parity between two currencies.
B) It is a measurement of consumer confidence, which is defined as the degree of optimism about the state of the economy.
C) It is an economic indicator found by adding the unemployment rate to the inflation rate of an economy.
D) It is an indicator to measure changes in the price level of consumer goods and services purchased by households.
E) It is an objective measure that accurately predicts future labor demand.

Answer: E

Explanation: A leading indicator is an objective measure that accurately predicts future labor demand.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

31) Statistical planning models almost always have to be complemented by

A) competitor information.
B) subjective judgments.
C) transitional matrices.
D) unstable history.
E) labor forecasts.

Answer: B

Explanation: Statistical planning models are useful when there is a long, stable history that can be used to reliably detect relationships among variables. However, these models almost always have to be complemented by subjective judgments of people who have expertise in the area.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

32) A(n) ________ shows the proportion of employees in different job categories at different times.

A) invertible matrix
B) transitional matrix
C) definite matrix
D) task role matrix
E) orthogonal matrix

Answer: B

Explanation: Transitional matrices show the proportion (or number) of employees in different job categories at different times.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

Refer to the following hypothetical transitional matrix of the general HR department in a large manufacturing organization.

33) How many of the total sales representatives employed in 2013 were promoted to the sales manager position in 2016?

A) 95 percent
B) 9 percent
C) 5 percent
D) 86 percent
E) 10 percent

Answer: C

Explanation: As per the figure, only 5 percent of the sales representatives were promoted to the position of sales manager. At the same time, 60 percent remained in the same role, and 35 percent of the sales representatives left the organization.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

34) From which of the following job categories was no employee promoted in 2016?

A) Sales representative
B) Sales apprentice
C) Production manager
D) Clerical
E) Production assembler

Answer: D

Explanation: Of all the clerical who were employed in 2013, none were promoted in 2016. Additionally, 30 percent of the HR coordinators left the organization.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

35) There were demotions from the ________ job category.

A) production manager
B) sales apprentice
C) clerical
D) sales manager
E) assistant plant manager

Answer: E

Explanation: Of the total assistant plant managers employed in 2013, 5 percent were demoted to the position of production manager. Five percent of the assistant plant managers left the organization in 2016.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

36) How many of the production managers employed in 2013 were promoted to the category of assistant plant manager in 2016?

A) 2 percent
B) 10 percent
C) 5 percent
D) 13 percent
E) 8 percent

Answer: B

Explanation: Of the total production managers employed in 2013, 10 percent were promoted to the category of assistant plant manager in 2016, while 75 percent remained in the same position. The remaining 15 percent left the organization.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

37) Which of the following job categories saw the highest percentage of its employees leave the organization in 2013?

A) Sales apprentice
B) Production manager
C) Clerical
D) Production assembler

Answer: A

Explanation: Of the total sales representatives in 2013, 35 percent left the organization, the highest of any position. Additionally, 5 percent of the sales representatives were promoted to the position of sales manager.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

38) Which of the following is true about transitional matrices?

A) Transitional matrices can be read across rows but cannot be read from top to bottom.
B) Transitional matrices provide a comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents in the relevant labor market.
C) Transitional matrices provide an objective measure of the effectiveness of an organization’s human resource recruitment policy.
D) Transitional matrices are extremely useful for charting historic trends in a company’s supply of labor.
E) Transitional matrices show the increase in productivity of employees over a period of time.

Answer: D

Explanation: Matrices such as the transitional matrix are extremely useful for charting historic trends in a company’s supply of labor. More important, if conditions remain somewhat constant, they can also be used to plan for the future.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-02 Determine the labor demand for workers in various job categories.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

39) The goals that are set in the human resource planning process should come directly from

A) the mid-level managers who tend to be most in touch with the organization’s needs.
B) the results of the previous year’s appraisal process.
C) the analysis of the labor supply and demand.
D) the strategic choices made by the company’s top-level managers.
E) the feedback provided by the organization’s customers.

Answer: C

Explanation: The goals in the human resource planning process should come directly from the analysis of labor supply and demand and should include a specific figure for what should happen with a job category or skill area and a specific timetable for when results should be achieved.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

40) The purpose of setting specific quantitative goals is

A) to make sure that employees are held accountable for achieving the stated goals.
B) to ascertain whether the company has successfully avoided any potential labor surpluses or shortages.
C) to collect data about current employees, measure their performances, and compare the results with global standards in order to get a better idea of the firm’s international competence.
D) to focus attention on a problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus.
E) to predict areas within the organization where there will be future labor shortages or surpluses.

Answer: D

Explanation: The purpose of setting specific quantitative goals is to focus attention on a problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus. The goals should come directly from the analysis of labor supply and demand and should include a specific figure for what should happen with the job category or skill area and a specific timetable for when results should be achieved.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

41) Due to a series of resignations from the organization, Zylon Inc., a large software firm, is facing an acute labor shortage. During which of the following human resource planning steps would the firm contemplate several options to address the labor issue?

