Chapter 5

Question 1

In human resource planning, forecasting is an intermediary step.

Answer 1

False

Question 2

Statistical models are used for forecasting labor demand because they are good at capturing “once-in-a-lifetime” changes.

Answer 2

False

Question 3

A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

Answer 3

True

Question 4

The second step in human resource planning is performance evaluation.

Answer 4

False

Question 5

The goals an organization sets in its human resource planning process should come directly from the analysis of its labor supply and demand.

Answer 5

True

Question 6

Downsizing can be used to reduce surplus labor because it yields fast results.

Answer 6

True

Question 7

The negative effect of downsizing would be low among firms that use performance-related pay incentives.

Answer 7

False

Question 8

Downsizing disrupts the social networks through which people are creative and flexible.

Answer 8

True

Question 9

The most widespread methods for eliminating labor shortages are reducing work hours and endorsing early retirement programs.

Answer 9

False

Question 10

The use of temporary workers might provide an organization with additional administrative tasks and financial burdens.

Answer 10

False

Question 11

Contracting with another organization to perform a broad set of services is called outsourcing.

Answer 11

True

Question 12

To ensure success with an outsourcing strategy, companies should outsource work that requires tight security.

Answer 12

False

Question 13

When implementing an HR strategy, the organization must hold some individual accountable for achieving the goals.

Answer 13

True

Question 14

The steps in a workforce utilization review are identical to the steps in the HR planning process.

Answer 14

True

Question 15

In general, all companies have to make decisions in three areas of recruiting: personnel policies, recruitment sources, and the characteristics and behavior of the recruiter.

Answer 15

True

Question 16

An organization that uses only external recruitment can wind up with a workforce whose members all think alike and therefore may be poorly suited to innovation.

Answer 16

False

Question 17

In the context of recruitment sources, referrals are people who apply for a vacancy without prompting from the organization.

Answer 17

False

Question 18

Many of the people reading classified ads are either over- or under-qualified for the position.

Answer 18

True

Question 19

In the context of recruitment sources, private employment agencies serve primarily blue-collar workers, while public employment agencies mostly serve white-collar workers.

Answer 19

False

Question 20

Research suggests that realistic job previews have a strong and consistent effect on employee turnover.

Answer 20

False

Question 21

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.

Answer 21

D

Question 22

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

Answer 22

A

Question 23

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.

Answer 23

A

Question 24

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.

Answer 24

B

Question 25

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

Answer 25

C

Question 26

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.

Answer 26

A

Question 27

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.

Answer 27

E

Question 28

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.

Answer 28

B

Question 29

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.

Answer 29

A

Question 30

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.

Answer 30

C

Question 31

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

Answer 31

B

Question 32

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.

Answer 32

D

Question 33

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

Answer 33

B

Question 34

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

Answer 34

E

Question 35

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

Answer 35

C

Question 36

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

Answer 36

B

Question 37

) 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.

Answer 37

A

Question 38

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

Answer 38

D

Question 39

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

Answer 39

D

Question 40

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.

Answer 40

D

Question 41

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.

Answer 41

B

Question 42

Taryn, an HR manager at NetHint 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, Taryn 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.

Answer 42

D

Question 43

Jacob, the CEO at Einstein 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 Einstein's competitive standing. In this scenario, Jacob 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.

Answer 43

C

Question 44

Betty heads the production department at Riffer Inc., a firm that stresses the importance of maintaining regular contact with customers. Betty is expecting a labor surplus in the future. Mike, a supervisor, recommends downsizing as an option to deal with this labor surplus, however, Betty rejects this option. Which statement will validate that Betty 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.

Answer 44

D

Question 45

Frank is the CEO of Telex Inc., a company that 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, Frank feels Telex’s current processes are inefficient. As a result, Frank 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.

Answer 45

C

Question 46

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 eliminate only people who are replaceable.

Answer 46

C

Question 47

What 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.

Answer 47

B

Question 48

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 strategy 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

Answer 48

C

Question 49

Allie, 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 statement 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.

Answer 49

C

Question 50

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

Answer 50

E

Question 51

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.

Answer 51

C

Question 52

What 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

Answer 52

B

Question 53

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.

Answer 53

D

Question 54

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.

