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

A) True
B) False

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In the context of human resource planning, the primary goal of forecasting is to


A) predict labor shortages or surpluses in specific areas of an organization.
B) determine labor supply.
C) set goals for hiring employees.
D) focus attention on a problem and provide a basis for measuring an organization's success.
E) eliminate large numbers of personnel with the goal of enhancing an organization's competitiveness.

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

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Yoza Inc., a manufacturer of electronic goods, is experiencing financial losses. The company is also facing the problem of a labor surplus due to low demand for its products. In this context, what would be the best way for Yoza Inc. to deal with this labor surplus?


A) The company must consider work sharing because it causes relatively less suffering to the employees.
B) The company must choose an early retirement option because it gives an option to employees to voluntarily leave the organization with suitable monetary compensation.
C) The company must freeze employee hiring and focus on natural attrition because it is a relatively fast way to reduce a labor surplus.
D) The company must consider downsizing because it is the quickest way to deal with a labor surplus that results in financial losses.
E) The company must consider retraining employees because it helps improve their interpersonal skills.

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

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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) Industry competitors

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

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The process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else an organization communicates with employees is referred to as


A) job posting.
B) external hiring.
C) employment referral.
D) a workforce utilization review.
E) direct sourcing.

F) A) and E)
G) A) and C)

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Evelyn, the HR manager at Freton Inc., recruits her cousin Gia as production manager in the company. This move results in resentment among several of the company's employees. By hiring her cousin, Evelyn has engaged in the practice of hiring relatives, or


A) localism.
B) nepotism.
C) structuralism.
D) voluntarism.
E) abstractionism.

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

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

A) True
B) False

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What is a challenge associated with an outsourcing strategy?


A) labor shortage
B) increased cost
C) quality-control problems
D) lack of necessary technology
E) diseconomies of scale

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

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Jacob, the CEO at Einstein Inc., learns that his company is perceived as low-value by customers. He plans to combat this by hiring highly skilled and knowledgeable employees in order to improve Einstein's competitive standing. In this scenario, Jacob will most likely be hiring


A) outsourced employees.
B) offshored employees.
C) employees with a core competency.
D) employees with a college degree.
E) temporary workers.

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

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Which statement is true of executive search firms?


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

F) None of the above
G) All of the above

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El Niro Inc. is automating processes so the company can meet its demand with a smaller workforce. The CEO asks Megan, the vice president of human resources, for advice on how to address the resulting labor surplus. Megan studies the workforce and observes that many employees are in their 50s and 60s. Furthermore, these employees are the highest-paid workers in every job category. Based on this information, what should Megan suggest as the most effective way of addressing El Niro's labor surplus?


A) The workforce should be downsized, with layoffs focusing on the older employees.
B) Retrain the older employees in order to make them work more productively.
C) Provide performance-based pay to increase production output by the employees.
D) Replace the employees with contract workers.
E) Offer early retirement incentives to the employees in their 50s and 60s.

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

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

A) True
B) False

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Janine, a trainer at Keller Inc., wants to find out how many candidates moved from the initial interview stage to the training selection stage in the past month. To find out, she needs to compare the


A) yield ratios.
B) cost per hire.
C) prospective costs.
D) returns on investment.
E) liquidity ratios.

F) None of the above
G) B) and D)

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

A) True
B) False

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How can employers overcome the challenges of outsourcing?

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To ensure success with an outsourcing st...

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Most direct applicants to an organization have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application. This process is termed


A) nepotism.
B) employee referral.
C) self-selection.
D) internal recruitment.
E) employment at will.

F) B) and D)
G) None of the above

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________ states that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.


A) Due-process policy
B) Employment flexibility
C) Rule of fair treatment
D) Rule of law
E) Employment at will

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

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

A) True
B) False

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Christina, an HR manager at Dixon Inc., is dealing with labor shortage problems due to a sudden increase in production levels at the company. Among the following options, the fastest way to fix this problem is to


A) use retrained transfers.
B) focus on turnover reductions.
C) hire new employees.
D) hire temporary employees.
E) focus on technological innovation

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

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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 lay off any of its employees. Which strategy is an equitable way to handle this issue and spread the burden more fairly?


A) demotions
B) outsourcing
C) reduced work hours
D) overtime
E) employing temporary workers

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

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