Chapter 5 Personnel Planning and Recruiting 1) What is the first step in the recruitment and selection process? A) performing initial screening interviews B) building a pool of candidates C) performing candidate background checks D) deciding what positions to fill Answer: D Explanation: D) The first step of the recruitment and selection process is deciding what positions to fill through personnel planning and forecasting. Building a candidate pool, having candidates complete applications, and performing background checks are the next steps in the process. 2) Which of the following terms refers to the background investigations, tests, and physical exams that firms use to identify viable candidates for a job? A) selection tools B) job analysis methods C) personnel techniques D) forecasting tools Answer: A Explanation: A) Selection tools, such as tests, background investigations, and physical exams, are used by firms to identify viable candidates for a job. After candidates complete applications and undergo initial screening interviews, a firm uses these selection tools before interviewing the candidate more thoroughly or making a job offer. 3) ________ is the process of deciding what positions the firm will have to fill and how to fill them. A) Recruitment B) Selection C) Job analysis D) Personnel planning Answer: D Explanation: D) Personnel or employment planning is the process of deciding what positions the firm will have to fill and how to fill them. The process considers all future positions from maintenance workers to executives, and flows from the firm's strategic plans. 4) Marcus, an HR manager for Samsung, must decide what positions the firm should fill in the next six months., which means Marcus is currently working on ________. A) screening job candidates B) personnel planning C) interviewing job candidates D) writing job descriptions Answer: B Explanation: B) Personnel or employment planning is the process of deciding what positions the firm will have to fill and how to fill them. The process considers all future positions from maintenance workers to executives, and flows from the firm's strategic plans. 5) The process of deciding how to fill executive positions at a firm is known as ________. A) internal recruiting B) succession planning C) long-term forecasting D) advanced interviewing Answer: B Explanation: B) Succession planning refers to the process of deciding how to fill executive positions at a firm. The process is also known as employment or personnel planning, although most firms use the term succession planning when determining how to fill top management positions. 6) A firm's ________ should guide employment planning and determine the types of skills and competencies the firm needs. A) job analysis B) organization chart C) marketing plan D) strategic plan Answer: D Explanation: D) Employment planning should flow from the firm's strategic plans. For example, plans to enter new businesses or reduce costs all influence the types of positions a firm will need to fill or eliminate. 7) Employment planning requires making forecasts of three elements: the supply of inside candidates, the likely supply of outside candidates, and ________. A) personnel needs B) job specifications C) global trends D) labor relations Answer: A Explanation: A) The process of personnel planning requires forecasts or estimates of three things: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. Forecasting personnel needs can be done through a trend analysis of the firm's employment levels over the last few years. 8) Which of the following terms refers to studying a firm's past employment needs over a period of years to predict future needs? A) ratio analysis B) trend analysis C) graphical analysis D) computer analysis Answer: B Explanation: B) A trend analysis is the study of a firm's past employment needs over a period of years to predict future needs. The purpose of a trend analysis is to identify trends that might continue into the future. A trend analysis can provide firms with an initial estimate of future staffing needs. 9) A trend analysis is limited in its usefulness because it ________. A) overlooks the passage of time in regards to staffing B) addresses only the financial impact of employment changes C) assumes constant increases in worker productivity D) overlooks how changes in sales volume affect staffing Answer: D Explanation: D) Trend analysis provides an initial estimate of future staffing needs, but employment levels rarely depend only on the passage of time. Factors such as changes in sales volume and productivity also affect staffing needs, which is why a trend analysis is limited in its usefulness. 10) Which of the following determines future staff needs by using ratios between a causal factor and the number of employees required? A) ratio analysis B) forecasting ratio C) personnel ratio D) ratio matrix Answer: A Explanation: A) A ratio analysis is a forecasting technique for determining future staff needs by using ratios between, for example, sales volume and the number of employees needed. For example, if a salesperson usually generates $500,000 in sales, and a firm hopes to produce an extra $3 million in sales, then six new salespeople would need to be hired. 11) Newton Building Supplies hopes to generate an extra $4 million in sales next year. A salesperson traditionally generates $800,000 in sales each year. Using ratio analysis, how many new salespeople should Newton hire? A) 2 B) 5 C) 10 D) 20 Answer: B Explanation: B) Ratio analysis is used to make a forecast in this case based on the number of salespeople and sales volume. $4 million in sales divided by the $800,000 generated by each salesperson indicates that 5 extra salespeople should be hired by Newton. 12) When using either a trend analysis or a ratio analysis, it is assumed that ________ will remain the same. A) staffing levels B) currency rates C) productivity levels D) recruitment plans Answer: C Explanation: C) Both a trend analysis and a ratio analysis assume that productivity remains about the same. For example, when using a ratio analysis, an assumption is made that you cannot motivate a salesperson to produce more than he or she has sold in the past. With a trend analysis, historical productivity trends are used and are the basis for predicting the future. 13) A ________ is a graphical method used to help identify the relationship between two variables. A) trend analysis B) ratio analysis C) scatter plot D) productivity chart Answer: C Explanation: C) A scatter plot graphically illustrates the relationship between two variables. Scatter plots, trend analyses, and ratio analyses are used to forecast personnel needs. 14) Which of the following is most frequently used by retailers to estimate short-term personnel needs? A) recruiting yield pyramids B) position replacement cards C) personnel replacement charts D) computerized forecasting programs Answer: D Explanation: D) Computerized forecasting programs are used to translate projected productivity and sales levels into anticipated personnel needs. Many firms, especially retailers, use computerized employee forecasting systems to estimate short-term needs. 15) Which of the following contains data regarding employees' education, career development, and special skills and is used by managers when selecting inside candidates for promotion? A) computerized forecasting tools B) qualifications inventories C) trend records D) scatter plots Answer: B Explanation: B) Qualifications or skills inventories are used by managers when determining which employees should be promoted or transferred. A skills inventory contains data on employees' performance records, educational background, and promotability. 16) When managers need to determine which employees are available for promotion or transfer, they will most likely use ________. A) scatter plots B) skills inventories C) estimated sales trends D) personnel forecasts Answer: B Explanation: B) Skills inventories are manual or computerized records listing employees' education, career and development interests, languages, and special skills. They are used in selecting inside candidates for promotion or transfer. 