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 company’s overall business objectives.

2. Human resource planning is the responsibility of: dFac

(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 organisation’s 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 organisation’s 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 bresult in:

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(a) cost savings(b) quantity and quality problems(c) up-to-date employee skills(d) improved job satisfaction

6. 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 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

7. 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 cissues

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(a) competitive strategy, economic policy, social values(b) conservation, social values, legal regulations(c) environmental trends, social values, demographics, conditions of employment(d) labour costs, unemployment levels, economic conditions, competition

9. Improved childcare facilities, the increased availability of part-time work, and bmaternity leave are a reflection of:

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(a) changing social values(b) increasing numbers of women in the workforce(c) attempts to reduce levels of employee absenteeism(d) the requirements of EEO legislation

10. In 1997 what percentage of Australia’s workforce were classed as part-time? aFac

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

11. If you were conducting HR planning for a small manufacturing firm which of the dfollowing would you not be considering when you examine environmental factors

Appthat might impact on your organisation? M

(a) skill shortages(b) demographics(c) work schedules(d) political stability

12. HR managers need to be able to forecast the organisation’s future HR requirements b

and determine how to acquire the people needed. To do this they need three sets of Facforecast. Which of the following is not a forecast required for human resource Mplanning?

(a) forecast of the demand for human resources(b) forecast of the demand for human resources of competitor organisations(c) forecast of supply of human resources available within the organisation(d) forecast of the supply of external human resources

13. The quantitative approach to human resource planning: cFac

(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 dplanning? Fac

L(a) qualitative approach(b) reactive approach(c) humanistic approach

(d) quantitative approach

15. An organisation’s human resource inventory contains information on all of the dfollowing except: Fac

M(a) employee skills(b) employee experience(c) career goals(d) employee attitudes

16. According to the human resource planning process presented by Stone the first step ais to:

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(a) determine number and type of jobs to be filled(b) examine human resource inventory(c) identify labour shortages(d) stops recruiting new employees

17. The technique which involves building complex computer models to simulate future bevents 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: aFac

(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 bhuman resources

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(a) turnover analysis, skills inventory, replacement charts, Markov analysis, Delphi technique

(b) turnover analysis, skills inventory, replacement charts, Markov analysis, succession planning

(c) turnover analysis, skills inventory, replacement charts, trend projection, succession planning

(d) turnover analysis, skills inventory, expert opinion, Markov analysis, succession planning

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

L(a) employee loss(b) downsizing(c) employee departure(d) labour turnover

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

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(a) employee exit interviews(b) employee attitude surveys(c) labour turnover rates from past years(d) retrenchment figures for the past five years

23. The skills inventory allows the HR manager to do all of the following except: a

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

requirements

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

(a) qualifications L(b) political affiliations(c) personal data(d) salary and job history

25. A skills inventory can benefit employees by: dFac

(a) allowing the HR manager to check personal details without interrupting an Memployee 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: cFac

(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: cFac

(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: dFac

(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 bresources is concerned with the filling of management vacancies? Fac

L(a) replacement charts(b) succession planning(c) Markov analysis(d) skills inventory

32. Many organisations have depleted their management ranks as a result of: cFac

(a) neglect M(b) rapid internal promotion(c) downsizing(d) lack of employee development

33. Management development and succession are considered superfluous by many dorganisations because of:

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

34. Succession planning for chief executives and senior executives is used by what apercentage of Australian companies? Fac

M(a) approximately 50%(b) less than 10%(c) at least 75%(d) 23%

35. Succession planning often begins with an examination of: cFac

(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: bFac

(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 cof the following to be effective except:

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(a) performance appraisal system(b) training and development programs(c) compensation and benefits(d) a culture of individual growth and promotion from within

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

M(a) changes in business strategy(b) demographic changes(c) changes to skill requirements(d) changes to Government regulations

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

L(a) aging(b) shrinking(c) growing(d) 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 bto the trend towards: Fac

M(a) multiskilling of the workforce(b) casualisation of the workforce(c) downsizing of the workforce(d) mobility of the workforce

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

L(a) specialising(b) consulting(c) de-skilling(d) 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: cFac

(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 dfollowing is not one of these criticisms? Fac

H(a) loss of essential personnel(b) reduced service(c) production delays(d) 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 organisation’s 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 objectivesTrue/False Questions

1. The purpose of human resource planning is to ensure that a predetermined number Tof persons with the correct skills are available at a specified time in the future.

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2. HR planning should be undertaken at the same time as a review of the organisation’s Fexternal and internal environment. Fac

L

3. An HR approach that focuses on meeting short-term labour needs has proved to be Fhighly efficient for many organisations; particularly those requiring high-tech,

Undspecialist skills. H

4. HR planning must take into consideration an organisation’s objectives, culture, Tstructure and environment. Fac

L

5. The drift away from full-time jobs towards part-time work is a global trend. TFacL

6. HR managers need to be able to forecast the organisation’s 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. TFacL

8. The forecasting of HR shortages and surpluses is the focus of the qualitative Fapproach to HR planning. Fac

L

9. The human resource inventory identifies the number of employees available and Ttheir skills. Fac

M

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

11. HR planning uses the opinions of experts because it is simple and fast. TFacM

12. The external supply of labour consists of all available human resources, both inside Fand outside the organisation.

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13. The skills inventory includes data relating to the capacity of individual employees Tsuch as psychological tests.

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14. Skills inventories only benefit the organisation. FFacL

15. Replacement charts are tables used to identify areas of production where employees Fcan be replaced by new technology.

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16. Markov analysis uses a matrix to show the probability of an employee moving from Tone job to another.

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17. BHP Chief Executive, John Prescott, argued that their biggest challenge “is to Tdevelop people to continue to grow the business at a satisfactory rate given its

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diversity geographically and in product lines that we’ll face.” H

18. HR planning requires that the organisation undertakes an analysis of the employee Fskills of competitor organisations if it is to be effective.

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19. People are able to work longer because of advances in technology. TFacL

20. In Australia, 24% of all employees are now casual workers. TFacL

21. The outsourcing of HR activities is costing more time and money, is less efficient, Fand is causing the HR department to lose sight of its role in helping the organisation

Undto achieve its objectives. H

22. One reason organisations choose to outsource their HR activities is to eliminate Tunion problems. Fac

M

23. Recently many Australian organisations have been seeking foreign executives to Thead their corporations. Fac

M

24. HR planning can be successful without top management support. F

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25. Human resource planning is the cornerstone of all HRM activity. T

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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 organisation’s objectives. How does effective human resource planning support the achievement of an organisation’s 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?