Chapter 6—Recruiting and Retaining Qualified Employees
MULTIPLE CHOICE
1. SAS Institute’s success in attracting and retaining employees can be attributed to all of the following
reasons EXCEPT:
a.
its early adoption of automated online recruiting
b.
its attractiveness as one of the “100 Best Companies to Work For”
c.
an HRIS system that make it easy to keep track of individual candidates
d.
its use of “networkers” to help match current employees with projects
e.
All of these are valid reasons
2. Questions to be addressed during strategic HR recruitment planning might include all but:
a.
How many new hires do we need in the near term and three to five years from now?
b.
Are we prepared to pay top dollar, or would we look for people who will be attracted to
our company despite the modest compensation we offer?
c.
What is our plan for downsizing employees?
d.
What competencies do we need from our employees?
e.
All of these are valid questions.
3. Effective recruitment activities:
a.
should be consistent with the organization’s business strategy
b.
cause the job applicants to perceive the organization as an employer of choice
c.
should be consistent with the values of the company
d.
rely heavily on job analyses
e.
are accurately described by all of the above
4. A firm has adopted a business strategy of increasing market share by offering the lowest cost services.
Which of the following is NOT a recruiting and retention objective?
a.
retain current talent as the firm grows
b.
recruiting plans may call for preparation of lateral transfers
c.
low cost strategy puts pressure on compensation and benefits, so need to be creative in our
programs
d.
continuously improve efficiency of recruitment practices
e.
need to predict rate of growth and translate into needed increases in workforce
5. Prestige Adventures, Inc., offers unusual excursions for prosperous middle-aged clients looking for
personally-guided luxury travel adventures. This market niche requires a new slate of excursions every
year, which must be logistically flawless and appealing to a sophisticated clientele. As HR director of
Prestige Adventures, your recruiting and retention strategies for expert trip planners and
knowledgeable guides include:
a.
developing layoff plans for off-season
b.
maintaining low labor costs
c.
recruiting top talent, even if compensation is high
d.
focusing on lateral transfers to fill vacancies
e.
focusing on new hires more than retention of existing staff
6. What is the best recruiting and retention strategy given the company objective of “increase return on
investment by offering innovative products and maintaining high margins”
a.
best talent not likely to be looking so we will have to go get them
b.
develop layoff plans
c.
recruiting plans may call for preparation of lateral transfers
d.
retain current talent as company grows
e.
none of these are appropriate strategies
7. Which of the following is not a cost of high turnover?
a.
lost knowledge
b.
excessive hours for remaining employees
c.
more errors
d.
increased litigation
e.
opportunities missed
8. Which of the following statements about recruitment activities is true?
a.
Recruiting and hiring are interchangeable terms.
b.
Effective recruitment attracts individuals to the organization.
c.
Recruiting has little effect on employee retention.
d.
Recruiting involves sorting and ranking job applicants.
e.
Once hired, employees permanently disengage from the recruiting process.
9. The Mariposa Veterinary Clinic is a highly-respected animal hospital, specializing in high-risk
surgeries and cancer care for pets. It is doubling the size of its hospital and sick animal boarding
facility. To fully staff the addition will require doubling the staff of veterinaries, licensed vet techs,
groomers and handlers. Dr. Matt, the clinic director, has asked your advice on recruiting. You tell Dr.
Matt:
a.
It is most important to fully staff the clinic for its opening in four weeks, even if the staff
are only acceptable quality.
b.
It is most important to hire trainable staff who can learn the skills on the job. This will
save labor costs.
c.
It is most important to hire quality staff, even if it means the new clinic will not be fully
utilized for months.
d.
Suggest that all current staff work double shifts until the expansion is fully staffed.
e.
Since the clinic’s competitive strategy is unclear, you cannot make any recommendations.
10. The relevant labor market in which your firm competes has been marked by high unemployment and a
recession. The following condition should exist when recruiting
a.
You will have to pay top dollar for the scarce talent that is available.
b.
Applications for job openings will be lower than during an expansionary period.
c.
Voluntary turnover within your firm will be high due to raiding by other firms.
d.