A) Goal setting and strategic planning
B) Program evaluation
C) Forecasting
D) Program implementation
E) Data collection

Answer: A

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

42) Hope College is planning for the next biennium. School administrators know that the enrollment is on the decline, but still need to offer students the best experience possible. They want to shrink their payroll slowly. They can accomplish this through

A) downsizing.
B) demotions.
C) early retirement.
D) pay reduction.
E) temporary employees.

Answer: C

Explanation: The second step in human resource planning is goal setting and strategic planning. As part of this step, many organizations determine that they might have surplus staff in the future. One of the options for reducing an expected labor surplus is early retirement, which is a slow option to reduce surplus staff, but it has a low impact on human suffering.

Difficulty: 3 Hard

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Apply

AACSB: Analytic

Accessibility: Keyboard Navigation

43) Since there are fewer students on campus, security does not have to wait to shrink their workforce. Which option should administrators choose to reduce those numbers quickly?

A) Early retirement
B) Retraining
C) A hiring freeze
D) Natural attrition
E) Demotions

Answer: E

Explanation: The second step in human resource planning is goal setting and strategic planning. As part of this step, many organizations determine that they might have surplus staff in the future. One of the options for reducing an expected labor surplus is demotions, which is a fast option to reduce surplus staff, but it typically results in high human suffering.

Difficulty: 3 Hard

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Apply

AACSB: Analytic

Accessibility: Keyboard Navigation

44) Instead of filling vacant instructor positions with new full-time faculty, Hope College can take advantage of

A) temporary employees.
B) technological innovation.
C) turnover reductions.
D) new external hires.
E) retraining.

Answer: A

Explanation: The second step in human resource planning is goal setting and strategic planning. As part of this step, many organizations determine that they might have a labor shortage. One of the options for avoiding an expected labor shortage is hiring temporary employees, which is a fast solution to the problem and is easily revocable.

Difficulty: 3 Hard

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Apply

AACSB: Analytic

Accessibility: Keyboard Navigation

45) Which of the following options for avoiding an expected labor shortage is a slow solution and has low revocability?

A) Overtime
B) Temporary employees
C) Retrained transfers
D) Technological innovation
E) Outsourcing

Answer: D

Explanation: The second step in human resource planning is goal setting and strategic planning. As part of this step, many organizations determine that they might have a labor shortage. One of the options for avoiding an expected labor shortage is adopting technological innovation, which is both a slow solution to the problem and not easily revocable.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

46) ________ is considered a slow option for avoiding an expected labor shortage but has high revocability.

A) Natural attrition
B) Retrained transfer
C) Outsourcing
D) Transfer
E) Technological innovation

Answer: B

Explanation: The second step in human resource planning is goal setting and strategic planning. One of the options for avoiding an expected labor shortage that is a slow solution and is high on revocability is retrained transfer.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

47) Knowing the college is on the verge of a financial crisis, a few of the older professors get together and decide that they can help. Which option will they choose?

A) Early retirement causes relatively less human suffering.
B) The human suffering after pay reduction is relatively low.
C) Retraining causes comparatively more human suffering than other options.
D) A hiring freeze causes immense human suffering.
E) Transfers cause the least amount of human suffering.

Answer: A

Explanation: Early retirement is a slow option to reduce an expected labor surplus, but along with hiring freezes, natural attrition, and retraining, it causes low human suffering.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

48) ________ is the planned elimination of large numbers of personnel designed to enhance organizational effectiveness.

A) Homesourcing
B) Downsizing
C) Retirement
D) Retraining
E) Work sharing

Answer: B

Explanation: Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational effectiveness.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

49) Each of the following is a relatively fast method to reduce an expected labor surplus EXCEPT

A) work sharing.
B) retraining.
C) pay reduction.
D) demotion.
E) transfer.

Answer: B

Explanation: Methods such as transfers, work sharing, pay reductions, and demotions are relatively faster methods of reducing an expected labor surplus than retraining.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

50) Which of the following statements is true about downsizing?

A) The typical organizational response to a surplus of labor has been downsizing, which is slow but low in human suffering.
B) An organization turns to downsizing only in times of recession.
C) In firms that are high in research and development intensity, downsizing has been linked to higher long-term organizational profits.
D) The negative effects of downsizing seem to be reduced in service industries characterized by high levels of customer contact.
E) Downsizing efforts often fail because employees who survive the purges often become narrow-minded, self-absorbed, and risk averse.

Answer: E

Explanation: One of the reasons downsizing efforts often fail is that employees who survive the purges often become narrow-minded, self-absorbed, and risk averse. Motivation levels drop off because any hope of future promotions—or even a future—with the company dies out.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

51) Which of the following is a method used to reduce an expected labor shortage that is low on revocability?

