Deck 5: Workforce Planning

Question 1

Based orders for next year JKL Industries will need to produce 5600 units each month to meet customer demands. Last year the company's 204 employees produced on average 5304 units each month. How many employees will JKL need to hire to meet the new demand?

A) 4
B) 8
C) 12
D) 16
E) 26

Answer 1

C

Question 2

After Y2K took place the ________ for information technology works fell thereby creating a ________ of these professionals.

A) labor surplus; labor shortage
B) labor shortage; labor surplus
C) labor supply; labor shortage
D) labor demand; labor shortage
E) labor demand; labor surplus

Answer 2

E

Question 3

Which of the following is the best example of a succession plan?

A) Paul is being trained to provide coverage in Jason's department so he can provide support to Jason's employees when he goes on vacation.
B) Lauren was demoted from her position as Menswear Department Manager and Eric, her Assistant Manager, was placed in her role until a new manager is hired.
C) Bob, a new employee, has been attending all of the management training programs offered by his organization because he has hopes of being selected for a management position someday and eventually running his department.
D) Dara, the VP of Distribution, has been mentoring Joseph, the Distribution Services Manager, for the past three years because she is planning to retire at the end of this year and Joseph will be taking over for her.
E) Steven was transferred from a branch office of the bank to the main office so that he could learn more about the new services that are being offered. He will then return to his branch office after three months of training and teach his employees there about the new services.

Answer 3

D

Question 4

Two HR consulting firms decide to merge and as a result they had duplicate support staff which caused a labor ________ and resulted in ________.

A) surplus; outsourcing
B) surplus; layoffs
C) shortage; outsourcing
D) shortage; competitive advantage
E) demand; shortages

Question 5

If a group of 68 employees produces 625 units in week 1, 597 in week 2, 612 in week 3 and 590 in week 4 what is the average productivity ratio for that group of employees for that month?

A) 9.19
B) 9.00
C) 8.95
D) 8.91
E) 8.68

Question 6

A maker of hardwood flooring experienced a sudden drop in sales due to the introduction of fake wood flooring that could be produced more cheaply, installed easier, and required less maintenance that real hardwood flooring. This is an example of how one company is impacted by:

A) technology.
B) globalization.
C) employee concerns.
D) industry trends.
E) economic conditions.

Question 7

The types of employees and number of employees available to a company depends on its:

A) strategy.
B) size.
C) location.
D) stage of growth.
E) culture.

Question 8

All of the following are internal factors which affect labor supply and demand EXCEPT:

A) the local labor market.
B) employee productivity.
C) employee turnover.
D) company performance.
E) company strategy.

Question 9

The HR Manager contacted the local job center to find out how many individuals they were aware of who were trained forklift operators in their local market in order to determine the:

A) labor demand.
B) work force plan.
C) labor supply.
D) labor surplus.
E) labor shortage.

Question 10

Using overtime as a solution to a labor shortage is best used when the shortage:

A) impacts only one department.
B) is less than 40 people.
C) will last more than 12 months.
D) is expected to last a short period of time.
E) is related to part time positions only.

Question 11

Companies should plan for labor supply and labor demand issues by:

A) contacting their local unemployment office to advertise their openings.
B) evaluating the internal and external environment.
C) letting HR handle the workforce planning initiatives.
D) keeping management focused on daily operations and executives focused on workforce issues.
E) none of the above.

Question 12

A local manufacturing firm has had a turnover rate between 84 and 90% for the past five years. All of the following statements are correct about this organization EXCEPT:

A) There are very few long term employees working for this organization.
B) Retained employees are less likely to be promoted from within the company.
C) Productivity has been an issue due to work having to be reorganized each time someone leaves.
D) A lot of time is spent orienting and training new employees.
E) Human resources and managers spent a lot of time conducting job interviews.

Question 13

A high unemployment rate most likely means there is:

A) an increase in the labor supply.
B) a decrease in the labor demand.
C) a labor shortage at most companies.
D) a labor surplus at most companies.
E) there are less people looking for jobs.

Question 14

An assembly plant closed down one of its lines for three months while new equipment is being installed. Some of the employees from this line were moved to other areas of the plant, while others were temporarily laid off. This is an example of a:

A) labor demand.
B) workforce plan.
C) labor supply.
D) labor surplus.
E) labor shortage.

