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Chapter 6Recruiting and Labor Markets
MULTIPLE CHOICE
1. The process of generating a pool of qualified applicants for organizational jobs is called:
a. requisitioning.
b. pre-screening.
c. recruiting.
d. summoning.
ANS: C
PTS: 1
NAT: BUSPROG: Analytic
DIF: Easy
TOP: Recruiting
OBJ: LO: 06-01

KEY: Bloom's: Knowledge
2. Bryan is the recruiting specialist for an online retailing company in Missouri. He used all types of
recruiting techniques available to him to fill nineteen job openings. Using these techniques, exactly
nineteen applicants with the minimum qualifications were found and al the candidates accepted the job
offer. Which of the following is true about this scenario?
a. The yield ratio will be 50%.
b. A selection process is not necessary in the given scenario.
c. The acceptance rate in this scenario is 60%.
d. The labor market in this area can be described as loose.
ANS: B
PTS: 1
NAT: BUSPROG: Reflective Thinking
DIF: Moderate
TOP: Recruiting
OBJ: LO: 06-01

KEY: Bloom's: Application
3. Which of the following would be an advantage for U.S. organizations that do not want to outsource
their work overseas?
a. Advancements in American worker productivity
b. Rapidly rising labor costs in countries like India and China
c. Restrictive U.S. requirements for work permits
d. Large tax penalties that U.S. firms must pay if they outsource jobs
ANS: A
PTS: 1
KEY: Bloom's: Comprehension
DIF: Moderate
OBJ: LO: 06-01
TOP: Labor Markets
4. The _____ includes all individuals available for selection, if all possible recruitment strategies are
used.
a. labor force population
b. external labor market
c. recruitment pool
d. applicant population
ANS: A
PTS: 1
DIF: Easy
OBJ: LO: 06-01
TOP: Labor Markets
5. Priam Designs Inc. is recruiting fashion designers through LinkedIn. This recruiting mode typically
provides direct access to the _____.
a. applicant pool
b. entire pool of eligible candidates
c. entire labor market
d. applicant population
ANS: D
PTS: 1
DIF: Moderate
OBJ: LO: 06-01
TOP: Labor Markets
6. Stacy, the HR manager of a bank, restricts her recruiting efforts for the post of loan officer to placing
advertisements on the Web site of the American Banking Association. This will allow Stacy to
determine the _____ for the job of loan officer.
a. applicant population
b. labor force population
c. applicant pool
d. entire labor market
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-01
TOP: Labor Markets
7. The _____ pool consists of all persons who are actually evaluated for selection.
a. applicant
b. selection
c. labor
d. talent
ANS: A
PTS: 1
DIF: Easy
OBJ: LO: 06-01
TOP: Labor Markets
8. Linda is the director of HR at Colette Value Inc., a large tax-preparation firm. The firm faces a dearth
of tax preparers every year when the tax season approaches. Every December, Linda outsources a bulk
of the recruiting process to an employment agency to recruit temporary employees before the tax
season begins. However, she wants to do so without excessively limiting her final hiring decisions.
Which of the following processes of recruitment should Linda carry out first hand?
a. Advertising for recruitment over the Internet
b. Preliminary screening of rsums
c. Designing the employment advertisements
d. Face-to-face interviews with finalists
ANS: D
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
TOP: Strategic Recruiting Decisions
9. Karl Graphics is conducting a vigorous recruiting campaign aimed at hiring 12 new employees within
two weeks. This best exemplifies _____ recruiting.
a. continuous
b. emergency
c. intensive
d. crisis
ANS: C
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
10. A(n) ____ typically takes over the staff of a small business and writes the paychecks, pays the taxes,
prepares and implements HR policies, and keeps all the required records for a fee.
a. employment agency
b. payroll vendor
c. professional employer organization

d. third-party employer
ANS: C
PTS: 1
DIF: Easy
OBJ: LO: 06-02
11. One advantage of leasing companies for employees is that:

a. employers can save money on benefits.
b. employers can hire permanent employees.
c. it reduces total payroll costs for the employers.
d. it exempts employers following the OSHA regulations.
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
12. Which of the following statements is true about employees of employee leasing companies?
a. They have employment contracts and are not at-will employees.
b. They increase the costs on benefits and HR administration on the part of the employer.
c. They are supplied by contract to employers with jobs.
d. They can be regarded as self-employed for IRS purposes.
ANS: C
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
13. Which of the following candidates have the highest probability of being rejected by a U.S.
organization that practices sound HR practices and recruits nontraditional diverse workers?
a. A middle-aged white male who is currently living in a halfway house for former drug
addicts
b. A 60-year-old woman living in an old age home.
c. A 19-year-old man with an IQ of 92
d. A young college-educated Danish woman without an H1 visa
ANS: D
PTS: 1
DIF: Easy
OBJ: LO: 06-02
14. Patricia, an outstanding performer, was placed at Oliver & Co. by a temporary service firm for two
months. Patricias manager approaches Oliver & Co.s HR Director with the request that she wants her
as a regular employee. Given this scenario, which of the following statements is true?
a. The temporary agency contract requires Oliver & Co. to pay a placement fee if Patricia is
hired as a regular employee.
b. The employers will not be liable for Patricias safety under OSHA regulations.
c. Patricia will be less expensive as a regular employee than as a temporary employee
because temporary employees typically receive a 40% wage premium to offset the lack of
benefits.
d. Oliver & Co. is ethically bound not to hire temporary employees provided by an agency for
regular employment.
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
15. In which of the following situations would the use of temporary workers be most appropriate?
a. A company that has a low rate of turnover among its regular employees.
b. An employer who has received a long-term contract from the Federal government for
oceanic research.
c. A tax preparation company that mostly handles individual clients and has few business
clients.
d. A start-up company with a competitive strategy of continuing expert customer service.
ANS: C
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
16. Angela is a self-employed graphic artist. She is usually hired by companies for special projects that
lasts from a week to six months. Angela can be best described as a(n):
a. independent contractor.
b. undocumented worker.
c. regular employee.
d. full-time employee.
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
17. Which of the following statements is true about recruiting diversity?

