Fundamentals of Human Resource Management 7th Edition By Noe – Test Bank

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Chapter 05

Planning for and Recruiting Human Resources

 

True / False Questions

1. In human resource planning, forecasting is an intermediary step.

True    False

 

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

True    False

 

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

True    False

 

4. A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

True    False

 

5. The second step in human resource planning is performance evaluation.

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

13. In the context of employing temporary and contract workers, if the person providing the service is a contractor and not an employee, the company is not supposed to directly supervise the worker.

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

18. 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.

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

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

True    False

 

 

Multiple Choice Questions

26. Organizations carry out human resource planning to

A. reduce hiring of workers from colleges and universities.

 

B. increase hiring costs to match industry standards.

 

C. avoid taking risks.

 

D. gain an advantage over competitors.

 

E. replace technology with highly skilled workers.

 

27. Which of the following is the first step in the human resource planning process?

A. forecasting

 

B. goal setting

 

C. program implementation

 

D. program evaluation

 

E. performance evaluation

 

28. In the context of human resource planning, the primary goal of forecasting is to

A. predict labor shortages or surpluses in specific areas of an organization.

 

B. determine labor supply.

 

C. set goals for hiring employees.

 

D. focus attention on a problem and provide a basis for measuring an organization’s success.

 

E. eliminate large numbers of personnel with the goal of enhancing an organization’s competitiveness.

 

29. Identify a benefit of applying statistical forecasting methods.

A. They are particularly useful in dynamic environments.

 

B. Under the right conditions, they provide predictions that are much more precise than a human forecaster’s subjective judgment.

 

C. They are particularly useful in predicting important events that have no historical precedent.

 

D. They are invariably better than the “best guesses” of experts.

 

E. They can be used by organizations as a substitute for relying on the subjective judgments of experts.

 

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

A. yield ratio

 

B. workforce utilization review

 

C. trend analysis

 

D. cost per hire

 

E. capacity utilization analysis

 

31. In the context of forecasting the demand for labor, using trend analysis, inventory levels, changes in technology, and actions of competitors are examples of _____.

A. leading indicators

 

B. performance indicators

 

C. coincident pointers

 

D. transitional matrices

 

E. functional pointers

 

32. A chart that lists job categories held in one period and shows the proportion of employees in each of those categories in a future period is called a _____.

A. labor review

 

B. trend analysis

 

C. forecast

 

D. leading indicator

 

E. transitional matrix

 

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

A. electronic recruiting process

 

B. transitional matrix

 

C. propensity analysis

 

D. due-process policy

 

E. multiple regression analysis

 

34. Ron, an HR manager at Franton 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, Ron should use a _____.

A. transitional matrix

 

B. propensity analysis

 

C. trend analysis

 

D. multiple regression

 

E. leading indicator

 

35. Tim, a human resource manager, has studied a transitional matrix to identify how his company has been filling its demand for lab technicians. Where else should Tim get information related to the labor supply?

A. the Bureau of Labor Statistics

 

B. the Equal Employment Opportunity Commission

 

C. the Occupational Safety and Health Administration

 

D. his company’s marketing plan

 

E. statistical models that capture “once-in-a-lifetime” changes

 

36. The second step in human resource planning is _____.

A. forecasting labor shortage

 

B. forecasting labor surplus

 

C. goal setting and strategic planning

 

D. program implementation and evaluation

 

E. program goal setting

 

37. Jonathan, the CEO of Maxofan Inc., finds that the company needs to eliminate a labor surplus to avoid financial difficulties. To deal with this problem, he chooses a strategy that gives him fast results. However, the amount of suffering caused to employees is high. Jonathan is most likely using the _____ strategy to reduce the labor surplus.

A. early retirement

 

B. downsizing

 

C. natural attrition

 

D. retraining

 

E. hiring freeze

 

38. Yienze 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, which of the following would be the best way for Yienze to deal with this labor surplus?

A. The company must consider work sharing because it causes relatively less suffering to the employees.

 

B. The company must choose an early retirement option because it gives an option to employees to voluntarily leave the organization with suitable monetary compensation.

 

C. The company must freeze employee hiring and focus on natural attrition because it is a relatively fast way to reduce a labor surplus.

 

D. The company must consider downsizing because it is the quickest way to deal with a labor surplus that results in financial losses.

 

E. The company must consider retraining employees because it helps improve their interpersonal skills.

 

39. Renton Inc. is phasing out its desktop computer repair center in Wisconsin. Meanwhile, the demand for repair of mobile devices—services it provides in Georgia and New Mexico—is growing rapidly. Betty, a human resource specialist at Renton headquarters in Atlanta, must plan to avoid a labor surplus in Wisconsin in a fast and effective way. She wishes to do so with minimal employee suffering in terms of layoffs and salary. Which of the following strategies would best help Betty accomplish her goal?

A. pay reductions

 

B. transfers

 

C. demotions

 

D. early retirement

 

E. hiring freeze

 

40. Solenz 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. Which of the following is the best strategy to deal with this labor surplus?

A. an early-retirement program

 

B. natural attrition

 

C. a hiring freeze

 

D. downsizing

 

E. work sharing

 

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

A. downsizing

 

B. demotion

 

C. hiring freeze

 

D. pay reduction

 

E. transfer

 

42. Brendan and Angela are HR managers at Seattle 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 of the following HR strategies should Brendan and Angela consider, taking into account the length of time they have available?

A. downsizing

 

B. natural attrition

 

C. pay reductions

 

D. demotions

 

E. transfers

 

43. Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.

A. Both strategies yield slow results for an organization.

 

B. Both strategies cause high suffering to the employees of an organization.

 

C. Both strategies can be applied for preventing labor shortages.

 

D. Both strategies are expensive to implement.

 

E. Both strategies encourage layoffs.

 

44. Carmella, an HR manager at Crexion Inc., is dealing with labor shortage problems due to a sudden increase in production levels at the company. Among the following options, the fastest way to fix this problem is to _____.

A. use retrained transfers

 

B. focus on turnover reductions

 

C. hire new employees

 

D. hire temporary employees

 

E. focus on technological innovation

 

45. Britt, a production manager at Frelix 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 of the following options for avoiding a labor shortage would be the right solution for Britt?

A. hiring new employees

 

B. employing technological innovation

 

C. using retrained transfers

 

D. hiring temporary employees

 

E. reducing managerial staff

 

46. Errol, a manager at a large holiday 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 of the following strategies would be the best option to help Errol avoid a labor shortage?

A. Errol should hire new employees because he will most likely need additional workers after the holiday season to deal with an increasing sales trend.

 

B. Errol should consider increasing his current employees’ pay during the holiday season so they will work harder to achieve sales targets.

 

C. Errol should keep his store closed during non-peak hours to compensate for labor shortages. This will ensure his current employees work harder during peak hours.

 

D. Errol should hire temporary employees because he can let them go once the holiday season is over.

 

E. Errol should consider increasing the prices of toys so that he can make higher profits with fewer sales, thereby reducing the number of customers and consequently solving the labor shortage issue.

 

47. Identify the similarity between the outsourcing and overtime strategies for avoiding a labor shortage.

A. Both strategies yield slow results.

 

B. Both strategies have high revocability.

 

C. Both strategies are expensive to implement.

 

D. Both strategies involve contracting with another organization to perform a broad set of services.

 

E. Both strategies can be used for reducing labor surplus.

 

48. Janet, an HR manager at SensNet 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, Janet is

A. outsourcing a broad set of services.

 

B. using propensity analysis.

 

C. seeking leading indicators.

 

D. hiring individuals with a core competency.

 

E. using trend analysis.

 

49. Steve, the CEO at Winsfeld 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 Winsfeld’s competitive standing. In this scenario, Steve will most likely be hiring

A. outsourced employees.

 

B. offshored employees.

 

C. employees with a core competency.

 

D. employees with a college degree.

 

E. temporary workers.

 

50. Wilma heads the production department at Riden Inc., a firm that stresses the importance of maintaining regular contact with customers. Wilma is expecting a labor surplus in the future. John, a supervisor, recommends downsizing as an option to deal with this labor surplus, however, Wilma rejects this option. Which of the following statements will validate that Wilma made the right decision?