Question 15

One physical therapist can see, on average, 8 patients per 8 hour day. If a physical therapy office employs 6 full-time physical therapists, how many patients (outputs) should they be able to see in 20 workdays?

A) 48
B) 120
C) 960
D) 1000
E) 1280

Question 16

A custom wedding dress maker employs 5 seamstresses to assist her with alterations. During the winter months the demand for her services declines, thereby ________ her labor ________.

A) decreasing; demand
B) decreasing; supply
C) increasing; demand
D) increasing; supply
E) increasing; shortage

Question 17

A tire manufacturer produced 2500 tires on Monday, 3200 tires on Tuesday, and 2750 tires on Wednesday. Monday there were 102 employees working, Tuesday 128 employees were working, and Wednesday 110 employees were working. Which day had the highest productivity?

A) Monday
B) Tuesday
C) Wednesday
D) Monday and Wednesday
E) Tuesday and Wednesday

Question 18

Examples of labor demand are demonstrated by all of the following EXCEPT:

A) A dentist's office contacts a local vocational school to recruit dental assistants.
B) A manufacturing firm has advertised for unskilled laborers to work on the third shift.
C) A local outplacement agency contacts a company to let them know they have a highly qualified management candidate they should keep in mind when an opening becomes available.
D) A large corporation plans to expand its marketing department and is using a recruiter to search for a Vice President of Marketing.
E) A hospital needs to fill several RN positions and they attend a college job fair to recruit new graduates.

Question 19

If an organization's turnover last year was 17% and it is 12% this year, this would most likely mean that:

A) employee satisfaction has decreased.
B) a larger number of employees left involuntarily rather than voluntarily.
C) the organization has done a better job of retaining employees this year.
D) more employees overall have left the organization this year than last year.
E) managers need to do a better job of acknowledging and rewarding employees.

Question 20

The lack of quality workforce planning can result in which of the following?

A) Competitive advantage is unable to be achieved.
B) The wrong people will be in the wrong jobs.
C) Financial capital will be decreased.
D) Profitability will be lowered.
E) All of the above

Question 21

Each of the following is an example of a layoff EXCEPT:

A) The sales coordinator resigns and you decide not to fill the position, but rather have her duties absorbed by other employees.
B) Twenty patient care employees were sent home today and told not to return for three weeks due to an expected lower patient census over the next few weeks.
C) The marketing department will be working part days for the next four months while their offices are being renovated. Once renovations are complete they will return to their full time positions.
D) An auto manufacturer announces the closing of one of its plants which will impact the jobs of more than 500 employees permanently.
E) A a chain of retail store decreases its sales staff located in "beach towns" during the winter months due to less tourist traffic and lower sales.

Question 22

When an organization uses layoffs to handle a labor surplus all of the following may occur EXCEPT:

A) work related injuries may decrease due to an increased focus on safety.
B) overtime may increase due to remaining workers taking on additional work load.
C) the organization may lose history and knowledge that is difficult to recapture.
D) work related stress may increase for those who "survive" the lay off.
E) new work relationships may need to be established if employees are transferred.

Question 23

If using the hiring approach to deal with a labor shortage you must first be certain that:

A) recruitment and selection methods are expedited, even if it means skipping steps.
B) your benefits package will meet the needs of your growing workforce.
C) the shortage is a long term issue rather than jus t a temporary problem.
D) overtime will not continue to be used.
E) you have an appropriate transfer process in place.

Question 24

Dave's Discount Den sales a variety of houseware items at wholesale costs. He is experiencing a labor shortage in the area of merchandise stocking and cashier positions. Which workforce planning tactic would be most appropriate for him to use to solve the issue quickly?

A) Temporary workers
B) Outsourcing
C) Promotions
D) External recruitment
E) Transfers

Question 25

Some disadvantages of using layoffs to deal with a labor surplus include all fo the following EXCEPT:

A) Organizational efficiencies aren't always achieved due to turnover that happens afterwards.
B) They often have more of a short term rather than long term focus.
C) The "survivors" of the lay off are sometimes just as impacted than those laid off.
D) They quickly adjust the size of the workforce.
E) Future hiring may be impacted by the lay off.