a. An organization that advertises job openings for individuals with Christian values
employees would be considered impartial.
b. Affirmative Action Plans include hiring goals for protected classes that the employer must
try to meet with its recruiting efforts.
c. Journeyman lineman is a permissible term for employment advertisements.
d. Employers demonstrate exclusive recruiting by having diverse individuals represented in
company materials.
ANS: B
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
18. If an employer lists the designation EEO/M-F/AA/ADA in its employment advertisements, it indicates
that
a. the employer will hire only minorities and disabled persons.
b. the company has been found liable in a discrimination lawsuit.
c. the employer has a policy of complying with equal employment regulations.
d. the company encourages disparity in its workforce.
ANS: C
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
19. Paul is the director of recruitment at Times Clockworks. After running a thorough study of their
employees backgrounds, Paul finds that Times Clockworks has disparate impact in the proportion of
Hispanic employees compared to the proportion of Hispanics in its labor market. Which of the
following steps should Paul take to solve the problem most efficiently?
a. Lower the job specifications for Hispanic applicants
b. Begin advertising for job openings on the local Spanish radio station
c. Continue its current recruiting practices because only organizations with Affirmative
Action Plans are required to meet EEO guidelines
d. Freeze the hiring process until qualified Hispanics apply for the position
ANS: B
PTS: 1
DIF: Challenging OBJ: LO: 06-02

20. Which of the following statements is true about good recruiting efforts?
a. If a disparate impact exists between an employers workforce and the relevant labor
markets, then the employer is required by law to expand its external recruiting efforts.
b. Advertising job openings for exercise boys for a race track would be considered legal
terminology.
c. A salon that advertises job openings for young and enthusiastic employees would be
considered impartial.
d. Wording about specific designations such as EEO/M-F/AA/ADA in employment
advertisements would be considered illegal.
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
21. Which of the following statements is true of good recruiting efforts?

a. If a disparate impact exists between an employers workforce and the relevant labor
markets, then the employer is required by law to expand its internal recruiting efforts.
b. If a company has few Somali employees in a community with a large Somali presence, a
good recruiting strategy is to have company employees who are not from Somali to help
with recruiting.
c. It would be discriminatory for a race track to advertise job openings for exercise boys.
d. The Equal Employment Opportunity Commission (EEOC) guidelines state that indirect
references implying gender or age are permitted.
ANS: C
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
22. Edison Inc., an electrical utility company, is moving from using only traditional sources of electricity
to promoting the use of solar and wind power. It is one of the first utilities in the country to move
heavily to solar and wind-generated electricity. Which of the following steps should the HR director
take in order to cope with these new technologies at Edison Inc.?
a. Avoid including specific designations such as EEO/M-F/AA/ADA in the job
advertisements
b. Highlight terms such as young and enthusiastic and journeyman lineman in their
official Web sites
c. Focus on training and development to generate internal candidates for all the new positions
at the utility
d. Plan to do more extensive external recruiting for technical and engineering positions
ANS: D
PTS: 1
DIF: Moderate
OBJ: LO: 06-02
23. Which of the following is a defining characteristic of regular staffing?

a. It uses workers who are traditional employees.
b. It uses independent contractors.
c. Companies can utilize the try before you buy approach.
d. Companies can avoid litigation associated with the termination of workers.
ANS: A
PTS: 1
DIF: Easy
OBJ: LO: 06-02
24. A passive job seeker is one who:

a. seeks a job merely because it is a requirement of receiving unemployment compensation.
b. conducts a haphazard and unplanned job search.
c. has a good job and is not actively looking to change jobs.
d. is an employed individual who is not satisfied with his or her current job.
ANS: C
PTS: 1
DIF: Easy
OBJ: LO: 06-03
TOP: Internet Recruiting
25. Which of the following statements is true of job boards?

a. Job boards enable job seekers to submit rsums to many employers simultaneously.
b. Much of the information provided by companies on job boards is intended to mislead
competitors.
c. Applicants hired from job boards always have worse average performance levels than
applicants hired via social networking media.
d. Job boards fail to offer access to numerous candidates.
ANS: A
PTS: 1
DIF: Easy
OBJ: LO: 06-03
26. Johns Medical is recruiting for the post of an oncology nurse practitioner. It would be most effective
for Johns Medical to advertise:
a. on a microblogging site like Twitter.
b. online recruitment videos on a general job board such as Monster.com or CareerTV.
c. on the Web site of the oncology nurse practitioner professional organization.
d. on a social networking site such as Facebook.
ANS: C
PTS: 1
DIF: Easy
OBJ: LO: 06-03
27. Which of the following is a feature of Internet recruiting?

a. It requires the filing of applicant EEO reports.
b. It requires the entire selection process to be conducted virtually.
c. It makes global recruiting easier, but makes local recruiting complicated.
d. It cannot be used to target specific audiences.
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-03
28. Which of the following statements is true of Internet recruiting?