You will not have to invest as much time, effort , and financial resources in recruiting
e.
You will have to do an extensive international search for scarce talent.
11. When Designer Blinds of Omaha, Nebraska, was experiencing production problems
that were putting the company at risk, its HR manager did all of the following EXCEPT:
a.
increased community outreach
b.
improved orientation for new hires
c.
provided better training for managers
d.
reviewed job analyses for additional production efficiencies
e.
took the lead in designing a systematic and integrated approach to recruiting and retaining
employees.
12. Once an employee is onboard, _____________ play(s) a key role in determining whether a good
employee stays with the company or leaves.
a.
top management
b.
HR professionals
c.
line managers
d.
fellow employees
e.
outside influences
13. In designing recruitment activities, the two central issues addressed are:
a.
cost and applicant fit within organizational culture
b.
cost and places to look for applicants
c.
methods used to find applicants and cost
d.
methods used to find applicants and sources to target
e.
job analyses and places to look for job applicants
14. Webb Greenhouse is looking for an accomplished gardener/ salesperson. Studies have shown that the
best recruiting method to fill this position is:
a.
ads in the local newspapers
b.
a notice in the local gardening club newsletter
c.
posting the position on the company bulletin board
d.
applications from walk ins
e.
Research shows no clear differences in employment experiences from any one source.
15. Employee outcomes that many studies have considered in attempting to determine whether recruiting
from different sources—the internal and external labor markets—results in different employee
outcomes include all of the following EXCEPT:
a.
employee job satisfaction
b.
employee performance
c.
employee turnover
d.
employee loyalty
e.
All of the above are outcomes that were considered
16. MFR Company would like to hire a warehouse supervisor. The company has placed a notice on its
employee bulletin board announcing that it was taking applications for this new position. This bulletin
board notice is an example of a(n):
a.
job posting
b.
employment offer
c.
position announcement
d.
transfer opportunity
e.
work notice
17. Job postings:
a.
can generate ill will if hiring decisions are made before the postings appear
b.
can reduce employee turnover by communicating to employees that they don’t have to go
elsewhere to find opportunities for advancement
c.
are used to create an open recruitment process
d.
usually provide complete job descriptions
e.
are accurately described by all of the above
18. A(n) _____ is a database that contains information about the pool of current employees.
a.
organizational job analyses
b.
management information system (MIS)
c.
employee information system
d.
talent inventory
e.
competency ledger
19. Nandini wants to create a talent inventory that will be truly useful for the firm where she works. She
should include all of the following information EXCEPT:
a.
employees’ prior job experience
b.
medical history
c.
work-related interests
d.
geographic preferences
e.
career goals
20. Amanda is upset. Her supervisor has told her she will receive a developmental move with new duties,
in a new department, with no increase in pay or title. Should Amanda necessarily be concerned?
a.
No. She has been given a “dry promotion” and an increase in pay will come later.
b.
Yes. This is a demotion and a career-killer.
c.
Yes. She has been “broadbanded” and this is usually the first step in layoff procedures.
d.
No. This is a lateral transfer designed to broaden her skills.
e.
No. This is an example of organizational reconfiguration.
21. Compared to external recruitment, internal recruiting:
a.
can reduce employee morale
b.
is less costly
c.
can diminish employees’ willingness to maximize their productivity
d.
will prevent problems with inbreeding
e.
is accurately described by all of the above
22. Compared to external recruitment, internal recruiting:
a.
the most qualified candidates may never be considered because they don’t work for the
company.
b.
increases labor costs
c.
eliminates conflict among job candidates
d.
is in all ways superior
e.
is accurately described by none of the above
23. Which of the following statements about employee referrals as a job recruitment method is true?
a.
Compared with other internal recruiting methods, employee referrals result in the highest
one-year survival rate.
b.
The employee referral approach benefits only the employer and not the employee.
c.
The informal employee referral approach is a very low-cost recruitment method.
d.
The employee referral process is a useful method of increasing diversity.
e.
An organization that relies heavily on employee referral will have no difficulty in
complying with equal employment opportunity goals.
