Human Resources Management in Canada Twelfth Canadian Edition Canadian 12th Edition Dessler Test Bank 1

Dessler/Chhinzer/Cole, Human Resources Management in Canada, 12/C/e
Chapter 5: Human Resources Planning
Solution Manual for Human Resources Management

in Canada Twelfth Canadian Edition Canadian 12th
Edition Dessler Chhinzer Cole 0132604868
9780132604864
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1) The process of reviewing human resources requirements to ensure that the

organization has the required number of employees with the necessary skills to meet its
goals is known as
a. selection.
b. training and development.
c. strategic planning.
d. recruitment.
e. human resources planning.
Answer: e
Diff: 1
Type: MC
Page Reference: 120
Topic: Researches, analyzes, and reports on potential people issues affecting the
organization
Skill: Recall
Objective: LO-1 Define human resources planning (HRP) and discuss its strategic
importance.
2) Each of the following statements about HRP is true except that

a. it is also known as employment planning.
b. a fundamental HRP decision when demand exceeds supply is whether projected
positions will be filled externally or internally.
Copyright © 2014 Pearson Canada Inc.

5-1
c. it is a reactive process.
d. a critical HRP issue is what to do when the labour supply exceeds the anticipated
demand.
e. it can lead to significant costs if done poorly.
Answer: c
Diff: 2
Type: MC
Page Reference: 120
organization
Skill: Recall
importance.
3) A potential solution when labour demand exceeds labour supply is

a. finding employees alternative jobs within the organization.
b. job sharing.
c. hiring temporary workers.
d. work sharing.
e. any of the above
Answer: c
Diff: 2
Type: MC
Page Reference: 135
Topic: Identifies the organization’s staffing needs
Skill: Applied
Objective: LO-4 Describe the ways in which a surplus of human resources can be
handled.
4) Potential solutions, when labour supply exceeds labour demand, include all of the
following except
a. downsizing through attrition.
b. employee layoffs.
c. termination of employment.
d. instituting a hiring freeze.

5-2
e. subcontracting.
Answer: e
Diff: 2
Type: MC
Page Reference: 135
Skill: Applied
Objective: LO-3 Discuss briefly the four strategies used to forecast internal human
resources supply and four types of market conditions assessed when forecasting external
human resources supply.
5) Effective HRP helps an organization to do all of the following except

a. achieve its goals and objectives.
b. make major labour market demands more successfully.
c. anticipate and avoid shortages and surpluses of human resources.
d. plan and coordinate recruitment, selection, training, and career planning more
effectively.
e. comply with privacy laws.
Answer: e
Diff: 1
Type: MC
Page Reference: 120
organization
Skill: Recall
importance.
6) When labour demand equals labour supply

a. occupational health and safety is critical in achieving balance.
b. performance management is critical in achieving balance.
c. project management skills are critical for achieving balance.
d. HR personnel must hire more recruiters.
e. compensation and benefits are most important.

5-3
Answer: b
Diff: 3
Type: MC
Page Reference: 134
Skill: Applied
Objective: Identifies the organization’s staffing needs
7) Inadequate human resources planning within an organization can result in direct costs
when labour demand decreases significantly for an extended period of time. Which of the
following provides an accurate reason for this?
a. there is a link to privacy laws
b. it would cause hiring more HR staff
c. it would cause costs associated with hiring part-time workers
d. there are project management costs
e. severance pay is required for a large number of staff
Answer: e
Diff: 2
Type: MC
Page Reference: 121
organization
Skill: Applied
importance.
8) Failure to integrate HRP and strategic planning

a. primarily affects the workload of HR staff who must work without a plan for their
activities.
b. results in an oversupply of labour which in turn causes layoffs.
c. is the source of complaints to the HRP bureau and may result in substantial fines or
penalties for the organization.
d. puts the achievement of the organization’s strategy at risk.
e. is only a problem for for-profit businesses.
Answer: d
Diff: 2

5-4
Type: MC
Page Reference: 122
organization
Skill: Recall
importance.
9) Each of the following statements about the relationship between HRP and strategic
planning is true except
a. environmental scanning is a critical component of both HRP and strategic planning.
b. HRP and strategic planning become effective when there is a reciprocal and
interdependent relationship between them.
c. HRP has long been part of the strategic planning process.
d. determining whether or not people will be available is a critical element of strategic
planning.
e. failure to integrate HRP and strategic planning can have very serious consequences.
Answer: c
Diff: 2
Type: MC
Page Reference: 120
organization
Skill: Applied
importance.
10) External environmental factors that are most frequently monitored in HR and
strategic planning include all of the following except
a. demographic trends.
b. new or revised laws.
c. market and competitive trends.
d. economic conditions.
e. international trade patterns.
Answer: e
Diff: 2