a. Twitter is rarely used by recruiters because of the 140-word limit.
b. The broad reach of Internet recruiting has significantly reduced the amount of
discrimination against job seekers from racial/ethnic groups because it enlarges the
applicant population exponentially over traditional recruiting methods.
c. If a recruiter checks an applicants Facebook account, learns that the applicant is Jewish,
and then rejects the applicant, the company can be charged with an EEO discrimination
complaint.
d. An advantage of Internet recruiting is that it streamlines EEO data gathering because
everyone who accesses a job Web site is considered an applicant for legal purposes.
ANS: C
PTS: 1

29. The major saving in time generated by Internet recruiting compared with traditional recruiting is:
a. the time taken for conducting face-to-face interviews.
b. the time taken for communication between the applicants and the employer.
c. the time taken by new recruits to settle in a job.
d. the time taken by HR staff members for handling blogs, tweets, and email with applicants
versus snail mail, faxes and phone calls.
ANS: B
PTS: 1
DIF: Moderate
OBJ: LO: 06-03
30. Exclusive use of the Internet for recruiting can reduce the diversity of an employers applicant
population because:
a. it will only attract the attention of retirees who are interested in seeking new employment
opportunities.
b. individuals from lower socioeconomic groups mostly have limited access to the Internet.
c. the use of terminology such as young and enthusiastic is restricted.
d. it excludes retirees who are interested in seeking new employment opportunities.
ANS: B
PTS: 1
DIF: Moderate
OBJ: LO: 06-03
31. Which of the following would be the least important topic of training for a recruiter who will conduct
interviews in a university campus?
a. EEO regulations
b. Details of the jobs and job specifications
c. The companys desired image and brand
d. The companys job posting software
ANS: D
PTS: 1
DIF: Easy
OBJ: LO: 06-04
TOP: External Recruiting Sources
32. When compared to internal recruitment, an advantage of external recruiting is that:

a. its selection process is more rigorous.
b. it takes lesser time and resources.
c. recruited employees often require more orientation efforts.
d. it has the potential to generate larger applicant pools.
ANS: D
PTS: 1
DIF: Moderate
OBJ: LO: 06-04
33. Which of the following is an example of external sources of recruitment?

a. A veterinarian selects one of her interns as her assistant
b. Jolene recommends her colleague to fill an open position as a sales representative at the
company where Jolene works as a technician

c. An assistant librarian is shortlisted for the post of head librarian in the same library
d. A salon shifts from Boston to New York and employs a new cashier through internet
recruitment.
ANS: D
PTS: 1
DIF: Moderate
OBJ: LO: 06-04
34. Which of the following is the best way in which recruiters can easily and accurately track responses to
advertisements in various media?
a. Use only a few selected media.
b. Ask applicants where they learned of the position.
c. Ask applicants which media they found most effective.
d. Use different contact names, e-mail addresses, or phone number codes in each ad.
ANS: D
PTS: 1
DIF: Moderate
OBJ: LO: 06-04
35. The best criterion to analyze the effectiveness of an advertisement for applicants is to measure the:
a. cost of the ad per applicant.
b. total number of applicants generated by the ad.
c. number of applicants generated by the ad who were hired.
d. performance level of the hired applicants generated by the ad.
ANS: D
PTS: 1
DIF: Moderate
OBJ: LO: 06-04
36. Peter Cullen & Associates uses a private employment agency to locate engineering staff. The company
pays a fee to the employment agency every time it hires a candidate provided by the employment
agency. In this this scenario, Peter Cullen & Associates is using the services of:
a. a contingency firm.
b. a retainer firm.
c. a fee-for-service firm.
d. a labor union.
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-04
37. There are two kinds of executive search firms; _____ firms charge a fee regardless of the success of
the search.
a. contract
b. commission
c. contingency
d. retainer
ANS: D
PTS: 1
DIF: Easy
OBJ: LO: 06-04
38. There are two kinds of executive search firms; _____ firms typically charge a fee only when a
candidate is hired.
a.
b.
c.
d.
contract
consulting
contingency
retainer
ANS: C
PTS: 1
DIF: Easy
OBJ: LO: 06-04
39. In the building trade, unions can best benefit employers by providing:
a. apprenticeship programs.
b. providing interesting employment games online.
c. pre-screening for job seekers.
d. providing competitive wage scales for jobs.
ANS: A
PTS: 1
DIF: Easy
OBJ: LO: 06-04
40. Job fairs are primarily useful for:

a. rapid hiring of large numbers of people.
b. maintaining a continuous presence in a local labor market.
c. passive recruiting.
d. keeping out unemployable applicants.
ANS: A
PTS: 1
DIF: Easy
OBJ: LO: 06-04
41. Which of the following is a feature of school and college recruiting?

a. Vocational colleges and technical schools often have cooperative programs with employers
that funnel quality students into regular jobs.
b. College recruiting is one of the least expensive recruitment methods.
c. Companies who target minority students before they graduate are likely to be violating
EEO laws.
d. School and college recruiting is a type of internal recruitment.
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-04
42. Which of the following is true of internal recruitment?

a. Friends and family of current workers tend to be less qualified than external hires,
especially if bonuses are offered to the referring employees.
b. It has the potential to lead to EEO violations if the current workforce is not diverse.
c. Family connections moderate the normal political maneuvering that occurs in firms.
d. This process fails to motivate current employees to perform better.
ANS: B
PTS: 1
DIF: Moderate
OBJ: LO: 06-05
TOP: Internal Recruiting Methods
43. Which of the following is true of internal recruitment?