24. Karen and Pablo were discussing what recruiting methods they might use to find a new cook for their
restaurant. They decided to put their energy toward using the most frequently used recruiting method,
which is:
a.
company web site
b.
direct sourcing
c.
rehires
d.
job boards
e.
referrals
25. The least frequently used recruiting method is:
a.
company web site
b.
direct sourcing
c.
walk-ins
d.
job boards
e.
referrals
26. Which of the following statements about employee referrals as a job recruitment method is true?
a.
Formal referral systems reward employees for referring qualified applicants.
b.
Employee referral is an internal recruitment method.
c.
Employee referrals are not detrimental to equal employment opportunity
d.
Employee referrals result in the highest one-year survival rates for most occupations.
e.
All of the above statements about employee referrals are true.
27. Which of the following statements about employment agencies is true?
a.
State employment agencies are supported by a special tax on wholesale products.
b.
Private employment agencies only serve professional and managerial labor.
c.
Employment agencies are a form of internal recruitment.
d.
State employment agencies tend to be small organizations with very limited lists of
potential employees.
e.
The Social Security Act provides that most workers who have been laid off must register
with the state employment agency in order to be eligible for unemployment benefits.
28. Headhunters:
a.
are private employment agencies
b.
are employees who regularly provide job referrals
c.
refer to people who read organizational bulletin boards looking for job opportunities
d.
are potential job applicants who seek positions with a firm without knowing if any
positions are currently open
e.
are college recruiters
29. Which of the following statements about private employment agencies is TRUE?
a.
Due to hidden intangible costs, they can only serve professional, managerial, but not
unskilled job applicants.
b.
They can provide unskilled applicants whom employers would have a difficult time
finding.
c.
Due to privacy and competitive issues, they play only a minor role in recruiting
professional and managerial candidates.
d.
All of the above are true.
e.
None of the above are true
30. Which of the following statements about school placement services and trade associations as sources
of potential job applicants is true?
a.
Since half of the student body majors in business at Kenyon University, employers
looking for medical technicians would be more unlikely to attend the school’s job fair than
an employer looking for a salesperson.
b.
For firms seeking production, service, office, and clerical employees., community job fairs
are likely to be more effective.
c.
Trade and professional journals provide an excellent forum for help wanted ads.
d.
Job fairs are often informal, and the public is invited to gather information and ask
questions.
e.
All of the above statements are true.
31. All of the following statements about software programmers in India, Bulgaria, or Romania are true
EXCEPT:
a.
They work at wage levels that are 50 to 75 percent less than those of their U.S.
counterparts.
b.
Due to current demand for their skills, they work at wage levels that are now equivalent to
those of their U.S. counterparts.
c.
They are located closer to markets that are expanding more rapidly than the domestic U.S.
market.
d.
They are subject to the American Competitiveness in the Twenty-First Century Act of
2000 if they are employed in the United States.
e.
None of the above are true
32. Asphalt for building roads cannot be laid until the temperature is above 70 degrees for at least five
days in a row. Consequently, road construction crews have to be increased during the summer months
when they must try to lay as much asphalt as possible. Privately-owned road construction firms would
use all but which of the following strategies to recruit workers?
a.
internal transfers
b.
temporary help agencies
c.
recalls and rehires from previous years
d.
word-of-mouth to find temporary workers
e.
all of the above
33. Which of the following organizations would be most likely to use contingent workers?
a.
a manufacturer of disposable diapers
b.
a Christmas tree farm
c.
a restaurant supplier
d.
a pet food manufacturer
e.
an insurance agency
34. Which of the following statements about contingent employment is true?
a.
Rehiring former or laid-off employees as contingent workers is an effective method of
recruiting.
b.
The growing reliance on contingent employment is often considered a positive trend for
employees.
c.
The commitment of rehired employees to do the best job possible tends to be very high.
d.
Conflict between permanent and temporary workers is seldom a problem.
e.
All of the above statements about contingency employment are true.
35. Which of the following statements about supply chain management is FALSE?
a.
One goal of supply chain management is keeping costs as low as possible.
b.
