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What is the primary reason organizations downsize? How do they meet this objective?

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The primary reason organizations engage ...

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A manufacturing company hit by a slump in demand is experiencing a labor surplus.The company expects the market to improve in six months and it does not want to layoff any of its employees.Which of the following strategies is an equitable way to handle this issue that results in spreading the burden more fairly?


A) Demotions
B) Outsourcing
C) Reduced work hours
D) Overtime
E) Employing temporary workers

F) D) and E)
G) A) and E)

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Outsourcing refers to:


A) contracting with another organization to perform a broad set of services.
B) licensing another organization to perform an organization's business in a different country.
C) using a temporary or contract employee to fill a single job vacancy.
D) buying the necessary raw materials needed to perform a business from external agencies.
E) moving operations away from the home location to bring about cost savings.

F) D) and E)
G) B) and D)

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In the context of HR planning,implementation that ties planning and recruiting to the organization's strategy and to its efforts to develop employees becomes a complete program of:


A) reengineering.
B) total quality management.
C) benchmarking.
D) talent management.
E) workforce utilization.

F) A) and B)
G) A) and D)

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Which of the following is true of temporary workers?


A) Temporary employment involves higher costs.
B) Using temporary workers frees the employer from many administrative tasks.
C) Use of temporary workers is not suitable for small companies because extensive testing of the employees needs to be done before these companies get employees from an agency.
D) Most temporary workers need to be trained by the employers every time they join a new organization.
E) Temporary employment is not suitable for those employers who need to operate efficiently even when demand for their products changes rapidly.

F) D) and E)
G) B) and E)

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The most important source of recruits for entry-level professional and managerial vacancies is:


A) on-campus interviewing.
B) public employment agencies.
C) advertisements in newspapers and magazines.
D) private employment agencies.
E) employee referrals.

F) A) and D)
G) A) and C)

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

A) True
B) False

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Statistical models are used for forecasting labor demands because they are good at capturing "once-in-a-lifetime" changes.

A) True
B) False

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_____ are people who apply for a vacancy because someone in the organization prompted them to do so.


A) Direct applicants
B) Natural applicants
C) Neutral applicants
D) Referrals
E) Internal applicants

F) None of the above
G) A) and E)

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Recruitment is defined as:


A) the process of screening a pool of applicants who have applied for a specific position.
B) the process of evaluating the performance of an employee.
C) the activities carried out to identify and attract potential employees.
D) the process of identifying the skills required for successfully performing an organizational role.
E) the process of determining the labor supply and labor demand in an organization.

F) C) and D)
G) All of the above

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In the context of evaluating the quality of a recruitment source,yield ratios express the:


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

F) A) and E)
G) All of the above

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Which of the following methods is best suited to diagnose the underutilization of a certain minority group in an organization?


A) Workforce Utilization Review
B) Trend Analysis
C) Transitional Matrix
D) Yield Ratio
E) Capacity Utilization Analysis

F) C) and D)
G) A) and B)

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The second step in human resource planning is performance evaluation.

A) True
B) False

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Which of the following is an advantage of statistical forecasting methods?


A) They are particularly useful in dynamic environments.
B) Under the right conditions, they provide predictions that are much more precise than judgmental methods.
C) They are particularly useful in predicting important events that have no historical precedent.
D) They are invariably better than the "best guesses" of experts.
E) They can be used to reduce dependence on secondary data for making forecasts and predictions.

F) C) and D)
G) B) and E)

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Which of the following statements is true regarding referrals?


A) Referrals fall under the category of internal source of recruitment.
B) The use of referrals tends to increase the likelihood of exposing the organization to fresh viewpoints.
C) The use of referrals tends to promote nepotism.
D) Referrals cost much more than other formal recruiting efforts.
E) Referrals are the least preferred sources of new hires.

F) A) and B)
G) B) and D)

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_____ influence the kinds of job applicants an organization reaches.


A) Personnel policies
B) Recruitment sources
C) Characteristics of the recruiter
D) Financial sources
E) Operational policies

F) A) and E)
G) D) and E)

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Which of the following options for reducing an expected labor surplus has the benefit of being a relatively fast solution,but has the disadvantage of being high in human suffering?


A) Hiring Freeze
B) Early Retirement
C) Retraining
D) Work Sharing
E) Downsizing

F) B) and C)
G) A) and D)

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Which of the following is an element in the final stage of human resources planning?


A) Estimating labor demand
B) Estimating labor supply
C) Estimating labor surplus/shortage
D) Strategic planning
E) Evaluating outcomes

F) A) and B)
G) D) and E)

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Executive search firms:


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

F) B) and E)
G) A) and E)

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Which of the following options for avoiding an expected labor shortage has the benefit of being a relatively fast solution with high revocability?


A) Retrained Transfer
B) Turnover Reductions
C) New External Hires
D) Overtime
E) Technological Innovation

F) A) and B)
G) A) and E)

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