Chapter 10: Strategic Workforce Planning

Test Bank

Multiple Choice

1. The purpose of strategic workforce planning includes all of the following EXCEPT ______.

A. to determine priorities

B. to allocate resources to where they can do the most good

C. to globalize organizations

D. to respond to needs emerging within and outside the organization

Learning Objective: 10-1: Describe the four components of the strategic workforce planning process and explain how they work together.

Cognitive Domain: Comprehension

Answer Location: What Is Strategic Workforce Planning?
Difficulty Level: Easy

AACSB: Systems and processes in organizations

2. The manager at your organization organizes a strategic planning meeting where you determine your future needs in terms of employees with certain specific skills, including how many such works exist within and outside of your organization. This is BEST an example of ______.

A. talent inventory

B. workforce forecast

C. action plan

D. control and evaluation

Learning Objective: 10-1: Describe the four components of the strategic workforce planning process and explain how they work together.

Cognitive Domain: Application

Answer Location: What Is Strategic Workforce Planning?
Difficulty Level: Medium

AACSB: Systems and processes in organizations

3. Which is a geographical area within which the forces of supply of potential workers interact with the demands, determining the price of labor?

A. labor market

B. talent inventory

C. workforce forecast

D. gig economy

Learning Objective: 10-1: Describe the four components of the strategic workforce planning process and explain how they work together.

Cognitive Domain: Knowledge

Answer Location: What Is Strategic Workforce Planning?
Difficulty Level: Easy

AACSB: Systems and processes in organizations

4. When labor markets are “tight,” all of the following are true EXCEPT ______.

A. unemployment is low

B. demand for workers exceeds supply

C. jobs are plentiful

D. employee mobility tends to decrease

Learning Objective: 10-1: Describe the four components of the strategic workforce planning process and explain how they work together.

Cognitive Domain: Comprehension

Answer Location: What Is Strategic Workforce Planning?
Difficulty Level: Medium

AACSB: Systems and processes in organizations

5. Which level of planning typically looks out 3–5 years, which is more than other shorter-range planning levels?

A. strategic

B. operational

C. tactical

D. departmental

Learning Objective: 10-2: Explain the relationship between strategic business plans and strategic workforce plans.

Cognitive Domain: Knowledge

Answer Location: Levels of Planning
Difficulty Level: Medium

AACSB: Systems and processes in organizations

6. A common method of strategic planning is a SWOT analysis, where a company systematically examines its strengths, weaknesses, opportunities, and ______.

A. timelines

B. talent

C. technology

D. threats

Learning Objective: 10-2: Explain the relationship between strategic business plans and strategic workforce plans.

Cognitive Domain: Knowledge

Answer Location: The Strategic Planning Process
Difficulty Level: Easy

AACSB: Systems and processes in organizations

7. If you are trying to answer the fundamental question: To what extent is this practice consistent with our core beliefs about people and the organization, then you are very likely doing a ______ strategy development process.

A. tactical approach

B. conventional approach

C. PESTLE approach

D. values-based approach

Learning Objective: 10-3: Compare and contrast traditional and values-based approaches to developing strategy.

Cognitive Domain: Knowledge

Answer Location: An Alternative Approach
Difficulty Level: Easy

AACSB: Systems and processes in organizations

8. In order for strategic planning to be nimbler in terms preparing for and adapting to quickly changing futures, the process should be more ______.

A. exclusive

B. democratic

C. systematic

D. expansive

Learning Objective: 10-3: Compare and contrast traditional and values-based approaches to developing strategy.

Cognitive Domain: Comprehension

Answer Location: An Alternative Approach
Difficulty Level: Easy

AACSB: Systems and processes in organizations

9. According to the relationship of HR strategy to business strategy developed by Boudrea, the execution of planning strategy should be ______.

A. unilateral

B. top–down

C. bottom–up

D. democratic

Learning Objective: 10-4: Identify key talent management issues that arise at various business-planning horizons.