A) Overtime
B) New external hires
C) Temporary employees
D) Outsourcing
E) Retrained transfers

Answer: B

Explanation: Hiring new external recruits is a method that is low on revocability. The other options are high on revocability.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

52) Which of the following is most likely to lead to a successful downsizing?

A) Avoiding indiscriminant reductions
B) Informing employees that they are laid off via emails
C) Downsizing at random
D) Avoiding changes in the nature of work roles
E) Removing the company’s long-term employees first

Answer: A

Explanation: The key to a successful downsizing effort is to avoid indiscriminant across-the-board cuts, and instead perform surgical strategic cuts that not only reduce costs but also improve the firm’s competitive position.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

53) Which of the following best explains why older people approaching retirement age have no intention of retiring?

A) Many employers want to stay away from the costs of hiring a younger crowd and refuse to retire the older workers.
B) Older workers typically occupy the best-paid jobs and hence prevent the hiring of younger workers.
C) Improved health of older people in general, in combination with the decreased physical labor in many jobs, has made working longer a viable option.
D) Employers are ignoring situations where it is more expensive to pay for an older worker’s experience than to hire younger employees.
E) Statistical forecasting results have shown that older people are an asset to an organization’s economic strength.

Answer: C

Explanation: The improved health of older people in general, in combination with the decreased physical labor in many jobs, has made working longer a viable option.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

54) Which of the following is NOT one of the forces that draw out an older worker’s career?

A) The improved health of older people in general
B) The fear of Social Security being cut
C) Employers being constrained by age discrimination legislation
D) Insufficient younger workers to replace the older workforce
E) Employers’ fear of losing the experience that older workers possess

Answer: D

Explanation: Several forces fuel the drawing out of older workers’ careers: the improved health of older people in general, the fear of Social Security being cut, employers being increasingly constrained by age discrimination legislation, and employers’ fear of losing the experience that older workers bring to the company.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

55) In the face of demographic pressures dealing with an aging workforce, many employers try to use ________ among their older workers through early retirement incentive programs.

A) paid leave
B) job rotation
C) work sharing
D) voluntary attrition
E) transfers

Answer: D

Explanation: In the face of demographic pressures dealing with an aging workforce, many employers try to induce voluntary attrition among their older workers through early retirement incentive programs.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

56) Which of the following is a disadvantage of employing temporary workers as a means of eliminating a labor shortage?

A) The use of temporary workers adds up to many administrative tasks and financial burdens associated with being the “employer of record.”
B) Small companies that cannot afford their own testing program often get employees who have tested by a temporary agency.
C) The low levels of commitment to the organization and its customers that temporary workers bring with them often reduce the level of customer loyalty.
D) Many temporary agencies train employees prior to sending them to employers, which often means that the company has to retrain them in accord with its own standards.
E) Because temporary workers have little experience in the host firm, the objective perspective they bring is of no value.

Answer: C

Explanation: Low levels of commitment to the organization and its customers on the part of temporary employees often spill over and reduce the level of customer loyalty.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

57) Which of the following is true about temporary workers?

A) Although they are temporary, these workers have to be included in employee records.
B) The objective perspective that temporary workers bring with them is of no value because of their lack of experience.
C) Despite prior training from temporary agencies, companies have to retrain temporary workers to match company standards.
D) Temporary workers give employers some flexibility to respond to fluctuations in consumer demand for their products and services.
E) Instead of replacing long-term employees with temporary employees, many organizations supplement their core staff with a small set of temporary workers who act more like assistants to the core staff than potential replacements.

Answer: D

Explanation: Hiring temporary workers enables a company to respond to increases in consumer demand. These employees are often let go if consumer demand drops. An increase in temporary hires no longer indicates a definite expansion of permanent hires. Temporary employees offer labor flexibility to match the flexibility of consumer demand.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

58) Which of the following is true about outsourcing?

A) Outsourcing became a valid choice after certain methods of production and manufacturing became obsolete.
B) Outsourcing is a logical choice when a firm simply does not have certain expertise and is not willing to invest time and effort into developing it.
C) Technological advancements have slowed the momentum of outsourcing being done today.
D) Statistical forecasting resulted in companies’ transferring their operations and functions overseas.
E) Companies shifted their operations overseas because customers were complaining about poor client services domestically.

Answer: B

Explanation: Outsourcing is a logical choice when a firm simply does not have certain expertise and is not willing to invest time and effort into developing it.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

59) In the late 1990s and early 2000s many jobs left the United States for a cheaper labor force. The American people did not like this move to ________ and stopped buying certain products until the company came back to the United States.