5-5
Type: MC
Page Reference: 122
organization
Skill: Applied
importance.
11) Which of the following is the first step in human resource planning?
a. forecasting future HR needs
b. forecasting the availability of internal candidates
c. forecasting the availability of external candidates
d. analyzing the HR implications of the organization's strategic plans
e. balancing supply and demand
Answer: b
Diff: 2
Type: MC
Page Reference: 124
organization
Skill: Recall
12) The first step in the HRP process, after the HR implications of the firm's strategic
plans have been analyzed, is
a. forecasting future human resources needs.
b. monitoring and evaluating the results.
c. job analysis and design.
d. forecasting availability of internal and external candidates.
e. planning and implementing HR programs to balance supply and demand.
Answer: a
Diff: 1
Type: MC
Page Reference: 130

5-6
Skill: Recall
Objective: LO-2 Describe four quantitative and two qualitative techniques used to
forecast human resources demand.
13) Factors that should be considered when forecasting the number and type of people
needed to meet organizational objectives include all of the following except
a. projected turnover.
b. the financial resources available to each department.
c. projected recruitment figures.
d. quality and nature of employees.
e. decisions to upgrade the quality of products or services or enter into new markets.
Answer: c
Diff: 3
Type: MC
Page Reference: 130
Skill: Recall
14) Which of the following is a quantitative approach to forecasting?

a. the Delphi technique
b. trend analysis and the nominal group technique
c. the nominal group technique
d. trend analysis
e. managerial judgment
Answer: d
Diff: 2
Type: MC
Page Reference: 130
Skill: Recall

5-7
15) Quantitative techniques of forecasting include all of the following except

a. regression analysis.
b. the nominal group technique.
c. a scatterplot.
d. trend analysis.
e. ratio analysis.
Answer: b
Diff: 1
Type: MC
Page Reference: 132
Skill: Recall
16) Computing the number of employees in the firm at the end of the last five years is
associated with which of the following forecasting techniques?
a. time-series analysis
b. a scatterplot
c. regression analysis
d. ratio analysis
e. trend analysis
Answer: e
Diff: 2
Type: MC
Page Reference: 130
Skill: Recall
17) A forecasting technique for determining future staff needs by using ratios between
sales volume and the number of employees needed is
a. a scatterplot.

5-8
b. time-series analysis.
c. trend analysis.
d. regression analysis.
e. ratio analysis.
Answer: e
Diff: 1
Type: MC
Page Reference: 130
Skill: Applied
18) Like ________, ratio analysis assumes that productivity remains much the same and
is therefore not appropriate in changing environments.
a. regression analysis
b. trend analysis
d. time-series analysis
e. a scatterplot
Answer: b
Diff: 2
Type: MC
Page Reference: 131
Skill: Recall
19) A ________ illustrates the relationship between two factors: a measure of business
activity and staffing levels.
a. trend analysis
b. time-series analysis
d. scatterplot

5-9
e. ratio analysis
Answer: d
Diff: 2
Type: MC
Page Reference: 131
Skill: Recall
20) A statistical technique involving the use of a mathematical formula to project future
demands, based on an established relationship between an organization's employment
level and some measurable factor of output, is known as
a. regression analysis.
b. a scatterplot.
c. a computerized forecast.
d. trend analysis.
e. ratio analysis.
Answer: a
Diff: 2
Type: MC
Page Reference: 132
Skill: Recall
21) In contrast to quantitative approaches, qualitative techniques rely solely on

a. a scatterplot.
b. regression analysis.
c. trend analysis.
d. multiple regression analysis.
e. expert judgments.
Answer: e