a. Inbreeding of employees typically result in a more diverse workforce
b. It can aid succession planning, future promotions, and career development.
c. Family connections moderate the normal political maneuvering that occurs in firms.
d. This process fails to motivate current employees to perform better.
ANS: B
PTS: 1
DIF: Moderate
OBJ: LO: 06-05
44. Which of the following is an advantage of internal recruitment?

a. Inbreeding of employees typically results in a more diverse workforce.
b. It ensures that there are no instances of infighting.
c. Recruiting costs are comparitively lower.
d. It eliminates the need of development programs when transfering employees into
supervisory jobs.
ANS: C
PTS: 1
DIF: Moderate
OBJ: LO: 06-05
45. Which of the following is a feature of job posting and bidding?

a. It gives existing employees the first chance at job openings before external candidates are
considered.
b. Job posting reduces the threat of organizational in breeding, because the posting crosses
divisional and departmental boundaries in the search for new talent.
c. Job postings significantly hinder an employees chances of promotion within an
organization.
d. In the case of internal recruitment, job posting is not a reliable source.
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-05
46. Calculating the average time from contact to hire allows a firm to most accurately:
a. calculate the cost per hire.
b. estimate the efficiency of recruiters.
c. calculate the float time in the recruiting process.
d. target the most time-efficient recruiting sources.
ANS: D
PTS: 1
DIF: Moderate
OBJ: LO: 06-06
TOP: Recruiting Evaluation and Metrics
47. A _____ is a comparison of the number of applicants at one stage of the recruiting process to the
number at the next stage.
a. progression rate
b. yield ratio
c. hit rate
d. success base rate
ANS: B
PTS: 1
DIF: Easy
OBJ: LO: 06-06
48. The percentage hired from a given group of candidates is termed:

a. the selection rate.
b. the success base rate.
c. the yield ratio.

d. the acceptance rate.
ANS: A
PTS: 1
DIF: Easy
OBJ: LO: 06-06
49. The percent of applicants hired divided by the total number of applicants offered jobs is termed as:
a. the selection rate.
b. the success base rate.
c. the acceptance rate.
d. the fill rate.
ANS: C
PTS: 1
DIF: Moderate
OBJ: LO: 06-06
50. What can a recruiter learn from calculating the acceptance rate?
a. Whether recruiters can close the deal with top candidates
b. The proportion of candidates who are of acceptable quality
c. The cost effectiveness of the organizations internal mobility
d. The competitiveness of the organizations salary structure
ANS: A
PTS: 1
DIF: Moderate
OBJ: LO: 06-06
TRUE/FALSE
1. Recruiting is essentially an administrative function rather than a part of strategic HR planning.
ANS: F
PTS: 1
DIF: Easy
TOP: Recruiting
OBJ: LO: 06-01

2. The term applicant population refers to all individuals looking for a job in a particular geographic
area.
ANS: F
PTS: 1
DIF: Easy
OBJ: LO: 06-01
TOP: Labor Markets
3. The group of applicants that an organization has available to it when using a particular recruiting
approach, such as Internet job boards, is the applicant population.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-01
TOP: Labor Markets
4. Santiago is the HR director of Illumin Media, a mid-sized organization. He notices that the proportion
of minorities in his companys managerial ranks is too low. To solve the issue, Illumin Media should
consider recruiting methods that reach a larger applicant population of experienced managers, such as
contacting professional associations.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-01

TOP: Labor Markets
5. Solange Allure Inc., a cosmetics company, is moving its operations from Bogalusa, Louisiana, to
Seattle, Washington. Solange Allure will be changing its occupational labor market.
ANS: F
PTS: 1
DIF: Easy
OBJ: LO: 06-01
TOP: Labor Markets
6. Continuous efforts to recruit offer the advantage of keeping the employer in the recruiting market.
ANS: T
PTS: 1
DIF: Easy
OBJ: LO: 06-02
7. Intensive recruiting may take the form of a vigorous recruiting campaign aimed at hiring a given
number of employees.
ANS: T
PTS: 1
DIF: Easy
OBJ: LO: 06-02
8. Recruiting should be viewed as a type of organizational marketing and should be consistent with an
organizations overall presentation of its image.
ANS: T
PTS: 1
DIF: Easy
OBJ: LO: 06-02
9. Employment agencies typically have their own workforce, which they supply by contract to employers
with jobs.
ANS: F
PTS: 1
DIF: Easy
OBJ: LO: 06-02
10. Rules of the U.S. Internal Revenue Service and the U.S. Department of Labor determine which
workers qualify as independent contractors.
ANS: T
PTS: 1
DIF: Easy
OBJ: LO: 06-02
11. Job boards can be used for internal recruitment but not for external recruitment.
ANS: F
PTS: 1
DIF: Moderate
OBJ: LO: 06-03
12. Niche job sites are more useful for recruiting applicants with specific technical skills than are general
job boards.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-03

