Human Resources Planning And Management

Chapter 5 Human Resources Planning And Management

This lesson is about Human Resources Planning And Management.


1) The process of reviewing human resources requirements to ensure that the organization has the
required number of employees, with the necessary skills to meet its goals, is known as:


A) selection.
B) human resources planning. correct
C) strategic planning.
D) training and development.
E) recruitment.


2) Each of the following statements about HRP is true EXCEPT:


A) it can lead to significant costs if done poorly.
B) a critical HRP issue is what to do when the labour supply exceeds the anticipated demand.
C) a fundamental HRP decision when demand exceeds supply is whether projected positions
will be filled externally or internally.
D) it is a reactive process. correct
E) it is also known as employment planning.


3) A potential solution when labour demand exceeds labour supply is:


A) finding employees alternative jobs within the organization.
B) work sharing.
C) hiring temporary workers. correct
D) job sharing.
E) any of the above


4) Potential solutions when labour supply exceeds labour demand include all of the following
EXCEPT:


A) instituting a hiring freeze.
B) subcontracting.
C) termination of employment.
D) downsizing through attrition. correct
E) employee layoffs.


5) Effective HRP helps an organization to do all of the following EXCEPT:


A) anticipate and avoid shortages and surpluses of human resources.
B) comply with privacy laws. correct
C) make major labour market demands more successfully.
D) achieve its goals and objectives.
E) plan and coordinate recruitment, selection, training, and career planning more effectively.


6) When labour demand equals labour supply:


A) occupational health and safety is critical in achieving balance.
B) HR personnel must hire more recruiters.
C) performance management is critical in achieving balance. correct
D) compensation and benefits are most important.
E) project management skills are critical for achieving balance.


7) Inadequate human resources planning within an organization can result in direct costs when
labour demand decreases significantly for an extended period of time. Which of the following
provides an accurate reason for this:


A) there are project management costs.
B) there is a link to privacy laws.
C) it would cause costs associated with hiring part-time workers.
D) severance pay is required for a large number of staff. correct
E) it would cause hiring more HR staff.


8) Strategic plans are created and carried out by:


A) Human Resources personnel.
B) a CFO.
C) a Board of Directors.
D) a CEO.
E) people. correct


9) Each of the following statements about the relationship between HRP and strategic planning is
true EXCEPT:


A) HRP has long been part of the strategic planning process. correct
B) failure to integrate HRP and strategic planning can have very serious consequences.
C) determining whether or not people will be available is a critical element of strategic planning.
D) environmental scanning is a critical component of both HRP and strategic planning.
E) HRP and strategic planning become effective when there is a reciprocal and interdependent
relationship between them.


10) External environmental factors that are most frequently monitored in HR and strategic planning
include all of the following EXCEPT:


A) economic conditions.
B) market and competitive trends.
C) new or revised laws.
D) demographic trends.
E) international trade patterns. correct


11) Today, the most significant environmental factor relates to the dramatic demographic changes in:


A) labour force composition.
correct
B) the technological sector.
C) the service sector.
D) the small business sector.
E) the public sector.


12) Which of the following is the first step in human resource planning?


A) forecasting future HR needs
B) forecasting the availability of external candidates
C) forecasting the availability of internal candidates correct
D) analyzing the HR implications of the organizationʹs strategic plans
E) balancing supply and demand


13) Which of the following statements is true?


A) Currently, the fastest growing groups in the Canadian labour force are visible minorities and
persons with disabilities.
B) By 2010, one in two Canadians will be age 50 or older.
C) Probably the most significant environmental factor in HRP in Canada today relates to
dramatic changes in labour-force composition.
correct
D) Effective HRP involves focusing on monitoring trends only.
E) The number of young people in the Canadian labour force is now increasing.


14) The first step in the HRP process, after the HR implications of the firmʹs strategic plans have been
analyzed, is:


A) forecasting availability of internal and external candidates.
B) monitoring and evaluating the results.
C) forecasting future human resources needs. correct
D) planning and implementing HR programs to balance supply and demand.
E) job analysis and design.


15) Factors that should be considered when forecasting the number and type of people needed to meet
organizational objectives include all of the following EXCEPT:


A) projected recruitment figures. correct
B) projected turnover.
C) decisions to upgrade the quality of products or services or enter into new markets.
D) the financial resources available to each department.
E) quality and nature of employees.


16) Which of the following is a quantitative approach to forecasting?