A) homesourcing
B) co-sourcing
C) reshoring
D) telecommuting
E) offshoring

Answer: E

Explanation: Offshoring is a special case of outsourcing where the jobs that move actually leave one country and go to another. This kind of job migration has always taken place; however, rapid technological changes have made the current trends in this area historically unprecedented.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

60) Is the argument that “call center” staffing is the only type of work being offshored valid?

A) No, because countries to where jobs are being offshored are facing a shortage of skilled labor and are refusing “call center” jobs.
B) Yes, because the level of education and infrastructure does not support high-end support jobs such as reading X-rays and other medical tests.
C) Yes, because the state of online security and privacy is less advanced in developed countries.
D) No, because figures have shown that countries such as China and India are trying to climb the skill ladder of available work.
E) Yes, because in order to maintain employment rates in their own countries, companies avoid offshoring jobs.

Answer: D

Explanation: The stereotype that “call center” staffing is the only type of work being offshored is increasingly invalid, as countries such as China, India, and those in eastern Europe try to climb the skill ladder of available work.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

61) Which of the following is true about offshoring?

A) The smaller and newer a vendor, the better it is for the company to conduct business.
B) Small overseas upstarts do not take risks that larger, more established contractors take.
C) Any work that is proprietary and requires tight security should be offshored.
D) A company should avoid outsourcing work that is self-contained and does not need an exchange of information.
E) The actual cost savings from offshoring work can be less than a company expects.

Answer: E

Explanation: Quality control problems, security violations, and poor customer service experiences have in many cases wiped out the cost savings from paying lower offshore wages.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

62) When a company faces a shortage of employees in the workforce, and it predicts that current demand for products or services may not extend to the future, it will

A) try to garner more hours out of the existing labor force.
B) recruit and train new employees.
C) be willing to hire part-time employees.
D) decrease the production rate by half to meet quality standards.
E) lease out its machinery to other factories, thereby maintaining income.

Answer: A

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

63) When a state or federal government is unable to pass a budget, workers sometimes take a ________ as there is no money to pay the employees.

A) work-sharing culture
B) demotion
C) furlough
D) layoff
E) suspension

Answer: C

Explanation: A “furlough” is a short-term elimination of paid workdays applied to salaried workers, as opposed to “hourly workers.”

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

64) The programs developed in the strategic-choice stage of the process are put into practice in the ________ stage.

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

Answer: B

Explanation: The programs developed in the strategic-choice stage of the process are put into practice in the program-implementation stage.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

65) A critical aspect of the program implementation step of human resource planning is

A) setting a benchmark for determining the relative success of a program.
B) making sure that some individual is held accountable for achieving the stated goals.
C) selecting the best option for redressing a pending labor shortage or surplus.
D) ascertaining whether the company has successfully avoided any potential labor surpluses or shortages.
E) focusing attention on redressing a pending labor supply problem.

Answer: B

Explanation: A critical aspect of program implementation is to make sure that some individual is held accountable for achieving the stated goals and has the necessary authority and resources to accomplish this goal.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

66) The final step in the planning process is to

A) evaluate results.
B) set goals and objectives.
C) formulate strategies.
D) establish forecasting methods.
E) implement recruiting methods.

Answer: A

Explanation: The final step in the planning process is to evaluate the results.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

67) The process of determining whether there are any subgroups whose proportion in a given job category within a company is substantially different from their proportion in the relevant labor market is called

A) adverse treatment analysis.
B) workforce utilization review.
C) subgroup reconciliation.
D) discrimination analysis.
E) leading indicator.

Answer: B

Explanation: It is important to plan for various subgroups within the labor force. The proportion of workers in these subgroups can be compared with the proportion that each subgroup represents in the relevant labor market. This type of comparison is called a workforce utilization review.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

68) Which of the following is the accurate definition of workforce utilization review?

A) It is a comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents in the relevant labor market.
B) It is a comparison of the proportion of workers who are underperforming with the proportion of those in the labor market who are not yet hired.
C) It is a comparison of the proportion of workers who are underperforming with the proportion of those who are excelling in the workplace.
D) It is a comparison of the proportion of workers who are being paid higher than the national average with the proportion of workers who are being paid lower than the national average.
E) It is a comparison of the proportion of workers whose performance ratings are lower than the internal average with the proportion of those whose performance ratings are higher.

Answer: A

Explanation: A comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents in the relevant labor market is called workforce utilization review.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

69) ________ forecast and monitor the proportion of various protected group members, such as women and minorities, that are in various job categories and career tracks.

A) Ethnocracies
B) Group rights
C) Affirmative action plans
D) T-test techniques
E) Employment background checks

Answer: C

Explanation: Human resource planning is an important function that should be applied to an organization’s entire labor force. It is also important to plan for various subgroups within the labor force. For example, affirmative action plans forecast and monitor the proportion of various protected group members, such as women and minorities, that are in various job categories and career tracks.

