TOPIC 3: FORCASTING AND PLANNING ( End of Topic Review)

The quality of the forecast depends on the accuracy of information and the predictability of events. What kind of time frame gives more accurate information and more predictability of events? A longer time horizon A shorter time horizon

A shorter time horizon The shorter the time horizon, the more predictable the events and the more accurate the information. For example, organizations are generally able to estimate how many employees they need in the coming year, but are less successful at forecasting their needs for the next five years.

Which of the following is not a standard for evaluating HRP? A) Action plans vs. expected outcomes B) Ratios of program results to program costs C) Actual HRM flow rates vs. desired rates D) Labor and program costs vs. budget

A) Action plans vs. expected outcomes The standards used for evaluating HRP compare the forecasted criteria to what actually happened with the company. Action plans vs. expected outcomes are not standards for evaluating HRPs as they are both forecasted criteria in different areas, so they cannot be evaluated against each other. Here is a list of possible criteria/standards for evaluating HRP: 1) Actual staffing levels vs. established staffing requirements 2) Productivity levels vs. established goals 3) Actual HRM flow rates vs. desired rates 4) Programs implemented vs. action plans 5) Program results vs. expected outcomes 6) Labor and program costs vs. budget 7) Ratios of program results to program costs

Why are traditional organizational structures not as workable as they once were? A) Changes in workforce values B) Changes in knowledge levels C) Increased unemployment D) Changes in skill levels

A) Changes in workforce values Research suggests that organizational structures may not be as workable as they once were. Changes in society, particularly in workforce values, have undermined the traditional relationships between organizations and their members.

Which of the following is NOT one of the purposes of HR forecasting and planning? A) Coordinate HR programs that achieve the goals no matter the cost. B) Improve the overall business-planning process. C) Provide a better basis for planning employee development that makes optimum use of workers' strengths. D) Provide a tool for evaluating the effect of alternative HR actions and policies.

A) Coordinate HR programs that achieve the goals no matter the cost. The purpose of human resource planning is to: Reduce costs by helping management anticipate shortages or surpluses of human resources and correct imbalances before they become unmanageable and expensive. Provide a better basis for planning employee development that makes optimum use of workers' strengths. Improve the overall business-planning process. Provide more opportunities for women and minority groups in the future growth and strategic plans of the organization. Promote greater awareness of the importance of sound HRM throughout all levels of the organization. Provide a tool for evaluating the effect of alternative HR actions and policies.

What is not an external environmental factor that affects the available labor market? A) Current employees' skills and knowledge B) Shrinking supply of younger workers C) More employees with responsibilities for young children D) Increases in technology

A) Current employees' skills and knowledge Just as HRM is concerned with the "whole person," HR planning must be increasingly aware of the total external environment that will shape the workforce. Some of the major changes currently taking place in the external environment include a shrinking supply of younger workers, increases in numbers of employees who are responsible for young children, increases in permanent part-time work (especially in Europe, Canada, and other parts of the world), changes in required training and job skills, changes in general economic conditions, and increases in technology.

What is the type and number of competitors' openings considered when looking at supply and demand within HR? A) External labor demand B) Internal labor demand C) External labor supply D) Internal labor supply

A) External labor demand HRP is based on an organization's human resource supply and demand or in other words, the organization's human resource needs. The external labor demand means, outside of the company, how much is a specific position demanded.

What occurs in the first stage of human resource planning as talked about earlier? A) Gathering, analyzing and forecasting data B) Controlling and evaluating HRM plans and programs C) Establishing HR objectives and policies D) Designing and implementing plans and action programs

A) Gathering, analyzing and forecasting data Human resource planning typically includes four phases: Gathering, analyzing, and forecasting data to develop an HR supply and demand forecast Establishing HR objectives and policies and gaining approval and support for them from top management Designing and implementing plans and action programs in such areas as recruitment, training, and promotion that will enable the organization to achieve its HR objectives Controlling and evaluating HRM plans and programs to facilitate progress toward HR objectives

Why is HRP one of the fastest growing and most important areas of human resource management? A) It helps the company achieve its goals B) It is not one of the fastest growing areas of human resource management, but it is important C) It helps the company be more visible to prospective employees and customers D) It makes the company look good because they have a plan

A) It helps the company achieve its goals Because any effective human resource management program helps the organization achieve its strategic goals, HRP is one of the fastest growing and most important areas of human resource management.