A) trend analysis correct
B) managerial judgment
C) the nominal group technique
D) the Delphi technique
E) trend analysis and the nominal group technique


17) Quantitative techniques to forecasting include all of the following EXCEPT:


A) trend analysis.
B) ratio analysis.
C) the nominal group technique. correct
D) regression analysis.
E) a scatter plot.


18) Computing the number of employees in the firm at the end of the last five years is associated with
which of the following forecasting techniques?


A) trend analysis correct
B) a scatter plot
C) ratio analysis
D) time-series analysis
E) regression analysis


19) A forecasting technique for determining future staff needs by using ratios between sales volume
and the number of employees needed is:


A) a scatter plot.
B) time-series analysis.
C) regression analysis.
D) ratio analysis. correct
E) trend analysis.


20) Like ________, ratio analysis assumes that productivity remains much the same and is therefore
not appropriate in changing environments.
A) regression analysis
B) trend analysis correct
C) time-series analysis
D) the nominal group technique
E) a scatter plot

B. TREND ANALYSIS

21) A ________ illustrates the relationship between two factors: a measure of business activity and
staffing levels.


A) time-series analysis
B) scatter plot correct
C) ratio analysis
D) trend analysis
E) regression analysis


22) A statistical technique involving the use of a mathematical formula to project future demands,
based on an established relationship between an organizationʹs employment level and some
measurable factor of output, is known as:


A) a computerized forecast.
B) ratio analysis.
C) trend analysis.
D) regression analysis. correct
E) a scatter plot.


23) In contrast to quantitative approaches, qualitative techniques rely solely on:


A) a scatter plot.
B) expert judgments. correct
C) regression analysis.
D) trend analysis.
E) multiple regression analysis.


24) Two approaches used to gather qualitative data in order to forecast HR demand (or supply) are:


A) scatter plot and Delphi technique.
B) regression analysis and nominal group technique.
C) ratio analysis and nominal group technique.
D) trend analysis and scatter plot.
E) nominal group and Delphi technique. correct


25) A decision-making technique that involves a group of experts meeting face to face, which can be
used for HR forecasting, is known as:


A) the nominal group technique. correct
B) an informal expert forecast.
C) a formal expert forecast.
D) managerial judgment.
E) the Delphi technique.


26) The drawbacks of which forecasting technique include subjectivity and the potential for group
pressure to lead to less accurate assessments than could be obtained through other means?


A) a formal expert forecast.
B) managerial judgment.
C) the Delphi technique.
D) an informal expert forecast.
E) the nominal group technique. correct


27) You have just been hired as the Director of Human Resources at a mid sized engineering
company. The CEO has asked you to assist her in forecasting future human resources needs and to
first use a forecasting technique which would generate an exchange of ideas among Directors of
each division. She is concerned that you use a technique which will lead to greater acceptance of
results among Directors. Which technique do you use?


A) an informal expert forecast
B) nominal group technique
C) a formal expert forecast
D) regression analysis
E) the nominal group technique correct


28) You have just been hired as the Director of Human Resources at a mid sized engineering
company. The CEO has asked you to assist her in forecasting future human resources needs and to
first use a qualitative technique which is useful for long-range forecasting. Which technique do
you choose?


A) the nominal group technique
B) an informal expert forecast
C) a formal expert forecast
D) managerial judgment
E) the Delphi technique correct


29) The drawbacks of which forecasting technique include the fact that judgments may not efficiently
use objective data?


A) the Delphi technique correct
B) the nominal group technique
C) managerial judgment
D) an informal expert forecast
E) a formal expert forecast


30) Permitting a group to critically evaluate a wide range of views is an advantage of which
forecasting technique?


A) an informal expert forecast
B) the Delphi technique correct
C) managerial judgment
D) a formal expert forecast
E) the nominal group technique


31) Regardless of the forecasting method utilized, modifications are made based on:


A) changing market conditions.
B) HRIS data.
C) management control systems.
D) managerial judgment. correct
E) changing economic conditions.


32) Alice is the HR consultant advising Nexus Inc., a small but successful software development firm
on how to conduct human resource planning. In forecasting future demand for human resources
what step should she advise management to take first?


A) create a replacement chart
B) project the sales for each of the firmʹs products and estimate quality and nature of employees
needed
C) project turnover
D) project the sales for each of the firmʹs products and calculate the volume of production
needed to meet sales requirements
correct
E) develop a staffing table


33) A pictorial representation of all jobs within the organization, along with the number of current
incumbents and future employment requirements, is known as:


A) an organization chart.
B) a staffing table. correct
C) a replacement chart.
D) a scatter plot.
E) a skills inventory.


