Name: 
 

Chapter 2 – Strategy and Human Resources Planning



Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

Which one of the following is NOT one of the types of classifications in a company’s Human Capital Architecture:
a.
core knowledge workers
b.
job based employees
c.
contract labour
d.
alliance partners
e.
industrial workers
 

 2. 

Environmental scanning as a part of the strategic planning process is:
a.
scanning of the internal factors influencing an organization
b.
identifying the strengths of the organization
c.
scanning the external environment for factors influencing the organization
d.
identifying the weaknesses of the organization
e.
all of the above
 

 3. 

In the chapter, David Foot states that “HR Professionals are often ill-equipped to make a contribution to their organization’s strategy" because:
a.
they are often reactive rather than proactive
b.
they are often non-assertive in discussing strategy
c.
they often lack a micro perspective
d.
they often lack a macro perspective
e.
all of the above
 

 4. 

Which one of the following has all the steps required to conduct Human Resources Planning?
a.
conducting cultural audits and benchmarking
b.
forecasting demand, forecasting supply, balancing supply and demand
c.
conducting trend analysis, management forecasts and benchmarking
d.
determining current supply, forecasting demand, balancing supply and demand
 

 5. 

The term “attrition” refers to the reduction of employees through:
a.
retirements and resignations
b.
death
c.
termination
d.
all of the above
e.
only “a” and “b”
 

 6. 

“Downsizing” occurs in an organization as a result of:
a.
mergers
b.
acquisitions
c.
plant closures or relocations
d.
all of the above
e.
none of the above
 

 7. 

Which one of the following factors does NOT affect the supply of labour?
a.
education level of the workforce
b.
forecasted needs of the organization
c.
demographic changes in the population
d.
demand for specific employee skills
e.
governmental policies
 

 8. 

Which one of the following methods of forecasting the future demand for employees is considered a “quantitative approach?”
a.
Delphi technique
b.
Management forecasting
c.
Trend analysis
d.
Scenario planning
e.
None of the above
 

 9. 

When a company needs to reduce the number of employees, it can use all of the following strategies, EXCEPT:
a.
layoff unionized employees based on ability only
b.
reduce the work week
c.
transfer employees to related companies
d.
reduce shifts
 

True/False
Indicate whether the statement is true or false.
 

 1. 

Termination is a practice initiated by an employer to separate an employee from the organization permanently.
 

 2. 

Replacement charts are used for identifying possible replacements for key executive positions.
 

 3. 

According to the text, recently courts have ruled that if an employee is retained for a series of uninterrupted contracts then that contract worker is an employee of the organization.
 

 4. 

HRP can be considered both reactive and proactive.
 

 5. 

Benchmarking allows organizations to compare their services and practices against industry leaders in order to identify areas for improvement.
 

 6. 

When an organization is choosing companies to include in their benchmarking efforts, they must select companies in the same industry.
 

 7. 

A company that has adopted a no-layoff policy will reduce employee numbers only by attrition.
 

 8. 

An employee is “fired” because the employer needs to reduce the size of the workforce.
 

 9. 

An advantage of part-time employment to the employer is work-scheduling flexibility.
 

 10. 

An organization that is facing a shortage of labour can use restructuring or downsizing strategies to eliminate the problem.
 

 11. 

Termination is the practice initiated by an employer to separate an employee from the organization permanently.
 



 
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