What type of HR policy would NOT enhance a rationalization/maximize-the-profit strategy? A) Relaxed policies B) Focus on highly repetitive behavior C) Focus on low risk D) Focus on high output

A) Relaxed policies The rationalization/maximize-the-profit strategy, used by organizations at a mature stage, needs employees to focus on high output, low risk, and highly repetitive behavior in the short term.

Which of the following is a strategy to forecast supply, but not demand? A) Replacement planning B) Managerial estimates C) Time series analysis D) Simple linear regression

A) Replacement planning Replacement planning is a judgmental technique used by organization to make supply forecasts as well as succession planning. Replacement planning uses charts that show the names of the current occupants of positions in the organization and the names of likely replacements. Replacement charts make potential vacancies readily apparent, based on the present performance levels of employees currently in jobs. Openings are most likely to occur in those jobs in which the incumbents are not outstanding performers. Those individuals likely to fill the potential vacancies are listed directly under the incumbent. Such a listing can provide the organization with a good estimate of what jobs are likely to become vacant and who will be ready to fill them.

True or False: Lack of support from line managers is a common roadblock to effective HR planning that can be overcome by involving line managers in the design, development and implementation of the HRP system. A) True B) False

A) True A common roadblock to effective HR planning is the fact that there is often a lack of support and involvement from line managers. Failure to involve line managers in the design, development, and implementation of an HRP system is a common oversight for many first-time planners.

True or False: Data collection is important so adjustments can be made, if needed, to the plans and programs being implemented. A) True B) False

A) True Data collection is important not only as a means of control, but also as a method for evaluating plans and programs and making adjustments.

True or False: There are many reasons for layoffs being more commonplace today. A) True B) False

A) True Due to the recent economic recession, advances in technology and outsourcing efforts, layoffs have become increasingly commonplace.

True or False: Evaluation for HR plans and programs is important for demonstrating the HR department's role within the organization. A) True B) False

A) True Evaluation of HR plans and programs is an important process not only for determining the effectiveness of HRP, but also for demonstrating the significance of both HRP and the HR department's role within the organization.

True or False: Human resource information systems help with control and evaluation by allowing more frequent and rapid collection of data. A) True B) False

A) True Human resource information systems (HRIS), also known as a human resource management systems (HRMS), facilitate HR program control and evaluation by allowing for more rapid and frequent collection of data to back up the HR forecast.

True or False: Being able to forecast demand and supply is crucial to remaining competitive in the marketplace. A) True B) False

A) True Human resource planning ( HRP) is the process of developing and implementing plans and programs to ensure that the right number and type of individuals are available—at the right time and place—to meet organizational needs. Because any effective human resource management (HRM) program helps the organization achieve its strategic goals, HRP is one of the fastest growing and most important areas of human resource management. In the past, human resource planning may not have moved many people to action, but changing demographic and business demands, along with the new economy, have pushed HRP to the forefront of most HR programs.

True or False: Human resource planning is the process of making and executing plans to ensure that the right number of employees are available at the right time and place for the organization's needs. A) True B) False

A) True Human resource planning, also known as HR planning or HRP, is one of the first steps in creating an effective human resource management program. HRP involves forecasting the human resource needs of the organization and planning the steps necessary to meet those needs. Because the purpose of HR planning is to understand the firm's human capital needs (the demand), and then determine who is available to fill those needs (the supply), HR planning is also referred to as HR forecasting and/or workforce planning. To successfully determine an organization's needs, firms must examine both internal and external factors.

True or False: A firm must look at both internal and external needs to figure out what the organization's needs are. A) True B) False

A) True Human resource planning, also known as HR planning or HRP, is one of the first steps in creating an effective human resource management program. HRP involves forecasting the human resource needs of the organization and planning the steps necessary to meet those needs.To successfully determine an organization's needs, firms must examine both internal and external factors.

True or False: HR planning may cause a company to redesign jobs or restructure work. A) True B) False

A) True In many organizations, HR planning may include redesigning jobs, restructuring work, engaging in outsourcing activities and adjusting staffing needs to meet the strategic direction of the firm.