17) Which of the following refers to company records showing present performance and promotability of inside candidates for a firm's top positions? A) yield pyramids B) trend analysis charts C) succession planning tools D) personnel replacement charts Answer: D Explanation: D) Personnel replacement charts are company records showing present performance and promotability of inside candidates for a firm's top positions. Such charts show the present performance and promotability for each position's potential replacement. Succession planning is the term used when referring to employment planning that focuses on filling executive jobs, but it is a process rather than a tool for managing employee records. 18) Qualifications inventories can be tracked and maintained by using all of the following EXCEPT a ________. A) ratio analysis matrix B) personnel replacement chart C) position replacement card D) skills inventory software Answer: A Explanation: A) Personnel replacement charts, position replacement cards, and skills inventory software are all tools for tracking and maintaining qualifications inventories. A ratio analysis is a forecasting technique for determining future staff needs rather than tracking employees for the purpose of transfer or promotion. 19) Which of the following enhances the security of a firm's database management system by specifying the type of information that a user can obtain? A) search engine B) access matrix C) main server D) intranet Answer: B Explanation: B) An access matrix can be incorporated into a firm's database management system to make it difficult for people to gain unauthorized access of personnel files. An access matrix defines the rights of users to various kinds of access, such as "read only" or "write only" to each database element. 20) Which of the following is a recommended method for HR departments to protect employee data? A) hiring temporary employees to manage personal employment information B) requiring HR data access through peer-to-peer file-sharing applications C) performing random background checks on employees with HR database access D) providing full database access to employee files only through a firm's intranet Answer: C Explanation: C) Random background and drug tests are recommended to screen out potential identity thieves, especially on employees with access to personal information. Firms are advised against hiring temporary employees but to use trusted workers at all times when dealing with personnel information. Access to employee files should be limited since intruders can strike from both inside and outside a firm. 21) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Marie realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. Which of the following, if true, best supports the argument that a scatter plot is the most appropriate tool for Marie to use in estimating future personnel needs? A) Productivity levels for Barnum employees typically vary from month to month. B) The size of the two new Barnum hotels will be similar to the chain's other hotels. C) Barnum requires HR to maintain qualifications inventories for all current employees. D) Personnel replacement charts serve as useful tools when filling Barnum's managerial positions. Answer: B Explanation: B) Scatter plots graphically show how two variables are related, such as hotel size and staffing levels. Marie should be able to estimate personnel needs if the new hotels are the same size as current ones. Productivity levels, qualifications inventories, and replacement charts are less important factors. 22) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Marie realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. Which of the following, if true, best supports the argument that Marie should implement a computerized skills inventory database? A) Barnum offers its employees the opportunities to participate in job rotation and job expansion experiences. B) Barnum's recruiting yield pyramid indicates that the firm should generate 1,000 leads in order to fill 100 positions. C) Barnum executives would like to transfer the firm's most qualified employees to the new hotels to fill supervisory positions. D) HR managers at Barnum frequently receive discrimination complaints that must be investigated by the EEOC. Answer: C Explanation: C) Computerized skills inventory databases provide firms with easy access to information about all employees. If Barnum wants to hire internally, then a database would provide the skills inventory needed to determine the most qualified candidates to staff the new hotels. Recruiting, job rotation, and discrimination claims are less relevant to implementing a computerized skills inventory database. 23) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Marie realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. Which of the following, if true, best supports Marie's plan to centralize Barnum's recruitment efforts? A) Online screening tests are given to all Barnum recruits to assess skills and future potential. B) Barnum's high turnover rate is most likely due to inadequate training requirements. C) Barnum enforces a strict policy about hiring employees' family members. D) Barnum has 20 separate local recruiting Web sites. Answer: D Explanation: D) Centralized recruiting is much easier now than in the past because so much recruiting is handled through the Internet. If Barnum has 20 separate Web sites for each local recruiter, then centralizing recruiting efforts would eliminate the need to maintain each site. Screening tests, turnover, and hiring policies are less relevant. 24) Finding or attracting applicants for an employer's open positions is known as ________. A) succession planning B) employee recruiting C) personnel planning D) job posting Answer: B Explanation: B) Employee recruiting is the process of finding or attracting applicants for an employer's open positions. Recruiting involves building up an applicant pool by posting jobs and succession planning, which is the process of internally filling executive jobs. 25) Recruiting is necessary to ________. A) determine whether to use inside or outside candidates B) forecast the short-term supply of outside candidates C) create positive word-of-mouth about a firm D) develop an applicant pool Answer: D Explanation: D) Developing an applicant pool is the primary reason to recruit. Forecasting the supply of outside candidates and determining whether to hire internally or externally are considerations made by HR managers before they begin the recruiting process. 26) A ________ is used to calculate the number of applicants a firm must generate to hire the required number of new employees. A) trend analysis B) ratio analysis C) recruiting yield pyramid D) scatter plot Answer: C Explanation: C) A recruiting yield pyramid is used by employers to calculate the number of applicants a firm must generate in order to hire the required number of new employees. A recruiting yield pyramid is the historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted. 27) A recruiting yield pyramid is the historical arithmetic relationship between all of the following EXCEPT ________. A) internal and external candidates B) offers made and offers accepted C) recruitment leads and invitees D) interviews and offers made Answer: A Explanation: A) A recruiting yield pyramid is the historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted. The ratio of internal and external candidates is not a factor in the recruiting yield pyramid which is used to determine the number of applicants a firm needs to generate in order to hire the required number of new employees. 