Question 1

Brandon, a production manager at Felix Inc., is expecting a labor shortage for a short period of time. He would like to avoid it with a strategy that can be easily eliminated in the future when there is optimal labor available for work. Which option for avoiding a labor shortage would be the right solution for Brandon?
A) hiring new employees
B) employing technological innovation
C) using retrained transfers
D) hiring temporary employees
E) reducing managerial staff

Accepted Answer

Hiring temporary employees would be the right solution for Brandon as it allows him to quickly fill the labor shortage without committing to long-term hires. It can be easily eliminated when the optimal labor is available. Other options like hiring new employees or retraining transfers may take a longer period of time and may not be feasible for a short-term labor shortage. Technological innovation and reducing managerial staff may not address the labor shortage directly.

Question 2

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.

Accepted Answer

The second step in human resource planning is goal setting and strategic planning. This involves determining what the organization's goals and objectives are, and then developing a plan to achieve those goals through the effective utilization of human resources. Forecasting labor shortages and surpluses comes later in the planning process, and program implementation and evaluation are later stages in the actual execution of the plan. Program goal setting is also part of the overall strategic planning process.

Question 3

In the context of human resource planning, the primary goal of forecasting is to
A) predict labor shortages or surpluses in specific areas of an organization.
B) determine labor supply.
C) set goals for hiring employees.
D) focus attention on a problem and provide a basis for measuring an organization's success.
E) eliminate large numbers of personnel with the goal of enhancing an organization's competitiveness.

Accepted Answer

The primary goal of forecasting in human resource planning is to predict labor shortages or surpluses in specific areas of an organization. This allows organizations to identify areas where they may need to hire more employees or where they may need to reduce the workforce. By forecasting, organizations can also plan ahead and take proactive measures to avoid potential labor shortages or surpluses.

Question 4

Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.
A) Both strategies yield slow results for an organization.
B) Both strategies cause high suffering to the employees of an organization.
C) Both strategies can be applied for preventing labor shortages.
D) Both strategies are expensive to implement.
E) Both strategies encourage layoffs.

Accepted Answer

Natural attrition and early retirement strategies both yield slow results because they rely on employees leaving voluntarily over time, rather than immediate cuts like layoffs.

Question 5

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

Accepted Answer

Given that the organization will face a labor surplus over the next two years and two employees leave each month, natural attrition would be the best HR strategy to consider. Natural attrition is a process where an organization reduces its workforce by not replacing employees who leave the company. This would allow the organization to gradually reduce its workforce without the need for layoffs or other drastic measures. Given the length of time available, natural attrition would be a more feasible option as opposed to downsizing, which may require immediate and often drastic actions. Pay reductions, demotions, and transfers may not address the labor surplus and may lead to employee dissatisfaction and turnover.

Question 6

Damien, an HR manager at Guidelines Inc., is preparing for a 5 percent increase in the production labor force next year. To do this, he needs to determine what the current number of production employees is and how the number is likely to change by the end of the year. To help with this analysis, Damien should use a
A) transitional matrix.
B) propensity analysis.
C) trend analysis.
D) multiple regression.
E) leading indicator.

Accepted Answer

A transitional matrix is a tool used in workforce planning to determine how the number of employees in a certain job category or department is likely to change over time. It allows HR managers like Damien to analyze historical data and make predictions about future workforce needs. Therefore, a transitional matrix would be the best choice for Damien to use in this scenario.

Question 7

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.

Accepted Answer

The chart described in the question - one that shows job categories held in one period and the proportion of employees in each of those categories in a future period - is called a transitional matrix. This is because it displays the transition of employees from one job category to another over time. The other answer choices do not accurately describe this type of chart.

Question 8

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.

Accepted Answer

The purpose of human resource planning is to gain an advantage over competitors by ensuring that an organization has the right number of people with the right skills in the right roles at the right time to meet business objectives. This includes forecasting future workforce needs, identifying internal talent pools, and developing strategies to recruit, train, and retain employees. While reducing hiring of workers from colleges and universities or replacing technology with highly skilled workers may be considerations in human resource planning, they are not the primary reasons organizations undertake this process. Avoiding risks and matching industry hiring costs are also not objectives of human resource planning.

Question 9

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.

Accepted Answer

Statistical forecasting methods use mathematical models and historical data to make predictions. This provides a level of objectivity and precision that may be difficult for a human forecaster to match. When the right conditions are met, statistical methods can result in more accurate predictions than the subjective judgments of experts.

Question 10

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.

Accepted Answer

The answer of Yoza Inc., a manufacturer of electronic goods,...

Question 11

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.

Accepted Answer

A transitional matrix is a tool that identifies current employee positions and the likelihood of where they will be in the future, making it an appropriate tool for Paul to use to gather the information he needs 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 other options (electronic recruitment process, propensity analysis, due-process policy, and multiple regression analysis) are not relevant to Paul's information-gathering needs.

