MGMT 330 - Chapter 5

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.

b) Both strategies have high revocability.

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

a) recruiting

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.

a) It gives employers flexibility in operations.

What 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.

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

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

a) This policy implies greater job security and concern for employees.

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.

a) direct applicants.

What is the first step in the human resource planning process? a) forecasting b) goal setting c) program implementation d) program evaluation e) performance evaluation

a) forecasting

What 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.

b) Build confidence in the company's plans for a stronger future.

Antoine is proud of his team of warm, knowledgeable, and ethical recruiters at Luvia Insurance. They are sure to give realistic job previews, and they keep up to date on the company's policies so they can provide applicants with accurate answers to a host of questions. However, it sometimes takes a while to fill positions. And over the past year, Antoine has observed that the number of applicants who accept offers has fallen. He follows up with several who turned down offers and learns that they took jobs elsewhere because they developed an unfavorable opinion of Luvia Insurance. Which situation most likely explains this problem? 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.

b) Candidates are not getting timely feedback about their applications.

Sean works in the human resource department of a well-known and highly respected maker of athletic equipment. He suggests that the company expand its recruiting by placing job advertisements on popular websites for job seekers. However, his supervisor says this has become a poor use of the company's recruiting dollars. Which is the most likely reason for the supervisor's objection? a) These types of 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.

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

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.

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

Kevin, the CEO of MedImpact Inc., finds that the company needs to eliminate a labor surplus to avoid financial difficulties. To deal with this problem, he chooses a strategy that gives him fast results. However, the amount of suffering caused to employees is high. Kevin is most likely using the __________ strategy to reduce the labor surplus. a) early retirement b) downsizing c) natural attrition d) retraining e) hiring freeze

b) downsizing

What 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

b) hiring temporary workers and outsourcing work

In order to cultivate a favorable picture of the organization, Shubert Group, a financial services corporation, advertises itself to potential applicants by using the slogan, "Investing in you no matter what road you take." This scenario is an example of __________ advertising. a) viral b) image c) proactive d) saturation e) signature

b) image

Maria is a recruiter with a bachelor's degree in business administration. She is well respected among her peers for her professional standards and understanding of the HR field. However, she has noticed that when she recruits engineers for her company, they sometimes seem unresponsive to her. The most likely reason for this is because Maria 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.

b) is perceived as less credible because she is an HR specialist.

Marcus and Olivia are HR managers at Tacoma Investments. They are expecting a labor surplus over the next two years resulting in the organization having 24 more employees than required. Typically, two employees leave the organization each month. Which HR strategy should Marcus and Olivia consider, taking into account the length of time they have available? a) downsizing b) natural attrition c) pay reductions d) demotions e) transfers

b) natural attrition

Evelyn, the HR manager at Freton Inc., recruits her cousin Gia as production manager in the company. This move results in resentment among several of the company's employees. By hiring her cousin, Evelyn has engaged in the practice of hiring relatives, or a) localism. b) nepotism. c) structuralism. d) voluntarism. e) abstractionism.

b) nepotism.

Jill is a recruiter for Kinnack Inc. When she interviews job candidates, she works hard to provide background information about the job's positive and negative qualities. She aims to be sure every detail is accurate, so that any employees hired will feel they got what they expected and will want to stay on with the company. Jill's behavior is an example of providing a a) yield ratio. b) realistic job preview. c) core competency. d) due-process policy. e) job posting.

b) realistic job preview.

Which statement 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.

c) The use of referrals can contribute to nepotism.

Cory, a physicist at HealthAir, recently received an award for several patents he earned that enabled the company to help slow climate change by reducing carbon emissions. Jamie, HealthAir's vice president of human resources, is eager to get news coverage of the Cory's award. She knows that, in addition to drawing positive attention to the company, the publicity will support recruitment. Which statement best supports Jamie's thinking? a) Publicity about HealthAir 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 HealthAir as a place where talented people make a difference can attract talented job candidates. d) People who learn about Cory's award will be less likely to expect that HealthAir has an employment-at-will policy. e) This kind of image advertising will give more people the impression that HealthAir is a fun place to work.

c) Creating the impression of HealthAir as a place where talented people make a difference can attract talented job candidates.

Fernando, a human resource executive, is meeting with the executive team to discuss the need to fill a soon-to-be-vacant position for vice president of the company's Medical Devices Division. Normally, he posts vacancies on the company's website, but he encourages the team to allocate funds to hire an executive search firm (ESF) for filling this position. Which statement best supports Fernando's recommendation? 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.

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

Which statement is correct 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.

c) Internal recruiting minimizes the possibility of unrealistic employee expectations.

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.

c) Internal sources are generally cheaper and faster than other means.

Jacob, the CEO at Einstein Inc., learns that his company is perceived as low-value by customers. He plans to combat this by hiring highly skilled and knowledgeable employees in order to improve Einstein's competitive standing. In this scenario, Jacob will most likely be hiring a) outsourced employees. b) offshored employees. c) employees with a core competency. d) employees with a college degree. e) temporary workers.

c) employees with a core competency.