28) Which of the following is the primary disadvantage of using internal sources of candidates to fill vacant positions in a firm? A) lack of knowledge regarding a candidate's strengths B) potential to lose employees who aren't promoted C) questionable commitment of candidates to the firm D) significant training and orientation requirements Answer: B Explanation: B) The primary disadvantage of hiring from within is the potential of losing employees who are not promoted. Employees who apply for jobs and don't get them may become discontented. Advantages of hiring internally include the depth of knowledge the employer has about the candidate, the minimal amount of training and orientation required, and the likelihood that the candidate is committed to the firm. 29) All of the following are characteristics of a job posting EXCEPT ________. A) listing the job's attributes B) providing the job's pay rate C) publicizing the open job to employees D) indicating the preferred number of applicants Answer: D Explanation: D) Posting a job means to publicize an open job to employees by posting it on company intranets or bulletin boards. Such postings list the jobs' attributes, such as qualifications, supervisor, work schedule, and pay rate. The preferred number of applicants is less likely to appear on a job posting. 30) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Marie realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. Which of the following, if true, most likely undermines Marie's decision to fill top positions with inside candidates? A) Barnum needs to head in a different direction with innovative ideas if it is to remain competitive with other hotel chains. B) Many current Barnum employees have indicated they are loyal to the firm by rejecting offers to work at competing hotels. C) Training new employees about the practices and procedures at Barnum is costly in regards to both time and money. D) The influence of local labor unions and EEO legislation is blamed for the high turnover rate among Barnum employees. Answer: A Explanation: A) Inbreeding is a potential drawback to hiring internally because when all managers come up through the ranks, they may have a tendency to maintain the status quo, when a new direction is required. If Barnum needs to go in a new direction then it should hire outsiders. Benefits of internal hiring include increased morale, commitment, and reduced training requirements. Labor unions and the number of applicants are less relevant. 31) Marie Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Marie realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. All of the following questions are relevant to Marie's decision to fill top positions at the new hotels with internal candidates EXCEPT ________. A) What are the key managerial positions that are available at the new hotels? B) What percentage of employers in the service industry use succession planning? C) What skills, education, and training have been provided to potential candidates? D) What is the designated procedure for assessing and selecting potential candidates? Answer: B Explanation: B) Although about 36% of employers have formal succession planning programs, the question is not directly relevant to Marie's decision. Marie needs to consider what positions need to be filled, the experience of potential candidates, and the procedure for assessing candidates. 32) The ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance is known as ________. A) employee mentoring B) succession planning C) work sampling D) employee recruiting Answer: B Explanation: B) Succession planning is the ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance. Succession planning is necessary when a firm is filling its top positions from internal candidates. The process involves identifying key needs, creating and assessing candidates, and selecting those who will fill the key positions. 33) What is the first step in succession planning? A) creating an applicant pool B) identifying and analyzing key needs C) selecting who will fill key positions D) developing the strengths of current employees Answer: B Explanation: B) The first step in succession planning is identifying a firm's future key position needs and then formulating job descriptions and specifications for them. The key needs are based on the company's future plans. The second step involves developing inside candidates for future key positions, which is followed by assessing and selecting who will fill the key positions. 34) All of the following are methods used by firms to develop high-potential candidates for future positions EXCEPT ________. A) providing internal training B) implementing job rotation C) offering global assignments D) developing skills inventories Answer: D Explanation: D) With succession planning, firms identify future key positions, and then they create candidates for these jobs by identifying potential internal and external candidates. Employers develop candidates through internal training, cross-functional experiences, job rotation, external training, and global/regional assignments. Skills inventories are records that list employees' qualifications. 35) Which of the following is NOT a tool used by firms to recruit outside candidates? A) newspaper advertising B) intranet job postings C) employment agencies D) online job boards Answer: B Explanation: B) The term job posting refers to publicizing an open job to employees through a firm's intranet or on bulletin boards. Outside candidates are recruited through advertisements, employment agencies, executive recruiters, and online job boards, such as Monster.com and CareerBuilder.com. 36) What is the primary purpose of an applicant tracking system? A) sorting resumes based on an applicant's years of work experience B) generating advertisements for attracting and gathering applicants C) assisting employers in attracting, screening, and managing applicants D) assisting recruiters with locating internal applicants for key positions Answer: C Explanation: C) The purpose of an applicant tracking system is to help employers attract, gather, screen, compile, and manage outside applicants. Such an online system is needed because Web-based ads tend to generate a large number of applicants. 37) Which of the following factors plays the greatest role in determining the best medium for a job advertisement? A) skills needed for the job B) job compensation and salary C) time allowed to fill the position D) graphics used in the advertisement Answer: A Explanation: A) The best medium for a job depends on the position and the skills needed for the job. For example, a local newspaper is probably best if an employer needs clerical workers or blue-collar help. For specialized employees, advertisement in trade and professional journals may be more appropriate. 38) When constructing a job advertisement, all of the following are aspects of the AIDA guide EXCEPT ________. A) attracting attention to the ad B) implying long-term benefits C) prompting applicant action D) developing interest in the job Answer: B Explanation: B) Experienced advertisers use AIDA when constructing ads, which stands for attention, interest, desire, and action. An ad should attract attention, develop interest in the job, create desire for the job, and prompt readers to take action. Although benefits and salary may be mentioned in ads, implying long-term benefits is not an element of the AIDA guide. 39) The ________ run by the U.S. Department of Labor enables public employment agency counselors to advise applicants about local and national job openings. A) U.S. Career Center B) National Job Bank C) National Employment Agency D) Equal Employment Opportunity Commission Answer: B Explanation: B) The National Job Bank maintains a nationwide computerized job bank that enables public employment agency counselors to advise applicants about local and national job openings. The EEOC is a government agency responsible for enforcing federal hiring laws. 40) Counselors in state-run employment agencies conduct all of the following activities EXCEPT ________. A) reviewing employer job requirements B) filing employer tax reports C) visiting employer work sites D) writing job descriptions Answer: B Explanation: B) Although state-run employment agencies offer tax credit information to employers, they do not file tax reports. State employment agencies assist employers by helping them fill jobs and write job descriptions. Counselors also review job requirements and visit employer work sites. 