Cognitive Domain: Comprehension

Answer Location: Relationship of HR strategy to Business Strategy
Difficulty Level: Medium

AACSB: Systems and processes in organizations

10. High-performance work practices include all of the following EXCEPT ______.

A. tall organizational structures

B. worker empowerment and autonomy

C. flexible work designs

D. worker- and family-friendly policies

Learning Objective: 10-4: Identify key talent management issues that arise at various business-planning horizons.

Cognitive Domain: Comprehension

Answer Location: Relationship of HR strategy to Business Strategy
Difficulty Level: Medium

AACSB: Systems and processes in organizations

11. Coming up with the objectives and goals of the business fall under which business planning process?

A. operational planning: middle range perspective

B. strategic planning: long range perspective

C. budgeting annual perspective

D. forecasting requirements

Learning Objective: 10-4: Identify key talent management issues that arise at various business-planning horizons.

Cognitive Domain: Knowledge

Answer Location: Relationship of HR strategy to Business Strategy
Difficulty Level: Medium

AACSB: Systems and processes in organizations

12. All of the following are uses for talent inventory data suggested in the reading EXCEPT ______.

A. succession planning

B. training

C. corporate philosophy development

D. workforce-diversity planning

Learning Objective: 10-4: Identify key talent management issues that arise at various business-planning horizons.

Cognitive Domain: Comprehension

Answer Location: Relationship of HR strategy to Business Strategy
Difficulty Level: Easy

AACSB: Systems and processes in organizations

13. What was the ROI for the IBM “Workforce Management Initiative” as described in the reading?

A. 100%

B. 200%

C. 500%

D. 1,000%

Learning Objective: 10-5: Describe the multiple uncertainties that characterize supply and demand forecasts.

Cognitive Domain: Analysis

Answer Location: Talent Inventory
Difficulty Level: Medium

AACSB: Systems and processes in organizations

14. All of the following information is likely to be stored in a talent inventory EXCEPT ______.

A. previous positions held in the organization

B. disciplinary actions

C. training and development programs attended

D. recruitment method they were hired through

Learning Objective: 10-5: Describe the multiple uncertainties that characterize supply and demand forecasts.

Cognitive Domain: Knowledge

Answer Location: Information Type
Difficulty Level: Easy

AACSB: Systems and processes in organizations

15. Workforce forecasts include all of the following EXCEPT ______.

A. anticipating the supply of human resources inside the organization

B. monitoring how many employees are being disciplined in the organization

C. anticipating the supply of human resources outside the organization

D. anticipating organizational demands for various types of employees

Learning Objective: 10-5: Describe the multiple uncertainties that characterize supply and demand forecasts.

Cognitive Domain: Comprehension

Answer Location: Forecasts of Workforce Supply and Demand
Difficulty Level: Easy

AACSB: Systems and processes in organizations

16. If you are examining the age distribution of your workforce and your average rates of turnover and retirements, which part of a workforce forecast are you likely doing?

A. internal supply forecasting

B. external supply forecasting

C. demand forecasting

D. labor market analysis

Learning Objective: 10-5: Describe the multiple uncertainties that characterize supply and demand forecasts.

Cognitive Domain: Application

Answer Location: Forecasts of Workforce Supply and Demand
Difficulty Level: Easy

AACSB: Systems and processes in organizations

17. If you were interested in the number of bachelor degrees entering your particular occupation and how much they get paid on average, there is a survey conducted by ______.

A. The National Association of Colleges and Employers

B. The Department of Education

C. Bureau of Labor Statistics of the U.S. Department of Labor

D. The National Science Foundation

Learning Objective: 10-5: Describe the multiple uncertainties that characterize supply and demand forecasts.

Cognitive Domain: Knowledge

Answer Location: Forecasts of Workforce Supply and Demand
Difficulty Level: Medium

AACSB: Systems and processes in organizations

18. Prior to the early-1980s, changes to supply of internal talent was determined pretty heavily on ______.

A. employees moving to the gig economy

B. retirements

C. employees leaving for another organization

D. employees being fired

Learning Objective: 10-5: Describe the multiple uncertainties that characterize supply and demand forecasts.