Berns Inc. hires Allen as a supervisor in the company. They have an implied understanding that both the employer and the employee have the right to end their relationship at any time they desire. In the context of personnel policies, the relationship between the company and Allen is based on the... a) promote-from-within policy. b) lead-the-market strategy. c) employment-at-will policy. d) nepotistic agreement. e) benevolent agreement.

c) employment-at-will policy.

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.

c) goal setting and strategic planning.

What 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

c) quality-control problems

Vino, an HR manager at Jacoby Beverages, identifies and attracts potential job seekers to his organization. In the context of HRM functions, Vino is carrying out the __________ process. a) promoting b) appraising c) recruiting d) forecasting e) disbanding

c) recruiting

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.

c) self-selection.

Nishi, a production manager at Havana Health, must predict future labor demand using information about inventory levels from the past three years. Nishi will most likely use __________ to predict the demand. a) yield ratio b) workforce utilization review c) trend analysis d) cost per hire e) capacity utilization analysis

c) trend analysis

Ernie, a manager at a large decoration store, is expecting increased sales during the upcoming holiday season. He knows that his current workforce will not be able to meet demand, putting him at risk of a labor shortage. Which strategy would be the best option to help Ernie avoid a labor shortage? a) Ernie should hire new employees because he will most likely need additional workers after the holiday season to deal with an increasing sales trend. b) Ernie should increase his current employees' pay during the holiday season so they will work harder to achieve sales targets. c) Ernie 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) Ernie should hire temporary employees because he can let them go once the holiday season is over. e) Ernie should consider increasing the prices of toys so he can make higher profits with fewer sales, thereby reducing the number of customers and consequently solving the labor shortage issue.

d) Ernie should hire temporary employees because he can let them go once the holiday season is over.

Maxim is an HR manager at a large accounting firm. He hires and trains the firm's staff of recruiters. Maxim hires people with education in human resource management and a warm attitude that displays a positive interest in people. How else should he equip the recruiters so that they have success in this kind of work? a) Maxim should give them a realistic job preview about the recruiters' position. b) Maxim should select recruiters in an ideal age range. c) Maxim should train the recruiters in how to perform candidates' jobs. d) Maxim should equip recruiters with the kinds of information job applicants are seeking. e) Maxim should tell recruiters to downplay any negative information about the firm.

d) Maxim should equip recruiters with the kinds of information job applicants are seeking.

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.

d) These workers tend to be less committed to an organization.

__________ 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

e) Employment at will

Trinkets Inc., a manufacturer of widgets, has entered into a contract with a third party to perform services related to processing orders, managing inventory levels, and shipping products to customers. The company is engaged in a) offshoring. b) consolidating. c) licensing. d) acquiring. e) outsourcing.

e) outsourcing.

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

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

El Niro Inc. is automating processes so the company can meet its demand with a smaller workforce. The CEO asks Megan, the vice president of human resources, for advice on how to address the resulting labor surplus. Megan studies the workforce and observes that many employees are in their 50s and 60s. Furthermore, these employees are the highest-paid workers in every job category. Based on this information, what should Megan suggest as the most effective way of addressing El Niro's labor surplus? a) The workforce should be downsized, with layoffs focusing on the older employees. b) Retrain the older employees in order to make them 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.

e) Offer early retirement incentives to the employees in their 50s and 60s.

Milo determines that his company spent $15,000 to hire three new programmers through employee referrals and another $75,000 to hire five new programmers through a private employment agency. Which statement is correct about these recruiting efforts? 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.

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

Which statement is true of executive search firms (ESFs)? 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.

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

Herbert, an HR manager at Maxtier Inc., hires 50 employees in five months. He used different sources of recruitment to recruit these employees. He wants to know which kind of source delivered the most new hires for the money. To answer that question, Herbert should determine the a) hiring conversion rate. b) prospective cost. c) return on investment. d) yield ratio. e) cost per hire.

e) cost per hire.

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.

e) transitional matrix.

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 hiring. d) a workforce utilization review. e) direct sourcing.

a) job posting.

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.

a) leading indicators.

Paul is the HR manager at FloGlow Inc., which is preparing for the launch of a new product line. The company needs to know how many new customer service representatives to add to help customers with questions and concerns about the existing and new products. To guide the company, Paul needs information about the number of employees currently providing customer service, the number likely to be in those jobs next year, and the number expected to move to other positions in the organization. The information will be easier to organize and interpret if Paul uses a(n) a) electronic recruiting process. b) transitional matrix. c) propensity analysis. d) due-process policy. e) multiple regression analysis.

b) transitional matrix.

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.

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

Yoza Inc., a manufacturer of electronic goods, is experiencing financial losses. The company is also facing the problem of a labor surplus due to low demand for its products. In this context, what would be the best way for Yoza Inc. to deal with this labor surplus? 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.

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

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.

d) gain an advantage over competitors.

Jim applies for a job at Texture Inc. because his friend Chris, who is a manager there, prompts him to do so. In this scenario, Jim is a(n) a) direct applicant. b) natural applicant. c) neutral applicant. d) referral. e) executive search professional.

d) referral.

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.

d) talent management.