41) Which of the following is typically responsible for paying the fees charged by a private employment agency when an applicant is placed in a job? A) employers B) employees C) state employment commissions D) independent recruiters Answer: A Explanation: A) In most situations, employers pay the fees charged by private employment agencies. Private employment agencies are important sources for clerical, white-collar, and managerial personnel, and their fees are set by state law. 42) An employer will most likely use a private employment agency in order to ________. A) receive assistance writing job ads B) adhere to federal hiring practices C) fill a specific job opening quickly D) spend more time recruiting applicants Answer: C Explanation: C) One of the main reasons an employer uses a private employment agency is to fill a specific job opening quickly. Other reasons include spending less time recruiting and reaching currently employed individuals who might feel more comfortable dealing with an agency than a competing firm. 43) Which of the following is the primary disadvantage for employers who use private employment agencies to fill positions? A) White-collar applicants are difficult to attract. B) Applicant screening may not be thorough. C) Applicant processing time is too lengthy. D) Application procedures are complicated. Answer: B Explanation: B) The primary drawback to using a private employment agency is the fact that agencies may not screen applicants very well. Successful applicants may be blocked, while inappropriate applicants may be sent to interview with hiring supervisors. Advantages include saving time and being good sources for white-collar personnel. 44) Newton Manufacturing is using a private employment agency to recruit individuals for management positions. As the HR manager at Newton, you need to ensure that applicants are screened properly, so you should ________. A) provide the agency with an accurate job description B) post jobs on the firm's intranet and bulletin boards C) develop applicant screening software for internal hires D) send HR experts to monitor the agency's recruiting activities Answer: A Explanation: A) Employers can avoid improper applicant screening at private employment agencies by providing the agency with an accurate job description. Employers should also make sure that tests, applications, and interviews are part of the agency's selection process. The agency should be screened, but it would be costly and time consuming to have HR managers monitor the agency's activities. 45) Kate works as a nurse on temporary assignment for hospitals throughout the region on an as-needed basis. Kate is most likely ________. A) working as a contingent worker B) participating in a job rotation C) using job enlargement D) benchmarking jobs Answer: A Explanation: A) Temporary workers are known as contingent workers, so a nurse who floats from one assignment to another on a temporary basis is a contingent worker. Job rotation occurs when an employer systematically moves a worker from one job to another to broaden the worker's experience. 46) Which of the following best explains why firms are using temporary workers more frequently? A) low cost when hired through agencies B) workers' desires for flexible schedules C) high cost of workers' compensation insurance D) weak economic confidence among employers Answer: D Explanation: D) Several things contribute to the trend toward using more temporary employees including continuing weak economic confidence among employers. Temps cost employees more than permanent workers because temp agencies receive a fee. Employers want a flexible workforce that can be reduced during economic slowdowns. 47) All of the following are common concerns that have been expressed to researchers by temporary employees EXCEPT ________. A) being in compliance with equal employment laws B) feeling insecure about their employment situation C) worrying about the lack of insurance benefits D) being treated impersonally by employers Answer: A Explanation: A) When working with temporary agencies, managers need to ensure that they have a document from the agency stating that filling temp orders is not discriminating. However, this is not a concern felt among temporary workers. Temp workers have shown to be primarily concerned about their lack of insurance benefits and the way they are treated by managers and permanent staff. Temp worker often feel insecure about their employment situation because most of them want full-time positions. 48) Jessica Garza is a manager at a large retail store. Currently, Jessica has four temporary workers under her supervision that a local staffing agency has provided. In which of the following tasks related to the temporary workers should Jessica become directly involved? A) negotiating the pay rate B) setting the time-off policies C) answering task-related questions D) providing online training and development Answer: C Explanation: C) For legal purposes, companies should treat temporary employees as if the temp agency is the worker's employer. Managers should let the temp agency handle matters such as pay, time-off, and training. Managers should control the temporary worker's activities and answer work-related questions. 49) Which of the following terms refers to the use of nontraditional recruitment sources? A) negligent hiring B) personnel planning C) human resource management D) alternative staffing Answer: D Explanation: D) Alternative staffing refers to the use of nontraditional recruitment sources. Alternative staffing examples include in-house temporary employees, contract technical employees, outsourcing, and offshoring. 50) ________ are special employment agencies retained by employers to seek out top management talent for their clients. A) State-run employment agencies B) Private employment agencies C) Temporary agencies D) Executive recruiters Answer: D Explanation: D) Executive recruiters, or headhunters, are special employment agencies retained by employers to seek out top management talent for their clients. State-run, employment agencies, private employment agencies, and temporary agencies are less likely to be used by firms seeking top executives. 51) Which of the following has improved the ability of executive recruiters to find potential candidates? A) mobility premiums B) Internet databases C) corporate intranets D) broad banding Answer: B Explanation: B) Internet-based databases have dramatically sped up searches for potential candidates and enabled executive recruiters to fill positions more quickly. The primary challenge for headhunters has been finding qualified candidates, and technology has improved the searching ability of recruiters. 52) Which of the following is a service that provides short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms? A) top-executive searches B) contingent-based searches C) on-demand recruiting services D) just-in-time recruiting services Answer: C Explanation: C) On-demand recruiting services (ODRS) provide short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms. These recruiters are paid by the hour or project instead of a percentage fee. 53) What is the typical compensation structure for on-demand recruiting services? A) hourly rate B) commission C) percentage fee D) signing bonus Answer: A Explanation: A) On-demand recruiting services (ODRS) provide short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms. These recruiters are paid by the hour or project instead of a percentage fee or a commission. 