True or False: Workable structures serve the objective in planning and programming. A) True B) False

A) True In order to attract additional employees, the HR planner can assist in developing a workable organizational structure. Workable structures serve the objectives of planning and programming, which include attracting, retaining, and motivating employees.

True or False: It is important to link HR planning and strategy as it fosters HR strategies that support the organization's business plans. A) True B) False

A) True Linkage between HR planning and strategy is vital because it fosters HR strategies that parallel and support the firm's business plans.

True or False: HR planning is often assessed by how well its forecasts compared with reality. Another criterion is to see if the tools it uses and the activities it takes part in are linked to corporate goals. A) True B) False

A) True Since an important part of HR planning is forecasting supply and demand, HR planning can be assessed by how well its forecasts compare with reality. Accuracy is very important as it is highly unlikely that HR planning can be effective if it fails to do well in accurately forecasting supply and demand. Another important criterion against which HR planning can be assessed is the selection and appropriateness of the tools it uses to engage employees in its activities, and the success in linking them to corporate goals.

True or False: HR Planning does not only make a company look good, but also helps the company reduce expenses if done correctly. A) True B) False

A) True When implemented correctly, HRP reduces the expenses associated with excessive turnover and absenteeism, low productivity, and an unproductive training program.

True or False: Human resource management can overcome the roadblock of top-management not supporting HR planning by showing them data and bottom-line numbers that show it is effective. A) True B) False

A) True While most HR professionals understand the importance of effective HR planning, one of the key roadblocks to developing HRP has been the lack of top-management support. Human resource management can help overcome this roadblock with data and bottom-line numbers that demonstrate the effectiveness of HR planning.

True or False: HRP activity can be assessed by whether the organization has the people it needs. A) True B) False

A) True Without effective HRP, an organization may find itself with a plant or office but without the people to run it. Organizations can no longer assume that the right number of appropriately qualified people will be ready when and where the organization wants them. So, on a broad level, HRP activity can be accessed on the basis of whether or not the organization has the people it needs.

True or False: Without effective HRP, an organization may end up with a plant or office, but without the right people to run it. A) True B) False

A) True Without effective HRP, an organization may find itself with a plant or office, but without the people to run it. Organizations can no longer assume that the right number of appropriately qualified people will be ready when and where the organization wants them. So, on a broad level, HRP activity can be assessed on the basis of whether or not the organization has the people it needs.

Organizational leaders are acknowledging many things about HR. Which of the following are corporate executives concluding about human resources? A) Unqualified human resources is as serious a production bottleneck as scarcity of capital B) HR investments are important to company planning, but not as important as equipment or materials C) HRP is great in helping the workforce, but it does not help with overall expenses D) The quantity of the workforce is responsible for organizational performance

A) Unqualified human resources is as serious a production bottleneck as scarcity of capital In recent years, organizational leaders are acknowledging that the quality of the workforce is often responsible for organizational performance. Many corporate executives have concluded that insufficient or unqualified human resources are as serious a production bottleneck as scarcity of capital, and that HR investments are as important a factor in company planning as the acquisition of plants, equipment, or materials.

Criteria for evaluating HRP need to balance what is forecasted vs. what is actual. Which of the following is NOT a criterion that could be used to evaluate HRP? A) Programs implemented vs. action plans B) Budget vs. desired rates C) Productivity levels vs. established goals D) Actual staffing levels vs. established staffing requirements

B) Budget vs. desired rates Budget vs. desired rates is not a criterion of evaluation that could be used as they are both forecasted projections and are not related. The following is a list of possible criteria and/or standards for evaluating HRP: 1) Actual staffing levels vs. established staffing requirements 2) Productivity levels vs. established goals 3) Actual HRM flow rates vs. desired rates 4) Programs implemented vs. action plans 5) Program results vs. expected outcomes 6) Labor and program costs vs. budget 7) Ratios of program results to program costs

True or False: Action programs designed to increase the supply of employees in the organization are used when supply exceeds demand. A) True B) False

B) False Actions programs may be designed to increase the supply of the right employees in the organization if forecasts suggest that demand exceeds supply.

True or False: Forecasting creates certainties about the future of the company. A) True B) False

B) False An organization's demand for human resources can be determined by a variety of simple and complex forecasting methods. Forecasting results in approximations, not absolutes or certainties. The quality of the forecast depends on the accuracy of information and the predictability of events. Because forecasting is not absolute, the shorter the time horizon is, the more predictable the events, and the more accurate the information.

