Chapter 05 – Human Resource Planning and Recruitment
Chapter 5 Human Resource Planning and Recruitment
1. Trend analysis, simple and multiple linear regression analysis are qualitative methods for
forecasting labor demands.
2. Increased group-level diversity always leads to improved performance.
3. As a mid-level manager working at a company that rewards high performance work
practices, you should emphasize external recruitment over internal recruitment.
4. Identifying the relevant labor market is an important step towards deciding the type of
recruiting method to be used.
5. One of the significant trends in creative HR planning is the use of permanent part-time
employees.
6. HR planning is a task that is accomplished without regard or connection to the business
plan.
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7. It is important for recruiters to consider how changes to overall compensation would impact
the company’s ability to attract applicants to a job.
8. The so-called “digital divide” is becoming larger, causing recruiters to become even more
creative as they attempt to source a diverse pool of applicants.
9. While making data driven decisions is important in other areas of HRM, decisions related
to HR planning and recruitment are most effective using more subjective, intuitive methods.
10. The WARN Act requires employers to give 60 days notice to their competitors if there is
going to be a layoff of 500 or more employees.
11. Turnover is costly for an organization, and one of the hidden costs is the loss of top talent
and their knowledge and ideas.
12. The good news about the off shoring of jobs is that the jobs in question are increasingly
low skilled jobs.
Chapter 05 – Human Resource Planning and Recruitment
[QUESTION]
13. Because the cost of labor is so high relative to other operating expenses, containing this
cost can have a large impact on a company’s ability to compete on price.
14. Internal recruitment stifles upward movement of personnel.
15. Diversity is an issue to consider relative to HR selection, however, not at the HR planning
stage.
16. A lower selection ratio is generally more desirable as it enables the organization to choose
job candidates from a larger pool of qualified candidates, thus increasing selectivity.
17. Job candidates who have been referred, particularly those who are family and friends of
current employees, typically receive a RJP and therefore have longer tenure if hired.
18. One of the advantages of using employment process outsourcing (EPO) and recruitment
process outsourcing (RPO) is that you are leveraging a specialized firm focused on specific
occupations.
Chapter 05 – Human Resource Planning and Recruitment
[QUESTION]
19. The geocentric policy of hiring the best person regardless of nationality is the formal
policy of choice for most large U.S. corporations.
20. A visit to a college campus is a major source of recruiting for professional and managerial
positions.
21. The Immigration Reform & Control Act is a means for the U.S. to control the supply of
labor.
22. While IRCA outlines a process and provides an organization with forms to use to verify
an applicant’s authorization to work in the U.S., there is no actual penalty for employers who
fail to have employees complete an I-9 form.
23. If the result of your GAP analysis indicates that demand is greater than supply, a solution
could be increasing the use of overtime and temporary employees.
24. Downsizing should be an organizations first response when supply is greater than demand.
25. Yield ratios provide a methodology to help make more effective decisions regarding what
recruitment method to use.
Chapter 05 – Human Resource Planning and Recruitment
Multiple Choice Questions
[QUESTION]
26. The six sequential steps in the Human Resource Planning (HRP) process are:
A) labor analysis, supply analysis, environmental scanning, gap analysis, action
programming, evaluation
B) evaluation, labor analysis, supply analysis, environmental scanning, gap analysis, action
programming
C) environmental scanning, labor analysis, supply analysis, gap analysis, action programming,
evaluation
D) environmental scanning, supply analysis, labor analysis, gap analysis, action
programming, evaluation
E) gap analysis, supply analysis, labor analysis, action programming, environmental scanning,
evaluation
27. Which of the following reconciles the forecast of labor supply and demand?
A) Action programming
B) Gap analysis
C) Control and evaluation
D) Environmental scanning
E) Labor demand forecast
28. All of the following are examples of internal factors that can influence HR planning
EXCEPT:
A) strategic business planning
B) diversification
C) legal environment
D) projected staff availability
E) recruitment planning
Chapter 05 – Human Resource Planning and Recruitment
[QUESTION]
29. As a part of Environmental scanning HR planners should:
A) Use data to determine if there are threats to the organization, such as political changes that
will impact the demand for highly trained personnel within the company.
B) Interview managers to gain a better understanding of the specific department in which HR
decisions are or will be made.
C) Develop a process and forms that will predict the availability of human resources through
succession planning.
D) Ensure that final interviews of qualified applicants provide more realistic job previews.
E) Use regression analysis in order to quantifiably project resource availability from internal
and external sources.
30. When a manager uses the number of calls a phone operator can manage per hour to make
decisions on staffing levels, which forecasting method are they using?
A) Linear programming
B) Trend analysis
C) Delphi technique
D) Multiple regression analysis
E) Nominal group technique
31. A large food services company determines that it needs to recruit externally for a
comptroller. This job has been identified as a key position within the organization. The need
for external recruitment would :
A) be an indication that the company did not use regression analysis
B) be a sign that the company will be going out of business
C) result in the recruitment costs being lower than internal recruiting
D) be an indication that there was not an effective succession planning
E) be a result of a highly detailed internal training and development program
Chapter 05 – Human Resource Planning and Recruitment
[QUESTION]
32. Control and evaluation in human resource planning:
A) monitors the effectiveness of human resource plans over time.
B) closes the gap between the current and desired state of affairs.
C) is a process of translating broad strategies into operational tasks.
D) is the ratio of applicants to hires at each step of the selection process.
E) projects how business needs will affect HR needs.
33. All of the following are effective downsizing strategies with the exception of:
A) Understanding that downsizing may be painful, however, it is the best solution when
supply is higher than demand.
B) Ensuring that employees are involved in the process and perceive it to be fair.
C) Understanding that attention needs to be paid to not only those who leave, but to those who
stay.
D) Be certain to continue to communicate with employees throughout the process.
E) Consider the options of reductions in compensation, work hours or retraining as
alternatives to downsizing.
34. Human resource information systems (HRIS), and replacement charts are methods for
__________.
A) forecasting external supply
B) forecasting internal supply
C) forecasting external demand
D) forecasting internal demand
E) forecasting job previews
35. Company ABC has been using walk-ins, newspaper ads and referrals for recruitment. In
order to determine which source provided the best mix of potentially qualified applicants they
would
A) use RJP
B) implement succession planning
C) use regression analysis
D) calculate EPO’s
E) calculate yield ratios