Cognitive Domain: Comprehension

Answer Location: From Predictable to Unpredictable Supplies of Labor
Difficulty Level: Easy

AACSB: Systems and processes in organizations

19. All of the following are common expected leadership behaviors at 3M EXCEPT ______.

A. play to win

B. innovate

C. prioritize and execute

D. take it to the top

Learning Objective: 10-6: Know the steps to take to avoid a crisis in leadership succession.

Cognitive Domain: Knowledge

Answer Location: Leadership-Succession Planning
Difficulty Level: Medium

AACSB: Systems and processes in organizations

20. In this step of leadership-succession planning, the organization identifies their top talent and creates pools for critical positions.

A. assessment

B. development

C. succession

D. implementation

Learning Objective: 10-6: Know the steps to take to avoid a crisis in leadership succession.

Cognitive Domain: Application

Answer Location: Leadership-Succession Planning
Difficulty Level: Easy

AACSB: Systems and processes in organizations

21. An organization would MOST likely choose to hire an outsider for a CEO position because ______.

A. they feel they have no other choice

B. it will motivate senior-level management to stay

C. they feel change is more important than continuity

D. internal candidates are overly qualified

Learning Objective: 10-6: Know the steps to take to avoid a crisis in leadership succession.

Cognitive Domain: Comprehension

Answer Location: Chief Executive Officer (CEO) Succession
Difficulty Level: Medium

AACSB: Systems and processes in organizations

22. What percentage of family-owned business survive until the third generation?

A. 45%

B. 30%

C. 12%

D. 3%

Learning Objective: 10-6: Know the steps to take to avoid a crisis in leadership succession.

Cognitive Domain: Knowledge

Answer Location: Chief Executive Officer (CEO) Succession
Difficulty Level: Easy

AACSB: Systems and processes in organizations

23. Expert firms say that it takes a successor ______ to become fully capable of assuming leadership in a CEO position.

A. 3–6 months

B. 6–12 months

C. 1–3 years

D. 3–5 years

Learning Objective: 10-6: Know the steps to take to avoid a crisis in leadership succession.

Cognitive Domain: Knowledge

Answer Location: Chief Executive Officer (CEO) Succession
Difficulty Level: Medium

AACSB: Systems and processes in organizations

24. All of the following tends to happen as strategic workforce planning matures in an organization EXCEPT ______.

A. organizational boundaries solidify and become more important

B. SWP gains broader support and ownership

C. it incorporates tools from other functions and frameworks

D. it becomes increasingly data driven

Learning Objective: 10-7: Identify when it makes more sense to “buy” rather than “make” talent.

Cognitive Domain: Comprehension

Answer Location: How Accurate Must Demand Forecasts Be?
Difficulty Level: Medium

AACSB: Systems and processes in organizations

25. All of the following are times when an organization would be better off “buying” talent EXCEPT ______.

A. their forecast of demand is very accurate

B. they want to change their culture/direction

C. the talent won’t be needed for very long

D. they do not have the scale to develop talent

Learning Objective: 10-7: Identify when it makes more sense to “buy” rather than “make” talent.

Cognitive Domain: Comprehension

Answer Location: Matching Forecast Results to Action Plans
Difficulty Level: Medium

AACSB: Systems and processes in organizations

26. Which of these metrics would you LEAST expect to be used in evaluation of strategic planning?

A. turnover costs

B. analysis of costs of internal versus external recruiting

C. pulse surveys

D. critical incident measures

Learning Objective: 10-8: Explain the kinds of information to collect when evaluating newly established versus well-established strategic workforce planning systems.