54) Pamlico River Productions is seeking a top-level manager to oversee its finance division. Qualified candidates can be difficult to find, so the business would most likely benefit from using a(n) ________ to recruit potential candidates. A) executive recruiter B) temporary agency C) Internet-based job site D) alternate staffing recruiter Answer: A Explanation: A) Executive recruiters or headhunters are special employment agencies retained by employers seeking top executives. Temporary staffing would be less beneficial to a firm seeking a top executive. Although Internet sites are popular sources for finding employees, headhunters are more appropriate for filling top positions in a firm. 55) A small software firm is seeking several permanent employees with experience in the semiconductor industry and advanced degrees in computer science. The firm is a small one and cannot afford to pay a traditional recruiting firm a fee of 30% per each hire's salary. Instead, this firm should consider using a(n) ________. A) contingency-based recruiter B) temporary staffing agency C) outsourcing staffing service D) on-demand recruiting service Answer: D Explanation: D) An on-demand recruiting service would be the best solution for a small firm that cannot pay high fees to recruit employees. ODRS provide short-term specialized recruiting assistance to support specific projects without the expense of traditional search firms. An ODRS charges by time or project. 56) What is the primary advantage of college recruiting? A) minimal preparation required B) flexible, short-term interview schedule C) inexpensive method of screening applicants D) access to a source of management trainees Answer: D Explanation: D) The primary advantage of college recruiting is the extensive source of management trainees and professional and technical employees. Disadvantages include the fact that on-campus recruiting is both expensive and time-consuming because schedules must be planned far in advance and company brochures must be printed. 57) Which of the following is a primary goal of college recruiters? A) building relationships with college career centers B) cutting future recruiting costs for the firm C) developing a pool of temporary workers D) attracting good candidates Answer: D Explanation: D) The two main goals of college recruiters are attracting good candidates and determining if candidates are worthy of further consideration. It is helpful if firms develop ties with college career centers to gain feedback on its recruiting programs, but the main goal of college recruiters is to find employees. 58) In regards to on-campus recruiting, which of the following is most likely to help sell the employer to the interviewee? A) recruiter's professional attire B) sincerity of the recruiter C) emphasis on the job location D) well-written job descriptions Answer: B Explanation: B) A recruiter who has a sincere and informal attitude, shows respect for the applicant, and sends a prompt follow-up letter is more likely to sell the firm to the interviewee than a recruiter who acts superior and is unprepared. Attire, job location, and job descriptions are less likely to have a major impact on an interviewee. 59) Which of the following would be the best option for a business that needs to attract local applicants for hourly jobs? A) employee referral campaigns B) on-demand recruiting services C) college recruiting D) walk-ins Answer: D Explanation: D) Walk-ins, which are direct applications made at an office, are a major source of hourly workers. Companies that post "Help Wanted" signs are able to cost-effectively attract many local applicants. Employee referral campaigns do not necessarily attract local applicants, and they typically cost $400-$900 per hire, which makes them an unlikely method for hiring hourly workers. 60) What is an advantage of using employee referral campaigns? A) Local, hourly workers can be recruited quickly. B) Applicants have received realistic job previews. C) Rewards and incentives are eliminated. D) Applicants have community ties. Answer: B Explanation: B) Current employees will usually provide accurate information about the job applicants they are referring, so the new employees have a more realistic picture of what the firm is like. Walk-ins are best for local, hourly workers. Referral programs typically pay employees $400-900 for each new worker they refer. 61) An employer's computerized recruitment system should include all of the following elements EXCEPT ________. A) hypertext transfer protocol to enable applicants to post their resumes in any format or font B) requisition management systems to facilitate routing, approval, and posting of job openings C) hiring management software to collect and manage candidate information D) recruitment marketing to improve applicant pool quality Answer: A Explanation: A) A firm's computerized recruitment system should include a requisition management system, hiring management software, screening services, and recruiting solutions, such as recruitment marketing and applicant tracking. The manner in which resumes are posted does not relate to the site's http. 62) The fastest growing labor force segment in the United States over the next few years will be those from ________ years old. A) 23-29 B) 30-44 C) 45-64 D) 65+ Answer: C Explanation: C) The fastest-growing segment of the U.S. labor force in the next few years will be among workers 45-64 years old. Workers between 25-34 will decline by almost 3 million. 63) Which of the following motivates most employees over 65 to work? A) overtime payments B) schedule flexibility C) supportive work environments D) additional sick days Answer: B Explanation: B) Schedule flexibility is the primary motivation for employees over age 65. Older employees want flexible and often abbreviated work schedules, and many only want to work part time. Overtime, sick days, and supportive work environments are less important factors than flexibility. 64) Smith Industries has set a goal of recruiting minority applicants. Which of the following methods is LEAST likely to be successful for Smith Industries? A) offering flexible work schedules B) providing flexible benefits plans C) utilizing executive recruiters D) collaborating with professional organizations Answer: C Explanation: C) Firms that provide flexible work schedules and benefits plans are more likely to attract minority workers, especially women. Collaborating with professional organizations, such as the National Society of Hispanic MBAs will also improve the chances of hiring minorities. Executive recruiters are the least likely method for attracting minorities. 65) Which of the following is NOT information that should be requested on application forms? A) experience B) technical skills C) marital status D) training Answer: C Explanation: C) According to EEO law, application forms should not request information about an applicant's marital status. Asking about an applicant's work history, experience, training, and skills is considered acceptable. 66) Which of the following is most likely a true statement about mandatory alternative dispute resolution agreements? A) Most federal courts have found the documents unenforceable. B) Judicial appeals and reconsideration are available if legal errors occur. C) Employees absorb most of the costs associated with the arbitration process. D) Job applicants are typically more interested in firms that require arbitration. Answer: B Explanation: B) Mandatory alternative dispute resolution agreements are required to provide for reconsideration and judicial appeal if legal errors occur. Most courts agree that the documents are enforceable if they meet certain requirements. Employers pay most costs of the process, and job applicants are usually less attracted to employers that require mandatory employment arbitration. 67) A Markov analysis is primarily used to ________. A) predict the long-term employment needs in an industry B) assess the productivity and tenure of a job applicant C) forecast the availability of internal job candidates D) analyze the effectiveness of recruitment sources Answer: C Explanation: C) Employers use a mathematical process known as Markov analysis to forecast availability of internal job candidates. Markov analysis involves creating a matrix that shows the probabilities that employees in the chain of feeder positions for a key job will move from position to position and therefore be available to fill the key position. 