Question 1

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.

Accepted Answer

A phased-retirement program refers to reducing both the number of hours older employees work as well as the cost of these employees. It allows employees to gradually transition from full-time work to retirement by working reduced hours while still receiving retirement benefits. It is a way to retain experienced employees while also managing labor costs.

Question 2

Joe is the CEO of TexTel Inc. ,a company has a team-oriented culture in which people perform as groups and complete short-term projects to earn revenue.After studying his company's structure,Joe feels TexTel's current processes are inefficient.As a result,Joe decides to downsize the organization and then use the profits to enhance the organization's efficiency.What is a disadvantage of this approach?
A) Downsizing yields slow but long-term profits.
B) Downsizing is the simplest way to ensure current and future competitiveness.
C) Downsizing will interfere with the effectiveness of the organization's teamwork.
D) Downsizing often results in acquisition of companies by other organizations.
E) Downsizing requires moving to relatively expensive locations.

Accepted Answer

TexTel has a team-oriented culture and performs as groups. Downsizing, which involves laying off employees, can interfere with this teamwork and decrease morale among remaining employees. This may ultimately harm the efficiency and effectiveness of the organization.

Question 3

Carmella,an HR manager at Crexion 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

Hiring temporary employees is the fastest way to fix the labor shortage problem as it provides immediate support to production levels, without the need for extensive training or long-term commitment. Retrained transfers and turnover reduction will take time to implement and may not provide an immediate solution. Hiring new employees may also take time to find suitable candidates, and technological innovation may not directly address the labor shortage problem.

Question 4

Steve,the CEO at Winsfeld 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 Winsfeld's competitive standing.In this scenario,Steve 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.

Accepted Answer

By hiring employees with a core competency, Steve can ensure that the employees have the necessary skills and knowledge to improve the competitive standing of Winsfeld Inc. Outsourced or offshored employees may not have the same level of understanding of the company culture and values, while temporary workers may not be as invested in the long-term success of the company. While a college degree may be helpful, it is not necessarily a guarantee of the skills and knowledge needed to address customer perception of low value.

Question 5

Nicole,a human resource manager at an electronics firm,observes that many employees who are reaching the traditional retirement age are not interested in leaving the organization.Which of the following statements best explains the reason for this trend among older employees?
A) there are laws against gender discrimination
B) there is a rise in the availability of pensions
C) jobs are becoming less physically demanding
D) phased-retirement programs require employees to work longer hours
E) older workers generally don't have much debt

Accepted Answer

The statement suggests that older employees are not interested in leaving the organization, which might imply that they still enjoy their work and find it meaningful. If jobs were physically demanding, it would be more difficult for them to continue working as they age. Therefore, option C, which states that jobs are becoming less physically demanding, is the best choice as it provides a plausible explanation for the trend observed by Nicole. The other options do not directly relate to the situation described by the statement.

Question 6

Brendan and Angela are HR managers at Seattle 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 of the following HR strategies should Brendan and Angela 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

Natural attrition is a suitable strategy as it allows the surplus to be reduced gradually over time without the need for more drastic measures, aligning with the expected employee departure rate.

Question 7

Which of the following 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

Accepted Answer

The most widespread methods for eliminating labor shortages are hiring temporary workers and outsourcing work. Downsizing and merging with other organizations are not methods for eliminating labor shortages, as they involve reducing employee numbers rather than increasing them. Retrained transfers and turnover reduction may address labor shortages, but they are not as widespread as hiring temporary workers and outsourcing work. Finally, while overtime and retrained transfers can address labor shortages, they may not be as effective or feasible as hiring temporary workers and outsourcing work, which allow organizations to quickly and flexibly address labor shortages.

Question 8

El Eram Inc.is automating processes so the company can meet its demand with a smaller workforce.The CEO asks Monica,the vice president of human resources,for advice on how to address the resulting labor surplus.Monica 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 Monica suggest as the most effective way of addressing El Eram'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 to 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.

Accepted Answer

Based on the information provided, offering early-retirement incentives to the older employees would be the most effective way of addressing the labor surplus. This would allow the company to reduce its workforce without having to resort to layoffs or replacing employees with contract workers. Additionally, it would likely be more appealing to older workers who may be thinking about retirement anyway, and would help avoid potential legal issues related to age discrimination.

Question 9

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 10

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.

Accepted Answer

Temporary and contract workers may be less committed to an organization as they may not feel the same sense of loyalty or job security as permanent employees. This can result in lower productivity, turnover, and potential disruptions to the work environment.

Question 11

Which of the following 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

Accepted Answer

Building confidence in the company's plans for a stronger future can help counter negative emotions in downsized employees by reassuring them that the company is still viable and has a plan for moving forward. Demonstrating that employees deserved to be downsized can be seen as insensitive and callous, and it may not be true for all employees who lost their jobs. Similarly, showing commitment to management alone may not address the concerns of remaining employees who are worried about their own job security. Encouraging employees to work harder could come across as blaming them for the downsizing, and may not be successful if the downsizing was due to economic factors beyond their control. Pursuing a commitment to customers over the community may not address the concerns of remaining employees who feel that the company is no longer a good corporate citizen.

Question 12

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.

Accepted Answer

Temporary employment gives employers flexibility in their operations, allowing them to adjust their workforce according to demand without incurring the costs associated with permanent employees, such as benefits and severance pay. This makes it a popular option for employers.

Question 13

Bob,an HR manager at Delair Inc. ,is expecting a labor surplus for the company in the month of December.This gives Bob nearly eight months to deal with the problem.In order to reduce the labor surplus,Bob 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 causes less suffering for employees as it avoids layoffs and allows natural attrition to reduce the surplus over time.

