Strategic Human Resources Planning 5th Edition By Monica Belcourt – Test Bank

Complete Test Bank With Answers

Sample Questions Posted Below

CHAPTER 5 — THE HR FORECASTING PROCESS

MULTIPLE CHOICE

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

ANS: B BLM: REMEMBER REF: Page 118

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

ANS:ABLM: HIGHER ORDERREF:Page 119

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

ANS:CBLM: HIGHER ORDERREF:Page 121

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

ANS:DBLM: REMEMBERREF:Pages 128

5.Which of the following would NOT be considered a “designated group?

ANS: A BLM: REMEMBER REF: Page 147

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

ANS: D BLM: REMEMBER REF: Page 124

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

ANS: A BLM: REMEMBER REF: Pages 124–125

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

ANS: D BLM: REMEMBER REF: Page 118

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

ANS: C BLM: REMEMBER REF: Page 119

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

ANS: B BLM: HIGHER ORDER REF: Page 123

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

ANS: A BLM: REMEMBER REF: Page 125

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

ANS: C BLM: HIGHER ORDER REF: Page 125

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

ANS: A BLM: REMEMBER REF: Page 126

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

ANS: A BLM: HIGHER ORDER REF: Page 129

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

ANS:ABLM: HIGHER ORDERREF:Pages 127

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

ANS: C BLM: REMEMBER REF: Page 125

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

ANS: B BLM: REMEMBER REF: Page 131

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

ANS: B BLM: REMEMBER REF: Page 130

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

ANS: B BLM: HIGHER ORDER REF: Pages 129

External supply = 500 (0.07-0.10) = 500 (-0.03) = -15

20.How can organizations reduce their HR costs?

ANS: D BLM: HIGHER ORDER REF: Page 120

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

ANS: C BLM: HIGHER ORDER REF: Page 118

22.Which of the following external factors affect HR forecasting?

ANS: B BLM: REMEMBER REF: Page 118

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

ANS: C BLM: REMEMBER REF: Page 125

24.Why are some individuals categorized into designated groups?

ANS: D BLM: HIGHER ORDER REF: Page 122

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

ANS: B BLM: REMEMBER REF: Page 119

26.Which of the following is NOT related to attrition?

ANS: C BLM: REMEMBER REF: Page 131

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

ANS: D BLM: HIGHER ORDER REF: Page 121

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

ANS: A BLM: HIGHER ORDER REF: Page 128

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

ANS: D BLM: HIGHER ORDER REF: Page 129

External Supply = 1 500 (0.05+0.12) = 255

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

ANS: D BLM: REMEMBER REF: Page 125TRUE/FALSE

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

ANS: F BLM: HIGHER ORDER REF: Page 118

(tracks internal changes)

2.HR forecasting is more reactive than proactive.

ANS: F BLM: HIGHER ORDER REF: Page 118

(more proactive)

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

ANS: F BLM: REMEMBER REF: Page 121

(HR demand)

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

ANS: T BLM: HIGHER ORDER REF: Page 123

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

ANS: F BLM: REMEMBER REF: Page 121

(disconnected from)

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

ANS: T BLM: HIGHER ORDER REF: Page 119

7.HR forecasting is referred to as the “heart” of the HR planning process.

ANS: T BLM: REMEMBER REF: Page 118

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

ANS: F BLM: REMEMBER REF: Page 118

(950 000)

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

ANS:TBLM: REMEMBERREF:Pages 128

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

ANS: F BLM: REMEMBER REF: Page 125

(medium-run forecast)

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

ANS: F BLM: HIGHER ORDER REF: Page 119

(an approximation of possible future states)

12.The forecasting term “envelope” is synonymous with the term “projection.”

ANS: T BLM: REMEMBER REF: Page 125

13.A projection incorporates several HR estimates based on few assumptions.

ANS: F BLM: REMEMBER REF: Page 125

(a variety of assumptions)

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

ANS: F BLM: REMEMBER REF: Page 118

(both supply and demand)

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

ANS: T BLM: HIGHER ORDER REF: Page 122

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

ANS: F BLM: REMEMBER REF: Page 118

(“sellers” market)

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

ANS: F BLM: REMEMBER REF: Page 118

(also process-based forecasting)

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

ANS: F BLM: REMEMBER REF: Page 125

(definition of prediction)

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

ANS: T BLM: REMEMBER REF: Page 119

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

ANS: T BLM: REMEMBER REF: Page 122

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

ANS: F BLM: REMEMBER REF: Page 131

(federal government)

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

ANS: F BLM: REMEMBER REF: Page 131

(voluntary turnover)

23.HR shortage = HR demand < HR internal supply.

ANS: F BLM: REMEMBER REF: Pages 130

(HR shortage = HR demand > HR internal supply)

SHORT ANSWER

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

ANS:

• • Transaction-based forecasting — focuses on tracking internal changes instituted by the organization’s managers.
• • Event-based forecasting — forecasting concerned with changes in the external environment.
• • Process-based forecasting — forecasting not focused on specific internal organizational events.

BLM: REMEMBER REF: Page 118

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

ANS:

Constitutes the heart of the HR planning process, and can be defined as ascertaining the net requirement for personnel by determining the demand for and supply of human resources now and in the future.

Benefits of HR Forecasting — 

• • Reduces HR costs
• • Increases organizational flexibility
• • Ensures a close linkage to the macro business forecasting process
• • Ensures that organizational requirements take precedence over issues of constraint and scarcity

BLM: HIGHER ORDER REF: Pages 119–121

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

ANS:

a. Specialist/Technical/Professional 

• • Workers holding trade qualifications that are in high demand or that require lengthy preparatory training for attainment of competency.

b. Employment Equity Designated Group Membership

• • Four main designated groups — people of aboriginal descent, women, people with disabilities, and members of visible minorities. 

c. Managerial and Executive Personnel 

• • Executives such as the CEO, president, vice-president,  and other managers in the organization.

d. Recruits 

• • Recruiting trainees either internally or externally.

BLM: REMEMBER REF: Pages 122–123

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

ANS:

1. a. Identify organizational goals, objectives, and plans.
2. b. Determine overall demand requirements for personnel (i.e., what staff are needed, when, and where)
3. c. Assess in-house skills and other internal supply characteristics.
4. d. Determine the net demand requirements that must be met from external environmental supply sources.
5. e. Develop HR plans and programs to ensure that the right people are in the right place at the right time.

BLM: REMEMBER REF: Page 123

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

ANS:

HR shortages are addressed by: 

• • Recruitment, selection, and compensation schemes to attract new personnel;
• • Hiring part-time employees;
• • Recalling laid-off workers or retirees;
• • Hiring temporary workers.

HR surpluses are addressed through:

• • Employee lay-offs or terminations
• • Job sharing
• • Reduction of hours or shifts
• • Hiring freeze and natural attrition

BLM: HIGHER ORDER REF: Pages 129–131