13. Twitter is popular among recruiters because of the absence of any character limit.
ANS: F
PTS: 1
DIF: Moderate
OBJ: LO: 06-03
14. Blogging creates enough possible legal concerns that regulations may be implemented by the U.S.
Federal Trade Commission.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-03
15. A disadvantage of Internet recruiting is that it generates large numbers of passive job seekers who,
typically, tend to be of low-quality.
ANS: F
PTS: 1
DIF: Moderate
OBJ: LO: 06-03
16. Internet recruiting generates high numbers of applicants and increases work for HR staff far beyond
traditional recruiting methods.
ANS: T
PTS: 1
DIF: Easy
OBJ: LO: 06-03
17. Recruiters have completely stopped using newspaper ads as a tool for external recruitment because job
seekers use the Internet almost exclusively even in smaller cities and towns.
ANS: F
PTS: 1
DIF: Easy
OBJ: LO: 06-04
18. Contingency firms charge a client a set fee whether or not the contracted search is successful.
ANS: F
PTS: 1
DIF: Easy
OBJ: LO: 06-04
19. An organization with a strong union has a higher probability of having less flexibility than a nonunion
company in deciding who will be hired and where a newly hired person will be placed.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-04
20. General job fairs are primarily preferred by employers who are involved in continuous efforts to
recruit.
ANS: F
PTS: 1
DIF: Moderate
OBJ: LO: 06-04

21. There are instances of companies that begin to attract students with capabilities while those students
are in high school by encouraging them to participate in engineering internships during summers.
ANS: T
PTS: 1
DIF: Easy
OBJ: LO: 06-04
22. An automated job posting system that automatically contacts internal candidates by company e-mail is
an effective method for keeping good employees from looking outside the company for advancement.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-05
23. Utilizing current employee referrals of family members and friends is not ethical because it increases
the risk of committing nepotism.
ANS: F
PTS: 1
DIF: Moderate
OBJ: LO: 06-05
24. Rerecruiting former employees is a way of avoiding inbreeding while still using an internal
recruiting source.
ANS: F
PTS: 1
KEY: Bloom's: Analysis

25. Yield ratio is a measure of the quality of job applicants.

ANS: F
PTS: 1
DIF: Easy
OBJ: LO: 06-06
26. An example of yield ratio is the proportion of applicants who accept an offer compared to the number
of applicants who were interviewed at a job fair.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-06
27. Acceptance rate measures not just recruiting but selection issues as well.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-06
28. Rsum mining allows HR staff to use software to extract the most promising rsums from a large
database.
ANS: T
PTS: 1
DIF: Easy
OBJ: LO: 06-06

29. The success base rate is a long-term measure of whether the HR function has provided productive,
long-term employees for an organization.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-06
30. A long-term measure of recruiting effectiveness is to compare the number of past applicants who
became successful employees with the number of applicants against whom they competed for their
jobs.
ANS: T
PTS: 1
DIF: Moderate
OBJ: LO: 06-06
SHORT ANSWER
1. What are the key requirements of the recruitment process from the employers perspective?
ANS:
Recruitment requires an employer to:
- know the industry and where to successfully recruit qualified employees;
- identify keys to success in the labor market, including competitors recruiting efforts;
- cultivate relationships with sources of prospective employees;
- promote the company brand so that the employer is known as a good place to work; and
- use recruiting metrics to measure the effectiveness of recruiting efforts.
PTS: 1
TOP: Recruiting
DIF: Easy
OBJ: LO: 06-01
2. What is the difference between continuous and intensive recruiting?

ANS:
Recruiting efforts may be viewed as either continuous or intensive. Continuous efforts to recruit offer
the advantage of keeping the employer in the recruiting market. For example, with college recruiting,
some organizations may find it advantageous to have a recruiter on a given campus each year.
On the other hand, intensive recruiting takes the form of a vigorous recruiting campaign aimed at
hiring a given number of employees, usually within a short period of time. Sometimes such efforts are
the result of unforeseeable changes in external factors, but they also can result from a failure in the HR
planning system to identify needs in advance or to anticipate drastic changes in workforce needs.
PTS: 1
DIF: Moderate
3. Define the term employment brand.
ANS:
OBJ: LO: 06-02

The employment brand or image of an organization is the view both employees and outsiders have of
the organization. Organizations that are seen as desirable employers are better able to attract qualified
applicants than are those with poor reputations.
PTS: 1
DIF: Easy
OBJ: LO: 06-02

4. How do professional employer organizations differ from employment agencies?

ANS:
The professional employer organization (PEO) and the employment agency are different types of
entities. A PEO has its own workforce, which it supplies by contract to employers with jobs. However,
an employment agency provides a work-finding service for job seekers and supplies employers with
applicants whom they may then hire.
PTS: 1
DIF: Easy
OBJ: LO: 06-02

5. Why are realistic job previews important for an organization?

ANS:
Providing a balanced view of the advantages, demands, expectations, and challenges in an organization
or a job may help attract employees with more realistic expectations and reduce the number of
employees who quit a few months after being hired because the reality they discover does not match
what they expected. Thus, recruiting efforts can benefit from realistic job previews (RJPs), but their
use must be monitored.
PTS: 1
DIF: Moderate
OBJ: LO: 06-02

6. How has the growth of Internet recruiting affected recruiting efforts done by employers?
ANS:
The Internet has become the primary means for many employers to search for job candidates and for
applicants to look for jobs. The growth in Internet use is a key reason that the following employer
actions occur:
- Adjusting general employer recruiting systems to use new approaches
- Identifying new types of recruiting for specific jobs
- Training managers and HR professionals on technical recruiting sources, skills, and responsibilities
PTS: 1
DIF: Moderate
OBJ: LO: 06-03

7. Write a short note on Internet job boards.

ANS:
Numerous Internet job boards, such as Monster, Yahoo!, and HotJobs, provide places for employers to
post jobs or search for candidates. Job boards offer access to numerous candidates. Some Internet
locations allow recruiters to search one Web site, such as MyJobHunter.com, to obtain search links to
many other major job sites. Applicants can also use these Web sites to do one match and then send
rsums to all jobs in which they are interested. However, many of the individuals accessing these sites
are job lookers who are not serious about changing jobs, but are checking out compensation levels
and job availability in their areas of interest. Despite such concerns, HR recruiters find general job
boards useful for generating applicant responses.
PTS: 1
DIF: Easy
OBJ: LO: 06-03