5-10
Diff: 2
Type: MC
Page Reference: 132
Skill: Recall
22) Two approaches used to gather qualitative data in order to forecast HR demand (or
supply) are
a. trend analysis and scatterplot.
b. nominal group and Delphi technique.
c. regression analysis and nominal group technique.
d. ratio analysis and nominal group technique.
e. scatterplot and Delphi technique.
Answer: b
Diff: 1
Type: MC
Page Reference: 132
Skill: Recall
23) A decision-making technique that involves a group of experts meeting face to face
and can be used for HR forecasting is known as
a. an informal expert forecast.
b. managerial judgment.
c. the nominal group technique.
d. a formal expert forecast.
e. the Delphi technique.
Answer: c
Diff: 1
Type: MC
Page Reference: 132

5-11
Skill: Recall
24) Which forecasting technique has drawbacks that include subjectivity and the potential
for group pressure to lead to less accurate assessments than could be obtained through
other means?
a. a formal expert forecast
b. an informal expert forecast
c. managerial judgment
d. the Delphi technique
e. the nominal group technique
Answer: e
Diff: 2
Type: MC
Page Reference: 133
Skill: Recall
25) You have just been hired as the director of human resources at a mid-sized
engineering company. The CEO has asked you to assist her in forecasting future human
resources needs and to use a forecasting technique which will generate an exchange of
ideas among the directors of all division. She would like you to use a technique that will
lead to greater acceptance of results among the directors. Which technique do you use?
a. the nominal group technique
b. trend analysis
d. an informal expert forecast
e. a formal expert forecast
Answer: a
Diff: 2
Type: MC
Page Reference: 133

5-12
Skill: Applied
26) You have just been hired as the director of human resources at a mid-sized
engineering company. The CEO has asked you to assist her in forecasting future human
resources needs and would like you to first use a qualitative technique which is useful for
long-range forecasting. Which technique do you choose?
b. the nominal group technique
c. an informal expert forecast
d. the Delphi technique
Answer: d
Diff: 2
Type: MC
Page Reference: 133
Skill: Applied
27) The drawbacks of which forecasting technique include the fact that judgments may
not efficiently use objective data?
b. the Delphi technique
d. an informal expert forecast
Answer: b
Diff: 3
Type: MC
Page Reference: 133
Skill: Recall

5-13
28) Permitting a group to critically evaluate a wide range of views is an advantage of

which forecasting technique?
a. an informal expert forecast
b. the nominal group technique
c. the Delphi technique
d. a formal expert forecast
Answer: c
Diff: 2
Type: MC
Page Reference: 133
Skill: Recall
29) Regardless of the forecasting method utilized, modifications are made based on
a. management control systems.
b. HRIS data.
c. managerial judgment.
d. changing market conditions.
e. changing economic conditions.
Answer: c
Diff: 2
Type: MC
Page Reference: 132
Skill: Recall

5-14
30) Alice is the HR consultant advising Nexus Inc., a small but successful software
development firm, on how to conduct human resource planning. In forecasting future
demand for human resources, what step should she advise management to take first?
a. project turnover
b. project the sales for each of the firm's products and estimate quality and nature of
employees needed
c. create a replacement chart
d. project the sales for each of the firm's products and calculate the volume of production
needed to meet sales requirements
e. develop a staffing table
Answer: d
Diff: 2
Type: MC
Page Reference: 130
Skill: Applied
31) A pictorial representation of all jobs within the organization, along with the number
of current incumbents and future employment requirements, is known as
a. a scatterplot.
b. an organization chart.
c. a replacement chart.
d. a skills inventory.
e. a staffing table.
Answer: e
Diff: 2
Type: MC
Page Reference: 133
Skill: Recall
32) Projected openings are filled by using which of the following sources of supply?

5-15
a. individuals employed at other firms
b. unemployed individuals
c. external and internal sources
d. promoted employees
e. employees who are transferred
Answer: c
Diff: 2
Type: MC
Page Reference: 123
organization
Skill: Recall
importance.
33) Short-term and long-range HR demand forecasts provide

a. half of the staffing equation.
b. external supply forecasts.
c. present employees who can be transferred or promoted to meet anticipated needs.
d. internal supply forecasts.
e. the full staffing equation.
Answer: a
Diff: 2
Type: MC
Page Reference: 123
organization
Skill: Recall
importance.
34) Alice is the HR consultant advising Nexus Inc., a small but successful software
development firm, on how to conduct human resource planning. She is currently
explaining the "forecasting supply" step in the planning process to the CEO and confirms
that projected openings are to be filled by using two sources. Those sources are
a. contracting-out and outsourcing.