Difficulty: 1 Easy

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

70) ________ is the practice or activity carried on by an organization with the primary purpose of identifying and attracting potential employees.

A) Human resource recruitment
B) An applicant tracking system
C) Customer relationship management
D) Sensitivity training
E) Customer experience transformation

Answer: A

Explanation: Human resource recruitment is defined as any practice or activity carried on by an organization with the primary purpose of identifying and attracting potential employees.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

71) ________ is a generic term used to refer to organizational decisions that affect the nature of the vacancies for which people are recruited.

A) Budgetary policies
B) Personnel policies
C) Judicial policies
D) Fiscal policies
E) Monetary policies

Answer: B

Explanation: All companies have to make decisions in three areas of recruiting: (1) personnel policies, which affect the kinds of jobs the company has to offer; (2) recruitment sources used to solicit applicants, which affect the kinds of people who apply; and (3) the characteristics and behaviors of the recruiter. These, in turn, influence both the nature of the vacancies and the nature of the people applying for jobs in a way that shapes job choice decisions.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

72) One way to recruit companies to a state is to offer tax incentives; another is to assure them that the workforce is prepared. When a state government confirms that an employer will be given the authority to terminate employment of an employee at any time without cause and gives the same assurance to the employees, those statutes are referred to as

A) due process policies.
B) employment-at-will policies.
C) counter cyclical hiring policies.
D) employee liability policies.
E) affirmative action policies.

Answer: B

Explanation: Employment-at-will policies state that either party in an employment relationship can terminate that relationship at any time, regardless of cause. Companies that do not have employment-at-will provisions typically have extensive due process policies.

Difficulty: 3 Hard

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Apply

AACSB: Analytic

Accessibility: Keyboard Navigation

73) Debbie feels that her employer let her go for no reason. Although the company practices employment-at-will, she still pursues resolution with the EEOC. This is called

A) counter cyclical hiring policy.
B) outsourcing policy.
C) employment-at-will policy.
D) due process policy.
E) affirmative action policy.

Answer: D

Explanation: Due process policies formally lay out the steps an employee can take to appeal a termination decision. Organizational recruiting materials that emphasize due process, rights of appeal, and grievance mechanisms send a message that job security is high.

Difficulty: 3 Hard

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Apply

AACSB: Analytic

Accessibility: Keyboard Navigation

74) Which of the following is an example of an intrinsic reward?

A) A manufacturing organization offering a monthly bonus on joining the firm at a particular position in a particular city
B) A firm providing free vehicles to employees who are promoted to the managerial level
C) The U.S. Army appealing to the patriotism in people to get more new recruits
D) A bank offering loans at a subsidized rate to its employees
E) A school management giving monthly bonuses to the teachers

Answer: C

Explanation: The U.S. Army has to rely on more intrinsic rewards related to patriotism and personal growth opportunities that people associate with military service rather than extrinsic rewards such as monetary and material benefits.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

75) The approach that pays employees higher wages than what competitors pay their employees in similar roles is called the

A) premium-wage approach.
B) free-rider effect.
C) lead-indicator approach.
D) lead-the-market approach.
E) first-mover advantage.

Answer: D

Explanation: Because pay is an important job characteristic for almost all applicants, companies that take a “lead-the-market” approach to pay—that is, a policy of paying higher-than-current-market wages—have a distinct advantage in recruiting.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

76) Sometimes, organizations advertise just to promote themselves as a good place to work in general. This is called

A) product advertising.
B) image advertising.
C) informative advertising.
D) proactive advertising.
E) subliminal advertising.

Answer: B

Explanation: Even though it does not provide any information about any specific job, image advertising is often effective because job applicants develop ideas about the general reputation of a firm (i.e., its brand image) and then this spills over to influence their expectations about the nature of specific jobs or careers at the organization.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

77) Which of the following is an example of image advertising?

A) Orange Inc. releases an advertisement promoting the product it produces.
B) Paper Corp. publishes its profit details in the newspaper.
C) Richmond Inc. releases an advertisement on television about an event it is promoting.
D) Umbrella Corp. asks its employees to work on Saturdays for the next three months to meet project deadlines.
E) Rain Inc. releases television advertisements that give an idea about the pleasant working conditions in the organization.

Answer: E

Explanation: Even though image advertising does not provide any information about any specific job, it is often effective because job applicants develop ideas about the general reputation of a firm and then this spills over to influence their expectations about the nature of specific jobs or careers at the organization.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

78) Which of the following is an advantage of relying on internal recruitment sources?

A) It is a good way to strengthen one’s own company, while weakening one’s competitors at the same time, because it increases diversity.
B) It generates a sample of applicants who are well known to the firm.
C) The applicants are relatively less knowledgeable about the company’s vacancies and are hence easily trainable.
D) Because of the applicants’ lack of knowledge about a particular position, their expectations are easy to meet.
E) It results in a workforce whose members all think alike and who therefore are more suited to innovation.