8. How can firms use blogs for recruiting?

ANS:
Employers as well as individuals can use blogs as part of recruiting to fill jobs. Firms such as Best
Buy, Microsoft, Honeywell, and Manpower have used blogs on which individuals could read and
provide content. For instance, describing job openings and recruiting needs on the Best Buy blog has
resulted in individuals responding to job areas such as finance, marketing, HR, and other specialties.
PTS: 1
DIF: Moderate
OBJ: LO: 06-03

9. Mention the factors that need to be considered when dealing with job posting systems.
ANS:
When establishing and managing a job posting system, many questions must be addressed:
-What happens if no qualified candidates respond to postings?
- Must employees inform their supervisors that they are applying for another job?
- Are there restrictions on how long an employee must stay in a job before applying for another
internal one?
- What types of or levels of jobs will not be posted?
PTS: 1
DIF: Moderate
OBJ: LO: 06-05

10. Briefly discuss six methods of making the recruiting process more effective.
ANS:
Evaluation of the following recruiting activities should be done to make recruiting more effective:
Rsum mininga software approach to getting the best rsums for a fit from a big database
Applicant trackingan approach that takes an applicant all the way from a job listing to performance
appraisal results
Employer career Web sitea convenient recruiting place on an employers Web site where applicants
can see what jobs are available and apply
Internal mobilitya system that tracks prospects in the company and matches them with jobs as they
come open
Realistic job previewsa process that persons can use to get details on the employer and the jobs
Responsive recruitmentwhereby applicants receive timely responses
PTS: 1
DIF: Moderate
OBJ: LO: 06-06

ESSAY
1. Define recruiting. Why is it important to treat recruiting as a part of strategic HR planning?
ANS:
Recruiting is the process of generating a pool of qualified applicants for organizational jobs. If the
number of available candidates equals the number of people to be hired, no real selection is required
the choice has already been made. The organization must either leave some openings unfilled or take
all the candidates.
It is important that recruiting be treated as a part of strategic HR planning because it is a key
mechanism for filling the positions necessary to complete work. Recruiting requires an employer to:
- know the industry and where to successfully recruit qualified employees;
- identify keys to success in the labor market, including competitors recruiting efforts;
- cultivate relationships with sources of prospective employees;
- promote the company brand so that the employer is known as a good place to work; and
- use recruiting metrics to measure the effectiveness of recruiting efforts.
Recruiting decisions can identify not only the kinds and numbers of applicants but also how difficult
or successful recruiting efforts may be depending on the type of jobs. In addition, effective recruiting
focuses on discovering talent before it is needed.
PTS: 1
TOP: Recruiting
DIF: Moderate
OBJ: LO: 06-01
2. What are the major components of the labor market? Define them and describe how they are related.
ANS:
The labor market is the external supply pool from which employers attract employees. It can be
viewed as a funnel with the largest number of individuals in the labor force population, the next largest
number in the applicant population, the next largest number in the applicant pool, and the smallest
number of individuals in the group of persons actually selected as employees. Each supply pool
becomes smaller as the organization screens out individuals who are less suitable. The labor force
population consists of all the individuals who are available if all possible recruitment strategies are
used. The applicant population is the group of individuals available for selection when a particular
recruiting method is used. The applicant pool consists of the people who are actually evaluated by the
organization for selection. The broad labor market can be subdivided into smaller labor markets by
geographic area, occupation, industry, and educational and technical qualifications. Organizations
recruit in multiple labor markets depending on the jobs they need to fill.
PTS: 1
DIF: Moderate
TOP: Labor Markets
OBJ: LO: 06-01

3. What are the major factors that need to be considered before a firm approaches a global labor market?
ANS:
Employers in the United States are tapping global labor markets when necessary and expanding export
work to overseas labor markets when doing so is advantageous. The migration of U.S. work overseas
has been controversial. While many decry the loss of American jobs, some employers respond that
they cannot be competitive in a global market if they fail to take advantage of labor savings. However,
advancements in American worker productivity have made it possible to have fewer U.S. employees to
produce certain items, resulting in a cost savings, even at higher wage rates. Hence, those jobs are not
being exported to other countries. In addition, companies may experience many recruiting challenges
as they begin hiring local talent because job candidates might not have been adequately prepared for
employment.
The use of the Internet has resulted in recruiting in more geographic regions. But recruiting employees
for global assignments may present problems that necessitate approaches different from those used in
the home country. The recruiting processes must consider variations in culture, laws, and language, as
well as the individual preferences of potential workers. Dealing with foreign labor markets can also be
challenging because recruiting can be regulated and require the approval of local personnel or labor
authorities. Hiring foreign employees in the United States must meet certain legal requirements,
including visa requirements, and organizations must be concerned about hiring illegal immigrants.
PTS: 1
DIF: Moderate
TOP: Labor Markets
OBJ: LO: 06-01