5-16
b. recruitment and promotion.
c. internal and external supply.
d. transferring and promotion.
e. overtime and temporary workers.
Answer: c
Diff: 2
Type: MC
Page Reference: 123
organization
Skill: Applied
importance.
35) A method of forecasting internal labour supply that involves tracking the pattern of
employee movements through various jobs and developing a transitional probability
matrix is known as
a. trend analysis.
b. ratio analysis.
c. multiple regression analysis.
d. Markov analysis.
e. computerized forecasting.
Answer: d
Diff: 2
Type: MC
Page Reference: 126
organization
Skill: Recall
36) Manual or computerized records summarizing employees' education, experience,

interests, skills, etc., which are used to identify internal candidates eligible for transfer
and/or promotion, are known as

5-17
a. staffing tables.
b. job descriptions.
c. skills inventories.
d. replacement charts.
e. Markov analyses.
Answer: c
Diff: 1
Type: MC
Page Reference: 124
organization
Skill: Recall
37) Management inventories

a. are visual representations of who will replace whom in the event of a job opening.
b. record information about managerial responsibilities and management training used to
identify internal candidates eligible for promotion.
c. are used to keep track of employees' qualifications.
d. are a method used to arrive at a group decision involving outside experts.
e. are a method of forecasting labour supply that involves tracking the pattern of
employee movements.
Answer: b
Diff: 2
Type: MC
Page Reference: 124
organization
Skill: Recall

5-18
38) You have been hired as the director of HR at Targus Inc., a clothing retailer. To
project the supply of outside candidates in the HRP process for the firm, you will need to
assess
a. national labour market conditions.
b. staffing tables.
c. succession plans.
d. skills inventories.
e. management inventories.
Answer: a
Diff: 2
Type: MC
Page Reference: 128
organization
Skill: Applied
39) In general terms, the lower the rate of unemployment,

a. the smaller the labour supply.
b. the easier it will be to recruit.
c. the larger the labour supply.
d. the smaller the labour demand.
e. the larger the labour demand.
Answer: a
Diff: 3
Type: MC
Page Reference: 128
organization
Skill: Applied

5-19
40) Highly educated immigrants are the predominant drivers of
a. local labour market conditions.
b. national labour market conditions.
c. competitors' strategies.
d. growth.
e. organizational training and development.
Answer: d
Diff: 1
Type: MC
Page Reference: 129
organization
Skill: Applied
41) To project the supply of outside candidates, employers generally assess all of the
following except
a. competitors' strategies.
b. national labour market conditions.
c. general economic conditions.
d. occupational market conditions.
e. local labour market conditions.
Answer: a
Diff: 2
Type: MC
Page Reference: 128
organization
Skill: Recall
42) In general terms, the lower the rate of unemployment,

5-20
a. the more difficult it is to recruit employees.
b. the easier it is to fill positions.
c. the harder it is to fill skills-shortage positions.
d. the larger the labour supply.
e. the less competition there is for employees.
Answer: a
Diff: 2
Type: MC
Page Reference: 128
organization
Skill: Applied
43) Demographic trends have a significant impact on

a. unemployment rates.
b. local labour market conditions.
c. general economic conditions.
d. occupational market conditions.
e. national labour market conditions.
Answer: e
Diff: 2
Type: MC
Page Reference: 128
organization
Skill: Recall
44) The shortage of available workers in which occupational market is projected to cost
the Canadian economy $10 billion per year until it is resolved?
a. Teachers/professors

5-21
b. Information technology workers
c. Industrial chemists
d. Accountants
e. Geologists
Answer: b
Diff: 1
Type: MC
Page Reference: 130
organization
Skill: Recall
45) Each of the following statements about occupational market conditions is true except
that
a. HRDC forecasts are useful for determining whether any projected imbalances will be
self-correcting.
b. in recent years, there has been an undersupply of nurses.
c. HRDC is a good source of information on occupational demand and supply.
d. organizations generally want to forecast the availability of potential candidates in
specific occupations.
e. in recent years, there has been an oversupply of IT specialists.
Answer: e
Diff: 2
Type: MC
Page Reference: 129
organization
Skill: Recall
46) To successfully fill positions internally, organizations must manage performance and
careers. Performance is managed through

5-22
a. effective recruitment policies and systems.
b. career tracking.
c. implementing a suitable reward structure.
d. effective selection and placement strategies.
e. training and development.
Answer: c
Diff: 3
Type: MC
Page Reference: 134
Skill: Recall
47) A hiring freeze is all of the following except

a. when openings are filled by reassigning current employees.
b. a common response to an employee surplus.
c. a strategy that most employers use initially to balance demand and supply.
d. no outsiders are hired.
e. a solution when demand exceeds supply.
Answer: e
Diff: 1
Type: MC
Page Reference: 135
Skill: Recall
handled.
48) Specific strategies must be formulated to balance supply and demand. Possible
scenarios are
a. supply matches expected demand.
b. labour supply exceeds demand.
c. there is a shortage of labour.