Answer: B

Explanation: Relying on internal sources offers a company several advantages. One of them is that it generates a sample of applicants who are well known to the firm.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

79) ________ are people who apply for a vacancy without prompting from the organization.

A) Internal employees
B) Direct applicants
C) Referrals
D) Poached employees
E) Virtual employees

Answer: B

Explanation: Direct applicants are people who apply for a vacancy without prompting from the organization.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

80) Ron works as a sale executive for Janus Inc., a large manufacturer of turbocharged engines. He hears about a vacancy for sales manager at Ios Inc., a competitor in the same industry, and sends in his resume requesting Ios to consider him for the vacancy. Ron is an example of a(n)

A) poached employee.
B) virtual employee.
C) internal employee.
D) referral.
E) direct applicant.

Answer: E

Explanation: Direct applicants are people who apply for a vacancy without prompting from the organization. In this case, Ron is a direct applicant applying for the vacant position at Ios Inc. without any prompting.

Difficulty: 2 Medium

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

81) ________ are people who are prompted to apply for a job by someone within the organization.

A) Direct applicants
B) Internal employees
C) Boomerang employees
D) Referrals
E) Virtual employees

Answer: D

Explanation: Referrals are people who are prompted to apply for a job by someone within the organization.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

82) Hector is a maintenance supervisor at a large petroleum refinery in Texas. His friend, Ronald, who works at another refinery in Louisiana, informs Hector about a vacancy for a maintenance manager’s position at the Louisiana refinery and asks him to apply for the position. Hector is an example of a(n)

A) referral.
B) direct applicant.
C) virtual employee.
D) internal employee.
E) poached employee.

Answer: A

Explanation: Referrals are people who are prompted to apply for a job by someone within the organization. Hector is a referral applying for a job at the Louisiana refinery after being prompted by his friend Ronald.

Difficulty: 2 Medium

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

83) Which of the following best exemplifies the process of self-selection?

A) An applicant posts his or her resume on an online job bulletin board.
B) An applicant decides to interview with a particular company while at a job fair.
C) An applicant is asked to return for a second interview with a firm.
D) An applicant asks a friend for advice on which companies to apply to.
E) An applicant calls a firm to check whether she has been selected.

Answer: B

Explanation: Direct applicants are to some extent already “sold” on the organization. Most of them have done some homework and concluded that there is enough fit between themselves and the vacancy to warrant their submitting an application. This process is called self-selection.

Difficulty: 2 Medium

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

84) Recruiting advertisements in newspapers and periodicals

A) are exempt from the requirements of Title VII of the Civil Rights Act.
B) are used exclusively to attract applicants who are currently employed.
C) are likely to generate less desirable candidates than direct applications or referrals.
D) are generally used to attract candidates from a specific minority community.
E) are less expensive than direct applications or referrals.

Answer: C

Explanation: Advertisements to recruit personnel are ubiquitous, even though they typically generate less desirable recruits than direct applications or referrals—and do so at greater expense. However, because few employers can fill all their vacancies with direct applications and referrals, some form of advertising is usually needed.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

85) Which of the following is the biggest downside for large job sites?

A) Most job sites do not return with quick results, which can be frustrating for an applicant.
B) Because of the sheer size of the website, there is a lack of differentiation between candidates listed on the site.
C) Job sites offer lackluster customer service, which is a huge disappointment for applicants.
D) Most job sites post jobs that are completely unrelated to an employee’s expertise and job interest.
E) While they promise excellent service, the exuberant service charges discourage applicants from using job sites.

Answer: B

Explanation: A way for organizations to use the Web is to interact with the large, well-known job sites. These sites attract a vast array of applicants, who submit standardized resumes that can be electronically searched using key terms. The biggest downside to these large sites, however, is their sheer size and lack of differentiation.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

86) The ________ requires that everyone receiving unemployment compensation be registered with a local state employment office.

A) Social Security Act
B) Employers’ Liability Act
C) Worker Adjustment and Retraining Notification Act
D) Protection of Employment Regulations
E) Equal Pay Act

Answer: A

Explanation: The Social Security Act of 1935 requires that everyone receiving unemployment compensation be registered with a local state employment office.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

87) Executive search firms (ESFs)

A) are taking the place of internal recruiting activities at many companies.
B) require the person being placed to make the initial contact with the prospective employer.
C) are unaffected by the reduced employment levels because of the recent recession.
D) primarily seek out potential job candidates who are already employed.
E) have remained unaffected by the increased use of low-cost electronic search vehicles.