4. Describe some of the flexible staffing alternatives available to employers. Why are some organizations
examining these alternatives? What are the main advantages and disadvantages?
ANS:
Several alternatives to regular full-time employees are leased employees, temporary workers, part-time
employees, and independent contractors. These alternatives are attractive because they provide
flexibility. Temporary employees and contractors usually do not receive medical benefits, so an
employer saves significant money when compared with regular employees. Temporary employees
allow the organization to fill positions quickly in order to meet short-term or seasonal demand without
any obligation to keep the employees when demand slackens. In addition, employers can try out
temporary employees before offering them regular positions.
When Professional Employer Organizations provide leased employees, the organization does not have
to handle the HR administrative duties involved with recruiting, selection, payroll, and government
compliance, thus essentially outsourcing these functions. Again, cost savings may emerge because
medical benefits are not provided by the organization leasing the employees from the PEO, and the
cost of the PEO services may be less than keeping HR specialists on the payroll to manage the
workforce. The lack of benefits is a disadvantage to the leased employees, although sometimes the
PEO provides medical benefits.
PTS: 1
DIF: Moderate
OBJ: LO: 06-02

5. What are the actions that a firm should take in order to recruit a diverse workforce?
ANS:
A broad range of factors applies to recruiting diversity. Many employers have expanded efforts to
recruit workers from what, for some, are nontraditional labor pools. Nontraditional diverse recruitees
for certain jobs may include the following:
- Persons with different racial/ethnic backgrounds
- Older workers over 40 years of age
- Single parents
- Workers with disabilities
- Welfare-to-work workers
- Homeless/substance abuse workers
The growth in racial/ethnic workforce diversity means that a wider range of potential employment
sources should be utilized. Changes in diversity also need to be monitored and evaluated to ensure that
the workplace, through properly managed recruiting strategies, is representative of these population
dynamics. For example, the growth in Hispanics in the United States means that specialized recruiting
programs might be needed to identify qualified individuals from this group for employment. Other
potential employees may include older workers and retirees who are interested in seeking new
employment opportunities. Single parents may be attracted to a family-friendly employer that offers
flexibility, including part-time work, because it is frequently difficult to balance job and family life.
Some firms also recruit stay-at-home parents by using flexibility and work-at-home technology.
Finally, individuals with disabilities are another group of potential Human Resources, a group that has
unfortunately been overlooked in the past.
PTS: 1
DIF: Moderate
OBJ: LO: 06-02

6. Why has Internet recruiting become so important? How do employees conduct Internet recruiting?
What are the disadvantages of Internet recruiting?
ANS:
Many employers use the Internet as their primary recruiting tool. Internet recruiting has grown because
it is cheaper than traditional recruiting methods, it saves time in contacting and being contacted by
applicants, and it generates an expanded pool of applicants, especially in a global market. In addition,
it can tap specific applicant groups. Employers can provide richer information about the organization,
using e-videos and experiential games. Internet recruiting elicits responses from passive job seekers
more readily than traditional methods.
Methods of Internet recruiting include employer Web sites, Internet job boards, and professional/career
Web sites, social networking sites, blogs, and Twitter.
Disadvantages of Internet recruiting include limited access to applicants from lower socioeconomic
groups due to their lack of easy access to the Internet. Also, employers may attract more unqualified
applicants, especially with general job boards. HR staff members are burdened with more work
because more applications need to be reviewed and more e-mails need to be processed. Specialized
software is necessary to track Internet applicants. Privacy concerns are also an issue, especially with
social networking sites, blogs, and Twitter.
PTS: 1
DIF: Moderate
OBJ: LO: 06-03

7. Describe some of the common external recruiting sources.

ANS:
The most common external recruiting sources are media sources, competitive sources, employment
agencies, labor unions, job fairs and special events, and educational institutions.
Media sources such as newspapers, magazines, television, radio, and billboards typically have been
widely used in external recruiting. Internet usage has led to media sources being available online,
including postings, ads, videos, Webinars, and many other expanding media services.
Labor unions may be a useful source of certain types of workers. A labor pool is generally available
through a union, and workers can be dispatched from the hiring hall to particular jobs to meet the
needs of employers. Unions can benefit employers through apprenticeship and cooperative staffing
programs, as they do in the building and printing industries.
Employers in various labor markets needing to fill a large number of jobs quickly have used job fairs
and special recruiting events. Virtual job fairs with Web-based links have been used by the federal
government and others for recruiting. College and university students are a significant source of entrylevel professional and technical employees.
Other sources for recruiting include professional and trade associations, trade publications, and
competitors. Many professional societies and trade associations publish newsletters or magazines and
have Web sites containing job ads which may be useful for recruiting the specialized professionals
needed in an industry. Employment agencies, both public and private, are a recruiting source. Public
agencies operate branch offices in cities throughout the states and do not charge fees to applicants or
employers. Private employment agencies differ considerably in the levels of service, costs, policies,
and types of applicants they provide.
PTS: 1
DIF: Moderate
OBJ: LO: 06-04

8. What are the advantages and limitations of focusing on internal recruiting sources to fill open
positions?
ANS:
The internal labor market has many advantages. Internal promotion can be used as a reward for good
work. This may motivate employees to perform better and induce the employees to stay with the
organization rather than moving to other organizations for career opportunities. This advancement can
be a morale booster for the person promoted. When recruiting internally, an organization has a better
assessment of the internal candidates abilities than it does of an external candidates abilities. Internal
recruiting costs are less than external recruiting costs for some jobs. In addition, the firm can limit
most of the hiring to entry level jobs. Internal recruiting works well for organizations in environments
that change slowly and that need a good fit between the organization and the employees.
The disadvantages of the internal labor market include inbreeding, which is the lack of new talent,
bringing in new perspectives to the organization. If the employee population is not diverse, EEO
concerns may crop up. Employees who are not promoted may have morale problems, and internal
organizational politics may be exacerbated because employees continually compete for advancement.
Finally, external hires are often fully trained, while internal hires need training and development which
can be both slow and expensive.
PTS: 1
DIF: Moderate
OBJ: LO: 06-05