68) Which employment field is especially effective at workforce planning? A) electrical utilities B) automotive C) higher education D) banking Answer: A Explanation: A) Perhaps because the demand for electric power is relatively predictable, utilities tend to do exemplary workforce planning. Workforce planning is less predictable in the automotive, education, and banking industries. 69) Dixon Industries adheres to a talent management philosophy. As the HR manager at Dixon, you should most likely ________. A) continuously monitor workforce planning issues B) primarily use recruiters for top executive jobs C) frequently assess the online HR Scorecard D) regularly implement the Markov analysis Answer: A Explanation: A) Following a talent management philosophy to workforce planning requires being more proactive. Specifically, it requires paying continuous attention to workforce planning issues. Managers call this newer, continuous workforce planning approach predictive workforce monitoring. 70) Which Web site is increasingly serving as a recruitment source for passive job candidates? A) Career Builder B) You Tube C) LinkedIn D) Monster Answer: C Explanation: C) In moving away from major job boards such as career builder.com, recruiters are seeking passive candidates (people not actively looking for jobs) by using social networking sites such as Linkedin to find potential candidates. 71) Employment planning should be an integral part of a firm's strategic and HR planning process. Answer: True Explanation: Employment planning is the process of deciding what positions the firm will have to fill, and how to fill them. Employment planning should flow from a firm's strategic plans. 72) Personnel planning requires an estimation of personnel needs, the supply of inside candidates, and the likely supply of outside candidates. Answer: True Explanation: Employment (or personnel) planning is the process of deciding what positions the firm will have to fill, and how to fill them. Like all good plans, personnel plans require some forecasts or estimates, in this case, of three things: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. 73) When it refers to filling jobs like that of a maintenance clerk, personnel planning is called succession planning. Answer: False Explanation: Most firms call the process of deciding how to fill executive jobs succession planning. However, employment (or personnel) planning embraces all future positions, from maintenance clerk to CEO. 74) When making personnel plans, a manager primarily needs to focus on the firm's personnel needs, the supply of inside candidates, and the estimated supply of outside candidates. Answer: True Explanation: Like all plans, personnel plans require some forecasts or estimates, in this case, of three things: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. The basic workforce planning process is to forecast the employer's demand for labor and supply of labor, identify supply-demand gaps, and develop action plans to fill the projected gaps. 75) The assumption shared by both trend analysis and ratio analysis is that productivity remains about the same from year to year. Answer: True Explanation: Both trend analysis and ratio analysis assume that productivity remains about the same—for instance, that you can't motivate each salesperson to produce much more than $500,000 in sales. 76) Access matrices are used to define the rights of users to various kinds of access for each element in a personnel database. Answer: True Explanation: An access matrix integrated into the database management system prevents people from accessing a firm's computerized personnel files. An access matrix defines the rights of users to various kinds of access (such as "read only" or "write only") to each database element. (So, those in accounting might read only information such as an employee's address). 77) According to EEO laws, it is always illegal to recruit applicants with gender-specific ads, but using word-of-mouth to spread information about job opportunities is legal in all situations. Answer: False Explanation: Managers can't rely on word-of-mouth dissemination of information about job opportunities when the workforce is substantially all white or all members of some other class, such as Hispanic. Similarly, gender specific ads that call for "busboy" or "firemen" are not acceptable under EEO laws, unless the job requires a specific gender, such as for an acting role. 78) The HR manager who recruits for a vacant job is typically the one who is responsible for supervising the performance of that position. Answer: False Explanation: The human resource manager charged with recruiting for an open job is seldom very familiar with the job itself. The supervisor has to tell the HR person what the position really entails, and what key things to look or watch out for when recruiting. The supervisor is also responsible for supervising performance of the position. 79) The use of the Internet enables firms to centralize their recruitment efforts. Answer: True Explanation: Global recruitment sites on the Internet enable firms to centralize their recruiting efforts. Such sites allow applicants to search for positions and apply for jobs online. 80) Publicizing an open job to employees through a firm's intranet or bulletin board is known as job posting. Answer: True Explanation: The term "job posting" refers to publicizing an available position to a firm's current employees. A firm's intranet or bulletin board is most often the location of the posting. 81) Firms can reduce potential problems associated with rehiring former employees by crediting them with the years of service they had accumulated before they left. Answer: True Explanation: Rehiring former employees can lead to adverse reactions from both the employee and co-workers. Crediting the rehired employee with accumulated years of service can reduce problems. 82) The dot-jobs domain is primarily used by HR managers for succession planning purposes. Answer: False Explanation: The new dot-jobs domain gives job seekers rather than HR managers a one-click conduit for finding jobs at the employers who register at www.goto.jobs. For example, applicants seeking a job at Disneyland can go to www.Disneyland.jobs, which takes them to Disney's Disneyland recruiting Web site. 83) In most cases, job applicants view concise job advertisements as more attractive and credible than lengthy ads with too many details about a job. Answer: False Explanation: In general, more information is better than less. Job applicants view ads with more specific job information as more attractive and more credible. 84) Every state has a public, state-run employment service agency. Answer: True Explanation: All states have public, state-run employment agencies supported by the U.S. Department of Labor. 85) The U.S. Department of Labor maintains a nationwide computerized job bank called the National Job Bank. Answer: True Explanation: The U.S. Department of Labor supports these agencies, in part through grants, and in part through other assistance such as a nationwide computerized job bank. The National Job Bank enables agency counselors to advise applicants about available jobs not just in their local area, but in other states as well. 86) Due to EEO laws, firms are only allowed to use contingency workers for clerical or maintenance positions; managerial staff must consist of full-time employees of the firm. Answer: False Explanation: The contingent workforce isn't limited to clerical or maintenance staff. It includes thousands of engineering, science, or management support occupations, such as, temporary chief financial officers, human resource managers, and CEOs. 87) Many firms use temporary hiring as a way to give prospective employees a trial run before hiring them as full-time workers. Answer: True Explanation: Temp-to-hire is a way for firms to give workers a trial run before offering them full-time positions. 