One goal of supply chain management is maximizing productivity.
c.
Supply chain management refers to procedures for coordinating all aspects of the
production process in manufacturing firms.
d.
The concept of a supply chain can be applied to the process for acquiring talent.
e.
All of the above statements are true.
36. Which of the following statements about how job applicants view recruiting practices is true?
a.
Job seekers’ perception of how well they fit a job is typically most affected by contacts
with the recruiter.
b.
Effective recruiters show sincere interest in job applicants, and in return, applicants show
more interest in the job.
c.
Negative impressions about the job tend to be created primarily by the body language used
by the recruiter.
d.
High quality job seekers are not deterred by long application processes.
e.
The job recruiter has little impact on how the job applicant perceives the recruiting
process.
37. Ming is a recruiter for a large actuarial firm. He really wants to hire Michelle Parrot, a newly certified
actuary, who scored high on the company’s skills test. ________ will have a strong effect on whether
Michelle accepts the job offer.
a.
Location of the company’s offices
b.
How well the organization’s values match Michelle’s own
c.
The company’s reputation
d.
The attributes of the job
e.
All of the above
38. Gwen is a recruiter for a waste management company. She is trying to hire a water purification expert.
What should she tell the expert about the job and the company?
a.
Gwen should only show the applicant the positive aspects of the job.
b.
Gwen should portray the future of the company as bright even if the company fears a
hostile takeover.
c.
Gwen should not mention the amount of stress that is a daily part of the job that the expert
is applying for.
d.
Gwen should provide the applicant with a realistic job preview.
e.
Gwen should change the subject every time the applicant brings up a potentially
troublesome question.
39. Which of the following is a true statement about the behavior of a recruiter as he tries to persuade a job
applicant that this job is her best choice?
a.
The job applicant will expect the recruiter to be overly optimistic; to not be overly
optimistic might mislead the applicant.
b.
The recruiter should try to change the subject every time the recruiter asks a potentially
unpleasant question.
c.
The recruiter should provide accurate information so that the applicant can make an
informed decision about whether the job is right for her.
d.
The recruiter should tell the applicant nothing negative about the company until after the
applicant takes the job and signs the contract.
e.
False statements made by a recruiter at the time of hiring are not considered sufficient
grounds for a lawsuit.
40. Jessica had applied for a job and now you have to tell her that she will not be hired. As a competent
HR professional you are sending her a letter. In the letter, you have:
a.
told her bluntly but honestly she does not have the skills for the position
b.
sent a form letter of rejection
c.
told her that your company needed to hire a minority candidate
d.
included a statement about the size and quality of the applicant pool
e.
told her to lower her career goals
41. Martin is an effective recruiter because he:
a.
received adequate training.
b.
spends a great deal of time trying to sell the job to potential employees.
c.
makes an effort to understand the jobs being filled.
d.
sits in on business meetings.
e.
reads up on the industry.
42. Affirmative action programs (AAPs):
a.
have been in effect since the beginning of the twentieth century
b.
correct underutilization of qualified members of protected groups in an organization’s
relevant labor market
c.
are governed by state agencies
d.
require that all private-sector companies who have more than five employees hire
members from protected groups
e.
specify the employee hiring and firing practices for all private-sector companies
43. If a company has a federal contract of more than $50,000 and has 50 or more employees, it:
a.
must pay its male and female equally
b.
must have job descriptions for every job
c.
is legally required to maintain a specified number of minority employees
d.
must have and abide by an equal employment policy
e.
must have a mission statement that supports diversity
44. Federal contractors are required to file affirmative action plans with the Office of Federal Contract
Compliance Program (OFCCP). These written plans must contain:
a.
a utilization analysis
b.
the contractor’s mission statement
c.
the contractor’s plan for diversity
d.
job descriptions for every position in the organization
e.
a talent inventory for every employee and job applicant who is a member of a protected
group
45. If a federal court finds that an employer is employing proportionately fewer members of a protected
group than are available, a(n) _____ will specify the affirmative action steps the organization needs to
take to come into compliance with the wishes of the Equal Employment Opportunity Commission.
a.
statement of availability
b.
utility statement
c.
consent decree
d.
employment plan
e.
policy of diversity
46. While doing an availability analysis for an entry-level administrative assistant position at her
company, Aaliyah found that the relevant labor market would most likely be:
a.
in a 20-mile radius from the work
b.
within the same state
c.
within the same region
d.
national
e.
international
47. Which of the following is not true about affirmative action programs?
a.