A. Downsizing cannot be used to reduce the number of managers.

 

B. Downsizing would result in increased operational costs.

 

C. Downsizing cannot provide an immediate solution to labor surplus.

 

D. Downsizing would hurt long-term organizational effectiveness.

 

E. Downsizing would harm the hierarchy of top management.

 

51. Joe is the CEO of TexTel Inc., a company 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, Joe feels TexTel’s current processes are inefficient. As a result, Joe decides to downsize the organization and then use the profits to enhance the organization’s efficiency. What is a disadvantage of this approach?

A. Downsizing yields slow but long-term profits.

 

B. Downsizing is the simplest way to ensure current and future competitiveness.

 

C. Downsizing will interfere with the effectiveness of the organization’s teamwork.

 

D. Downsizing often results in acquisition of companies by other organizations.

 

E. Downsizing requires moving to relatively expensive locations.

 

52. Identify the correct statement regarding downsizing.

A. Downsizing improves long-term organizational effectiveness.

 

B. The negative effect of downsizing is especially low among firms that engage in high-involvement work practices.

 

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

 

D. The negative impact of downsizing is especially low for those organizations that emphasize research and development.

 

E. Downsizing campaigns only eliminate people who are replaceable.

 

53. Which of the following is a step a downsized company can take to counter negative employee emotions?

A. demonstrate that the employees that were downsized deserved it

 

B. build confidence in the company’s plans for a stronger future

 

C. show the organization’s commitment to its management

 

D. encourage employees to work harder, increasing their value and thus keeping them with the company longer

 

E. pursue a commitment to the customers over a commitment to the community

 

54. A manufacturing company, hit by a slump in demand, is experiencing a labor surplus. The company expects the market to improve in six months, and it does not want to lay off any of its employees. Which of the following strategies is an equitable way to handle this issue and spread the burden more fairly?

A. demotions

 

B. outsourcing

 

C. reduced work hours

 

D. overtime

 

E. employing temporary workers

 

55. Nicole, 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 of the following statements best explains the reason for this trend among older employees?

A. there are laws against gender discrimination

 

B. there is a rise in the availability of pensions

 

C. jobs are becoming less physically demanding

 

D. phased-retirement programs require employees to work longer hours

 

E. older workers generally don’t have much debt

 

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

A. The workforce should be downsized, with layoffs focusing on the older employees.

 

B. Retrain the older employees in order to make them to work more productively.

 

C. Provide performance-based pay to increase production output by the employees.

 

D. Replace the employees with contract workers.

 

E. Offer early-retirement incentives to the employees in their 50s and 60s.

 

57. Which of the following best describes a phased-retirement program?

A. It refers to laying off older employees in small batches.

 

B. It refers to giving lucrative incentives to a large number of older employees to voluntarily retire.

 

C. It refers to reducing both the number of hours older employees work as well as the cost of these employees.

 

D. It refers to giving older employees a certain time limit to voluntarily retire.

 

E. It refers to offering alternative work locations and work responsibilities to older employees.

 

58. Which of the following are the most widespread methods for eliminating labor shortages?

A. downsizing and merging with other organizations

 

B. hiring temporary workers and outsourcing work

 

C. retrained transfers and turnover reduction

 

D. overtime and new external hires

 

E. overtime and retrained transfers

 

59. Identify a disadvantage of using temporary and contract workers.

A. Revocability of this method is more difficult than other methods of avoiding labor shortage.

 

B. These kinds of workers cannot be hired through an agency.

 

C. These methods are a relatively slow solution to labor shortage.

 

D. These workers tend to be less committed to an organization.

 

E. These workers work well in key jobs, but not in those jobs that supplement permanent employees.

 

60. Why is temporary employment popular with employers?

A. It gives employers flexibility in operations.

 

B. It allows employers to comply with the requirements of affirmative action imposed by the government.

 

C. The quality of work from temporary workers is usually far superior.

 

D. It is the most effective strategy for key customer service jobs.

 

E. Temporary workers are more committed to the organization.

 

61. Which of the following best describes outsourcing?

A. It refers to contracting with another organization to perform a broad set of services.

 

B. It refers to finding cheap resources in another country to gain a competitive advantage.

 

C. It refers to using a temporary or contract employee to fill a single job vacancy.

 

D. It refers to buying the necessary raw materials needed to conduct business from external suppliers.

 

E. It refers to moving operations away from the home location to decrease cost savings.

 

62. Trotta Inc., a manufacturer of widgets, has entered into a contract with a third party to perform services related to processing orders, managing inventory levels, and shipping products to customers. The company is engaged in

A. offshoring.

 

B. consolidating.

 

C. licensing.

 

D. acquiring.

 

E. outsourcing.

 

63. Organizations use outsourcing as a way to

A. reduce a labor surplus.

 

B. operate more efficiently and save money.

 

C. replace labor with technology.

 

D. ease the transition from temporary worker to employee.

 

E. hold onto good employees during a labor surplus until they can be hired back.

 

64. Grexel 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, Grexel 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 Grexel to minimize administrative expenses without sacrificing quality?

A. hiring new employees with administrative skills

 

B. downsizing the workforce so fewer administrators are needed

 

C. moving to a location where raw materials are abundant

 

D. outsourcing administrative work to an organization that specializes in these services

 

E. hiring temporary workers to fill permanent job positions

 

65. Which of the following is a challenge associated with an outsourcing strategy?

A. labor shortage

 

B. increased cost

 

C. quality-control problems

 

D. lack of necessary technology

 

E. diseconomies of scale

 

66. A small company that manufactures special-order wood furniture has kept its employees busy on a 40-hours-a-week schedule for the past two years. The company just received a large contract from a Japanese company that is opening offices in the area. The Japanese company has given a month’s time for completion of its order. To complete the contract in the required one month, the furniture company needs additional skilled labor on short notice. Which of the following strategies might the company use if it wants to avoid this short-term labor shortage while finding a simple and cost-effective solution?

A. retrained transfers

 

B. overtime

 

C. technological innovation

 

D. new external hires

 

E. turnover reductions

 

67. Gordon, a supervisor at AutoMate Inc., realizes that a couple of months from now, he might experience a labor shortage for approximately two weeks due to increased demand for the company’s products. Which of the following options would be best for dealing with this labor shortage?

A. Gordon should hire new employees because it is a simple process.

 

B. Gordon should depend on technological innovation because it helps replace human labor with machines.

 

C. Gordon should use outsourcing because it reduces internal costs.

 

D. Gordon should encourage employees to stay with the company.

 

E. Gordon should encourage employee overtime because it helps to increase productivity for a short period of time.

 

68. Which of the following is an element in the final stage of human resources planning?

A. estimating labor demand

 

B. forecasting labor supply

 

C. estimating labor surplus or shortage

 

D. strategic planning

 

E. evaluating outcomes

 

69. In the context of HR planning, implementation that ties planning and recruiting to an organization’s strategy and to its efforts to develop employees becomes a complete program of

A. reengineering.

 

B. total quality management.

 

C. benchmarking.

 

D. talent management.

 

E. workforce utilization.

 

70. Nazir, an HR manager at Solomon Beverages, identifies and attracts potential job seekers to his organization. In the context of HRM functions, Nazir is carrying out the _____ process.

A. promoting

 

B. appraising

 

C. recruiting

 

D. forecasting

 

E. disbanding

 

71. In the context of managing human resources, the process of _____ creates a buffer between planning and the actual selection of new employees.

A. recruiting

 

B. evaluating

 

C. inducting

 

D. outsourcing

 

E. training

 

72. _____ influence the kinds of job applicants an organization reaches.

A. Personnel policies

 

B. Recruitment sources

 

C. Characteristics of the recruiter

 

D. Financial sources

 

E. Industry competitors

 

73. Which of the following aspects of recruitment is most likely to affect the nature of the positions that are vacant?

A. recruitment sources

 

B. personnel policies

 

C. recruiter traits

 

D. recruiter behavior

 

E. applicant characteristics

 

74. Which of the following is true of companies that use a “lead-the-market” pay strategy?

A. They pay more than the current market wages for a job.

 

B. They have a recruiting disadvantage.

 

C. They recruit fewer employees than needed and depend on overtime.

 

D. They provide relatively better working conditions to employees compared to competitors.

 

E. They usually have low pay, coupled with overtime and flex-time.

 

75. _____ states that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.

A. Due-process policy

 

B. Employment flexibility

 

C. Rule of fair treatment

 

D. Rule of law

 

E. Employment at will

 

76. Berzen Inc. hires John as a supervisor in the company. They have an implied understanding that both the employer and the employee have the right to end their relationship at any time they desire. In the context of personnel policies, the relationship between the company and John is based on the _____.

