Strategic Management - HR Quiz

Generally, __________ will be incurred when production levels decrease and / or Automation levels increase.

Separation costs The Needed Complement is determined by a combination of: a) the number of units ordered into production; and b) the Automation level of the assembly lines. Decreasing the number of units produced from one year to the next will decrease the Needed Complement. Similarly, increases in Automation will decrease the Needed Complement. If teams adjust the This Year cell to match the Needed Complement, Separation Costs will be incurred.

True or False: Hiring the Needed Complement will always eliminate a Second Shift.

false Hiring the Needed Complement eliminates all Overtime. The Second Shift workers are paid the same as workers on Overtime, however, Second Shift workers are more efficient and do not seek work elsewhere, therefore reducing turnover.

True or False: Worker training is entered by the dollar.

false Hours are entered on the HR Screen. Training costs $20.00 per hour per worker.

True or False: Management should strive to increase Turnover.

false Lowering Turnover reduces Recruitment costs.

True or False: Increasing Training Hours tends to both increase and decrease the Needed Complement.

true In the short term, increasing Training Hours will increase the Needed Complement-- Workers are taken off the production line and put in the classroom. However, as time goes on, investing in Training Hours increases worker productivity, and therefore tends to decreases the Needed Complement.

True or False: Increasing Capacity tends to reduce the number of workers on Second Shift

true Increasing Capacity tends to reduce the number of workers on the Second Shift. As an example, a production order of 1,200 units on a line with a Capacity of 800 units (numbers in thousands) will require 400 units to be produced by the Second Shift. Increasing Capacity to a total of 1,000 units will result in 1,000 units manufactured by First Shift labor, and only 200 units produced by more expensive Second Shift labor.

True or False: Production runs can be scheduled in one or two shifts.

true Up to twice the production line's First Shift Capacity can be scheduled for each individual product. Production runs that exceed the First Shift Capacity result in either Overtime and/or a Second Shift, depending on the Worker Complement.

Teams _______________ Recruiting Costs if they wish

can eliminate all but the $1,000 base cost per new employee Teams can choose to enter 0 in the Recruiting Spend cell on the Human Resources screen, however that number is in addition to a base Recruiting Cost of $1,000 per worker. A Recruiting Spend entry facilitates recruiting a better quality of worker.

Assuming the Productivity Index is greater than 100%, adding Overtime will ____________ the Productivity Index.

decrease While the Productivity Index can never fall below 100%, it is possible for teams to increase the Index by investing in a higher quality of worker (Recruiting Spend) and in education (Training Hours). However, scheduling Overtime will decrease the Index because workers will become tired and disgruntled.

_________ are incurred when production runs increase and teams match hiring to Needed Complement.

recruiting costs Increasing production and then matching the Needed Complement will result in new hires, and therefore increase Recruiting Costs.