Testbank

to accompany

HumanResource
Management
th
4 Edition
by
RaymondJ.Stone
preparedby

Pamela Mathews

John Wiley & Sons Australia, Ltd

Chapter 2 : Human Resource Planning

Multiple Choice Questions
1.

Identify

the

least

correct

statement:

d
App
(a) Human resource planning is concerned with the demand and supply of labour.
H
(b) To be successful, an organisation needs employees. Therefore, it needs human
resource planning to successfully meet its future labour requirements.
(c) The purpose of human resource planning is to assure that a certain desired
number of persons with the correct skills are available at the specified time in
the future.
(d) Human resource planning can be undertaken in isolation, and divorced from the
companys overall business objectives.
2.

Human resource planning is the responsibility of:

d

Fac
(a) line managers
L
(b) top managers
(c) HR managers
(d) all managers
3.

An HR plan should be focused on:

d

Und
(a) future employee needs
M

(b) the organisations strategic plan

(c) labour costs
(d) both (a) and (b)
4.

To be of value, HR planning must be:

a

Und
(a) an integrated part of the organisations strategic planning process
H
(b) undertaken immediately after strategic planning takes place
(c) developed independently of, but at the same time as, strategic planning
(d) undertaken as and when a need arises in relation to human resource issues
5.

If an HR manager concentrates on meeting short-term replacement needs it can

b
result in:
Und

(a)
(b)
(c)
(d)
6.

M
cost savings
quantity and quality problems
up-to-date employee skills
improved job satisfaction

Linking HR planning with corporate strategy allows the HR manager:

c
Und
(a) an opportunity to understand the role he/she plays within the organisation

7.

H
(b) to influence the future direction of the organisation
(c) to anticipate and influence the future HR requirements of the organisation
(d) to more clearly understand the impact of increased global competition
Effective HR planning ensures all of the following except:
a

Und
(a) reduced absenteeism and turnover
M
(b) more satisfied and better developed employees
(c) reduced financial and legal costs
(d) more effective and efficient use of human resources
8.

When developing HR plans the HR manager must consider which of the following
c
issues
App

(a)
(b)
(c)
(d)
9.

H
competitive strategy, economic policy, social values
conservation, social values, legal regulations
environmental trends, social values, demographics, conditions of employment
labour costs, unemployment levels, economic conditions, competition

Improved childcare facilities, the increased availability of part-time work, and

b
maternity leave are a reflection of:
Und

(a)
(b)
(c)
(d)

M
changing social values
increasing numbers of women in the workforce
attempts to reduce levels of employee absenteeism
the requirements of EEO legislation

10. In 1997 what percentage of Australias workforce were classed as part-time?

a
Fac
(a) 25%
L
(b) 10%
(c) 50%
(d) 15%

11. If you were conducting HR planning for a small manufacturing firm which of the
d
following would you not be considering when you examine environmental factors
App
that might impact on your organisation?
M
(a)
(b)
(c)
(d)

skill shortages
demographics
work schedules
political stability

12. HR managers need to be able to forecast the organisations future HR requirements

b
and determine how to acquire the people needed. To do this they need three sets of
Fac
forecast. Which of the following is not a forecast required for human resource
M
planning?
(a)
(b)
(c)
(d)

forecast of the demand for human resources

forecast of the demand for human resources of competitor organisations
forecast of supply of human resources available within the organisation
forecast of the supply of external human resources

13. The quantitative approach to human resource planning:

c
Fac
(a) uses expert opinion to predict the future
L
(b) calls for a panel of experts to independently make predictions about human
resource needs
(c) uses statistical and mathematical techniques
(d) is exemplified by the Delphi technique
14. HR surpluses, shortages and career blockages are the focus of which approach to HR
d

planning?
Fac
L
(a) qualitative approach
(b) reactive approach
(c) humanistic approach
(d) quantitative approach
15. An organisations human resource inventory contains information on all of the
d
following except:
Fac

(a)
(b)
(c)
(d)

M
employee skills
employee experience
career goals
employee attitudes

16. According to the human resource planning process presented by Stone the first step
a
is to:
App

(a)
(b)
(c)
(d)

H
determine number and type of jobs to be filled
examine human resource inventory
identify labour shortages
stops recruiting new employees

17. The technique which involves building complex computer models to simulate future
b
events based on probability and multiple assumptions is:
Fac
M
(a) trend projection

(b) econometric modelling

(c) time-line analysis
(d) projected growth analysis
18. The qualitative approach to human resource planning:
a
Fac
(a) uses expert opinion to predict the future
M
(b) uses statistical and mathematical techniques
(c) relies upon trend projection, and econometric modelling
(d) uses succession planning charts, and workforce audits
19. The Delphi technique aims to:
c
Und
(a) collect information that supports the decisions of management
H
(b) review the ideas of an expert in relation to projected trends
(c) integrate the independent opinions of experts by eliminating personal influence
and discussion
(d) bring together a group of experts so that a range of issues and alternatives can
be addressed
20. Identify the most complete list of analyses for forecasting the internal supply of
b
human resources
Und

(a)
(b)
(c)
(d)