Answer: D

Explanation: Executive search agencies almost exclusively work with people who are already employed. The nickname “headhunters” reflects the idea that they poach talent from other employers.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

88) Yield ratios express the

A) output yielded by a new hire in relation to the cost of recruiting the new hire.
B) percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.
C) ratio between the price paid to a recruiting firm for potential applicants versus the number of applicants hired.
D) cost of hiring new employees as opposed to promoting internal employees to vacant positions.
E) quality of new hires by comparing the cost of training new recruits to the cost of hiring them.

Answer: B

Explanation: Yield ratios express the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

89) Which of the following pairs of recruiter characteristics does an applicant tend to respond to most positively?

A) Warmth and informativeness
B) Race and qualifications
C) Age and experience
D) Gender and warmth
E) Experience and qualifications

Answer: A

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-06 Explain the recruiter’s role in the recruitment process; the limits the recruiter faces; and the opportunities available.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

90) Which of the following actions is most likely to enable organizations to increase the impact that recruiters have on those they recruit?

A) Withholding the company’s information
B) Excluding personnel specialists
C) Recruiting individually
D) Providing highly positive, unrealistic descriptions of the job
E) Providing timely feedback

Answer: E

Explanation: Organizations can take steps to increase the impact that recruiters have on those they recruit. They can do this by providing timely feedback.

Difficulty: 1 Easy

Topic: The Human Resource Recruitment Process

Learning Objective: 05-06 Explain the recruiter’s role in the recruitment process; the limits the recruiter faces; and the opportunities available.

Bloom’s: Remember

AACSB: Analytic

Accessibility: Keyboard Navigation

91) Explain forecasting and the different types of forecasting methods.

Answer: Forecasting refers to the attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be future labor shortages or surpluses.

Forecasting, on both the supply and demand sides, can use either statistical methods or judgmental methods. Statistical methods are excellent for capturing historic trends in a company’s demand for labor, and under the right conditions they give predictions that are much more precise than those that could be achieved through subjective judgments of a human forecaster. On the other hand, many important events that occur in the labor market have no historic precedent; hence, statistical methods that work from historic trends are of little use in such cases. With no historic precedent, one must rely on the pooled subjective judgments of experts, and their “best guesses” might be the only source from which to make inferences about the future. Typically, because of the complementary strengths and weaknesses of the two methods, companies that engage in human resource planning use a balanced approach.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-01 Discuss how to align a company’s strategic direction with its human resource planning.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

92) Describe what occurs at the goal setting and strategic planning step of the human resource planning process.

Answer: In the goal setting step of human resource planning, an organization sets specific quantitative goals to focus attention on a problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus. Goals should come directly from the analysis of the labor supply and demand and should include a specific figure about what should happen with the job category or skill area and a specific timetable for when results should be achieved.

Once the goals are established, the firm needs to choose from the many different strategies available for redressing labor shortages and surpluses. This stage is critical, since the options available to the planner differ widely in their expense, speed, effectiveness, amount of human suffering, and revocability.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

93) Discuss the major options organizations have for reducing labor surpluses. In doing so, discuss how they vary in terms of speed and the amount of human suffering.

Answer: Options that are fast but result in high human suffering include downsizing, pay reductions, and demotions. Transfers and work sharing reduce suffering somewhat. Slower approaches include attrition, early retirements, hiring freezes, and retraining. These tend to reduce human suffering greatly.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

94) Forecasting indicates that the need for skilled technical employees in your company will increase dramatically this year. If the company continues on its present course, it will experience a substantial labor shortage by year’s end. Something must be done fast, but management is concerned about maintaining its flexibility. Which of the options for avoiding expected labor shortages would be most appropriate under these circumstances? Explain your answer.

Answer: The company has two criteria for selecting an option to meet an anticipated labor shortage: it must be “fast,” and it must be “flexible” (i.e., revocable). The three options that meet these criteria are overtime, temporary employees, and outsourcing. The ideal choice will note that the need for skilled labor is expected to “increase dramatically,” which suggests that overtime alone may not be sufficient.

Difficulty: 3 Hard

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

95) Explain downsizing and discuss the major reasons that organizations engage in it. Explain why downsizing strategies are or are not generally successful.

Answer: Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational effectiveness. Companies engage in downsizing for the following major reasons: First, many organizations are looking to reduce costs, and because labor costs represent a big part of a company’s total costs, this is an attractive place to start. Second, companies may close outdated plants or introduce technological changes to old plants, which reduces the need for labor. Third, because of economic reasons, companies change the location of where they do business.

Although downsizing has an immediate effect on costs, much of the evidence suggests that it has negative effects on long-term organizational effectiveness. There seem to be a number of reasons for the failure of most downsizing efforts to live up to expectations in terms of enhancing firm performance. The long-term effects of an improperly managed downsizing effort can be negative. Many downsizing campaigns let go of people who turn out to be irreplaceable assets. Also, employees who survive the staff purges often become narrow-minded, self-absorbed, and risk averse.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

96) Discuss the advantages and disadvantages of using temporary employees as an option in response to labor shortages.