9. Define the term rerecruiting. Explain how a firm can utilize this form of recruitment.
ANS:
Former employees and applicants represent a source for recruitment. These groups offer a time-saving
advantage because something is already known about them. Seeking them out as candidates is known
as rerecruiting because they were recruited previously. Former employees are considered an internal
source in the sense that they have ties to the employer; sometimes they are called boomerangers
because they left and came back. Individuals who have left for other jobs sometimes are willing to
return because the other jobs and employers turned out to be less attractive than initially thought.
To enhance such efforts, some firms have established alumni reunions to keep in contact with
individuals who have left, and also to allow the companies to rerecruit individuals as appropriate
openings arise. Key issues in the decision to rerecruit someone include the reasons why the individual
left originally and whether the individuals performance and capabilities were good. Another potential
source consists of former applicants. Although they are not entirely an internal source, information
about them can be found in the organizational files or an applicant database. Recontacting those who
have previously applied for jobs can be a quick and inexpensive way to fill unexpected openings.
PTS: 1
DIF: Moderate
OBJ: LO: 06-05

10. Why is it important to formally evaluate and measure recruiting? What are some methods that can be
used to evaluate recruiting?
ANS:
Recruiting is costly but important for achieving organizational strategy. It is important to know if the
recruiting methods used are cost-effective in reaching the organizations HR goals. Recruits need to be
available in both the right quantity and the right quality.
Quantity can be measured by whether there are enough qualified applicants for positions with an
appropriate mix of applicants from protected classes. Quantity also has a timeliness aspect, since the
cost of unfilled positions is high. So another useful metric is the time it takes to fill openings. Quality
of applicants can be measured by whether the qualifications of the applicant pool are sufficient for the
job openings and whether the employees hired perform well in the job. In addition, success or failure
rates can be calculated by the recruiter and recruiting source. Measures that can be used include
performance appraisal scores, months until promotion, output, and sales volume for each new
employee hired. The average cost of recruiting for each hire, and cost-benefit analyses help identify
recruiting methods and sources that are most cost effective. The satisfaction of managers and
applicants with the recruiting process are important measures. Yield ratios can be calculated for each
step in the recruiting funnel, for instance comparing the number of individuals who accept offers to
those get invited for site visits; the number of individuals hired compared with those who are offered a
job; the number of individuals hired compared with the total number of people interviewed. The
selection rate (percentage hired from a given group of candidates) and the acceptance rate (percent of
applicants hired divided by the total number of applicants offered jobs) reflect the effectiveness of the
recruiting process. Finally, the success base rate compares the number of applicants who have become
successful employees with the number of applicants they competed with for hire. All of these metrics
can be compared across recruiters, sources, time periods, and benchmarked against other employers
metrics.
PTS: 1
DIF: Easy
OBJ: LO: 06-06


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Chapter 6Recruiting and Labor Markets

OBJ: LO: 06-01

OBJ: LO: 06-01

c. professional employer organization

11. One advantage of leasing companies for employees is that:

17. Which of the following statements is true about recruiting diversity?

DIF: Challenging OBJ: LO: 06-02

21. Which of the following statements is true of good recruiting efforts?

23. Which of the following is a defining characteristic of regular staffing?

24. A passive job seeker is one who:

25. Which of the following statements is true of job boards?

27. Which of the following is a feature of Internet recruiting?

28. Which of the following statements is true of Internet recruiting?

DIF: Challenging OBJ: LO: 06-03

32. When compared to internal recruitment, an advantage of external recruiting is that:

33. Which of the following is an example of external sources of recruitment?

company where Jolene works as a technician

40. Job fairs are primarily useful for:

41. Which of the following is a feature of school and college recruiting?

42. Which of the following is true of internal recruitment?

43. Which of the following is true of internal recruitment?

44. Which of the following is an advantage of internal recruitment?

45. Which of the following is a feature of job posting and bidding?

48. The percentage hired from a given group of candidates is termed:

c. the yield ratio.

OBJ: LO: 06-01

OBJ: LO: 06-01

NAT: BUSPROG: Reflective Thinking

TOP: Labor Markets

OBJ: LO: 06-03

NAT: BUSPROG: Analytic

TOP: Internet Recruiting

OBJ: LO: 06-04

NAT: BUSPROG: Analytic

TOP: External Recruiting Sources

DIF: Challenging OBJ: LO: 06-05

25. Yield ratio is a measure of the quality of job applicants.

OBJ: LO: 06-06

NAT: BUSPROG: Analytic

TOP: Recruiting Evaluation and Metrics

NAT: BUSPROG: Analytic

2. What is the difference between continuous and intensive recruiting?

OBJ: LO: 06-02

OBJ: LO: 06-02

4. How do professional employer organizations differ from employment agencies?

OBJ: LO: 06-02

5. Why are realistic job previews important for an organization?

OBJ: LO: 06-02

OBJ: LO: 06-03

7. Write a short note on Internet job boards.

OBJ: LO: 06-03

8. How can firms use blogs for recruiting?

OBJ: LO: 06-03

OBJ: LO: 06-05

OBJ: LO: 06-06

NAT: BUSPROG: Analytic

OBJ: LO: 06-01

OBJ: LO: 06-01

OBJ: LO: 06-02

OBJ: LO: 06-02

OBJ: LO: 06-03

7. Describe some of the common external recruiting sources.

OBJ: LO: 06-04