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Solenz Inc.is a relatively new company that employs 23 workers.The company is facing a labor surplus problem with approximately 3 more employees than it needs.Which of the following is the best strategy to deal with this labor surplus?


A) The company must use an early retirement strategy because it helps old employees retire sooner, thereby solving the labor surplus issue.
B) The company must focus on natural attrition whereby employees leave the company on their own, as this will reduce the burden of firing surplus employees.
C) The company must freeze their hiring practices, which will result in balancing the number of employees and the demand for work over a period of time.
D) The company must implement pay reductions as this will help the company get rid of less motivated employees.
E) The company must implement work sharing, which will take up the time of extra workers and help complete projects faster.

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

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Which of the following best describes outsourcing?


A) It refers to contracting with another organization to perform a broad set of services.
B) It refers to finding cheap resources in another country to gain a competitive advantage.
C) It refers to using a temporary or contract employee to fill a single job vacancy.
D) It refers to buying the necessary raw materials needed to conduct business from external suppliers.
E) It refers to moving operations away from the home location to increase cost savings.

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

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In human resource planning,forecasting is an intermediary step.

A) True
B) False

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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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A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

A) True
B) False

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Jonathan,the CEO of Maxofan Inc.,finds that the company needs to eliminate a labor surplus to avoid financial difficulties.To deal with this problem,he chooses a strategy that gives him fast results.However,the amount of suffering caused to employees is high.Jonathan is most likely using the _____ strategy to reduce the labor surplus.


A) early retirement
B) downsizing
C) natural attrition
D) retraining
E) hiring freeze

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

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Organizations carry out human resource planning to:


A) reduce hiring of workers from colleges and universities.
B) increase hiring costs to match industry standards.
C) avoid taking risks.
D) gain an advantage over competitors.
E) replace technology with highly skilled workers.

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

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Which of the following observations is true of utilizing the services of independent contractors?


A) Core competencies can be effectively outsourced to contractors.
B) A company is not supposed to directly supervise the contractors.
C) It is a relatively slow process with low revocability.
D) An organization can achieve increased quality though the costs are more.
E) It provides an organization with increased control over the operations.

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

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_____ formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee.


A) Leading indicators
B) Trend analyses
C) Transitional matrices
D) Due-process policies
E) Employment-at-will contracts

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

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In the context of recruitment sources,referrals are people who apply for a vacancy without prompting from the organization.

A) True
B) False

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The most widespread methods for eliminating labor shortages are reducing work hours and endorsing early-retirement programs.

A) True
B) False

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Identify the correct statement regarding internal recruitment sources.


A) Research indicates that most organizational positions are filled internally.
B) Internal recruitment sources expose an organization to new ideas or new ways of doing business.
C) Internal recruiting minimizes the possibility of unrealistic employee expectations.
D) Employee referrals are the most common source of job applicants for internal recruitment.
E) Internal sources are most appropriate for specialized upper-level positions.

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

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Brendan and Angela are HR managers at Seattle Investments.They are expecting a labor surplus over the next two years when the organization will have 24 more than the required number of employees.Typically,two employees leave the organization each month.In this scenario,which of the following is the best way to deal with the predicted labor surplus?


A) They must consider downsizing because it is the fastest way to fix a labor surplus.
B) They must consider natural attrition because the company has enough time to deal with the labor surplus without causing suffering to the employees.
C) They must reduce employees' pay as this will lead to demotivated employees quitting the organization; consequently, the labor surplus problem will be solved.
D) They must choose a hiring freeze strategy because it slows down the attrition rate.
E) They must consider demoting low-performing employees, which will eventually solve labor surplus problem.

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

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To ensure success with an outsourcing strategy,companies should outsource work that requires tight security.

A) True
B) False

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Identify the correct statement regarding downsizing.


A) Downsizing improves long-term organizational effectiveness.
B) The negative effect of downsizing is especially low among firms that engage in high-involvement work practices.
C) Downsizing often disrupts the social networks through which people are creative and flexible.
D) The negative impact of downsizing is especially low for those organizations that emphasize research and development.
E) Downsizing campaigns only eliminate people who are replaceable.

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

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Downsizing disrupts the social networks through which people are creative and flexible.

A) True
B) False

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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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In terms of external sources of recruitment,who are direct applicants and referrals? Why are these two groups regarded as excellent sources of recruitment?

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Direct applicants are people who apply f...

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Personnel policies influence the kinds of job applicants an organization attracts.

A) True
B) False

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What are internal sources of recruitment? What are the advantages and disadvantages of using this source?

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Internal sources of recruitment are empl...

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