88) In most cases, it is more cost effective for firms to hire contingent workers through a temp agency than to hire comparable permanent employees. Answer: False Explanation: Temps generally cost employers 20% to 50% more than comparable permanent workers (per hour or per week), since the agency gets a fee. 89) According to most employment laws, employees of temporary staffing firms that are working in an employer's workplace are considered workers of both the temporary agency and the employer. Answer: True Explanation: Except in a few circumstances, employment laws consider temporary workers the employees of both the staffing agency and the employer. For this reason, employers need to understand the legal status of contract employees. 90) An in-house temporary employee is a highly skilled worker, such as an engineer or software designer, who is supplied for long-term projects under contract from an outside technical services firm. Answer: False Explanation: An in-house temporary employee is a person employed directly by a company on a short-term basis. A contract technical employee is a highly skilled worker, such as an engineer or software designer, who is supplied for a long-term project under contract from an outside technical services firm. 91) Offshoring means having outside vendors supply services that a firm's own employees previously did in-house, while outsourcing means having overseas outside vendors provide services once performed in-house. Answer: False Explanation: Outsourcing means having outside vendors supply services that a firm's own employees previously did in-house. Offshoring is a more narrow term that means having overseas outside vendors provide services once performed by a company's own employees in-house. 92) Retained executive recruiters are paid whether or not they eventually fill the client's vacant position. Answer: True Explanation: Retained headhunters are paid regardless of whether the employer hires the executive through the search firm's efforts or not. Contingent-based recruiters usually receive fees when they fill a position. 93) The fees associated with both retained and contingent executive recruiters are increasing as firms struggle to find qualified candidates. Answer: False Explanation: Whether retained or contingent, fees for executive headhunters are beginning to drop from the usual 30% or more of the executive's first-year pay. 94) Older workers usually have higher absenteeism rates compared to younger workers due to illness. Answer: False Explanation: A survey by AARP and SHRM concluded that older workers tend to have lower absenteeism rates, more reliability, and better work habits than younger workers. 95) A question on an employment application form that requests the dates of attendance and graduation from various schools may be illegal as it could reflect an applicant's age. Answer: True Explanation: It is illegal to ask an applicant's age. According to EEO law a question on an employment application form that requests the dates of attendance and graduation from various schools may be illegal as it could reflect an applicant's age. 96) According to EEO law, it is legal to ask job applicants if they have ever received workers' compensation. Answer: False Explanation: It is illegal under EEO law to ask applicants if they have received workers' compensation. 97) To prevent the appearance of discriminatory hiring practices, firms are advised to avoid asking job applicants on an application form whether they own or rent a house. Answer: True Explanation: Asking whether an applicant owns, rents, or leases a house may also be discriminatory. It can adversely affect minority groups and is difficult to justify on business necessity. 98) Video resumes eliminate the possibility of applicants claiming discrimination in a firm's hiring practices. Answer: False Explanation: More candidates are submitting video résumés, a practice replete with benefits and threats. The danger is that a video résumé makes it more likely that rejected candidates may claim discrimination. 99) Firms can predict job performance and employee tenure by analyzing job application information, such as travel experience and education level. Answer: True Explanation: Employers can use analyses of application information ("bio data") to predict employee tenure and performance. In one study, the researchers found that applicants who had longer tenure with previous employers were less likely to quit, and also had higher performance within six months after hire. Examples of biodata items might include "quit a job without giving notice," "graduated from college," and "traveled considerably growing up." 100) When firms prove that they will use the information on job application forms as a predictor of job performance, they are allowed under EEO laws to request information regarding an applicant's age and marital status. Answer: False Explanation: EEO laws prevent firms from requesting information about an applicant's age or marital status in all cases. 101) In a brief essay, explain how strategic planning relates to both personnel planning and recruiting. Answer: Employment (or personnel) planning is the process of deciding what positions the firm will have to fill, and how to fill them. It embraces all future positions, from maintenance clerk to CEO. Employment planning should flow from the firm's strategic plans. Thus plans to enter new businesses or reduce costs all influence the types of positions you'll need to fill or eliminate. One big question is whether to fill projected openings from within or from outside the firm, and going outside requires planning what recruiting sources you'll use. Firms that centralize recruitment efforts are able to apply the company's strategic priorities company-wide. 102) What tools are available for projecting personnel needs? How does a recruiting yield pyramid function as a tool in the recruiting process? Provide your answer in a brief essay. Answer: Two tools used for projecting personnel needs include the trend analysis and the ratio analysis. Trend analysis means studying variations in your firm's employment levels over the last few years. Trend analysis can provide an initial estimate of future staffing needs, but employment levels rarely depend just on the passage of time. Other factors (like changes in sales volume and productivity) also affect staffing needs. Another simple approach, ratio analysis, means making forecasts based on the historical ratio between (1) some causal factor (like sales volume) and (2) the number of employees required (such as number of salespeople). Some employers use a recruiting yield pyramid to calculate the number of applicants they must generate to hire the required number of new employees. The pyramid indicates the ratio of offers made to actual new hires, the ratio of candidates interviewed to offers made, the ratio of candidates invited for interviews to candidates interviewed, and the number of offers made. 103) What methods are used by both small and large firms to forecast the supply of inside candidates? Answer: Department managers or owners of smaller firms often use manual devices to track employee qualifications. Thus a personnel inventory and development record form compiles qualifications information on each employee. The information includes education, company-sponsored courses taken, career and development interests, languages, desired assignments, and skills. Personnel replacement charts are another option, particularly for the firm's top positions. They show the present performance and promotability for each position's potential replacement. Larger firms obviously can't track the qualifications of hundreds or thousands of employees manually. Larger employers therefore computerize this information, using various packaged software systems. Increasingly, they also link skills inventories with their other human resources systems. So, for instance, an employee's skills inventory might automatically update each time he is trained or appraised. 