Answer: The advantages of using temporary workers include

They increase the flexibility needed to operate efficiently in the face of swings in the demand for goods and services.
The use of temporary workers frees the firm from administrative tasks and financial burdens of being the “employer of record.”
Small companies that cannot afford their own testing programs often get employees who have been tested by a temporary agency.
Many temporary agencies train employees prior to employment, which reduces training costs and eases the transition for both the temporary worker and the company.
Temporary employees often bring a different perspective to an organization.

Some disadvantages of temporary workers include low levels of commitment to the organization and its customers and the tension between a firm’s temporary employees and its full-time employees.

Difficulty: 2 Medium

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

97) Describe outsourcing and offshoring, and provide examples. Why are they used? What are some of the problems with these efforts? When is it a good idea to use outsourcing or offshoring?

Answer: Outsourcing is an organization’s use of an outside organization for a broad set of services. An example is that a company might outsource custodial jobs to a cleaning service. Offshoring is a special case of outsourcing where the jobs that move actually leave one country and go to another. An example is today’s trend of offshoring telecommunications to India. Outsourcing is used because it is cheaper for the company than to perform the functions in-house. Offshoring has become popular because of lower wage rates in developing countries. Quality control problems, security violations, and poor customer service experience have in many cases wiped out all the cost savings attributed to lower wages and more. When choosing an outsourcing vendor, it is usually the bigger and older the better. Jobs that are proprietary or require tight security should not be outsourced. In addition, it is a good idea to start small and monitor constantly. In general, the work that is outsourced needs to be “modular” in the sense that the work is self-contained and does not require the outsourcing firm to provide any information that is best kept secret for competitive reasons.

Difficulty: 3 Hard

Topic: The Human Resource Planning Process

Learning Objective: 05-03 Discuss the advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage.

Bloom’s: Analyze

AACSB: Analytic

Accessibility: Keyboard Navigation

98) Compare and contrast the employment-at-will policies and due process policies.

Answer: Employment-at-will policies state that either party in the employment relationship can terminate that relationship at any time, regardless of cause. Companies that do not have employment-at-will provisions typically have extensive due process policies. Due process policies formally lay out the steps an employee can take to appeal a termination decision. Organizational recruiting materials that emphasize due process, rights of appeal, and grievance mechanisms send a message that job security is high; employment-at-will policies suggest the opposite. Research indicates that job applicants find companies with due process policies more attractive than companies with employment-at-will policies.

Difficulty: 3 Hard

Topic: The Human Resource Recruitment Process

Learning Objective: 05-04 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive.

Bloom’s: Apply

AACSB: Analytic

Accessibility: Keyboard Navigation

99) What are private and public employment agencies? Explain the differences between the two types of agencies.

Answer: Public employment agencies are state government agencies that work with the U.S. Employment Service (USES) to try to ensure that unemployed individuals eventually get off state aid and back on employer payrolls. To accomplish this, agencies collect information from the unemployed about their skills and experiences. Employers can register their job vacancies with their local state employment office, and the agency will attempt to find someone suitable using its computerized inventory of local unemployed individuals. The agency makes referrals to the organization at no charge, and these individuals can be interviewed or tested by the employer for potential vacancies.

Private employment agencies perform the same service as public employment agencies, but they are not operated by the state governments and are privately operated. While public employment agencies serve primarily the blue-collar labor market, private employment agencies perform much the same service for the white-collar labor market. In addition, unlike public agencies, private employment agencies charge the organization for the referrals. Another difference between private and public employment agencies is that an individual does not have to be unemployed to use a private employment agency.

Difficulty: 2 Medium

Topic: The Human Resource Recruitment Process

Learning Objective: 05-05 List the various sources from which job applicants can be drawn; their relative advantages and disadvantages; and the methods for evaluating them.

Bloom’s: Understand

AACSB: Analytic

Accessibility: Keyboard Navigation

100) You are a recruiter for your company. Describe two traits that applicants might respond to and why?

Answer: Two traits stand out when applicants’ reactions to recruiters are examined. The first, which could be called “warmth,” reflects the degree to which a recruiter seems to care about the applicant and is enthusiastic about her potential to contribute to the company. The second characteristic could be called “informativeness.” In general, applicants respond more positively to recruiters who are perceived as warm and informative. These characteristics seem more important than such demographic characteristics as age, sex, or race, which have complex and inconsistent effects on applicant responses.

Difficulty: 3 Hard

Topic: The Human Resource Recruitment Process

Learning Objective: 05-06 Explain the recruiter’s role in the recruitment process; the limits the recruiter faces; and the opportunities available.

Bloom’s: Apply

AACSB: Analytic

Accessibility: Keyboard Navigation

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Human Resource Management Raymond Noe 11e - Test Bank

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