34) Projected openings are filled by using the following sources of supply:


A) promoted employees.
B) employees who are transferred.
C) unemployed individuals.
D) external and internal sources. correct
E) individuals employed at other firms.


35) Short-term and long-range HR demand forecasts provide:


A) the full staffing equation.
B) external supply forecasts.
C) half of the staffing equation. correct
D) present employees who can be transferred or promoted to meet anticipated needs.
E) internal supply forecasts.


36) Alice is the HR consultant advising Nexus Inc., a small but successful software development firm
on how to conduct human resource planning. She is currently explaining the ʺforecasting supplyʺ
step in the planning process to the CEO and confirms that projected openings are to be filled by
using two sources. They are:


A) internal and external supply. correct
B) overtime and temporary workers.
C) contracting-out and outsourcing.
D) recruitment and promotion.
E) transferring and promotion.


37) A method of forecasting internal labour supply that involves tracking the pattern of employee
movements through various jobs and developing a transitional probability matrix is known as:


A) computerized forecasting.
B) Markov analysis. correct
C) multiple regression analysis.
D) ratio analysis.
E) trend analysis.


38) Manual or computerized records summarizing employeesʹ education, experience, interests, skills,
etc., which are used to identify internal candidates eligible for transfer and/or promotion, are
known as:


A) skills inventories. correct
B) Markov analyses.
C) replacement charts.
D) staffing tables.
E) job descriptions.


39) Management inventories:


A) are visual representations of who will replace whom in the event of a job opening.
B) are a method of forecasting labour supply that involves tracking the pattern of employee
movements.
C) are used to keep track of employeesʹ qualifications.
D) record information about managerial responsibilities and management training used to
identify internal candidates eligible for promotion.
correct
E) are a method used to arrive at a group decision involving outside experts.


40) You have been hired as the Director of HR at Targus Inc., a clothing retailer. To project the supply
of outside candidates in the HRP process for the firm you will need to assess:


A) succession plans.
B) staffing tables.
C) skills inventories.
D) national labour market conditions. correct
E) management inventories.


41) In general terms, the lower the rate of unemployment:


A) the smaller the labour demand.
B) the larger the labour demand.
C) the easier it will be to recruit.
D) the larger the labour supply.
E) the smaller the labour supply. correct


42) A reality is that Canadaʹs population is aging as the baby boom cohort approaches retirement.
Currently, ________ of all Canadian workers retire before the age of 65.


A) 67% correct B) 33% C) 20% D) 50% E) 80%


43) Highly educated immigrants are the predominant drivers of:


A) growth. correct
B) organizational training and development.
C) local labour market conditions.
D) national labour market conditions.
E) competitorsʹ strategies.


44) Community growth rates and attitudes affect:


A) local labour markets. correct
B) unemployment rates.
C) competitorsʹ strategies.
D) occupational market conditions.
E) general economic conditions.


45) To project the supply of outside candidates, employers generally assess all of the following
EXCEPT:


A) competitorsʹ strategies. correct
B) general economic conditions.
C) local labour market conditions.
D) occupational market conditions.
E) national labour market conditions.


46) In general terms, the lower the rate of unemployment:


A) the harder it is to fill skills-shortage positions.
B) the less competition there is for employees.
C) the more difficult it is to recruit employees. correct
D) the easier it is to fill positions.
E) the larger the labour supply.


47) Demographic trends have a significant impact on:


A) occupational market conditions.
B) general economic conditions.
C) national labour market conditions. correct
D) unemployment rates.
E) local labour market conditions.


48) Each of the following statements about local labour markets is true EXCEPT:


A) Chambers of commerce can be excellent sources of local labour market information.
B) One reason growing cities are attractive to employers is the promise of large future labour
markets.
C) They are affected by community growth rates and attitudes.
D) Provincial/local development and planning agencies can be excellent sources of local labour
market information.
E) In communities experiencing population increases, it is often impossible to attract new
business.
correct


49) Each of the following statements about occupational market conditions is true EXCEPT:


A) Organizations generally want to forecast the availability of potential candidates in specific
occupations.
B) HRDC is a good source of information on occupational demand and supply.
C) In recent years, there has been an undersupply of nurses.
D) In recent years, there has been an oversupply of IT specialists. correct
E) HRDC forecasts are useful for determining whether any projected imbalances will be
self-correcting.