A. promote-from-within policy

 

B. lead-the-market strategy

 

C. employment-at-will policy

 

D. nepotistic agreement

 

E. benevolent agreement

 

77. _____ formally lay out the steps an employee may take to appeal an employer’s decision to terminate that employee.

A. Leading indicators

 

B. Trend analyses

 

C. Transitional matrices

 

D. Due-process policies

 

E. Employment-at-will contracts

 

78. Premiere Software is having difficulty filling all its positions for systems analysts. The company’s human resource manager suggests introducing a kind of personnel policy known as a due-process policy. How is that most likely to help with recruitment?

A. This policy implies greater job security and concern for employees.

 

B. Due-process implies that employees won’t be bound to a contract.

 

C. Implementing a due-process policy suggests that the organization is innovative and fun.

 

D. Applicants know a due-process policy always leads to a lead-the-market pay strategy.

 

E. The due-process policy supports a “promote from within” practice, which will encourage current employees to apply.

 

79. In order to cultivate a favorable picture of the organization, Rhodes Group, a financial services corporation, advertises itself to potential applicants by using the slogan, “Investing in you no matter what road you take.” This scenario is an example of _____ advertising.

A. viral

 

B. image

 

C. proactive

 

D. saturation

 

E. signature

 

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

A. Publicity about AdVanTech will create more opportunities for advancement within the company.

 

B. A lead-the-market pay strategy requires that people be familiar with the company’s track record.

 

C. Creating the impression of AdVanTech as a place where talented people make a difference can attract talented job candidates.

 

D. People who learn about the physicist will be less likely to expect that AdVanTech has an employment-at-will policy.

 

E. This kind of image advertising will give more people the impression that AdVanTech is a fun place to work.

 

81. Which of the following is an internal source of recruitment?

A. employee referrals

 

B. direct applicants

 

C. employment agencies

 

D. job postings

 

E. personal interviews

 

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

A. job posting.

 

B. external hiring.

 

C. employment referral.

 

D. a workforce utilization review.

 

E. direct sourcing.

 

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

A. using the services of a private employment agency

 

B. inviting employees to refer a friend

 

C. sending recruiters to colleges

 

D. posting the job on the company’s intranet

 

E. posting the job on the company’s careers website

 

84. Identify the benefit of relying on internal recruitment sources.

A. Internal candidates are likely to promote diversity in terms of race and sex.

 

B. Internal applicants minimize the impact of political considerations in the hiring decision.

 

C. Internal sources are generally cheaper and faster than other means.

 

D. Internal sources expose an organization to new ideas or new ways of doing business.

 

E. Current employees are well suited to recruit people for specialized upper-level positions.

 

85. Which of the following is the correct statement regarding internal recruitment sources?

A. Research indicates that most organizational positions are filled internally.

 

B. Internal recruitment sources expose an organization to new ideas or new ways of doing business.

 

C. Internal recruiting minimizes the possibility of unrealistic employee expectations.

 

D. Employee referrals are the most common source of job applicants for internal recruitment.

 

E. Internal sources are the most appropriate for specialized upper-level positions.

 

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

A. direct applicants.

 

B. natural applicants.

 

C. internal applicants.

 

D. neutral applicants.

 

E. referred applicants.

 

87. Steve applies for a job at Texel Inc. because his friend Dan, who is a manager there, prompts him to do so. In this scenario, Steve is a(n) _____.

A. direct applicant

 

B. natural applicant

 

C. neutral applicant

 

D. referral

 

E. executive search professional

 

88. 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

A. nepotism.

 

B. employee referral.

 

C. self-selection.

 

D. internal recruitment.

 

E. employment at will.

 

89. Which of the following statements is true about referrals?

A. Referrals fall under the category of internal sources of recruitment.

 

B. The use of referrals tends to increase the likelihood of exposing an organization to different viewpoints.

 

C. The use of referrals can contribute to nepotism.

 

D. Referrals cost much more than other formal recruiting efforts.

 

E. Referrals are the least preferred sources of new hires.

 

90. Margaret, the HR manager at Frexotel Inc., recruits her cousin Linda as production manager in the company. This move results in resentment among several of the company’s employees. By hiring her cousin, Margaret has engaged in the practice of hiring relatives, or _____.

A. localism

 

B. nepotism

 

C. structuralism

 

D. voluntarism

 

E. abstractionism

 

91. Hunter 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?

A. These types websites are too difficult for most job hunters to use.

 

B. The company will be flooded with applications from individuals who are barely qualified.

 

C. Employers can’t search these sites; only job seekers can conduct searches.

 

D. The company will get very few applications, because job hunters read the ads slowly.

 

E. Finding a match between job seekers and job vacancies is inefficient on these sites.

 

92. Which of the following is true of executive search firms?

A. They find new jobs almost exclusively for high-level, unemployed executives.

 

B. They help organizations in on-campus recruiting.

 

C. They help only entry-level and inexperienced employees to find jobs.

 

D. They are agencies administered by the federal government or governmental organizations.

 

E. They serve as a buffer, providing confidentiality between an employer and a recruit.

 

93. Luis, 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 Luis’s recommendation?

A. ESFs can more efficiently advertise the vacant position to a wide audience.

 

B. ESFs are government-run agencies, so they offer low-cost services.

 

C. ESFs provide confidentiality for employer and recruit, giving access to better candidates.

 

D. ESFs specialize in writing effective print ads that give readers enough information.

 

E. ESFs specialize in finding jobs for candidates who are currently unemployed.

 

94. Themost important source of recruits for entry-level professional and managerial vacancies is

A. on-campus interviewing.

 

B. public employment agencies.

 

C. advertisements in newspapers and magazines.

 

D. private employment agencies.

 

E. employee referrals.

 

95. In the context of evaluating the quality of a recruitment source, yield ratios express the

A. output yielded by a new hire in relation to the cost of recruiting the new hire.

 

B. dollar costs incurred per hire in relation to the number of applicants interviewed.

 

C. percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.

 

D. quality of new hires by comparing the cost of training the new recruits to the cost of hiring them.

 

E. percentage of applicants who complete one year in the organization after recruitment.

 

96. Erica helped a sales manager place an ad on job boards and hire 5 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?

A. $40,000

 

B. $5,000

 

C. $1,000,000

 

D. $10,000

 

E. $200,000

 

97. Gilbert, an HR manager at MaxNet Inc., hires 50 employees in five months. He has 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, Gilbert should determine the _____.

A. hiring conversion rate

 

B. prospective cost

 

C. return on investment

 

D. yield ratio

 

E. cost per hire

 

98. Xavier determines that his company spent $15,000 to hire 3 new programmers through employee referrals and another $75,000 to hire 5 new programmers through a private employment agency. Which of the following statements is correct about these recruiting efforts?

A. The cost per hire for the employment agency was lower, at $9,375 per hire.

 

B. The cost per hire for the employment agency was lower, at $15,000 per hire.

 

C. The cost per hire for referrals was lower, at $15,000.

 

D. The cost per hire for referrals was lower, at $45,000.

 

E. The cost per hire for referrals was lower, at $5,000 per hire.

 

99. Keri, a trainer at Klemens Inc., plans on finding 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 _____.

A. yield ratios

 

B. cost per hire

 

C. prospective costs

 

D. returns on investment

 

E. liquidity ratios

 

100. Zoe 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. According to your text, the most likely reason for this is because Zoe

A. is not warm enough to the applicants.

 

B. is perceived as less credible because she is an HR specialist.

 

C. does not give applicants enough information, leaving them with more questions than answers.

 

D. comes off as being too professional for someone in the HR field.

 

E. is not approaching the candidate with enough skepticism.

 

101. Malik is an HR manager at a large accounting firm. He hires and trains the firm’s staff of recruiters. Malik 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?

A. Malik should give them a realistic job preview about the recruiters’ position.

 

B. Malik should select recruiters in an ideal age range.

 

C. Malik should train the recruiters in how to perform candidates’ jobs.

 

D. Malik should equip recruiters with the kinds of information job applicants are seeking.

 

E. Malik should tell recruiters to downplay any negative information about the firm.

 

102. Juliette is a recruiter for Kaskade 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. Juliette’s behavior is an example of providing a _____.

A. yield ratio

 

B. realistic job preview

 

C. core competency

 

D. due-process policy

 

E. job posting

 

103. Harriett wants to apply for a job vacancy. She calls the recruiter who had advertised this vacancy to know more about the job. The recruiter gives some background information about the positive and negative qualities of the job to Harriett. Which of the following terms refers to the job information given by the recruiter?