Question 26

Another term for using attrition and hiring freezes to deal with labor surpluses is:

A) downsizing.
B) right-sizing.
C) over-sizing.
D) under hiring.
E) over hiring.

Question 27

For any organization, which of the following turnover rates reflects the best employee retention?

A) -5%
B) 5%
C) 25%
D) 75%
E) 95%

Question 28

Oncology Associates, a large medical practice, employs 12 doctors who all use dictation to complete their medical chart documentation. Rather than hire transcriptionists the medical practice has found a company called ABC Transcription who will pick up the dictation tapes, transcribe the doctors comments and then drop off the completed medical charts. This is an example of:

A) functional flexibility.
B) overtime.
C) layoffs.
D) contingent workers.
E) outsourcing.

Question 29

An organization requires that an employee have one year of service before being allowed to transfer into another job. In addition the employee cannot have any disciplinary action on file in order to be eligible to transfer. An employee who has been formally disciplined for attendance wants to move to another department. They may view this policy as:

A) distributional injustice.
B) legal injustice.
C) functional inflexibility.
D) procedural injustice.
E) violating work/life balance.

Question 30

Which of the following workforce planning tactics would be the least stressful for employees?

A) Layoffs
B) Transfers
C) Hiring freeze
D) Early retirement
E) Promotions

Question 31

Offering early retirement to employees in order to handle a labor surplus could:

A) result in a labor shortage.
B) still result in needing to lay off employees.
C) increase costs for the organization temporarily.
D) result in increased turnover of other employees.
E) Both A and C are correct.

Question 32

An organization can improve employee retention by doing all of the following EXCEPT:

A) lower recruitment and selection costs by placing less advertisements and conducting shorter interviews.
B) enhancing its new hire orientation.
C) providing applicants with an accurate description of the job so they know what to expect even before the accept an offer.
D) provide flexible scheduling and work/life balance programs.
E) develop employees skills and create growth opportunities.

Question 33

Which of the following is a disadvantage of using promotions and transfers to deal with labor shortages?

A) These methods don't work for employees with less than one year of experience.
B) Employee satisfaction decreases when employees are moved around the organization.
C) Neither option results in a pay increase for the employee.
D) The movement of employees only shifts the vacancy to another department.
E) Recruitment and selection methods are compromised when these processes are used.

Question 34

When using transfers or promotions to deal with a labor surplus in order to avoid a layoff an organization must first consider that:

A) early retirement packages must be the first approach.
B) compensation costs may increase.
C) the employees they want to transfer may not have the necessary skills to perform the new jobs.
D) a job analysis must be completed.
E) employees cannot be laid off after they have been transferred.

Question 35

The 3 p.m. to 11 p.m. shift of the production line is short one assembly worker. HR is in the process of recruiting to fill this position, but in the meantime all of the following may work to deal with this labor shortage EXCEPT:

A) Ask one person from the 7 a.m. to 3 p.m. shift to say over for four hours and have the person who works 11 p.m. to 7 a.m. come in four hours early to provide coverage for the shift.
B) Lay off one person from the 7 a.m. to 3 p.m. shift and one person from the 11 p.m. to 7 a.m. shift in order to even out the labor supply on all three shifts.
C) Use a temporary agency employee to fill the "hole" on the shift until a full time employee can be hired.
D) Transfer someone from the warehouse to work on the assembly line in this vacant position until you hire a full time replacement.
E) Promote one of your supply runners who has shown potential to be an assembly worker and then recruit to fill the supply runner position, as it is an easier position to fill due to the lower skill level required.

Question 36

When determining what type of workforce planning tactics to use it is most important for an organization to consider:

A) how the workforce planning tactic chosen matches the organization's culture and values.
B) what type of impact it will have on compensation and benefit programs.
C) what approach HR needs to take in regard to recruitment.
D) that attrition is always the best approach in order to minimize the impact on employees.
E) how the workforce planning tactic will be communicated to the local labor market.

Question 37

Frederick's Fine Jewelry, which follows a differentiation strategy by making custom jewelry, is experiencing a labor shortage of front end sales clerks. In order to solve this issue the store most likely will ________ to fill the positions.