50) To successfully fill positions internally, organizations must manage performance and careers.
Performance is managed through:


A) implementing a suitable reward structure. correct
B) career tracking.
C) effective selection and placement strategies.
D) training and development.
E) effective recruitment policies and systems.


51) A hiring freeze is all of the following except:


A) a strategy that most employers use initially to balance demand and supply.
B) a common response to an employee surplus.
C) when openings are filled by reassigning current employees.
D) a solution when demand exceeds supply. correct
E) no outsiders are hired.


52) Specific strategies must be formulated to balance supply and demand. Possible scenarios are:


A) expected demand matches supply.
B) there is a shortage of labour.
C) supply matches expected demand.
D) labour supply exceeds demand.
E) all of the above. correct


53) You have been hired as the Director of HR at Targus Inc., a clothing retailer. Due to a reduction in
consumer demand you have been asked to advise management on how to reduce the amount of
staff by 5% over the next 2 years. Although a slow method for reducing numbers the option which
generally presents the least amount of problems is:


A) downsizing through attrition. correct
B) offering attractive buyout packages.
C) laying off employees.
D) introducing a reduced work week.
E) offering attractive early-retirement packages.


54) Drawbacks of attrition include the following:


A) It takes a short period of time.
B) It is hard to implement.
C) It costs large sums of money.
D) The organization has no control over who goes and who stays. correct
E) Employees do not accept this strategy.


55) When the internal supply of employees exceeds the organizationʹs demand, strategies used by
employers include all of the following EXCEPT:


A) offering attractive buyout packages.
B) laying off employees.
C) initiating job-share positions.
D) making early retirement mandatory. correct
E) downsizing through attrition.


56) You have been asked by the CEO to advise on how to reduce the workforce by 10% over the next 2
years. There is little in the budget for payment of up-front money. Which of the following would
you NOT recommend?


A) reduced work weeks
B) work sharing
C) buyouts and early retirement packages correct
D) job sharing
E) layoffs based on reverse seniority


57) With which of the following strategies for handling a labour surplus is the potential for a human
rights violation most closely associated?


A) reduced work weeks
B) termination of employment
C) job sharing
D) early retirement packages correct
E) work sharing


58) The layoff-avoidance strategy introduced by the federal government is known as:


A) the early leave package.
B) the reduced work week.
C) job sharing.
D) work sharing. correct
E) supplemental unemployment benefits.


59) SUBS:


A) are usually provided to non-union employees.
B) are benefits that are paid indefinitely.
C) top up employment insurance. correct
D) decrease income levels when on the job.
E) increase income levels when on the job.


60) Factors that should be taken into account when determining an appropriate severance package
include all of the following EXCEPT:


A) age.
B) years of service.
C) ethnic origin. correct
D) the individualʹs likelihood of obtaining alternative employment.
E) salary.


61) The guarantee by the employer to pay specified compensation and benefits in the case of
termination due to downsizing or restructuring is known as:


A) a golden parachute clause. correct
B) a guaranteed annual wage.
C) supplemental unemployment benefits.
D) wage protection insurance.
E) a severance package.


62) Survivor sickness is:


A) an illness causing errors in work and reduced performance.
B) a sickness found among production workers.
C) a physical illness caused by a toxic building.
D) a range of emotions that can include feelings of betrayal or violation, guilt, and detachment. correct
E) a sickness found among white—collar workers.


63) Outplacement is:


A) a service offered by an outside agency that can assist terminated employees in finding
employment elsewhere.
correct
B) a service within a company that provides resume-writing and interview-skill workshops.
C) a service offered by an outside agency that provides job opportunities.
D) a service offered by an outside agency that is provided to executives only.
E) a service within a company facilitated by HR professionals.


64) A major Canadian automaker has laid off 20% of its workforce over the course of 2 years. You are
the HR professional responsible for surveying the employees remaining with the company to
determine their level of engagement and job satisfaction. The survey responses indicate that many
employees are experiencing feelings of guilt and detachment. What these employees are likely
experiencing is known as:


A) reality shock.
B) a negative work ethic.
C) survivor sickness. correct
D) employee apathy.
E) survivor-guilt syndrome.


65) The initial response to a labour shortage is often:


A) layoffs.
B) retraining.
C) promotion.
D) transfer.
E) scheduling overtime. correct


66) To deal with a labour shortage, firms often use all of the following strategies EXCEPT:


A) recruiting.
B) offering generous early retirement and buyout packages. correct
C) scheduling overtime.
D) subcontracting work.
E) transferring and promoting employees.