Question 14

A manufacturing company,hit by a slump in demand,is experiencing a labor surplus.The company expects the market to improve in six months,and it does not want to lay off any of its employees.Which of the following strategies is an equitable way to handle this issue and spread the burden more fairly?
A) demotions
B) outsourcing
C) reduced work hours
D) overtime
E) employing temporary workers

Accepted Answer

Reduced work hours would allow the company to use its surplus labor while spreading the burden more fairly among employees. Demotions, outsourcing, and employing temporary workers would likely result in decreased morale and job security among current employees. Overtime may also cause resentment among employees who are not selected for additional work.

Question 15

Britt,a production manager at Frelix 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 of the following options for avoiding a labor shortage would be the right solution for Britt?
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 allows for an easy and temporary solution to a labor shortage. Once the optimal labor is available, the temporary employees can be easily let go without any major impact on the organization or its current workforce. The other options, such as hiring new employees or retraining transfers, may not be as easily reversible and could lead to a less flexible workforce in the future. Technological innovation and reducing managerial staff aren't necessarily solutions to a labor shortage and may not be relevant to the situation at hand.

Question 16

Errol,a manager at a large holiday 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 of the following strategies would be the best option to help Errol avoid a labor shortage?
A) Errol should hire new employees because he will most likely need additional workers after the holiday season to deal with an increasing sales trend.
B) Errol should consider increasing his current employees' pay during the holiday season so they will work harder to achieve sales targets.
C) Errol 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) Errol should hire temporary employees because he can let them go once the holiday season is over.
E) Errol should consider increasing the prices of toys so that 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 is the best option for Errol as they can fulfill the increased demand during the holiday season and can be let go once the season is over. Option A is not the best option as Errol may not need additional workers after the holiday season. Option B may not be effective in motivating employees to work harder. Option C may not be feasible as keeping the store closed during non-peak hours may lead to lower sales overall. Option E is not a viable solution as increasing prices may lead to a decrease in sales, potentially causing even more pressure on labor resources.

Question 17

Janet,an HR manager at SensNet Inc. ,hires employees who provide a specific set of knowledge and skills that will give her company advantage over its competitors.In the context of strategic planning,Janet is
A) outsourcing a broad set of services.
B) using propensity analysis.
C) seeking leading indicators.
D) hiring individuals with a core competency.
E) using trend analysis.

Accepted Answer

Janet is hiring individuals with a core competency, which means that she is looking for employees who possess specialized skills or knowledge that will give her company a competitive advantage. This is a key aspect of strategic planning and a way to stay ahead of competitors.

Question 18

Identify the correct statement regarding downsizing.
A) Downsizing improves long-term organizational effectiveness.
B) The negative effect of downsizing is especially low among firms that engage in high-involvement work practices.
C) Downsizing often disrupts the social networks through which people are creative and flexible.
D) The negative impact of downsizing is especially low for those organizations that emphasize research and development.
E) Downsizing campaigns only eliminate people who are replaceable.

Accepted Answer

Downsizing often disrupts the social networks through which people are creative and flexible. This is because downsizing usually involves the layoff of employees, which can damage the social fabric of an organization and negatively impact the morale of the remaining employees. Choices A, B, and D are not accurate as downsizing actually has negative effects on long-term organizational effectiveness, high-involvement work practices, and research and development. Choice E is also not accurate as downsizing campaigns may eliminate valuable and irreplaceable employees.

Question 19

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.

Accepted Answer

The answer of Identify the similarity between the outsourcing and...

Question 20

Wilma heads the production department at Riden Inc. ,a firm that stresses the importance of maintaining regular contact with customers.Wilma is expecting a labor surplus in the future.John,a supervisor,recommends downsizing as an option to deal with this labor surplus,however,Wilma rejects this option.Which of the following statements will validate that Wilma made the right decision?
A) Downsizing cannot be used to reduce the number of managers.
B) Downsizing would result in increased operational costs.
C) Downsizing cannot provide an immediate solution to labor surplus.
D) Downsizing would hurt long-term organizational effectiveness.
E) Downsizing would harm the hierarchy of top management.

Accepted Answer

The statement that would validate Wilma's rejection of downsizing as an option is that downsizing would hurt long-term organizational effectiveness. This indicates that Wilma is considering the long-term consequences of downsizing rather than just short-term solutions to labor surplus.

Quiz 5: Planning for and Recruiting Human Resources

Which of the following best describes a phased-retirement program?

Carmella,an HR manager at Crexion 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 _____.

Steve,the CEO at Winsfeld 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 Winsfeld's competitive standing.In this scenario,Steve will most likely be hiring

Nicole,a human resource manager at an electronics firm,observes that many employees who are reaching the traditional retirement age are not interested in leaving the organization.Which of the following statements best explains the reason for this trend among older employees?

Which of the following are the most widespread methods for eliminating labor shortages?

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

Identify a disadvantage of using temporary and contract workers.

Which of the following is a step a downsized company can take to counter negative employee emotions?

Why is temporary employment popular with employers?

Bob,an HR manager at Delair Inc. ,is expecting a labor surplus for the company in the month of December.This gives Bob nearly eight months to deal with the problem.In order to reduce the labor surplus,Bob decides to use a _____ strategy,which causes less suffering for employees.

A manufacturing company,hit by a slump in demand,is experiencing a labor surplus.The company expects the market to improve in six months,and it does not want to lay off any of its employees.Which of the following strategies is an equitable way to handle this issue and spread the burden more fairly?

Janet,an HR manager at SensNet Inc. ,hires employees who provide a specific set of knowledge and skills that will give her company advantage over its competitors.In the context of strategic planning,Janet is

Identify the correct statement regarding downsizing.

Identify the similarity between the outsourcing and overtime strategies for avoiding a labor shortage.