True or False: Employee characteristics and HR policies will be relatively the same for all organizations. A) True B) False

B) False Employee characteristics and HR policies vary depending on the organization's strategy. For example, employee characteristics and HR policies will be different if a firm adopts an entrepreneurial strategy rather than a rationalization/maximize-the-profit strategy.

True or False: Knowing the skills, abilities, interests, and preferences of the workforce is all that is needed to prepare an HR analysis for completing phase one of HR planning. A) True B) False

B) False HR analysis begins with taking inventory of both the current workforce and jobs within the organization. Analysis of both elements is necessary if the organization is to determine its capability to meet current and future needs. Knowing the skills abilities, interests, and preferences of the current workforce is only half the inventory. The other half consists of knowing the characteristics of current jobs and the skills to perform them.

True or False: Because knowing the estimates for the organization's human resource needs (e.g. supply and demand) is so critical, most small- and medium-sized organizations formally estimate these future human resource needs. A) True B) False

B) False HRP is based on the organization's human resource needs (supply and demand). Although these estimates are critical for organizational success, many small- and medium-sized organizations avoid formally estimating future HR needs.

True or False: Few small- and medium-sized organizations can be successful without a formal process for estimating future human resource needs. A) True B) False

B) False HRP is based on the organization's human resource needs, specifically, on human resource supply and demand. Although these estimates are critical for organizational success, many small- and medium-sized organizations still avoid formally estimating future human resource needs.

True or False: Data collection is important only as a means of control for HR plans and programs. A) True B) False

B) False Human resource information systems (HRIS) facilitate HR program control and evaluation by allowing rapid and frequent collection of data to back up the HR forecast. This data collection is important not only as a means of control, but also as a method for evaluating plans and programs and making adjustments.

True or False: HRP is very important to an organization to find out its needs, but it is a distant relation to other functions such as recruitment and selection, job performance, etc. A) True B) False

B) False Human resource planning (HRP) is important because it influences almost all other HR activities, including job performance, recruitment and selection, training and development, and career management.

True or False: Human resource planning is one of the last steps in creating a human resource program. A) True B) False

B) False Human resource planning is one of the first steps in creating an effective human resource management program.

True or False: Because human resource management is about managing the human capital needs within the organization, when implementing HRP, the organization only needs to focus on the organization's internal factors. A) True B) False

B) False Human resource planning, also known as HR planning or HRP, is one of the first steps in creating an effective human resource management program. HRP involves forecasting the human resource needs of the organization and planning the steps necessary to meet those needs. Because the purpose of HR planning is to understand the firm's human capital needs (the demand), and then determine who is available to fill those needs (the supply), HR planning is also referred to as HR forecasting and/or workforce planning. To successfully determine an organization's needs, firms must examine both internal and external factors.

True or False: Human resource planning is all about the programs and policies that an organization is going to implement and so it is about training, not about restructuring the company. A) True B) False

B) False In many organizations, HR planning may include redesigning jobs, restructuring work, engaging in outsourcing activities, and adjusting staffing needs to meet the strategic direction of the firm.

True or False: The quantity of the workforce is often responsible for organizational performance. A) True B) False

B) False In recent years, organizational leaders are acknowledging that the QUALITY of the workforce is often responsible for organizational performance.

True or False: Many corporate executives are concluding that although human resources investment is important, it is not as important as the acquisition of equipment or materials. A) True B) False

B) False In recent years, organizational leaders are acknowledging that the quality of the workforce is often responsible for organizational performance. Many corporate executives have concluded that insufficient or unqualified human resources are as serious a production bottleneck as scarcity of capital, and that HR investments are as important a factor in company planning as the acquisition of plants, equipment, or materials.

True or False: Simple linear regression works to predict future employment needs because when sales double, the level of employment necessary will always double as well. A) True B) False

B) False In simple linear regression analysis, a projection of future demand is based on a past relationship between the organization's employment level and a variable related to employment, such as sales. If a relationship can be established between the level of sales and the level of employment, predictions of future sales can be used to make predictions of future employment. Although there may be a relationship between sales and employment, the relationship is often influenced by an organizational learning phenomenon. This learning curve is what makes the statement false, because, for example, even though the sales may double, the level of employment necessary to support this increase may be less than double. An organizational learning curve can usually be determined by logarithmic calculations. Once the learning curve has been determined, more accurate projection of future employment levels can be established. With multiple linear regression analysis, instead of relating employment to just one variable, multiple variables are used. This may often produce more accurate demand forecasts than linear regression analysis.