Many people oppose affirmative action efforts.
b.
Affirmative action hires are perceived as being less competent that equally qualified
employees not hired under an AAP.
c.
Minority applicants tend not to be attracted to firms that advertise the importance of
diversity.
d.
Affirmative action efforts are more acceptable when merit is emphasized as being central
to the employment decision
e.
All of the above are true.
48. Which of the following recruiting practices may create a glass ceiling?
a.
reliance on employee referrals
b.
use of executive search firms that are unaware of affirmative action obligations
c.
job postings for only lower-level positions
d.
reliance on word-of-mouth referrals
e.
all of the above
49. Which of the following techniques can an organization use to avoid the problems associated with glass
ceilings?
a.
offer AAP awareness training to its top management
b.
adopt of policy of no reverse discrimination
c.
use talent inventories and career replacement charts
d.
develop a long-term recruitment policy
e.
comply with every affirmative action law
50. Causes of voluntary employee turnover include:
a.
high compensation
b.
high unemployment rates
c.
lack of other opportunities
d.
flexible scheduling
e.
low pay
51. Which country has the lowest direct monetary costs of layoffs in terms of weeks of wages?
a.
Brazil
b.
China
c.
Germany
d.
India
e.
United States
52. Which of the following is not among the current recruitment and retention challenges that U.S. firms
must address today and in the future:
a.
increasingly diverse workforce
b.
global labor shortage
c.
an aging workforce
d.
competition for high-skilled workers
e.
all of the above
TRUE/FALSE
1. Retention activities refer to everything an employer does to encourage employees to continue to work
at an organization.
2. The two sides to the contest among employers for good employees are recruiting talented people and
dismissing poor performers.
3. High turnover may threaten a firm’s strategic competitiveness.
4. The primary objective of recruitment is to make sure that the organization is in compliance with
federal laws.
5. Most large American companies encourage applicants to apply online because it reduces recruiting
costs even though applying online will likely decrease the applicant pool.
6. Line managers are often directly involved in the early recruiting stages.
7. Recruiting from multiple sources is a good way to increase the diversity of the applicant pool.
8. Gaining a reputation for excellent employee development is one of the best ways to become an
employer of choice.
9. Regardless of how external applicants are recruited, the goal should be to attract qualified applicants,
not just a large number of applicants.
10. Inbreeding results when someone who is unfamiliar with the organization has come to accept its ways
of doing things.
SHORT ANSWER
1. What two central issues should be addressed when designing recruitment activities?
2. What are the two sources for the job applicant pool?
3. Laron was the bank manager of a small regional bank when his bank was sold to a larger banking
institution. After the merger, Laron was moved to one of the larger institution’s branch banks in a
neighboring community where he also holds the title of bank manager. Which type of internal pool
recruitment is this an example of?
4. Of all external recruitment methods, which method typically results in the highest one-year survival
rates?
5. What are other names for a private employment agency?
6. Jan Schulze is Austrian national. Which U.S.laws will affect his employer if he is employed as a
quality control engineer in the United States by a consumer product manufacturer?
7. _________________________ are people hired with no implicit or explicit contract for long-term
employment, including “free agents,” independent contractors, and temporary workers.
8. Which type of U.S. employment laws is most directly relevant to recruitment practices?
9. What is a federal contractor?
10. An availability analysis in a written affirmative action plan measures how many minorities and women
are available to work in the relevant labor market of an organization. What is a relevant labor market?
ESSAY
1. Why does the employee referral method of external job recruitment typically result in the highest
one-year survival rates?
2. Why should a recruiter be concerned about whether the recruiting experience is a positive one for a job
applicant?
3. Why do some people choose contingency employment over full-time employment?