H
turnover analysis, skills inventory, replacement charts, Markov analysis, Delphi
technique
turnover analysis, skills inventory, replacement charts, Markov analysis,
succession planning
turnover analysis, skills inventory, replacement charts, trend projection,
succession planning
turnover analysis, skills inventory, expert opinion, Markov analysis, succession
planning

21. The number of people who leave an organisation due to resignation, retirement,
d
death or disability, retrenchment or termination is known as:
Fac

(a)
(b)
(c)
(d)

L
employee loss
downsizing
employee departure
labour turnover

22. The best source of information about people leaving the organisation can be
c
obtained from:
Und

(a)
(b)
(c)
(d)

M
employee exit interviews
employee attitude surveys
labour turnover rates from past years
retrenchment figures for the past five years

23. The skills inventory allows the HR manager to do all of the following except:
a
(a)
(b)
(c)
(d)

Und
identify where qualified external labour sources can be found
M
identify qualified employees for different jobs
determine which skills are present or lacking in the organisation
assess longer-term recruitment, selection and training and development
requirements

24. Which of the following information would not be found in a skills inventory:
b

Fac
(a) qualifications
L

(b) political affiliations

(c) personal data
(d) salary and job history
25. A skills inventory can benefit employees by:
d

Fac
(a) allowing the HR manager to check personal details without interrupting an
M
employee on the job
(b) keeping an accurate record of bonus and leave entitlements
(c) making regular performance appraisal reviews unnecessary
(d) allowing the HR manager to fill positions by internal promotion
26. To be successful a skills inventory system requires all of the following except:
c

Fac
(a) top management support
L
(b) assured confidentiality
(c) computer storage of data
(d) current information
27. Replacement charts are used to identify:
b

Und
(a) where qualified applicants can be located to fill senior positions when they
H
become vacant

(c) present incumbents and potential replacements for given positions

(c) which positions are no longer necessary and can remain vacant when the current
incumbent leaves the organisation
(d) which positions can be amalgamated or replaced by machines due to advances
in production technology
28. A replacement chart is not used with which type of employees:
c

Fac
(a) technical
L
(b) professional
(c) clerical
(d) managerial
29. Markov analysis
a

Und
(a) uses a mathematical technique to forecast the availability of internal job
M
candidates
(b) focuses on the development of high potential employees to guarantee their
readiness for promotion
(c) uses the opinions of experts to identify internal candidates for promotion
(d) identifies existing employees who should be released due to poor performance
30. The use of Markov analysis requires:
d

Fac
(a) a knowledge of regression analysis

H
(b) the full support of both management and employees
(c) a maximum of 20 employees in any one job classification
(d) a minimum of 50 employees in any one job classification
31. Which of the following techniques for forecasting the internal supply of human
b
resources is concerned with the filling of management vacancies?
Fac

(a)
(b)
(c)
(d)

L
replacement charts
succession planning
Markov analysis
skills inventory

32. Many organisations have depleted their management ranks as a result of:
c
Fac
(a) neglect
M
(b) rapid internal promotion
(c) downsizing
(d) lack of employee development
33. Management development and succession are considered superfluous by many
d
organisations because of:
App

(a)
(b)
(c)
(d)

H
the labour surplus for specialist, skilled positions
the more highly educated nature of the current workforce
the costs involved in developing a fluid and mobile workforce
rapid changes in business and a mobile job market

34. Succession planning for chief executives and senior executives is used by what
a

percentage of Australian companies?

Fac

(a)
(b)
(c)
(d)

M
approximately 50%
less than 10%
at least 75%
23%

35. Succession planning often begins with an examination of:

c
Fac
(a) turnover rates
L
(b) staff development activities
(c) replacement charts
(d) trend projections
36. The practice of managers developing their own replacement has been found to be:
b
Fac
(a) successful and cost efficient
M
(b) ad hoc and subjective
(c) objective and well-structured
(d) difficult to implement and monitor
37. Effective development of managers requires:
d
Und
(a) employing a specialist trainer to identify training needs
H
(b) a knowledge of competitor strategy to allow the development of skills that
match those of the competition
(c) the use of a computer based form of individual needs assessment
(d) identifying appropriate learning experiences via job assignments
38. For succession planning to meet the future needs of the organisation it relies on all

c
of the following to be effective except:
Und

(a)
(b)
(c)
(d)

M
performance appraisal system
training and development programs
compensation and benefits
a culture of individual growth and promotion from within

39. To accurately forecast the availability of external human resources the HR manager
b
must monitor and respond to:
Fac

(a)
(b)
(c)
(d)

M
changes in business strategy
demographic changes
changes to skill requirements
changes to Government regulations

40. The workforces of Australia, Hong Kong, Japan, Singapore, South Korea, Taiwan
a
and the USA are:
Fac

(a)
(b)
(c)
(d)

L
aging
shrinking
growing
younger

41. The Australian labour market is affected by all of the following except:
c
Und

(a) increased female participation rates

M
(b) increases in school retention rates
(c) increased use of succession planning
(d) changes in the rate of immigration
42. Competitive pressures, changes in technology and outsourcing have all contributed
b
to the trend towards:
Fac