Answer 54

A

Question 55

Which statement best describes outsourcing?
A) It refers to contracting with another organization to perform a broad set of services.
B) It refers to finding cheap resources in another country to gain a competitive advantage.
C) It refers to using a temporary or contract employee to fill a single job vacancy.
D) It refers to buying the necessary raw materials needed to conduct business from external suppliers.
E) It refers to moving operations away from the home location to decrease cost savings.

Answer 55

A

Question 56

Trinkets Inc., a manufacturer of widgets, has entered into a contract with a third party to perform services related to processing orders, managing inventory levels, and shipping products to customers. The company is engaged in
A) offshoring.
B) consolidating.
C) licensing.
D) acquiring.
E) outsourcing.

Answer 56

E

Question 57

Organizations use outsourcing as a way to
A) reduce a labor surplus.
B) operate more efficiently and save money.
C) replace labor with technology.
D) ease the transition from temporary worker to employee.
E) hold onto good employees during a labor surplus until they can be hired back.

Answer 57

B

Question 58

Tex Tools applies its in-depth understanding of the challenges facing manufacturers to design and build custom machine tools that are highly valued by business customers. To maintain its competitive advantage, Tex Tools also wants to avoid spending more than is necessary on administrative activities such as managing employee benefits. What would be the most effective way for Tex Tools to minimize administrative expenses without sacrificing quality?
A) hiring new employees with administrative skills
B) downsizing the workforce so fewer administrators are needed
C) moving to a location where raw materials are abundant
D) outsourcing administrative work to an organization that specializes in these services
E) hiring temporary workers to fill permanent job positions

Answer 58

D

Question 59

What is a challenge associated with an outsourcing strategy?
A) labor shortage
B) increased cost
C) quality-control problems
D) lack of necessary technology
E) diseconomies of scale

Answer 59

C

Question 60

A small company that manufactures special-order wood furniture has kept its employees busy on a 40-hours-a-week schedule for the past two years. The company just received a large contract from a Chinese company that is opening offices in the area. The Chinese company has given a month's time for completion of its order. To complete the contract in the required one month, the furniture company needs additional skilled labor on short notice. Which strategy might the company use if it wants to avoid this short-term labor shortage while finding a simple and cost-effective solution?
A) retrained transfers
B) overtime
C) technological innovation
D) new external hires
E) turnover reductions

Answer 60

B

Question 61

Tom, a supervisor at AutoMax Inc., realizes that a couple of months from now, he might experience a labor shortage for approximately two weeks due to increased demand for the company’s products. Which option would be best for dealing with this labor shortage?
A) Tom should hire new employees because it is a simple process.
B) Tom should depend on technological innovation because it helps replace human labor with machines.
C) Tom should use outsourcing because it reduces internal costs.
D) Tom should encourage employees to stay with the company.
E) Tom should encourage employee overtime because it helps to increase productivity for a short period of time.

Answer 61

E

Question 62

What is an element in the final stage of human resources planning?
A) estimating labor demand
B) forecasting labor supply
C) estimating labor surplus or shortage
D) strategic planning
E) evaluating outcomes

Answer 62

E

Question 63

In the context of HR planning, implementation that ties planning and recruiting to an organization's strategy and to its efforts to develop employees becomes a complete program of
A) reengineering.
B) total quality management.
C) benchmarking.
D) talent management.
E) workforce utilization.

Answer 63

D

Question 64

Vino, an HR manager at Jacoby Beverages, identifies and attracts potential job seekers to his organization. In the context of HRM functions, Vino is carrying out the \_\_\_\_\_\_\_\_ process.
A) promoting
B) appraising
C) recruiting
D) forecasting
E) disbanding

Answer 64

C

Question 65

In the context of managing human resources, the process of \_\_\_\_\_\_\_\_ creates a buffer between planning and the actual selection of new employees.
A) recruiting
B) evaluating
C) inducting
D) outsourcing
E) training

Answer 65

A

Question 66

\_\_\_\_\_\_\_\_ influence the kinds of job applicants an organization reaches.
A) Personnel policies
B) Recruitment sources
C) Characteristics of the recruiter
D) Financial sources
E) Industry competitors

Answer 66

B

Question 67

Which aspect of recruitment is most likely to affect the nature of the positions that are vacant?
A) recruitment sources
B) personnel policies
C) recruiter traits
D) recruiter behavior
E) applicant characteristics

Answer 67

B

Question 68

What is true of companies that use a “lead-the-market” pay strategy?
A) They pay more than the current market wages for a job.
B) They have a recruiting disadvantage.
C) They recruit fewer employees than needed and depend on overtime.
D) They provide relatively better working conditions to employees compared to competitors.
E) They usually have low pay, coupled with overtime and flex-time.