Question 12

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

Accepted Answer

Downsizing is a strategy that involves reducing the size of the workforce to lower the company's costs. This strategy is often implemented to deal with a labor surplus or to improve profitability. Although downsizing can provide quick results, it often involves significant employee layoffs and can cause a great deal of suffering to those affected. The other strategies listed, such as early retirement, natural attrition, retraining, and hiring freeze, may also be used to reduce a labor surplus, but are generally less drastic and may take longer to yield results.

Question 13

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.

Accepted Answer

Hiring temporary employees would be the best strategy for Ernie to avoid labor shortages during the holiday season. This option would provide additional workers to help meet the demand while also alleviating concerns about what to do with excess employees once the holiday season is over. Option A may lead to excess employees after the holiday season, while option B may not incentivize existing employees enough to meet the increased demand. Option C would limit the store's operating hours, potentially reducing overall sales, while option E would not address the labor shortage issue and may even decrease sales further.

Question 14

Rantly Corp. is eliminating its desktop computer repair center in Minnesota. Meanwhile, the demand for mobile device repair-a service it provides in Florida and New Jersey-is growing rapidly. Betsy, a human resource specialist at the Rantly Corp. headquarters in Miami, must plan to avoid a labor surplus in Minnesota in a fast and effective way. She wishes to do so with minimal employee suffering in terms of layoffs and salary. Which strategy would best help Betsy accomplish her goal?
A) pay reductions
B) transfers
C) demotions
D) early retirement
E) hiring freeze

Accepted Answer

Transfers would allow employees in the Minnesota repair center to move to the Florida and New Jersey mobile device repair centers where the demand is growing rapidly. This would help Betsy avoid a labor surplus in Minnesota without having to lay off employees or reduce their salaries. Additionally, it would allow employees to retain their current salaries and job security.

Question 15

Solarn Inc. is a relatively new company that employs 23 workers. When it finished a major contract, the owner realized that there wasn't enough work left for all the remaining workers. The company is negotiating contracts that could provide future work in a few months, but it currently must address its labor surplus in order to remain financially sound. What is the best strategy to deal with this labor surplus?
A) an early retirement program
B) natural attrition
C) a hiring freeze
D) downsizing
E) work sharing

Accepted Answer

Work sharing allows the company to reduce the hours of all employees, rather than laying off some workers, which can help retain skilled employees for future contracts while addressing the immediate labor surplus.

Question 16

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

Accepted Answer

The first step in the human resource planning process is forecasting, which involves predicting future staffing needs, analyzing the current workforce, and identifying gaps in skills and competencies. This step lays the foundation for the rest of the planning process, as it informs the decision-making around recruiting, training, and development programs.

Question 17

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

Accepted Answer

Trend analysis involves analyzing past data to identify patterns of activity, which can be used to make predictions about future demand. This method is commonly used in production planning and inventory management. Yield ratio, workforce utilization review, cost per hire, and capacity utilization analysis are not directly related to predicting labor demand based on inventory levels.

Question 18

Christina, an HR manager at Dixon Inc., is dealing with labor shortage problems due to a sudden increase in production levels at the company. Among the following options, the fastest way to fix this problem is to
A) use retrained transfers.
B) focus on turnover reductions.
C) hire new employees.
D) hire temporary employees.
E) focus on technological innovation

Accepted Answer

Temporary employees can be hired quickly and may help address the immediate labor shortage problem caused by sudden increase in production levels. Retrained transfers and turnover reductions may both take time to implement, while hiring new employees may also take longer due to recruitment and training processes. Technological innovation may be a long-term solution, but may not address the immediate labor shortage. Therefore, hiring temporary employees is the fastest way to fix the problem.

Question 19

Charlie, an HR manager at Delaney Inc., is expecting a labor surplus for the company in the month of November. This gives Charlie nearly eight months to deal with the problem. In order to reduce the labor surplus, Charlie decides to use a ________ strategy, which causes less suffering for employees.
A) downsizing
B) demotion
C) hiring freeze
D) pay reduction
E) transfer

Accepted Answer

A hiring freeze is a strategy that can reduce labor surplus by not filling open positions as they become available, which is less disruptive and causes less suffering for current employees compared to downsizing, demotion, pay reduction, or transfers.

Question 20

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.

Accepted Answer

These are all examples of leading indicators, which are factors that can provide insight into future changes in demand for labor. Trend analysis can reveal patterns and potential future direction in the labor market, inventory levels can indicate production levels and potential changes in staffing needs, changes in technology can affect the types of skills needed in the workforce, and actions of competitors can lead to changes in market demand and hiring needs.

Quiz 5: Planning for and Recruiting Human Resources

The second step in human resource planning is

In the context of human resource planning, the primary goal of forecasting is to

Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.

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

Organizations carry out human resource planning to

Identify a benefit of applying statistical forecasting methods.

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?

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?

What is the first step in the human resource planning process?

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.

Christina, an HR manager at Dixon Inc., is dealing with labor shortage problems due to a sudden increase in production levels at the company. Among the following options, the fastest way to fix this problem is to

In the context of forecasting the demand for labor, using trend analysis, inventory levels, changes in technology, and actions of competitors are examples of