Cognitive Domain: Comprehension

Answer Location: Sampling and Measuring Performance
Difficulty Level: Easy

AACSB: Systems and processes in organizations

27. Which of the following is NOT a metric listed for evaluating more established SWP systems?

A. actual staffing levels against forecast staffing requirements

B. actual productivity against potential productivity

C. labor and action-program costs against budgets

D. actual levels of labor productivity against anticipated levels of labor productivity

Learning Objective: 10-8: Explain the kinds of information to collect when evaluating newly established versus well-established strategic workforce planning systems.

Cognitive Domain: Comprehension

Answer Location: Identifying an Appropriate Strategy for Evaluation
Difficulty Level: Medium

AACSB: Systems and processes in organizations

28. All of these are primary causes of CEO succession EXCEPT ______.

A. poor performance

B. scapegoating

C. hostile takeover

D. retirement

Learning Objective: 10-6: Know the steps to take to avoid a crisis in leadership succession.

Cognitive Domain: Knowledge

Answer Location: Chief Executive Officer (CEO) Succession
Difficulty Level: Easy

AACSB: Systems and processes in organizations

Short Answer

1. What are some of the talent management problems that HR managers need to address?

Learning Objective: 10-1: Describe the four components of the strategic workforce planning process and explain how they work together.

Cognitive Domain: Knowledge

Answer Location: Strategic Workforce Planning
Difficulty Level: Easy

AACSB: Systems and processes in organizations

2. Name and describe at least three of the processes strategic planning might include.

Learning Objective: 10-2: Explain the relationship between strategic business plans and strategic workforce plans.

Cognitive Domain: Comprehension

Answer Location: The Strategic Planning Process
Difficulty Level: Medium

AACSB: Systems and processes in organizations

3. What are the two key questions that planning horizons at all ranges (short, middle, and long) need to answer?

Learning Objective: 10-4: Identify key talent management issues that arise at various business-planning horizons.

Cognitive Domain: Comprehension

Answer Location: Relationship of HR strategy to Business Strategy
Difficulty Level: Medium

AACSB: Systems and processes in organizations

4. How are talent inventories and workforce forecasts tied together?

Learning Objective: 10-5: Describe the multiple uncertainties that characterize supply and demand forecasts.

Cognitive Domain: Comprehension

Answer Location: Forecasts of Workforce Supply and Demand
Difficulty Level: Medium

AACSB: Systems and processes in organizations

5. What are the five primary causes of CEO succession? What percentage of companies have a CEO succession plan and why is it important to have one?

Learning Objective: 10-6: Know the steps to take to avoid a crisis in leadership succession.

Cognitive Domain: Comprehension

Answer Location: Chief Executive Officer (CEO) Succession
Difficulty Level: Medium

AACSB: Systems and processes in organizations

6. What are some steps a family-run business can take to help with succession planning?

Learning Objective: 10-6: Know the steps to take to avoid a crisis in leadership succession.

Cognitive Domain: Comprehension

Answer Location: Chief Executive Officer (CEO) Succession
Difficulty Level: Medium

AACSB: Systems and processes in organizations

Essay

1. Name and explain the four reasons planning is important in management.

Learning Objective: 10-2: Explain the relationship between strategic business plans and strategic workforce plans.

Cognitive Domain: Comprehension

Answer Location: Strategic Business and Workforce Plans

Difficulty Level: Easy

AACSB: Systems and processes in organizations

2. What are some of the important questions that should be considered in a talent inventory and why are they important?

Learning Objective: 10-5: Describe the multiple uncertainties that characterize supply and demand forecasts.

Cognitive Domain: Comprehension

Answer Location: Talent Inventory
Difficulty Level: Medium

AACSB: Systems and processes in organizations

3. In cases where supply-and-demand forecasts are mostly based on more subjective opinions, what can/should be done to evaluate and control the strategic workforce planning?

Learning Objective: 10-8: Explain the kinds of information to collect when evaluating newly established versus well-established strategic workforce planning systems.

Cognitive Domain: Comprehension

Answer Location: Identifying an Appropriate Strategy for Evaluation
Difficulty Level: Medium

AACSB: Systems and processes in organizations