True or False: One purpose of human resource planning is to help reduce costs by helping managers respond to shortages and surpluses of human resources at a moment's notice. A) True B) False

B) False One purpose of human resource planning is to reduce costs by helping management anticipate shortages or surpluses of human resources and correct imbalances before they become unmanageable and expensive.

True or False: HR planning can still be very effective even if it fails to accurately forecast supply and demand. A) True B) False

B) False Since an extremely important part of HR planning is forecasting supply and demand, HR planning can be assessed by how well its forecasts compare with reality. Accuracy is very important as it is highly unlikely that HR planning can be effective if it fails to do well in accurately forecasting supply and demand.

True or False: In most organizations the demand and supply of the firm's human capital needs are usually in pretty good balance. A) True B) False

B) False The purpose of HR planning is to understand the firm's human capital needs (demand) and then determine who is available to fill those needs (supply). Within most organizations, there is often a gap between who is needed by the firm and who is available.

True or False: Advances in technology have been very effective and helpful to companies in many areas, but because human resource management works mostly with people, there is less use for technology in the HRM area. A) True B) False

B) False With advances in technology, effective human resource planning is easier than ever before. For example, technology allows organizations to create human resource information systems that include important HR-related records for every employee within the organization. Through human resource information systems, organizations can easily access employee job preferences, work experiences, job histories and performance evaluations. Which can be used to facilitate the purposes of HRP in the interests of the individual as well as the organization.

What does HRP mean in this topic? A) Human resource projects B) Human resource planning C) High priority rating D) High performance rating

B) Human resource planning Human resource planning is also known as HRP or HR planning.

Which of the following is the most common judgmental forecasting method for estimating HR demand? A) Nominal grouping technique B) Managerial estimates C) Trend analysis D) Delphi technique

B) Managerial estimates The most common method of estimated HR demand is managerial estimates, which are typically made by top management (a top-down approach).However, they can also orginate at lower levels (a bottom-up approach) and then be passed up for refinement. The success of these estimates depends on the quality of the information provided to the judgmental experts. Another type of judgmental process is known as the Delphi technique. At a Delphi meeting, a large number of experts take turns presenting a forecast statement and assumptions. Each participant makes revisions until a viable composite forecast emerges. A related method is the nominal grouping technique, where several people independently list their ideas on a sheet of paper, then they take turns expressing their ideas, which are transcribed on larger paper for review.

Values toward work are changing. Which of the following is not a change? A) People now want challenging jobs B) People now don't value work C) People now want jobs that support them in making decisions to help the organization D) People now want jobs in which they have freedom

B) People now don't value work Values toward work are changing. While people still value work, the type of work that interests them is continually changing. For the most part, workers today want jobs that provide a challenge and jobs in which they have the freedom and support to make decisions that they feel will help the organization reach its strategic goals and objectives.

There are six purposes of human resource planning talked about in this topic. Which of the following is not one of those purposes? A) Provide a tool for evaluating different HR policies B) Provide more opportunities for women and majority groups in future growth C) Provide a better basis for planning that makes optimum use of worker's strengths D) Improve the overall business planning process

B) Provide more opportunities for women and majority groups in future growth The purpose is not to provide more opportunities for women and majority groups, but for women and minority groups. The purposes of human resource planning discussed in this section are to: 1) Reduce costs by helping management anticipate shortages or surpluses of human resources and correct imbalances before they become unmanageable and expensive. 2) Provide a better basis for planning employee development that makes optimum use of workers' strengths. 3) Improve the overall business planning process. 4) Provide more opportunities for women and minority groups in the future growth and strategic plans of the organization. 5) Promote greater awareness of the importance of sound HRM throughout all levels of the organization. 6) Provide a tool for evaluating the effect of alternative HR actions and policies.