A. vacancy analysis

 

B. substantive job criticism

 

C. pragmatic job survey

 

D. realistic job preview

 

E. role examination

 

104. A start-up software company hires Mia as its first human resource manager. Whenever a new position needs to be filled, Mia sits down with the supervisor to gather facts that will be included in a realistic job preview. Mia knows that the impact of job previews on candidates is limited, but she believes the effort is important anyway. Which of the following statements best explains Mia’s decision to provide realistic job previews?

A. The recruiter is less important than personnel policies for affecting a candidate’s decision.

 

B. Realism in the recruiter’s message is the most researched aspect of recruiting.

 

C. Mia feels pressure to exaggerate the negative qualities of each job vacancy.

 

D. Employees are highly sensitive to negative information.

 

E. Giving realistic information is not expensive or difficult, so it is worth even a small benefit.

 

105. Omar is proud of his team of warm, knowledgeable, and ethical recruiters at Luvya Insurance. They practice their presentations to be sure they give realistic job previews, and they keep up-to-date on the company’s policy so they can provide applicants with accurate answers to a host of questions. However, over the past year, Omar observes that the proportion of applicants who accept offers from Luvya 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 Luvya. Which of the following situations most likely explains this problem?

A. The recruiters lack the characteristics associated with success.

 

B. Candidates are not getting timely feedback about their applications.

 

C. The job previews by the recruiters are not realistic.

 

D. The recruiters are not the most appealing race and sex.

 

E. The organization has begun recruiting with teams of recruiters.

 

 

Essay Questions

106. Define forecasting. Describe one method each for forecasting labor demand and supply.

 

 

 

 

107. What is the second step in human resource planning? Explain the significance of this step.

 

 

 

 

108. What is the primary reason organizations choose to downsize? How do they meet this objective?

 

 

 

 

109. What are early-retirement programs? What is a phased-retirement program and what are its benefits?

 

 

 

 

110. Discuss the challenges associated with temporary workers and contract workers.

 

 

 

 

111. Discuss how employers can overcome the challenges of outsourcing.

 

 

 

 

112. List and discuss two personnel policies that are especially relevant to recruitment.

 

 

 

 

113. What are internal sources of recruitment? What are the advantages and disadvantages of using these sources?

 

 

 

 

114. In terms of external sources of recruitment, who are direct applicants and referrals? Why are these two groups regarded as excellent sources of recruitment?

 

 

 

 

115. Suppose you are a human resource executive for a hospital. What characteristics and behaviors would you look for in your recruiters so as to increase the positive impact they have on job candidates?

 

 

 

 

Chapter 05 Planning for and Recruiting Human Resources Answer Key

True / False Questions

1. In human resource planning, forecasting is an intermediary step.

FALSE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Level of Difficulty: 1 Easy
Topic: The Human Resource Planning Process

 

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

TRUE

An organization might use trend analysis, 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. Leading indicators are objective measures that accurately predict future labor demand.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 1 Easy
Topic: Labor Supply and Demand

 

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

FALSE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 2 Medium
Topic: Labor Supply and Demand

 

4. A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

TRUE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 1 Easy
Topic: Labor Supply and Demand

 

5. The second step in human resource planning is performance evaluation.

FALSE

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

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: The Human Resource Planning Process

 

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

TRUE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: The Human Resource Planning Process

 

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

TRUE

Downsizing reduces labor surpluses quickly; however, this action may cause the highest amount of suffering among employees who survive the job cuts.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

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

FALSE

Work sharing is one of the options that can be used to avoid a labor surplus.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

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

FALSE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

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

TRUE

Downsizing leads to a loss of talent, and it often disrupts the social networks through which people are creative and flexible.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

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

FALSE

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

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

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

FALSE

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.”

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: The Contingent Workforce

 

13. In the context of employing temporary and contract workers, if the person providing the service is a contractor and not an employee, the company is not supposed to directly supervise the worker.

TRUE

In the context of employing temporary and contract workers, if the person providing the service is a contractor and not an employee, the company is not supposed to directly supervise the worker.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: The Contingent Workforce

 

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

TRUE

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

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

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

FALSE

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

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

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

TRUE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

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

TRUE

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

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: The Human Resource Planning Process

 

18. 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.

TRUE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 1 Easy
Topic: Recruitment Strategy

 

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

FALSE

Personnel policies influence the characteristics of the positions to be filled. Recruitment sources influence the kinds of job applicants an organization reaches. And the nature and behavior of the recruiter affect the characteristics of both the vacancies and the applicants.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 2 Medium
Topic: Recruitment Strategy

 

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

FALSE

Personnel policies influence the characteristics of the positions to be filled. Recruitment sources influence the kinds of job applicants an organization reaches. And the nature and behavior of the recruiter affect the characteristics of both the vacancies and the applicants.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 2 Medium
Topic: Recruitment Strategy

 

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

FALSE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

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

TRUE

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

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

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

FALSE

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

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

TRUE

The recruiter affects the nature of both the job vacancy and the applicants generated.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 1 Easy
Topic: The Recruiter’s Role

 

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

FALSE

Research suggests that realistic job previews have a weak and inconsistent effect on turnover.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 1 Easy
Topic: The Recruiter’s Role

 

Multiple Choice Questions

26. Organizations carry out human resource planning to

A. reduce hiring of workers from colleges and universities.

 

B. increase hiring costs to match industry standards.

 

C. avoid taking risks.

 

D. gain an advantage over competitors.

 

E. replace technology with highly skilled workers.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Level of Difficulty: 2 Medium
Topic: The Human Resource Planning Process

 

27. Which of the following is the first step in the human resource planning process?

A. forecasting

 

B. goal setting

 

C. program implementation

 

D. program evaluation

 

E. performance evaluation

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Level of Difficulty: 1 Easy
Topic: The Human Resource Planning Process

 

28. In the context of human resource planning, the primary goal of forecasting is to

A. predict labor shortages or surpluses in specific areas of an organization.

 

B. determine labor supply.

 

C. set goals for hiring employees.

 

D. focus attention on a problem and provide a basis for measuring an organization’s success.

 

E. eliminate large numbers of personnel with the goal of enhancing an organization’s competitiveness.

The primary goal of forecasting is to predict which areas of the organization will experience labor shortages or surpluses.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Level of Difficulty: 2 Medium
Topic: The Human Resource Planning Process

 

29. Identify a benefit of applying statistical forecasting methods.

A. They are particularly useful in dynamic environments.

 

B. Under the right conditions, they provide predictions that are much more precise than a human forecaster’s subjective judgment.

 

C. They are particularly useful in predicting important events that have no historical precedent.

 

D. They are invariably better than the “best guesses” of experts.

 

E. They can be used by organizations as a substitute for relying on the subjective judgments of experts.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Level of Difficulty: 2 Medium
Topic: The Human Resource Planning Process

 

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

A. yield ratio

 

B. workforce utilization review

 

C. trend analysis

 

D. cost per hire

 

E. capacity utilization analysis

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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 3 Hard
Topic: Labor Supply and Demand

 

31. In the context of forecasting the demand for labor, using trend analysis, inventory levels, changes in technology, and actions of competitors are examples of _____.

A. leading indicators

 

B. performance indicators

 

C. coincident pointers

 

D. transitional matrices

 

E. functional pointers

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 2 Medium
Topic: Labor Supply and Demand

 

32. A chart that lists job categories held in one period and shows the proportion of employees in each of those categories in a future period is called a _____.

A. labor review

 

B. trend analysis

 

C. forecast

 

D. leading indicator

 

E. transitional matrix

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?”

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 1 Easy
Topic: Labor Supply and Demand

 

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

A. electronic recruiting process

 

B. transitional matrix

 

C. propensity analysis

 

D. due-process policy

 

E. multiple regression analysis

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?”

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 3 Hard
Topic: Labor Supply and Demand

 

34. Ron, an HR manager at Franton 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, Ron should use a _____.

A. transitional matrix

 

B. propensity analysis

 

C. trend analysis

 

D. multiple regression

 

E. leading indicator

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?”

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 3 Hard
Topic: Labor Supply and Demand

 

35. Tim, a human resource manager, has studied a transitional matrix to identify how his company has been filling its demand for lab technicians. Where else should Tim get information related to the labor supply?