104) What are the pros and cons associated with using internal sources of job candidates? What are the pros and cons of using Internet recruiting to locate external sources of job candidates? Answer: Filling open positions with inside candidates has several advantages. First, there is really no substitute for knowing a candidate's strengths and weaknesses, as you should after working with them for some time. Current employees may also be more committed to the company. Morale may rise if employees see promotions as rewards for loyalty and competence. And inside candidates should require less orientation and (perhaps) training than outsiders. However, hiring from within can also backfire. Employees who apply for jobs and don't get them may become discontented; telling them why you rejected them and what remedial actions they might take is crucial. When all managers come up through the ranks, they may have a tendency to maintain the status quo, when a new direction is required. Internet recruiting is a cost-effective way to publicize openings; it generates more responses quicker and for a longer time at less cost than just about any other method. Internet recruiting has two big potential problems—discrimination and overload. First, fewer older people use the Internet, so online application gathering may inadvertently exclude disproportionate numbers of older applicants (and certain minorities). Second, employers end up deluged with resumes from job seekers. 105) In a brief essay, discuss how an HR manager should use the guide AIDA to write a help wanted advertisement. Answer: Experienced advertisers use the guide AIDA (attention, interest, desire, action) to construct ads. An HR manager must attract attention to the ad with phrases and words that grab the attention of readers. Next, a manager needs to develop interest in the job. You can create interest with lines such as "are you looking to make an impact?" or use other aspects of the job, such as its location. Create desire by spotlighting words such as travel or challenge. As an example, having a graduate school nearby may appeal to engineers and professional people. Finally, the ad should prompt action with a statement like "call today." In general, more information is better than less. Job applicants view ads with more specific job information as more attractive and more credible. 106) Why do employers turn to private employment agencies for assistance in recruiting? Provide at least four reasons for the use of such employment agencies. Answer: There are many reasons for using a private employment agency. The firm does not have to have internal human resource specialists for recruiting and screening. The firm may need the position filled very quickly. There is a perceived need to recruit more minority and female applicants. When the best candidates are employed elsewhere, it is more comfortable to have an agency approach the candidates. Use of an agency reduces recruiting time. 107) What policies and procedures are critical for companies that use temporary agencies for contingent workers? Answer: Companies should get a sample copy of the agency's invoice to ensure that the invoice fits the company needs. Time sheets should be used because they provide a verification of hours worked and an agreement to pay the agency's fees. The company should find out what policies guide the hiring of an agency temp as a permanent employee. The company should also find out how the agency recruits employees and what kind of benefits it pays. The company should specify its dress code at each location to the agency. The company should insist on getting a document from the agency stating that it is not discriminating when filling temp orders. Finally, make sure that the agency has the proper information regarding what is required to adequately fill each job position. 108) What are the differences between the two types of executive recruiters? How do firms benefit from using executive recruiters? Answer: Executive recruiters may be contingent or retained. Retained recruiters are paid whether or not the employer eventually hires the executive through the efforts of the search firm. These recruiters tend to focus on executive positions paying $150,000 or more. Contingency-based recruiters tend to handle junior to middle level management job searches in the $50,000 - $150,000 range. Recruiters bring a lot to the table. They have many contacts and are especially adept at finding qualified employed candidates who aren't actively looking to change jobs. They can keep your firm's name confidential until late into the search process. The recruiter can save top management's time by finding and screening an applicant pool. The recruiter's fee might actually turn out to be small when you compare it to the executive time saved. 109) Why is effective recruiting a challenge for many employers? What methods can employers use to effectively recruit a more diverse workforce? Answer: Effective recruiting is difficult for many employers because some recruiting methods are superior to others, depending on the type of job for which you are recruiting. Second, the success you have recruiting depends greatly on non-recruitment issues and policies. For example, paying 10% more than most firms in your locale should, other things being equal, help you build a bigger applicant pool faster. Third, employment law prescribes what you can and cannot do when recruiting. For example, managers can't rely on word-of-mouth dissemination of information about job opportunities when the workforce is substantially all white or all members of some other class, such as Hispanic. In order for businesses to effectively recruit a more diverse workforce, they should take the goal of recruiting more minorities seriously, and pursue that goal energetically. In practice, this requires a three-part effort: Understand the recruitment barriers that prevent minorities from applying, formulate the required recruitment plans for attracting and retaining minorities and women, and institute the specific day-to-day programs into recruitment programs. 110) In a brief essay, discuss how EEO laws affect both recruiting and the information requested on job application forms. Answer: Firms that use the Internet for recruiting purposes must show that they are in compliance with EEO laws. Since fewer older people use the Internet, online application gathering may inadvertently exclude disproportionate numbers of older applicants and certain minorities. To prove they've complied with EEO laws, employers should keep track of each applicant's race, sex, and ethnic group. The EEO says that, to be an "applicant," he or she must meet three conditions: he or she must express interest in employment; the employer must have taken steps to fill a specific job; and the individual must have followed the employer's standard application procedure. Firms must adhere to EEO laws in regards to the information they request on job application forms. For example, firms should remember that questions about an applicant's education should avoid asking about the dates of attendance and graduation from various schools because the information may reflect the applicant's age. The courts have usually held that employers violate Title VII by disqualifying applicants from employment because of an arrest, so forms should not ask about an applicant's arrest record. Some forms ask the applicant to list memberships in clubs, organizations, or societies. Employers should include instructions not to include organizations that would reveal race, religion, physical handicaps, marital status, or ancestry. It is usually illegal to require the listing of an applicant's physical handicaps or past illnesses unless the application blank specifically asks only for those that "may interfere with your job performance." Test Bank for Human Resource Management Gary Dessler 9780132668217, 9789353942205, 9780135226803, 9780136089964, 9780134235455, 9780130141248
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