5-23
d. expected demand matches supply.
e. all of the above.
Answer: e
Diff: 2
Type: MC
Page Reference: 134
Skill: Recall
49) You have been hired as the director of HR at Targus Inc., a clothing retailer. Due to a
reduction in consumer demand, you have been asked to advise management on how to
reduce the amount of staff by 5% over the next 2 years. Although slow, a method for
reducing numbers which generally presents the least amount of problems is
a. introducing a reduced work week.
b. laying off employees.
c. offering attractive buyout packages.
d. downsizing through attrition.
e. offering attractive early-retirement packages.
Answer: d
Diff: 2
Type: MC
Page Reference: 135
Skill: Applied
handled.
50) Drawbacks of attrition include that

a. it is hard to implement.
b. it costs large sums of money.
c. employees do not accept this strategy.
d. the organization has no control over who goes and who stays.
e. it takes a short period of time.

5-24
Answer: d
Diff: 3
Type: MC
Page Reference: 135
Skill: Recall
handled.
51) When the internal supply of employees exceeds the organization's demand, strategies
used by employers include all of the following except
a. making early retirement mandatory.
b. downsizing through attrition.
c. offering attractive buyout packages.
d. initiating job-share positions.
e. laying off employees.
Answer: a
Diff: 2
Type: MC
Page Reference: 132
Skill: Recall
handled.
52) You have been asked by the CEO to advise on how to reduce the workforce by 10%
over the next 2 years. There is little in the budget for payment of up-front money. Which
of the following would you not recommend?
a. work sharing
b. layoffs based on reverse seniority
c. buyouts and early retirement packages
d. reduced work weeks
e. job sharing
Answer: c
Diff: 2

5-25
Type: MC
Page Reference: 136
Skill: Applied
handled.
53) With which of the following strategies for handling a labour surplus is the potential
for a human rights violation most closely associated?
a. early retirement packages
b. termination of employment
c. work sharing
d. reduced work weeks
e. job sharing
Answer: a
Diff: 2
Type: MC
Page Reference: 136
Skill: Applied
handled.
54) The layoff-avoidance strategy introduced by the federal government is known as

a. work sharing.
b. supplemental unemployment benefits.
c. the reduced work week.
d. job sharing.
e. the early leave package.
Answer: a
Diff: 2
Type: MC
Page Reference: 136
Skill: Recall

5-26
handled.
55) SUBS
a. top up employment insurance.
b. are benefits that are paid indefinitely.
c. are usually provided to non-union employees.
d. increase income levels when on the job.
e. decrease income levels when on the job.
Answer: a
Diff: 2
Type: MC
Page Reference: 137
Skill: Applied
handled.
56) Factors that should be taken into account when determining an appropriate severance
package include all of the following except
a. years of service.
b. the individual's likelihood of obtaining alternative employment.
c. salary.
d. age.
e. ethnic origin.
Answer: e
Diff: 2
Type: MC
Page Reference: 137
Skill: Applied
handled.

5-27
57) The guarantee by the employer to pay specified compensation and benefits in the case
of termination due to downsizing or restructuring is known as
a. a severance package.
b. supplemental unemployment benefits.
c. a guaranteed annual wage.
d. a golden parachute clause.
e. wage protection insurance.
Answer: d
Diff: 1
Type: MC
Page Reference: 137
Skill: Recall
handled.
58) Survivor sickness is

a. a physical illness caused by a toxic building.
b. a sickness found among production workers.
c. a sickness found among white-collar workers.
d. a range of emotions that can include feelings of betrayal or violation, guilt, and
detachment.
e. an illness causing errors in work and reduced performance.
Answer: d
Diff: 2
Type: MC
Page Reference: 137
Skill: Recall
handled.
59) Outplacement is
a. a service within a company facilitated by HR professionals.
b. a service offered by an outside agency that is provided to executives only.