What is a judgmental technique used by organizations to make supply forecasts? A) Stochastic analysis B) Replacement planning C) Delphi technique D) Productivity ratios

B) Replacement planning Two judgmental techniques used by organizations to make supply forecasts include replacement planning and succession planning. Replacement planning uses charts that show the names of the current occupants of positions in the organization and the names of likely replacements. They make potential vacancies readily apparent and such a listing can provide the organization with a good estimate of what jobs are likely to become vacant and who will be ready to fill them. Succession planning is similar to replacement planning except that succession planning tends to be longer-term, more developmental, and more flexible. Employers using it tend to emphasize the characteristics of the managers and downplay the characteristics of the positions to which the managers may eventually be promoted.

What is the purpose of HR planning? A) To understand how to best budget employee costs B) To understand the human capital needs of the organization C) To understand the risks and the benefits of different programs in the organization D) To understand how to help employees and managers work together

B) To understand the human capital needs of the organization The purpose of HR planning is to understand the firm's human capital needs (demand) and then determine who is available to fill those needs (supply).

What is time series analysis? A) When the likelihood of landing a series of contracts is combined with the HR requirements of each contract to estimate the needed staffing. B) When past staffing levels are used to project future HR needs. C) When past HR data are examined to determine historical relationships among employees in various jobs or job categories. D) When historical data are used to examine the past level of a productivity index.

B) When past staffing levels are used to project future HR needs. In addition to the two regression techniques (linear and multiple linear regression), several other statistical techniques are used to forecast staffing needs. Those described in this topic are: 1) Time series analysis: In a time series analysis, past staffing levels are used to project future HR needs. Past staffing levels are examined in view of isolating season and cyclical variations, long-term trends, and random movements. 2) Productivity ratios: With productivity ratios, historical data are used to examine the past level of a productivity index. 3) Human resource ratios: With human resource ratios, past HR data are examined to determine historical relationships among employees in various jobs or job categories. Regression analysis can then be used to project key group requirements for various job categories. 4) Stochastic analysis: In stochastic analysis, the likelihood of landing a series of contracts is combined with the HR requirements of each contract to estimate expected staffing requirements.

Values about work are changing, which means that HR planning activities need to also change. Which of the following is something that the majority of today's workers are NOT valuing more? A) Work that gives them freedom B) Work that does not change - job security C) Work that provides a challenge D) Work that supports them in making decisions that help the organization

B) Work that does not change - job security Values toward work are also changing. People still value work, but the type of work that interests them changes constantly. For the most part, workers today want jobs that provide a challenge, and in which they have the freedom and support to make decisions that they feel will help the organization reach its strategic goals and objectives.

What is the 3rd stage in HR planning? A) Human resource planning control and evaluation B) Establishing HR objectives and policies C) HR programming D) Gathering and forecasting supply and demand

C) HR programming HR planning involves four stages: 1) Gathering, analyzing, and forecasting supply and demand data 2) Establishing HR objectives and policies 3) HR programming 4) Human resource planning control and evaluation

Why is it important to know what an organization's learning curve is when forecasting demand? A) It tells the organization exactly how many people will be needed in the next year B) It tells the company how much employee turnover will occur C) It helps the company get a more accurate idea of how many employees will be needed in the future. D) It helps the company see how far it has come in the last 5 years

C) It helps the company get a more accurate idea of how many employees will be needed in the future. Although there may be a relationship between sales and employment, the relationship may be influenced by other factors such as an organizational learning phenomenon. For example, even though sales may double, the level of employment necessary to support this increase may be less than double. And if sales double again, the incremental amount of employment necessary to meet this new doubling may be even less than that necessary to meet the first doubling of sales. An organizational learning curve can usually be determined by logarithmic calculations. Once the learning curve has been determined, a more accurate projection of future employment levels can be established.

Which of the following is not an HR policy that an organization would implement if they were looking at adopting an entrepreneurial strategy? A) Policies that focus on incomplete integration B) Policies that focus on risk taking C) Policies that focus on highly repetitive behavior D) Policies that focus on high employee participation

C) Policies that focus on highly repetitive behavior Employee characteristics and HR policies vary depending on the organization's strategy. For example, employee characteristics and HR policies will be different if a firm adopts an entrepreneurial strategy instead of a rationalization/maximize-the-profit strategy. In the case of entrepreneurial strategy, the organization needs to adopt HR policies that lead employees to take risks and be innovative. As such, policies may be more relaxed and not integrated completely, emphasizing results instead, as well as focusing on being future-oriented, encouraging high employee participation, and recognizing the accomplishment of groups rather than single individuals. In contrast, the rationalization/maximize-the-profit strategy, used by organizations at a mature stage, needs employees to focus on high-output, low-risk, and highly repetitive behavior in the short term.