A. the Bureau of Labor Statistics

 

B. the Equal Employment Opportunity Commission

 

C. the Occupational Safety and Health Administration

 

D. his company’s marketing plan

 

E. statistical models that capture “once-in-a-lifetime” changes

Besides looking at the labor supply within the organization, the planner should examine trends in the external labor market. The planner should keep abreast of labor market forecasts, including the size of the labor market, the unemployment rate, and the kinds of people who will be in the labor market. Important sources of data on the external labor market are published by the Labor Department’s Bureau of Labor Statistics.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 2 Medium
Topic: Labor Supply and Demand

 

36. The second step in human resource planning is _____.

A. forecasting labor shortage

 

B. forecasting labor surplus

 

C. goal setting and strategic planning

 

D. program implementation and evaluation

 

E. program goal setting

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

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Integrating Human Resource Planning and Strategic Planning

 

37. Jonathan, the CEO of Maxofan Inc., finds that the company needs to eliminate a labor surplus to avoid financial difficulties. To deal with this problem, he chooses a strategy that gives him fast results. However, the amount of suffering caused to employees is high. Jonathan is most likely using the _____ strategy to reduce the labor surplus.

A. early retirement

 

B. downsizing

 

C. natural attrition

 

D. retraining

 

E. hiring freeze

In this scenario, Jonathan 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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

38. Yienze 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, which of the following would be the best way for Yienze to deal with this labor surplus?

A. The company must consider work sharing because it causes relatively less suffering to the employees.

 

B. The company must choose an early retirement option because it gives an option to employees to voluntarily leave the organization with suitable monetary compensation.

 

C. The company must freeze employee hiring and focus on natural attrition because it is a relatively fast way to reduce a labor surplus.

 

D. The company must consider downsizing because it is the quickest way to deal with a labor surplus that results in financial losses.

 

E. The company must consider retraining employees because it helps improve their interpersonal skills.

Although downsizing causes high employee suffering, in this scenario, the company should use downsizing to reduce its labor surplus. Yienze Inc. is facing severe losses and downsizing will also help save it from further financial difficulties.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

39. Renton Inc. is phasing out its desktop computer repair center in Wisconsin. Meanwhile, the demand for repair of mobile devices—services it provides in Georgia and New Mexico—is growing rapidly. Betty, a human resource specialist at Renton headquarters in Atlanta, must plan to avoid a labor surplus in Wisconsin in a fast and effective way. She wishes to do so with minimal employee suffering in terms of layoffs and salary. Which of the following strategies would best help Betty accomplish her goal?

A. pay reductions

 

B. transfers

 

C. demotions

 

D. early retirement

 

E. hiring freeze

Transfers can be used as a strategy to avoid the Wisconsin labor surplus. Early retirement and hiring freezes are slow options, which do not fit the parameters Betty has set. The remaining strategies are relatively fast, but pay reductions and demotions cause high amounts of suffering, while transfers only cause a moderate amount of suffering.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

40. Solenz 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. Which of the following is the best strategy to deal with this labor surplus?

A. an early-retirement program

 

B. natural attrition

 

C. a hiring freeze

 

D. downsizing

 

E. work sharing

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.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

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

A. downsizing

 

B. demotion

 

C. hiring freeze

 

D. pay reduction

 

E. transfer

Bob 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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

42. Brendan and Angela are HR managers at Seattle 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 of the following HR strategies should Brendan and Angela consider, taking into account the length of time they have available?

A. downsizing

 

B. natural attrition

 

C. pay reductions

 

D. demotions

 

E. transfers

Brendan and Angela 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, Brendan and Angela will reduce the labor surplus within two years.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

43. Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.

A. Both strategies yield slow results for an organization.

 

B. Both strategies cause high suffering to the employees of an organization.

 

C. Both strategies can be applied for preventing labor shortages.

 

D. Both strategies are expensive to implement.

 

E. Both strategies encourage layoffs.

Both the natural attrition and early retirement strategies yield slow results and cause low suffering to the employees.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

44. Carmella, an HR manager at Crexion Inc., is dealing with labor shortage problems due to a sudden increase in production levels at the company. Among the following options, the fastest way to fix this problem is to _____.

A. use retrained transfers

 

B. focus on turnover reductions

 

C. hire new employees

 

D. hire temporary employees

 

E. focus on technological innovation

In this scenario, Carmella 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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

45. Britt, a production manager at Frelix 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 of the following options for avoiding a labor shortage would be the right solution for Britt?

A. hiring new employees

 

B. employing technological innovation

 

C. using retrained transfers

 

D. hiring temporary employees

 

E. reducing managerial staff

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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

46. Errol, a manager at a large holiday 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 of the following strategies would be the best option to help Errol avoid a labor shortage?

A. Errol should hire new employees because he will most likely need additional workers after the holiday season to deal with an increasing sales trend.

 

B. Errol should consider increasing his current employees’ pay during the holiday season so they will work harder to achieve sales targets.

 

C. Errol should keep his store closed during non-peak hours to compensate for labor shortages. This will ensure his current employees work harder during peak hours.

 

D. Errol should hire temporary employees because he can let them go once the holiday season is over.

 

E. Errol should consider increasing the prices of toys so that he can make higher profits with fewer sales, thereby reducing the number of customers and consequently solving the labor shortage issue.

In this scenario, Errol should hire temporary workers. This strategy can be implemented quickly, ensuring Errol will avoid a labor shortage. This strategy is also gives Errol flexibility because it is easy to change after implementation; once the holiday season is over Errol can let the temporary workers go.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

47. Identify the similarity between the outsourcing and overtime strategies for avoiding a labor shortage.

A. Both strategies yield slow results.

 

B. Both strategies have high revocability.

 

C. Both strategies are expensive to implement.

 

D. Both strategies involve contracting with another organization to perform a broad set of services.

 

E. Both strategies can be used for reducing labor surplus.

Both the overtime and outsourcing strategies yield fast results and are easy to change after implementation, i.e., they have high revocability.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

48. Janet, an HR manager at SensNet 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, Janet is

A. outsourcing a broad set of services.

 

B. using propensity analysis.

 

C. seeking leading indicators.

 

D. hiring individuals with a core competency.

 

E. using trend analysis.

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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Integrating Human Resource Planning and Strategic Planning

 

49. Steve, the CEO at Winsfeld 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 Winsfeld’s competitive standing. In this scenario, Steve will most likely be hiring

A. outsourced employees.

 

B. offshored employees.

 

C. employees with a core competency.

 

D. employees with a college degree.

 

E. temporary workers.

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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Integrating Human Resource Planning and Strategic Planning

 

50. Wilma heads the production department at Riden Inc., a firm that stresses the importance of maintaining regular contact with customers. Wilma is expecting a labor surplus in the future. John, a supervisor, recommends downsizing as an option to deal with this labor surplus, however, Wilma rejects this option. Which of the following statements will validate that Wilma made the right decision?

A. Downsizing cannot be used to reduce the number of managers.

 

B. Downsizing would result in increased operational costs.

 

C. Downsizing cannot provide an immediate solution to labor surplus.

 

D. Downsizing would hurt long-term organizational effectiveness.

 

E. Downsizing would harm the hierarchy of top management.

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.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

51. Joe is the CEO of TexTel Inc., a company 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, Joe feels TexTel’s current processes are inefficient. As a result, Joe decides to downsize the organization and then use the profits to enhance the organization’s efficiency. What is a disadvantage of this approach?

A. Downsizing yields slow but long-term profits.

 

B. Downsizing is the simplest way to ensure current and future competitiveness.

 

C. Downsizing will interfere with the effectiveness of the organization’s teamwork.

 

D. Downsizing often results in acquisition of companies by other organizations.

 

E. Downsizing requires moving to relatively expensive locations.

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.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Integrating Human Resource Planning and Strategic Planning

 

52. Identify the correct statement regarding downsizing.

A. Downsizing improves long-term organizational effectiveness.

 

B. The negative effect of downsizing is especially low among firms that engage in high-involvement work practices.

 

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

 

D. The negative impact of downsizing is especially low for those organizations that emphasize research and development.

 

E. Downsizing campaigns only eliminate people who are replaceable.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

53. Which of the following is a step a downsized company can take to counter negative employee emotions?

A. demonstrate that the employees that were downsized deserved it

 

B. build confidence in the company’s plans for a stronger future

 

C. show the organization’s commitment to its management

 

D. encourage employees to work harder, increasing their value and thus keeping them with the company longer

 

E. pursue a commitment to the customers over a commitment to the community

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.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

54. A manufacturing company, hit by a slump in demand, is experiencing a labor surplus. The company expects the market to improve in six months, and it does not want to lay off any of its employees. Which of the following strategies is an equitable way to handle this issue and spread the burden more fairly?