Answer 68

A

Question 69

\_\_\_\_\_\_\_\_ states that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.
A) Due-process policy
B) Employment flexibility
C) Rule of fair treatment
D) Rule of law
E) Employment at will

Answer 69

E

Question 70

Berns Inc. hires Allen as a supervisor in the company. They have an implied understanding that both the employer and the employee have the right to end their relationship at any time they desire. In the context of personnel policies, the relationship between the company and Allen is based on the
A) promote-from-within policy.
B) lead-the-market strategy.
C) employment-at-will policy.
D) nepotistic agreement.
E) benevolent agreement.

Answer 70

C

Question 71

\_\_\_\_\_\_\_\_ formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee.
A) Leading indicators
B) Trend analyses
C) Transitional matrices
D) Due-process policies
E) Employment-at-will contracts

Answer 71

D

Question 72

Excel Software is having difficulty filling all its positions for systems analysts. The company’s human resource manager suggests introducing a kind of personnel policy known as a due-process policy. How is that most likely to help with recruitment?
A) This policy implies greater job security and concern for employees.
B) Due-process implies that employees won’t be bound to a contract.
C) Implementing a due-process policy suggests that the organization is innovative and fun.
D) Applicants know a due-process policy always leads to a lead-the-market pay strategy.
E) The due-process policy supports a “promote from within” practice, which will encourage current employees to apply.

Answer 72

A

Question 73

In order to cultivate a favorable picture of the organization, Shubert Group, a financial services corporation, advertises itself to potential applicants by using the slogan, "Investing in you no matter what road you take." This scenario is an example of \_\_\_\_\_\_\_\_ advertising.
A) viral
B) image
C) proactive
D) saturation
E) signature

Answer 73

B

Question 74

Cory, a physicist at HealthAir, recently received an award for several patents he earned that enabled the company to help slow climate change by reducing carbon emissions. Jamie, HealthAir’s vice president of human resources, is eager to get news coverage of the Cory’s award. She knows that, in addition to drawing positive attention to the company, the publicity will support recruitment. Which statement best supports Jamie’s thinking?
A) Publicity about HealthAir will create more opportunities for advancement within the company.
B) A lead-the-market pay strategy requires that people be familiar with the company’s track record.
C) Creating the impression of HealthAir as a place where talented people make a difference can attract talented job candidates.
D) People who learn about Cory’s award will be less likely to expect that HealthAir has an employment-at-will policy.
E) This kind of image advertising will give more people the impression that HealthAir is a fun place to work.

Answer 74

C

Question 75

Which of the following is an internal source of recruitment?
A) employee referrals
B) direct applicants
C) employment agencies
D) job postings
E) personal interviews

Answer 75

D

Question 76

The process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else an organization communicates with employees is referred to as
A) job posting.
B) external hiring.
C) employment referral.
D) a workforce utilization review.
E) direct sourcing.

Answer 76

A

Question 77

Leo is a human resource specialist at a company with a promote-from-within policy. Based on that policy, what method should he include in his recruiting efforts to fill an open position for an accounting supervisor?
A) using the services of a private employment agency
B) inviting employees to refer a friend
C) sending recruiters to colleges
D) posting the job on the company’s intranet
E) posting the job on the company’s careers website

Answer 77

D

Question 78

Identify the benefit of relying on internal recruitment sources.
A) Internal candidates are likely to promote diversity in terms of race and sex.
B) Internal applicants minimize the impact of political considerations in the hiring decision.
C) Internal sources are generally cheaper and faster than other means.
D) Internal sources expose an organization to new ideas or new ways of doing business.
E) Current employees are well suited to recruit people for specialized upper-level positions.

Answer 78

C

Question 79

Which statement is correct regarding internal recruitment sources?
A) Research indicates that most organizational positions are filled internally.
B) Internal recruitment sources expose an organization to new ideas or new ways of doing business.
C) Internal recruiting minimizes the possibility of unrealistic employee expectations.
D) Employee referrals are the most common source of job applicants for internal recruitment.
E) Internal sources are the most appropriate for specialized upper-level positions.