67) Advantages associated with a transfer include:


A) the fact that skills and perspectives may be broadened. correct
B) a pay increase for the employee involved.
C) an increase in task significance.
D) the fact that new challenges are the inevitable result.
E) more employee autonomy.


68) Which of the following statements about merit-based promotions is true?


A) Unions often prefer that merit be the deciding factor.
B) Using seniority, the employee who is promoted is always the most competent.
C) Promotions involve the movement of an employee from one job to another that is the same
level in responsibility.
D) A promotion is sometimes based on an assessment of future potential. correct
E) When promotions are based on seniority, objectivity is a problem.


69) Canada faces a long-term labour shortage. Many employers are seeking strategies to increase the
workforce participation of:


A) people with disabilities.
B) women.
C) older workers. correct
D) aboriginal peoples.
E) visible minorities.


70) Many employers are seeking strategies to set aside stereotypes and prejudice that older workers:


A) do not want to try new things.
B) are less productive.
C) are resistant to change.
D) are difficult to work with.
E) all of the above. correct

E. ALL OF THE ABOVE

71) Although flexible work arrangements have traditionally been associated with improving work/life
balance, they are increasingly seen as part of a ________.


A) compressed workweek
B) telecommuting plan
C) business strategy correct
D) flextime plan
E) departmentʹs overhead


72) You have just been hired as the Director of Human Resources at Greenlight Inc., a mid sized
Canadian furniture manufacturer. You are considering implementing compressed workweeks. The
following would be a potential advantage of implementing this at Greenlight:


A) decreased willingness of workers to work some evenings/weekends.
B) reduction in absenteeism.
C) improved efficiency, reduction in absenteeism, and reduction in paid overtime. correct
D) reduction in paid overtime.
E) improved efficiency and reduction in absenteeism.


73) Other employers are switching to a plan that they call flexyear. Flexyear is when:


A) two or more employees can share a single full-time job.
B) employees work four ten-hour days instead of the more usual five eight-hour days.
C) employees work from home.
D) employeesʹ flexible workdays are built around a core of midday hours.
E) employees can choose the number of hours that they want to work each month over the next
year.
correct


74) HRP is a process of reviewing human resources requirements to ensure that an organization has
the required number of employees, with the necessary skills, to meet its goals.

TRUE


75) Starting in 2011, labour force growth in Canada will be entirely dependent on new immigrants.

TRUE


76) Human Resources Planning is a reactive process which both anticipates and influences an
organizationʹs future.

FALSE


77) Trend analysis is valuable as an initial estimate of HR demand only.

TRUE


78) Ratio analysis involves making forecasts based on the ratio between two causal factors.

FALSE


79) Regression analysis determines the line of best fit.

TRUE


80) Exchanging ideas without face-to-face interaction is a characteristic of the nominal group
forecasting technique.

FALSE


81) Managerial judgment is central to qualitative forecasting, but plays only a small role in quantitative
forecasting techniques.

FALSE


82) External supply is one source of human resources supply.

TRUE


83) Short-term and long-range HR demand forecasts only provide half of the staffing equation by
answering the question ʺHow many employees will we need?ʺ

TRUE

84) A Markov analysis can be used to forecast internal labour supply.

TRUE


85) Failure to update skills and management inventories can lead to present employees being
overlooked for job openings.

TRUE


86) To project the supply of outside candidates, employers assess general economic conditions.

TRUE


87) The first step to project the supply of outside candidates is to forecast local market conditions.

FALSE


88) Highly educated immigrants are the predominant drivers of growth in the Canadian labour pool.

TRUE


89) Forecasts for various occupations are available from a number of sources, but these sources are not
very helpful for determining whether any projected imbalances will be self -correcting or whether
they will require specific intervention on the part of governments and/or private-sector
organizations.

FALSE


90) Specific strategies must be formulated to balance supply and demand considerations.

TRUE


91) A labour surplus exists when the internal supply of employees exceeds the organizationʹs demand.
Most employers respond initially by terminating employment.

FALSE


92) A strategy used to deal with an employee surplus is the promotion of employees.

FALSE


93) One of the most innovative ways to manage the coming labour shortage is through the use of
flexible work arrangements.

TRUE


94) Flextime is a plan whereby employeesʹ flexible workdays are built around a core of midday hours.

TRUE


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