A) outsource
B) recruit externally
C) hire temporary workers
D) transfer current employees
E) Both B and D

Question 38

Which workforce planning tactic should be used to most quickly deal with a labor surplus?

A) Hiring freeze
B) Attrition
C) Layoff
D) Early retirement
E) Transfer

Question 39

Which organization below would be most impacted if a labor shortage would occur?

A) An organization with 1200 employees who is short 10 employees
B) An organization with 50 employees who is short 1 employee
C) An organization with 620 employees who is short 40 employees
D) An organization with 11,000 employees who is short 375 employees
E) An organization with 35 employees who is short 4 employees

Question 40

In a larger organization which people should be involved in workforce planning and implementation?

A) The manager of the department affected.
B) The manager of the department affected and their Vice President.
C) The manager, their vice president and a representative from HR.
D) The manager, the vice president and a representative from finance.
E) The HR representative and Vice President.

Question 41

An organization has decided to have an external vendor process its payroll. Therefore, the 16 payroll employees will be laid off. In order to help these employees find jobs quickly the organization has decided to use:

A) an outplacement assistance program.
B) an outsourcing vendor.
C) attrition.
D) a hiring freeze.
E) offshoring.

Question 42

Workforce planning occurs at the top level of the organization and is then handed down for others to implement.

Question 43

Any type of employee turnover has a direct impact on an organization's labor demand.

Question 44

Which of the following statements regarding the aging workforce is most accurate?

A) Companies look forward to when employees retire because it saves them health benefit costs.
B) Older workers generally are slow and inefficient, thereby impacting productivity numbers.
C) Allowing older workers to transition out of the workforce slowly benefits both the company and the employee.
D) Due to technological advances members of the aging workforce are unable keep up to date with the required skills.
E) Utilizing recent graduates or younger workers is best if an organization wants to remain competitive.

Question 45

When deciding to use a global work force planning strategy it is important to consider all of the following EXCEPT:

A) the ability to operate 24/7 to provide better access for your customers.
B) the impact offshoring may have on your local labor market.
C) how much your labor pool may be increased by accessing a global workforce.
D) whether your organization should choose a cost leadership or differentiation strategy.
E) whether the operational efficiencies outweigh the potential customer service issues.

Question 46

All of the following are True about the WARN Act EXCEPT:

A) it applies to companies with 100 or more full time employees.
B) it applies to companies with 100 or more employees, including part time employees who work at least 4000 total hours a week.
C) notification si required if 50 or more employees will be affected within 30 days by a plant closing.
D) notification is required if 500 or more employees will be affected within 30 days by a mass layoff.
E) 90 calendar days of advance notice of a plant closing or mass layoff is required.

Question 47

Replacement charts are helpful to organizations in order to identify employees who are available to takeover certain positions as employees leave the organization.

Question 48

An organization needs to consider how communities react to it s workforce planning methods because:

A) these types of decisions can cause emotional reactions from employees, shareholders and customers.
B) the timing of the decisions may determine how people react.
C) offshoring is generally the best work force planning approach.
D) unemployment rates play a very small part in how and when work force planning methods are carried out.
E) Both A and B are correct.

Question 49

Projecting employee productivity enables managers to determine what the labor supply will be years from now.

Question 50

A transition matrix helps to identify labor demand by different employee categories to help an organization plan for any potential labor shortages.

Question 51

When determining if someone meets the definition of an independent contractor an organization must look at all of the following EXCEPT:

A) office space provided.
B) instruction received.
C) expenses reimbursed.
D) employee benefits provided.
E) profit or loss incurred.

Question 52

When labor supply is less than labor demand then a labor surplus occurs.

Question 53

People's Bank now offers on-line banking and an on-line loan application and approval process. As a result of this new technology which of the following will most likely happen?

A) Bank branches will invest in customer service training for the tellers and loan staff.
B) Face to face transactions at the branches will decrease thereby creating a labor surplus.
C) The bank will spend less money on marketing its website.
D) The bank's information services department will be downsized.
E) None of the choices are correct.

Question 54

As an occupational trend, if less people pursue teaching careers which of the following may most likely occur?