A. demotions

 

B. outsourcing

 

C. reduced work hours

 

D. overtime

 

E. employing temporary workers

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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

55. Nicole, 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 of the following statements best explains the reason for this trend among older employees?

A. there are laws against gender discrimination

 

B. there is a rise in the availability of pensions

 

C. jobs are becoming less physically demanding

 

D. phased-retirement programs require employees to work longer hours

 

E. older workers generally don’t have much debt

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.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Labor Supply and Demand

 

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

A. The workforce should be downsized, with layoffs focusing on the older employees.

 

B. Retrain the older employees in order to make them to work more productively.

 

C. Provide performance-based pay to increase production output by the employees.

 

D. Replace the employees with contract workers.

 

E. Offer early-retirement incentives to the employees in their 50s and 60s.

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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

57. Which of the following best describes a phased-retirement program?

A. It refers to laying off older employees in small batches.

 

B. It refers to giving lucrative incentives to a large number of older employees to voluntarily retire.

 

C. It refers to reducing both the number of hours older employees work as well as the cost of these employees.

 

D. It refers to giving older employees a certain time limit to voluntarily retire.

 

E. It refers to offering alternative work locations and work responsibilities to older employees.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

58. Which of the following are the most widespread methods for eliminating labor shortages?

A. downsizing and merging with other organizations

 

B. hiring temporary workers and outsourcing work

 

C. retrained transfers and turnover reduction

 

D. overtime and new external hires

 

E. overtime and retrained transfers

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

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

59. Identify a disadvantage of using temporary and contract workers.

A. Revocability of this method is more difficult than other methods of avoiding labor shortage.

 

B. These kinds of workers cannot be hired through an agency.

 

C. These methods are a relatively slow solution to labor shortage.

 

D. These workers tend to be less committed to an organization.

 

E. These workers work well in key jobs, but not in those jobs that supplement permanent employees.

Temporary and contract workers may not be as committed to an organization as the permanent employees in an organization.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: The Contingent Workforce

 

60. Why is temporary employment popular with employers?

A. It gives employers flexibility in operations.

 

B. It allows employers to comply with the requirements of affirmative action imposed by the government.

 

C. The quality of work from temporary workers is usually far superior.

 

D. It is the most effective strategy for key customer service jobs.

 

E. Temporary workers are more committed to the organization.

Temporary employment is popular with employers because it gives them flexibility they need to operate efficiently when demand for their products changes rapidly.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: The Contingent Workforce

 

61. Which of the following best describes outsourcing?

A. It refers to contracting with another organization to perform a broad set of services.

 

B. It refers to finding cheap resources in another country to gain a competitive advantage.

 

C. It refers to using a temporary or contract employee to fill a single job vacancy.

 

D. It refers to buying the necessary raw materials needed to conduct business from external suppliers.

 

E. It refers to moving operations away from the home location to decrease cost savings.

Outsourcing refers to contracting with another organization to perform a broad set of services.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

62. Trotta Inc., a manufacturer of widgets, has entered into a contract with a third party to perform services related to processing orders, managing inventory levels, and shipping products to customers. The company is engaged in

A. offshoring.

 

B. consolidating.

 

C. licensing.

 

D. acquiring.

 

E. outsourcing.

Outsourcing refers to contracting with another organization to perform a broad set of services.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

63. Organizations use outsourcing as a way to

A. reduce a labor surplus.

 

B. operate more efficiently and save money.

 

C. replace labor with technology.

 

D. ease the transition from temporary worker to employee.

 

E. hold onto good employees during a labor surplus until they can be hired back.

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.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

64. Grexel 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, Grexel 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 Grexel to minimize administrative expenses without sacrificing quality?

A. hiring new employees with administrative skills

 

B. downsizing the workforce so fewer administrators are needed

 

C. moving to a location where raw materials are abundant

 

D. outsourcing administrative work to an organization that specializes in these services

 

E. hiring temporary workers to fill permanent job positions

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Integrating Human Resource Planning and Strategic Planning

 

65. Which of the following is a challenge associated with an outsourcing strategy?

A. labor shortage

 

B. increased cost

 

C. quality-control problems

 

D. lack of necessary technology

 

E. diseconomies of scale

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: Techniques in Implementing Strategy

 

66. A small company that manufactures special-order wood furniture has kept its employees busy on a 40-hours-a-week schedule for the past two years. The company just received a large contract from a Japanese company that is opening offices in the area. The Japanese company has given a month’s time for completion of its order. To complete the contract in the required one month, the furniture company needs additional skilled labor on short notice. Which of the following strategies might the company use if it wants to avoid this short-term labor shortage while finding a simple and cost-effective solution?

A. retrained transfers

 

B. overtime

 

C. technological innovation

 

D. new external hires

 

E. turnover reductions

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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

67. Gordon, a supervisor at AutoMate Inc., realizes that a couple of months from now, he might experience a labor shortage for approximately two weeks due to increased demand for the company’s products. Which of the following options would be best for dealing with this labor shortage?

A. Gordon should hire new employees because it is a simple process.

 

B. Gordon should depend on technological innovation because it helps replace human labor with machines.

 

C. Gordon should use outsourcing because it reduces internal costs.

 

D. Gordon should encourage employees to stay with the company.

 

E. Gordon should encourage employee overtime because it helps to increase productivity for a short period of time.

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.

 

 

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 3 Hard
Topic: Techniques in Implementing Strategy

 

68. Which of the following is an element in the final stage of human resources planning?

A. estimating labor demand

 

B. forecasting labor supply

 

C. estimating labor surplus or shortage

 

D. strategic planning

 

E. evaluating outcomes

The final stage of human resource planning involves implementing strategies and evaluating outcomes.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: The Human Resource Planning Process

 

69. In the context of HR planning, implementation that ties planning and recruiting to an organization’s strategy and to its efforts to develop employees becomes a complete program of

A. reengineering.

 

B. total quality management.

 

C. benchmarking.

 

D. talent management.

 

E. workforce utilization.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 1 Easy
Topic: The Human Resource Planning Process

 

70. Nazir, an HR manager at Solomon Beverages, identifies and attracts potential job seekers to his organization. In the context of HRM functions, Nazir is carrying out the _____ process.

A. promoting

 

B. appraising

 

C. recruiting

 

D. forecasting

 

E. disbanding

In this scenario, Nazir 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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 3 Hard
Topic: Define Recruitment

 

71. In the context of managing human resources, the process of _____ creates a buffer between planning and the actual selection of new employees.

A. recruiting

 

B. evaluating

 

C. inducting

 

D. outsourcing

 

E. training

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 1 Easy
Topic: Define Recruitment

 

72. _____ influence the kinds of job applicants an organization reaches.

A. Personnel policies

 

B. Recruitment sources

 

C. Characteristics of the recruiter

 

D. Financial sources

 

E. Industry competitors

Recruitment sources influence the kinds of job applicants an organization reaches.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 1 Easy
Topic: Recruitment Strategy

 

73. Which of the following aspects of recruitment is most likely to affect the nature of the positions that are vacant?

A. recruitment sources

 

B. personnel policies

 

C. recruiter traits

 

D. recruiter behavior

 

E. applicant characteristics

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 1 Easy
Topic: Recruitment Strategy

 

74. Which of the following is true of companies that use a “lead-the-market” pay strategy?

A. They pay more than the current market wages for a job.

 

B. They have a recruiting disadvantage.

 

C. They recruit fewer employees than needed and depend on overtime.

 

D. They provide relatively better working conditions to employees compared to competitors.

 

E. They usually have low pay, coupled with overtime and flex-time.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 2 Medium
Topic: Recruitment Strategy

 

75. _____ states that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.

A. Due-process policy

 

B. Employment flexibility

 

C. Rule of fair treatment

 

D. Rule of law

 

E. Employment at will

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 1 Easy
Topic: Recruitment Strategy

 

76. Berzen Inc. hires John as a supervisor in the company. They have an implied understanding that both the employer and the employee have the right to end their relationship at any time they desire. In the context of personnel policies, the relationship between the company and John is based on the _____.

A. promote-from-within policy

 

B. lead-the-market strategy

 

C. employment-at-will policy

 

D. nepotistic agreement

 

E. benevolent agreement

In this scenario, the relationship between John 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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 3 Hard
Topic: Recruitment Strategy

 

77. _____ formally lay out the steps an employee may take to appeal an employer’s decision to terminate that employee.