Answer 79

C

Question 80

People who apply for a vacancy without prompting from an organization are referred to as
A) direct applicants.
B) natural applicants.
C) internal applicants.
D) neutral applicants.
E) referred applicants.

Answer 80

A

Question 81

Jim applies for a job at Texture Inc. because his friend Chris, who is a manager there, prompts him to do so. In this scenario, Jim is a(n)
A) direct applicant.
B) natural applicant.
C) neutral applicant.
D) referral.
E) executive search professional.

Answer 81

D

Question 82

Most direct applicants to an organization have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application. This process is termed
A) nepotism.
B) employee referral.
C) self-selection.
D) internal recruitment.
E) employment at will.

Answer 82

C

Question 83

Which statement is true about referrals?
A) Referrals fall under the category of internal sources of recruitment.
B) The use of referrals tends to increase the likelihood of exposing an organization to different viewpoints.
C) The use of referrals can contribute to nepotism.
D) Referrals cost much more than other formal recruiting efforts.
E) Referrals are the least preferred sources of new hires.

Answer 83

C

Question 84

Evelyn, the HR manager at Freton Inc., recruits her cousin Gia as production manager in the company. This move results in resentment among several of the company's employees. By hiring her cousin, Evelyn has engaged in the practice of hiring relatives, or
A) localism.
B) nepotism.
C) structuralism.
D) voluntarism.
E) abstractionism.

Answer 84

B

Question 85

Sean works in the human resource department of a well-known and highly respected maker of athletic equipment. He suggests that the company expand its recruiting by placing job advertisements on popular websites for job seekers. However, his supervisor says this has become a poor use of the company’s recruiting dollars. Which is the most likely reason for the supervisor’s objection?
A) These types of websites are too difficult for most job hunters to use.
B) The company will be flooded with applications from individuals who are barely qualified.
C) Employers can’t search these sites; only job seekers can conduct searches.
D) The company will get very few applications, because job hunters read the ads slowly.
E) Finding a match between job seekers and job vacancies is inefficient on these sites.

Answer 85

B

Question 86

Which statement is true of executive search firms?
A) They find new jobs almost exclusively for high-level, unemployed executives.
B) They help organizations in on-campus recruiting.
C) They help only entry-level and inexperienced employees to find jobs.
D) They are agencies administered by the federal government or governmental organizations.
E) They serve as a buffer, providing confidentiality between an employer and a recruit.

Answer 86

E

Question 87

Fernando, a human resource executive, is meeting with the executive team to discuss the need to fill a soon-to-be-vacant position for vice president of the company’s Medical Devices Division. Normally, he posts vacancies on the company’s website, but he encourages the team to allocate funds to hire an executive search firm (ESF) for filling this position. Which statement best supports Fernando’s recommendation?
A) ESFs can more efficiently advertise the vacant position to a wide audience.
B) ESFs are government-run agencies, so they offer low-cost services.
C) ESFs provide confidentiality for employer and recruit, giving access to better candidates.
D) ESFs specialize in writing effective print ads that give readers enough information.
E) ESFs specialize in finding jobs for candidates who are currently unemployed.

Answer 87

C

Question 88

The most important source of recruits for entry-level professional and managerial vacancies is
A) on-campus interviewing.
B) public employment agencies.
C) advertisements in newspapers and magazines.
D) private employment agencies.
E) employee referrals.

Answer 88

A

Question 89

In the context of evaluating the quality of a recruitment source, yield ratios express the
A) output yielded by a new hire in relation to the cost of recruiting the new hire.
B) dollar costs incurred per hire in relation to the number of applicants interviewed.
C) percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.
D) quality of new hires by comparing the cost of training the new recruits to the cost of hiring them.
E) percentage of applicants who complete one year in the organization after recruitment.

Answer 89

C

Question 90

Alice helped a sales manager place an ad on job boards and hire five new salespeople. She calculates that the total cost to recruit and select these employees was $200,000. What was the cost per hire for this recruiting effort?
A) $40,000
B) $5,000
C) $1,000,000
D) $10,000
E) $200,000

Answer 90

A

Question 91

Herbert, an HR manager at Maxtier Inc., hires 50 employees in five months. He used different sources of recruitment to recruit these employees. He wants to know which kind of source delivered the most new hires for the money. To answer that question, Herbert should determine the
A) hiring conversion rate.
B) prospective cost.
C) return on investment.
D) yield ratio.
E) cost per hire.