5-28
c. a service within a company that provides resume-writing and interview-skill
workshops.
d. a service offered by an outside agency that can assist terminated employees in finding
employment elsewhere.
e. a service offered by an outside agency that provides job opportunities.
Answer: d
Diff: 3
Type: MC
Page Reference: 137
Skill: Recall
handled.
60) A major Canadian automaker has laid off 20% of its workforce over the course of 2
years. You are the HR professional responsible for surveying the employees remaining
with the company to determine their level of engagement and job satisfaction. The survey
responses indicate that many employees are experiencing feelings of guilt and
detachment. These employees are likely experiencing
a. a negative work ethic.
b. employee apathy.
c. survivor sickness.
d. survivor-guilt syndrome.
e. reality shock.
Answer: c
Diff: 1
Type: MC
Page Reference: 137
Skill: Applied
handled.
61) The initial response to a labour shortage is often

a. promotion.
b. transfer.

5-29
c. retraining.
d. layoffs.
e. scheduling overtime.
Answer: e
Diff: 1
Type: MC
Page Reference: 137
Skill: Recall
Objective: LO-5 Explain how organizations deal with a shortage of human resources.
62) To deal with a labour shortage, firms often use all of the following strategies except
a. subcontracting work.
b. offering generous early retirement and buyout packages.
c. scheduling overtime.
d. transferring and promoting employees.
e. recruiting.
Answer: b
Diff: 1
Type: MC
Page Reference: 137
Skill: Recall
63) Advantages associated with a transfer include

a. the fact that skills and perspectives may be broadened.
b. the fact that new challenges are the inevitable result.
c. more employee autonomy.
d. an increase in task significance.
e. a pay increase for the employee involved.
Answer: a
Diff: 2

5-30
Type: MC
Page Reference: 138
Skill: Recall
64) Which of the following statements about merit-based promotions is true?

a. A promotion is sometimes based on an assessment of future potential.
b. Unions often prefer that merit be the deciding factor.
c. When promotions are based on seniority, objectivity is a problem.
d. Using seniority, the employee who is promoted is always the most competent.
e. Promotions involve the movement of an employee from one job to another that is the
same level in responsibility.
Answer: a
Diff: 2
Type: MC
Page Reference: 138
Skill: Recall
65) HRP is a process of reviewing human resources requirements to ensure that an

organization has the required number of employees, with the necessary skills, to meet its
goals.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 120
organization
Skill: Recall
importance.

5-31
66) In the next decade, labour force growth in Canada will be entirely dependent on new
immigrants.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 129
organization
Skill: Recall
67) Human resources planning is a reactive process which both anticipates and influences
an organization's future.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 120
organization
Skill: Recall
importance.
68) Trend analysis is valuable as an initial estimate of HR demand only.

a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 130
Topic: Step 1: Forecasting Demand

5-32
Skill: Recall
69) Ratio analysis involves making forecasts based on the ratio between two causal
factors.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 130
Skill: Recall
70) Regression analysis determines the line of best fit.

a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 132
Skill: Recall
71) Exchanging ideas without face-to-face interaction is a characteristic of the nominal

group forecasting technique.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 132

5-33
Skill: Recall
72) Managerial judgment is central to qualitative forecasting, but plays only a small role
in quantitative forecasting techniques.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 132
Skill: Recall
73) External supply is one source of human resources supply.

a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 123
organization
Skill: Recall
74) Short-term and long-range HR demand forecasts only provide half of the staffing
equation by answering the question "How many employees will we need?"
a. True
b. False
Answer: a
Diff: 1

5-34
Type: TF
Page Reference: 123
organization
Skill: Recall
75) A Markov analysis can be used to forecast internal labour supply.

a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 126
organization
Skill: Recall
76) Failure to update skills and management inventories can lead to present employees
being overlooked for job openings.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 124
organization
Skill: Recall

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77) To project the supply of outside candidates, employers assess general economic
conditions.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 128
organization
Skill: Recall
78) The first step to project the supply of outside candidates is to forecast local market
conditions.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 128
organization
Skill: Recall
79) Highly educated immigrants are the predominant drivers of growth in the Canadian
labour pool.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 129

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organization
Skill: Recall
80) Specific strategies must be formulated to balance supply and demand considerations.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 134
Skill: Applied
81) A labour surplus exists when the internal supply of employees exceeds the
organization's demand. Most employers respond initially by terminating employment.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 135
Skill: Recall
handled.
82) A strategy used to deal with an employee surplus is the promotion of employees.
a. True
b. False
Answer: b
Diff: 3