A. Leading indicators

 

B. Trend analyses

 

C. Transitional matrices

 

D. Due-process policies

 

E. Employment-at-will contracts

Due-process policies formally lay out the steps an employee may take to appeal an employer’s decision to terminate that employee.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 1 Easy
Topic: Recruitment Strategy

 

78. Premiere Software is having difficulty filling all its positions for systems analysts. The company’s human resource manager suggests introducing a kind of personnel policy known as a due-process policy. How is that most likely to help with recruitment?

A. This policy implies greater job security and concern for employees.

 

B. Due-process implies that employees won’t be bound to a contract.

 

C. Implementing a due-process policy suggests that the organization is innovative and fun.

 

D. Applicants know a due-process policy always leads to a lead-the-market pay strategy.

 

E. The due-process policy supports a “promote from within” practice, which will encourage current employees to apply.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 3 Hard
Topic: Recruitment Strategy

 

79. In order to cultivate a favorable picture of the organization, Rhodes Group, a financial services corporation, advertises itself to potential applicants by using the slogan, “Investing in you no matter what road you take.” This scenario is an example of _____ advertising.

A. viral

 

B. image

 

C. proactive

 

D. saturation

 

E. signature

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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 3 Hard
Topic: Recruitment Strategy

 

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

A. Publicity about AdVanTech will create more opportunities for advancement within the company.

 

B. A lead-the-market pay strategy requires that people be familiar with the company’s track record.

 

C. Creating the impression of AdVanTech as a place where talented people make a difference can attract talented job candidates.

 

D. People who learn about the physicist will be less likely to expect that AdVanTech has an employment-at-will policy.

 

E. This kind of image advertising will give more people the impression that AdVanTech is a fun place to work.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 3 Hard
Topic: Recruitment Strategy

 

81. Which of the following is an internal source of recruitment?

A. employee referrals

 

B. direct applicants

 

C. employment agencies

 

D. job postings

 

E. personal interviews

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

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

A. job posting.

 

B. external hiring.

 

C. employment referral.

 

D. a workforce utilization review.

 

E. direct sourcing.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

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

A. using the services of a private employment agency

 

B. inviting employees to refer a friend

 

C. sending recruiters to colleges

 

D. posting the job on the company’s intranet

 

E. posting the job on the company’s careers website

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques

 

84. Identify the benefit of relying on internal recruitment sources.

A. Internal candidates are likely to promote diversity in terms of race and sex.

 

B. Internal applicants minimize the impact of political considerations in the hiring decision.

 

C. Internal sources are generally cheaper and faster than other means.

 

D. Internal sources expose an organization to new ideas or new ways of doing business.

 

E. Current employees are well suited to recruit people for specialized upper-level positions.

Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Internal and External Recruiting

 

85. Which of the following is the correct statement regarding internal recruitment sources?

A. Research indicates that most organizational positions are filled internally.

 

B. Internal recruitment sources expose an organization to new ideas or new ways of doing business.

 

C. Internal recruiting minimizes the possibility of unrealistic employee expectations.

 

D. Employee referrals are the most common source of job applicants for internal recruitment.

 

E. Internal sources are the most appropriate for specialized upper-level positions.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Internal and External Recruiting

 

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

A. direct applicants.

 

B. natural applicants.

 

C. internal applicants.

 

D. neutral applicants.

 

E. referred applicants.

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

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

87. Steve applies for a job at Texel Inc. because his friend Dan, who is a manager there, prompts him to do so. In this scenario, Steve is a(n) _____.

A. direct applicant

 

B. natural applicant

 

C. neutral applicant

 

D. referral

 

E. executive search professional

Referrals are people who apply for a job vacancy because someone in the organization prompted them to do so.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques

 

88. 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

A. nepotism.

 

B. employee referral.

 

C. self-selection.

 

D. internal recruitment.

 

E. employment at will.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

89. Which of the following statements is true about referrals?

A. Referrals fall under the category of internal sources of recruitment.

 

B. The use of referrals tends to increase the likelihood of exposing an organization to different viewpoints.

 

C. The use of referrals can contribute to nepotism.

 

D. Referrals cost much more than other formal recruiting efforts.

 

E. Referrals are the least preferred sources of new hires.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques

 

90. Margaret, the HR manager at Frexotel Inc., recruits her cousin Linda as production manager in the company. This move results in resentment among several of the company’s employees. By hiring her cousin, Margaret has engaged in the practice of hiring relatives, or _____.

A. localism

 

B. nepotism

 

C. structuralism

 

D. voluntarism

 

E. abstractionism

Nepotism is the practice of hiring relatives. This is often considered an unfair practice and can result in resentment among employees.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques

 

91. Hunter 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?

A. These types websites are too difficult for most job hunters to use.

 

B. The company will be flooded with applications from individuals who are barely qualified.

 

C. Employers can’t search these sites; only job seekers can conduct searches.

 

D. The company will get very few applications, because job hunters read the ads slowly.

 

E. Finding a match between job seekers and job vacancies is inefficient on these sites.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques

 

92. Which of the following is true of executive search firms?

A. They find new jobs almost exclusively for high-level, unemployed executives.

 

B. They help organizations in on-campus recruiting.

 

C. They help only entry-level and inexperienced employees to find jobs.

 

D. They are agencies administered by the federal government or governmental organizations.

 

E. They serve as a buffer, providing confidentiality between an employer and a recruit.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques

 

93. Luis, 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 Luis’s recommendation?

A. ESFs can more efficiently advertise the vacant position to a wide audience.

 

B. ESFs are government-run agencies, so they offer low-cost services.

 

C. ESFs provide confidentiality for employer and recruit, giving access to better candidates.

 

D. ESFs specialize in writing effective print ads that give readers enough information.

 

E. ESFs specialize in finding jobs for candidates who are currently unemployed.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques

 

94. Themost important source of recruits for entry-level professional and managerial vacancies is

A. on-campus interviewing.

 

B. public employment agencies.

 

C. advertisements in newspapers and magazines.

 

D. private employment agencies.

 

E. employee referrals.

On-campus interviewing is the most important source of recruits for entry-level professional and managerial vacancies.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

95. In the context of evaluating the quality of a recruitment source, yield ratios express the

A. output yielded by a new hire in relation to the cost of recruiting the new hire.

 

B. dollar costs incurred per hire in relation to the number of applicants interviewed.

 

C. percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.

 

D. quality of new hires by comparing the cost of training the new recruits to the cost of hiring them.

 

E. percentage of applicants who complete one year in the organization after recruitment.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 1 Easy
Topic: Recruitment Policies and Techniques

 

96. Erica helped a sales manager place an ad on job boards and hire 5 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?

A. $40,000

 

B. $5,000

 

C. $1,000,000

 

D. $10,000

 

E. $200,000

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).

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques

 

97. Gilbert, an HR manager at MaxNet Inc., hires 50 employees in five months. He has 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, Gilbert should determine the _____.

A. hiring conversion rate

 

B. prospective cost

 

C. return on investment

 

D. yield ratio

 

E. cost per hire

In this scenario, the cost per hire would allow Gilbert to compare the costs of different recruitment sources. To compute this amount, Gilbert 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.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques

 

98. Xavier determines that his company spent $15,000 to hire 3 new programmers through employee referrals and another $75,000 to hire 5 new programmers through a private employment agency. Which of the following statements is correct about these recruiting efforts?

A. The cost per hire for the employment agency was lower, at $9,375 per hire.

 

B. The cost per hire for the employment agency was lower, at $15,000 per hire.

 

C. The cost per hire for referrals was lower, at $15,000.

 

D. The cost per hire for referrals was lower, at $45,000.

 

E. The cost per hire for referrals was lower, at $5,000 per hire.

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).

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques

 

99. Keri, a trainer at Klemens Inc., plans on finding 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 _____.

A. yield ratios

 

B. cost per hire

 

C. prospective costs

 

D. returns on investment

 

E. liquidity ratios

A yield ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 3 Hard
Topic: Recruitment Policies and Techniques

 

100. Zoe 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. According to your text, the most likely reason for this is because Zoe

A. is not warm enough to the applicants.

 

B. is perceived as less credible because she is an HR specialist.

 

C. does not give applicants enough information, leaving them with more questions than answers.

 

D. comes off as being too professional for someone in the HR field.

 

E. is not approaching the candidate with enough skepticism.

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.