Answer 91

E

Question 92

Milo determines that his company spent $15,000 to hire three new programmers through employee referrals and another $75,000 to hire five new programmers through a private employment agency. Which statement is correct about these recruiting efforts?
A) The cost per hire for the employment agency was lower, at $9,375 per hire.
B) The cost per hire for the employment agency was lower, at $15,000 per hire.
C) The cost per hire for referrals was lower, at $15,000.
D) The cost per hire for referrals was lower, at $45,000.
E) The cost per hire for referrals was lower, at $5,000 per hire.

Answer 92

E

Question 93

Janine, a trainer at Keller Inc., wants to find out how many candidates moved from the initial interview stage to the training selection stage in the past month. To find out, she needs to compare the
A) yield ratios.
B) cost per hire.
C) prospective costs.
D) returns on investment.
E) liquidity ratios.

Answer 93

A

Question 94

Maria is a recruiter with a bachelor’s degree in business administration. She is well respected among her peers for her professional standards and understanding of the HR field. However, she has noticed that when she recruits engineers for her company, they sometimes seem unresponsive to her. The most likely reason for this is because Maria
A) is not warm enough to the applicants.
B) is perceived as less credible because she is an HR specialist.
C) does not give applicants enough information, leaving them with more questions than answers.
D) comes off as being too professional for someone in the HR field.
E) is not approaching the candidate with enough skepticism.

Answer 94

B

Question 95

Maxim is an HR manager at a large accounting firm. He hires and trains the firm’s staff of recruiters. Maxim hires people with education in human resource management and a warm attitude that displays a positive interest in people. How else should he equip the recruiters so that they have success in this kind of work?
A) Maxim should give them a realistic job preview about the recruiters’ position.
B) Maxim should select recruiters in an ideal age range.
C) Maxim should train the recruiters in how to perform candidates’ jobs.
D) Maxim should equip recruiters with the kinds of information job applicants are seeking.
E) Maxim should tell recruiters to downplay any negative information about the firm.

Answer 95

D

Question 96

Jill is a recruiter for Kinnack Inc. When she interviews job candidates, she works hard to provide background information about the job's positive and negative qualities. She aims to be sure every detail is accurate, so that any employees hired will feel they got what they expected and will want to stay on with the company. Jill's behavior is an example of providing a
A) yield ratio.
B) realistic job preview.
C) core competency.
D) due-process policy.
E) job posting.

Answer 96

B

Question 97

Amber wants to apply for a job vacancy. She calls the recruiter who advertised this vacancy to learn more about the job. The recruiter gives some background information about the positive and negative qualities of the job to Amber. Which term refers to the job information given by the recruiter?
A) vacancy analysis
B) substantive job criticism
C) pragmatic job survey
D) realistic job preview
E) role examination

Answer 97

D

Question 98

A start-up software company hires Kiera as its first human resource manager. Whenever a new position needs to be filled, Kiera sits down with the supervisor to gather facts that will be included in a realistic job preview. Kiera knows that the impact of job previews on candidates is limited, but she believes the effort is important anyway. Which statement best explains Kiera’s decision to provide realistic job previews?
A) The recruiter is less important than personnel policies for affecting a candidate’s decision.
B) Realism in the recruiter’s message is the most researched aspect of recruiting.
C) Kiera feels pressure to exaggerate the negative qualities of each job vacancy.
D) Employees are highly sensitive to negative information.
E) Giving realistic information is not expensive or difficult, so it is worth even a small benefit.

Answer 98

E

Question 99

Antoine is proud of his team of warm, knowledgeable, and ethical recruiters at Luvia Insurance. They are sure to give realistic job previews, and they keep up to date on the company’s policies so they can provide applicants with accurate answers to a host of questions. However, it sometimes takes a while to fill positions. And over the past year, Antoine has observed that the number of applicants who accept offers has fallen. He follows up with several who turned down offers and learns that they took jobs elsewhere because they developed an unfavorable opinion of Luvia Insurance. Which situation most likely explains this problem?
A) The recruiters lack the characteristics associated with success.
B) Candidates are not getting timely feedback about their applications.
C) The job previews by the recruiters are not realistic.
D) The recruiters are not the most appealing race and sex.
E) The organization has begun recruiting with teams of recruiters.

Answer 99

B