A) School districts may investigate ways to encourage students to become teachers through mentor programs.
B) School districts may look for ways to encourage current teachers to delay retirement.
C) A labor shortage of teachers will occur thereby impacting the quality of the education system.
D) A and B are correct.
E) All of the above are correct.

Question 55

The main driver of company's wanting to pursue offshoring is:

A) cheaper wages.
B) low unemployment rates.
C) labor surpluses.
D) less technological skills.
E) fewer employee concerns.

Question 56

If labor demand is greater than the labor supply then a labor shortage occurs.

Question 57

If John decides to resign from his current position with ABC Company to take a new job with XYZ Corporation, this is considered involuntary turnover.

Question 58

Tina took a position in the Boston office of her law firm which is based out of Chicago. She kept the same rate of pay and benefits but took the position to be closer to her family on the East coast. This is an example of a demotion.

Question 59

QPR Architects Inc. has experienced a slow down of work requests. They must lay off 5 employees and have decided to lay off the last 5 employees hired. Remaining employees felt that Stan, a 20 year employee who has performance issues, should have been laid off and most likely believe that ________ has occurred in regard to QPR's workforce planning.

A) procedural injustice
B) wrongful termination
C) attrition
D) discrimination
E) distributional injustice

Question 60

Andy has worked as a mechanic on the night shift production line since he started with the company and he was recently moved to a day shift mechanic position on another production line. This is an example of promotion.

Question 61

If an organization provides health insurance, dental insurance, vacation time and a retirement plan to an individual, that individual is most likely an employee of the organization, rather than an independent contractor.

Question 62

Littletown, USA has an unemployment rate of 5.2% and a large manufacturing company located outside of town just announced that 100 of its jobs are being outsourced to another company in another state. The company should expect a positive reaction from the community.

Question 63

Unable to easily find a replacement for the Engineering Manager, the TUV Corporation offered a part time position with flexible hours to Scott, who was going to retire next month. This is an example of a tactic used to deal with a labor shortage.

Question 64

Workforce planning tactics that are put in place to deal with labor surpluses cause stress for employees, whereas tactics used to deal with labor shortages create employee satisfaction.

Question 65

John pays for all of his own supplies and mileage working as a repairman for a local home improvement store. John could make the argument that he is an independent contractor.

Question 66

A local hospital has several open nursing positions and is having difficulty recruiting nurses due to the current labor ________ in this field.

Question 67

The labor force trend related to the large number of Baby Boomers approaching retirement, is an issue faced by countries around the world.

Question 68

Shady Side Nursing Home needs 25 registered nurses, 15 licensed practical nurses, and 20 nursing assistants to appropriately care for its patients around the clock. These figures refer to its labor ________.

Question 69

By using automation a company, for example, may be able to make a production line more efficient thereby increasing the labor demand since more work can be completed in less time.

Question 70

With technological advances in healthcare, things such as tele-medicine, where a nurse can check vital signs of a patient over the phone lines, less nurses may need to be employed by a home health care agency to make "live" visits to patient homes.

Question 71

Overtime is an effective tool to motivate employees to work extra hours and is a long term solution to a labor shortage.

Question 72

Company culture dictates how organizations communicate with and treat their employees. Company culture does not impact workforce planning, which deals specifically with operations.

Question 73

After completing a labor market study, XYZ Accounting Associates determined that there are approximately 100 individuals in their labor market who have their CPA and there are another 50 individuals attending school at a local community college who are majoring in accounting. Gather this information is important so they can determine what the available labor ________ is in their area.

Question 74

A hotel at the beach has experienced a decline in business during the off season and now has a labor ________ of housekeepers and desk attendants, which means they will have to lay off some staff.

Question 75

TLC Industries, which currently employs 85 employees, is planning to lay off 15 employees by the end of the year. They must abide by the requirements of the WARN Act.

Question 76

If an organization decides to grow its business it will have an impact on whether the organization experiences a labor shortage or labor surplus.

Question 77

The impact that a labor shortage or surplus has on an organization is the same whether the organization has 100 or 1000 employees.

Question 78

When employees leave an organization this is known as ________ which then impacts the organization's labor ________.

Question 79

Through attrition organizations fill new positions which have been vacated by employees who have resigned.

Question 80

Productivity can be impacted by better selection decisions and better training programs.