(a)
(b)
(c)
(d)

M
multiskilling of the workforce
casualisation of the workforce
downsizing of the workforce
mobility of the workforce

43. The process of subcontracting work to an outside company that specialises in and is
d
more efficient at that kind of work is known as:
Fac

(a)
(b)
(c)
(d)

L
specialising
consulting
de-skilling
outsourcing

44. Organisations choose to outsource for all of the following reasons except:
b
Und
(a) cost and quality
M
(b) lack of employee skills
(c) increased focus on core business
(d) access to improved technology

45. Organisations might choose to outsource:

c
Fac
(a) performance review activities
L
(b) training needs analysis
(c) recruitment activities
(d) exit interviews
46. Many criticisms have been made of the practice of outsourcing. Which of the
d
following is not one of these criticisms?
Fac

(a)
(b)
(c)
(d)

H
loss of essential personnel
reduced service
production delays
leaking of confidential information

47. The internationalisation of business has been facilitated by:

a
Und
(a) advances in technology and labour mobility
M
(b) population growth and spending power
(c) increased immigration and changing consumer tastes
(d) widespread marketing and sales potential
48. An organisations success depends on:
b
Und
(a) financial standing
H
(b) how well its human resources are managed
(c) how quickly new products can be developed and produced

(d) having efficient, low-cost sources of labour

49. Which of the following is not a requirement for effective human resource planning:
c
Und
(a) top management that is supportive of the planning process
H
(b) good communication between HR personnel and line management
(c) the plan utilises qualitative, and the qualitative approaches to planning
(d) the integration of the HR and corporate plan
50. The HR plan:
b
Und
(a) is independent of all other plans undertaken by the organisation
H
(b) affects all HR activities, and is a strategic link between organisational and HRM
objectives
(c) serves as a broad guideline for the employment and placement of human
resources
(d) is a superfluous activity that adds nothing of value to the management of an
organisation and its ability to achieve its strategic objectives
True/False Questions
1.

The purpose of human resource planning is to ensure that a predetermined number

T
of persons with the correct skills are available at a specified time in the future.
Und
M

2.

HR planning should be undertaken at the same time as a review of the organisations

F
external and internal environment.
Fac
L

3.

An HR approach that focuses on meeting short-term labour needs has proved to be

F
highly efficient for many organisations; particularly those requiring high-tech,
Und
specialist skills.
H

4.

HR planning must take into consideration an organisations objectives, culture,

T
structure and environment.
Fac
L

5.

The drift away from full-time jobs towards part-time work is a global trend.
T
Fac
L

6.

HR managers need to be able to forecast the organisations future HR requirements

F
to identify which staff can be made redundant.
Und
M

7.

The quantitative approach to HR planning views all employees as numerical entities.

T
Fac
L

8.

The forecasting of HR shortages and surpluses is the focus of the qualitative

F
approach to HR planning.
Fac
L

9.

The human resource inventory identifies the number of employees available and
T
their skills.
Fac
M

10. A time series analysis is one approach to econometric modelling.

F
Fac
M
11. HR planning uses the opinions of experts because it is simple and fast.
T
Fac
M
12. The external supply of labour consists of all available human resources, both inside
F
and outside the organisation.
Und
H

13. The skills inventory includes data relating to the capacity of individual employees
T
such as psychological tests.
Und
H
14. Skills inventories only benefit the organisation.
F
Fac
L
15. Replacement charts are tables used to identify areas of production where employees
F
can be replaced by new technology.
Und
M
16. Markov analysis uses a matrix to show the probability of an employee moving from
T
one job to another.
Und
H
17. BHP Chief Executive, John Prescott, argued that their biggest challenge is to
T
develop people to continue to grow the business at a satisfactory rate given its
App
diversity geographically and in product lines that well face.
H

18. HR planning requires that the organisation undertakes an analysis of the employee
F
skills of competitor organisations if it is to be effective.
Und
M
19. People are able to work longer because of advances in technology.
T
Fac
L
20. In Australia, 24% of all employees are now casual workers.
T
Fac
L
21. The outsourcing of HR activities is costing more time and money, is less efficient,
F
and is causing the HR department to lose sight of its role in helping the organisation
Und
to achieve its objectives.
H
22. One reason organisations choose to outsource their HR activities is to eliminate
T
union problems.
Fac
M
23. Recently many Australian organisations have been seeking foreign executives to

T
head their corporations.
Fac
M
24. HR planning can be successful without top management support.
F
Und
M
25. Human resource planning is the cornerstone of all HRM activity.
T
Und
M
Essay Questions
1.

Human resource planning is the cornerstone of all HRM activity. Critically

discuss this statement identifying the contribution that HR planning can make to
each HRM activity.

2.

Stone argues that human resource planning should be closely linked to the
organisations objectives. How does effective human resource planning support the
achievement of an organisations objectives?

3.

Human resource planning involves an analysis of both the internal and external
supply of labour. Discuss the difference between these two areas of analysis and
examine why both are necessary for human resource planning to be accurate and
effective.

4.

How does accurate human resource planning assist an organisation in its recruitment
and selection activities?