Which of the following is not a characteristic of the new organizational model that is shifting from the traditional model as reviewed in this topic? A) Broadly designed jobs B) Recognition of employee rights C) Primary focus on productivity D) Employee participation in decisions

C) Primary focus on productivity Over the last few decades, in an effort to recruit more capable employees, many organizations have been shifting from the "traditional" model to an organizational structure that includes greater self-control, more employee participation in workplace decisions, bottom-up as well as top-down communications, recognition of employee rights, an emphasis on intrinsic rewards, more broadly designed jobs that allow more worker discretion, and additional concerns to the quality of work life for employees.

Which of the following is a characteristic of traditional organization? A) Employee self-determination B) Emphasis on intrinsic rewards C) Primary focus on productivity D) Broadly designed jobs

C) Primary focus on productivity Traditionally, most organizational structures could be characterized by supervisory control, minimal employee participation in workplace decisions, top-down communications, an emphasis on extrinsic rewards, narrowly designed jobs, and a primary focus on productivity.

Which of the following is not a question that HR professionals need to ask of internal managers when starting to forecast the organization's human resource needs? A) What types of skills and positions are no longer needed? B) What are our key business goals and objectives for the next two years? C) What is it going to cost to implement the HR plans? D) What are our two best organizational strengths?

C) What is it going to cost to implement the HR plans? In forecasting the organization's human resource needs, most HR professionals start by asking questions of internal managers. However, asking about the cost of implementing a plan is not one of the intial questions since at this point in the process, there is no specific plan established. HR professionals first try to find out what the needs are so they can start to form a plan.

What is the next step in human resource planning once the business plans are determined? A) Look over the plan again and ask all department heads if they agree B) Implement the plan C) After the plan is determined, the organization takes over and Human Resource is no longer a part of it. D) Decide how many and which employees are needed

D) Decide how many and which employees are needed Once business plans are determined, the HR planner assists in developing workable organizational structures and determines the number and types of employees that will be required to meet those plans.

What is typically the second phase of human resource planning (as shown in this topic)? A) Designing and implementing plans and action programs B) Gathering, analyzing and forecasting data C) Controlling and evaluating HRM plans and programs D) Establishing HR objectives and policies

D) Establishing HR objectives and policies Human resource planning typically includes four phases: 1) Gathering, analyzing, and forecasting data in order to develop an HR supply and demand forecast 2) Establishing HR objectives and policies and gaining approval and support for them from top management 3) Designing and implementing plans and action programs in such areas as recruitment, training, and promotion that will enable the organization to achieve its HR objectives 4) Controlling and evaluating HRM plans and programs to facilitate progress toward HR objectives

What is the final phase in human resource planning? A) Developing data B) Establishing HR objectives and policies C) HR programming D) HRP control and evaluation

D) HRP control and evaluation The final phase in human resource planning includes controlling and evaluating HR plans and programs. Efforts in controlling and evaluating HR plans and programs are essential to the effective management of human resources.

What is redundancy planning? A) Having a plan to store information in computer systems B) Planning to take the wordiness out of written policies so they are more understandable C) Planning to lay off employees D) Planning on having extra employees so as not to fall short

D) Planning on having extra employees so as not to fall short Redundancy planning is essentially HR planning associated with the process of laying off employees who are no longer needed. Involved in this planning should be outplacement counseling, buy-outs, job skill retraining, and job transfers.

When trying to incorporate an entrepreneurial strategy in an organization, what type of HR policies does that organization need to adopt? A) Policies that are low-risk B) Policies that focus the organization on high output C) Policies that produce highly repetitive behavior in the short term D) Policies that emphasize innovation

D) Policies that emphasize innovation In the case of entrepreneurial strategy, the organization needs to adopt HR policies that lead employees to be innovative and risk taking. As such, policies may be more relaxed with incomplete integration, emphasizing results criteria, be future-oriented, encourage high employee participation, and recognize the accomplishment of groups rather than single individuals.