 

 

AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Evaluate
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 3 Hard
Topic: The Recruiter’s Role

 

101. Malik is an HR manager at a large accounting firm. He hires and trains the firm’s staff of recruiters. Malik 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?

A. Malik should give them a realistic job preview about the recruiters’ position.

 

B. Malik should select recruiters in an ideal age range.

 

C. Malik should train the recruiters in how to perform candidates’ jobs.

 

D. Malik should equip recruiters with the kinds of information job applicants are seeking.

 

E. Malik should tell recruiters to downplay any negative information about the firm.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 2 Medium
Topic: The Recruiter’s Role

 

102. Juliette is a recruiter for Kaskade 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. Juliette’s behavior is an example of providing a _____.

A. yield ratio

 

B. realistic job preview

 

C. core competency

 

D. due-process policy

 

E. job posting

In this scenario, Juliette is providing a realistic job preview—accurate background information about a job’s positive and negative qualities.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 3 Hard
Topic: The Recruiter’s Role

 

103. Harriett wants to apply for a job vacancy. She calls the recruiter who had advertised this vacancy to know more about the job. The recruiter gives some background information about the positive and negative qualities of the job to Harriett. Which of the following terms refers to the job information given by the recruiter?

A. vacancy analysis

 

B. substantive job criticism

 

C. pragmatic job survey

 

D. realistic job preview

 

E. role examination

Realistic job previews provide background information about jobs’ positive and negative qualities.

 

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 3 Hard
Topic: The Recruiter’s Role

 

104. A start-up software company hires Mia as its first human resource manager. Whenever a new position needs to be filled, Mia sits down with the supervisor to gather facts that will be included in a realistic job preview. Mia knows that the impact of job previews on candidates is limited, but she believes the effort is important anyway. Which of the following statements best explains Mia’s decision to provide realistic job previews?

A. The recruiter is less important than personnel policies for affecting a candidate’s decision.

 

B. Realism in the recruiter’s message is the most researched aspect of recruiting.

 

C. Mia feels pressure to exaggerate the negative qualities of each job vacancy.

 

D. Employees are highly sensitive to negative information.

 

E. Giving realistic information is not expensive or difficult, so it is worth even a small benefit.

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.

 

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 2 Medium
Topic: The Recruiter’s Role

 

105. Omar is proud of his team of warm, knowledgeable, and ethical recruiters at Luvya Insurance. They practice their presentations to be sure they give realistic job previews, and they keep up-to-date on the company’s policy so they can provide applicants with accurate answers to a host of questions. However, over the past year, Omar observes that the proportion of applicants who accept offers from Luvya 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 Luvya. Which of the following situations most likely explains this problem?

A. The recruiters lack the characteristics associated with success.

 

B. Candidates are not getting timely feedback about their applications.

 

C. The job previews by the recruiters are not realistic.

 

D. The recruiters are not the most appealing race and sex.

 

E. The organization has begun recruiting with teams of recruiters.

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.

 

 

AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Evaluate
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 3 Hard
Topic: The Recruiter’s Role

 

Essay Questions

106. Define forecasting. Describe one method each for forecasting labor demand and supply.

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?”

 

AACSB: Analytical Thinking
Blooms: Remember
Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization’s strategy.
Learning Objective: 05-02 Determine the labor demand for workers in various job categories.
Level of Difficulty: 1 Easy
Topic: The Human Resource Planning Process

 

107. What is the second step in human resource planning? Explain the significance of this step.

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 an 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. For each goal, the organization must choose one or more human resource strategies. A variety of strategies is available for handling expected shortages and surpluses of labor. This planning stage is critical. The options differ widely in their expense, speed, and effectiveness. Options for reducing a labor surplus cause differing amounts of human suffering. The options for avoiding a labor shortage differ in terms of how easily the organization can undo the change if it no longer faces a labor shortage. Another consideration in choosing an HR strategy is whether the employees required will contribute directly to the organization’s success. Organizations are most likely to benefit from hiring and retaining employees who provide a core competency. Through good HR planning, organizations try to anticipate labor surpluses far enough ahead that they can freeze hiring and let natural attrition reduce the labor force.

 

AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: The Human Resource Planning Process

 

108. What is the primary reason organizations choose to downsize? How do they meet this objective?

The primary reason organizations engage in downsizing is to promote future competitiveness.
According to surveys, they do this by meeting four objectives:

1. Reducing costs: Labor is a large part of a company’s total costs, so downsizing is an attractive place to start cutting costs.
2. Replacing labor with technology: Closing outdated factories, automating, or introducing other technological changes reduces the need for labor. Often, the labor savings outweigh the cost of the new technology.
3. Mergers and acquisitions: When organizations combine, they often need less bureaucratic overhead, so they lay off managers and some professional staff members.
4. Moving to more economical locations: Some organizations move from one area of the United States to another, especially from the Northeast and Midwest to the South and the mountain regions of the West.

 

AACSB: Analytical Thinking
Blooms: Remember
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

109. What are early-retirement programs? What is a phased-retirement program and what are its benefits?

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.

 

AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

110. Discuss the challenges associated with temporary workers and contract workers.

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.

 

AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: The Contingent Workforce

 

111. Discuss how employers can overcome the challenges of outsourcing.

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 offshore 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.

 

AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.
Level of Difficulty: 2 Medium
Topic: Techniques in Implementing Strategy

 

112. List and discuss two personnel policies that are especially relevant to recruitment.

Several personnel policies are especially relevant to recruitment:

1. Internal versus external recruiting: Organizations with policies to “promote from within” try to fill upper-level vacancies by recruiting candidates internally. Opportunities for advancement make a job more attractive to applicants and employees. The decision about using internal or external recruiting affects the nature of jobs, recruitment sources, and the nature of applicants.
2. Lead-the-market pay strategies: 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. Higher pay can also make up for a job’s less desirable features. Organizations that compete for applicants based on pay may use bonuses, stock options, and other forms of pay besides wages and salaries.
3. Employment-at-will policies: Within the laws of the state where they are operating, employers have latitude to set polices about their rights in an employment relationship.
The principle of employment at will holds that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time. An alternative is to establish extensive due-process policies, which formally lay out the steps an employee may take to appeal an employer’s decision to terminate that employee. An organization’s lawyers may advise the company to ensure that all recruitment documents say the employment is “at will” to protect the company from lawsuits about wrongful discharge. Management must decide how to weigh any legal advantages against the impact on recruitment. 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.
4. Image advertising: 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. This 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. Also, job applicants seem to be particularly sensitive to issues of diversity and inclusion in image advertising, so organizations should ensure that their image advertisements reflect the broad nature of the labor market from which they intend to recruit.

 

AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive.
Level of Difficulty: 2 Medium
Topic: Recruitment Strategy

 

113. What are internal sources of recruitment? What are the advantages and disadvantages of using these sources?

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.

 

AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques

 

114. In terms of external sources of recruitment, who are direct applicants and referrals? Why are these two groups regarded as excellent sources of recruitment?

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. These two sources of recruits share some characteristics that make them excellent pools from which to draw. One advantage is that many direct applicants are, to some extent, already “sold” on the organization. Most 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, which, when it works, eases the pressure on the organization’s recruiting and selection systems. A form of aided self-selection occurs with referrals. Many job seekers look to friends, relatives, and acquaintances to help find employment. Using these social networks not only helps the job seeker but also simplifies recruitment for employers. Current employees (who are familiar with the vacancy as well as the person they are referring) decide that there is a fit between the person and the vacancy, so they convince the person to apply for the job. An additional benefit of using such sources is that it costs much less than formal recruiting efforts. Considering these combined benefits, referrals and direct applications are among the best sources of new hires.

 

AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 05-05 List and compare sources of job applicants.
Level of Difficulty: 2 Medium
Topic: Recruitment Policies and Techniques

 

115. Suppose you are a human resource executive for a hospital. What characteristics and behaviors would you look for in your recruiters so as to increase the positive impact they have on job candidates?

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.

As for behaviors, recruiters should be encouraged to:

1. Provide applicants with timely feedback.
2. Avoid behaviors that might be offensive and convey the wrong impression about the organization.
3. Do recruiting in teams rather than individually.

 

AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 05-06 Describe the recruiter’s role in the recruitment process, including limits and opportunities.
Level of Difficulty: 2 Medium
Topic: The Recruiter’s Role

 

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