5-37
Type: TF
Page Reference: 135
Skill: Recall
handled.
83) Describe human resources planning (HRP) (4 points) and explain its connection to
strategic planning using an example (6 points).
Answer:
Something close to the textbook definition, “the process of forecasting future human
resources requirements to ensure that the organization will have the required number of
employees with the necessary skills to meets its strategic objectives.” The connection to
strategy will be an application of HRP perhaps discussed in class, which illustrates the
matching of internal demand and external plus internal supply of labour.
Diff: 2
Type: ES
Page Reference: 120-122
Topic: Plans for and manages the HR aspects of organizational change
Skill: Recall
importance.
84) A major US-based department store chain is considering expanding into Canada.
Identify and discuss the importance of four external environmental factors (of the six
discussed in the text) that the chain must consider as part of its human resources planning
process.
Answer:
Four of six factors should be identified and discussed. One point for identifying the factor
and 1.5 additional points for accurate application: economic conditions, market and
competitive trends (wage levels), employment law differences, social concerns,
technological changes, and demographic trends.
Diff: 3
Type: ES

5-38
organization
Skill: Applied
importance.
85) Briefly identify and describe how management can forecast how many candidates
may be available from within the organization for any openings resulting from a demand
analysis.
Answer:
Identification and description of skills/management inventories, replacement
charts/summaries, and succession plans. One point for identification and up to two points
for accurate description.
Diff: 2
Type: ES
organization
Skill: Recall
86) You are the HR professional responsible for human resources planning (HRP) at
MegaCredit, a Canadian credit union. You are about to begin the annual human resources
planning process knowing that there is a new strategic initiative to move into a new
product area—insurance. What are the five factors you should consider in developing
your plan?
Answer:
The steps are as follows:
1. Projected turnover
2. Quality and nature of employees required
3. Decisions to upgrade the quality of products and impact on skill mix
4. Planned tech/administrative changes
5. Financial resources available
Three points for accurately identifying and applying each factor.

5-39
Diff: 3
Type: ES
Page Reference: 130
organization
Skill: Applied
87) You are the HR professional in charge of human resources planning at BlueFruit, a
company that designs and makes cell phones and tablets. Recently, demand for your
products has been falling, resulting in a surplus of human resources. Identify and describe
five possible solutions you would consider implementing in order to reduce the
oversupply of human resources at BlueFruit.
Answer:
Accurate identification and description of any five of the possible solutions listed in
Figure 5.7 on page 135 of the text
Diff: 2
Type: ES
Page Reference: 135
Skill: Recall
handled.

5-40

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Dessler/Chhinzer/Cole, Human Resources Management in Canada, 12/C/e

Chapter 5: Human Resources Planning

Solution Manual for Human Resources Management

1) The process of reviewing human resources requirements to ensure that the

2) Each of the following statements about HRP is true except that

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3) A potential solution when labour demand exceeds labour supply is

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5) Effective HRP helps an organization to do all of the following except

6) When labour demand equals labour supply

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8) Failure to integrate HRP and strategic planning

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14) Which of the following is a quantitative approach to forecasting?

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15) Quantitative techniques of forecasting include all of the following except

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21) In contrast to quantitative approaches, qualitative techniques rely solely on

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28) Permitting a group to critically evaluate a wide range of views is an advantage of

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33) Short-term and long-range HR demand forecasts provide

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36) Manual or computerized records summarizing employees' education, experience,

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37) Management inventories

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39) In general terms, the lower the rate of unemployment,

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42) In general terms, the lower the rate of unemployment,

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43) Demographic trends have a significant impact on

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47) A hiring freeze is all of the following except

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50) Drawbacks of attrition include that

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54) The layoff-avoidance strategy introduced by the federal government is known as

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58) Survivor sickness is

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61) The initial response to a labour shortage is often

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63) Advantages associated with a transfer include

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64) Which of the following statements about merit-based promotions is true?

65) HRP is a process of reviewing human resources requirements to ensure that an

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68) Trend analysis is valuable as an initial estimate of HR demand only.

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70) Regression analysis determines the line of best fit.

71) Exchanging ideas without face-to-face interaction is a characteristic of the nominal

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73) External supply is one source of human resources supply.