Planners need to combine statistical forecasts of labour supply with expert judgments because

Human resources planning can use qualitative and quantitative approaches to forecasting labor demand. Quantitative methods rely on statistical and mathematical assessment, such as workforce trend analysis or econometric calculation. Qualitative forecasts use managerial judgment on a more individual basis, spotting needs internally and then bidding for or training the requisite skills. Ultimately, many human resource departments can use the basic supply and demand signals generated in the labor market to estimate demand.

In the private sector, the type and quantity of demanded labor is a function of the total demand for products and services in the economy. In this sense, it is the consumer who controls labor and not the employer. It is up to producers to predict and deploy demanded labor in a profitable way. The primary source of labor information comes from prices – the wage rate set in the market, the prices of goods and services, and the cost of alternatives to manual labor.

Conceptually, forecasting labor demand is no different than forecasting the right combination of any capital inputs. Firms must successfully anticipate consumer demand and find cost-effective ways of bringing goods or services to the market. A manufacturing production manager might ask, "How many widgets should I bring to market next year?" Similarly, a human resources manager might ask, "How many employees will we need to produce those widgets next year? At what skill level?"

Contemporary literature on human resources planning identifies several common methods of estimating a business's human capital needs. These include managerial judgement, work-study techniques (also known as workload analysis), trend analysis, the Delphi Technique and model-based regression analysis.

Wrap-up Quiz 5 - Session 6

Due Jun 26 at 11:59pm Points 25 Questions 25

Available Jun 20 at 3:15pm - Jun 26 at 11:59pm 6 days Time Limit 20 Minutes

Allowed Attempts 3

Attempt History

Attempt Time Score LATEST Attempt 1 20 minutes 24 out of 25

 Correct answers will be available Jul 4 at 12am - Aug 8 at 12am.

Score for this attempt: 24 out of 25

Submitted Jun 20 at 4:03pm This attempt took 20 minutes.

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Question 1 1 / 1 pts

Each of the following is a relatively fast method to reduce an expected labour surplus EXCEPT

work sharing.

pay reduction.

retraining.

demotion.

transfer.

Question 2 1 / 1 pts

The goals that are set in the human resource planning process should come directly from:

mid-level managers, who tend to be most in touch with the organization's needs.

the judgments and choices made by strategists and experts.

the analysis of labour supply and demand.

the line workers at the grassroots level.

the feedback provided by the organization's customers.

Question 3 1 / 1 pts

Why is hiring new employees for every labour shortage not preferable?

Selecting new employees attracts too many discrimination law suits.

The process will lead to an artificial scarcity in the labour market.

It would lead to reduced organizational control over the workers and process.

If the shortage becomes surplus, the organization may have to lay off employees.

The process may result in reduced quality and may affect standardization.

Questions such as "Where did people who were in each job category go?" and "Where did people now in each job category come from?" can be ANSed by using:

leading indicators.

a transitional matrix.

multiple regression.

trend analysis.

propensity analysis.

Question 7 1 / 1 pts

Which of the following is a disadvantage of using temporary and contract workers?

Revocability is lesser compared to other methods of avoiding shortage.

These kinds of workers cannot be sourced through agents.

These workers will be less committed to the organization.

These methods are a relatively slow solution to labour shortage.

There is great difficulty in hiring temporary and contract workers.

Question 8 1 / 1 pts

Which of the following is an advantage of statistical forecasting methods?

They are particularly useful in dynamic environments.

They are invariably better than the "best guesses" of experts.

They can be used to reduce dependence on secondary data for making forecasts and predictions.

They are particularly useful in predicting important events that have no historical precedent.

Under the right conditions, they provide predictions that are much more precise than judgmental methods.

Question 9 1 / 1 pts

Which of the following is NOT one of the forces that draw out an older worker's career?

The improved health of older people in general

Insufficient younger workers to replace the older workforce

Employers being constrained by age discrimination legislation

The fear of Social Security being cut

Employers' fear of losing the experience that older workers possess

Question 10 1 / 1 pts

Many problems with downsizing can be reduced by:

Retrained transfers

Outsourcing

Turnover reductions

Technological innovation

Question 13 1 / 1 pts

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?

job sharing

reduced work weeks

layoffs based on reverse seniority

buyouts and early retirement packages

work sharing

Question 14 1 / 1 pts

________ is the planned elimination of large numbers of personnel designed to enhance organizational effectiveness.

Downsizing

Retraining

Retirement

Home-sourcing

Work sharing

Question 15 1 / 1 pts

The value of a proportion in a transitional matrix is 0. Its column headings and row headings are the same. This means:

40 percent people remained in the job category represented by the row.

40 percent people left the job category represented by the row.

the organization's attrition rate is 60 percent.

60 percent people left the job category represented by the row.

the particular job category has 40 percent attrition rate.

Question 16 1 / 1 pts

Which of the following is a method used to reduce an expected labor shortage that is low on revocability?

Outsourcing

Overtime

Temporary employees

Retrained transfers

New external hires

Effective HRP helps an organization to do all of the following EXCEPT:

plan and coordinate recruitment, selection, training, and career planning more effectively.

achieve its goals and objectives.

make major labour market demands more successfully.

anticipate and avoid shortages and surpluses of human resources.

comply with privacy laws.

Question 20 1 / 1 pts

Planners need to combine statistical forecasts of labour supply with expert judgments because:

it would motivate the experts in the organization.

historical data may not always reliably indicate future trends.

subjective judgments are always more reliable than historical data.

external trends cannot be studied using historical data.

statistical methods fail to account for historical trends.

Question 21 1 / 1 pts

Which of the following options for avoiding an expected labour shortage is a slow solution and has low revocability?

Retrained transfers

Overtime

Outsourcing

Technological innovation

Temporary employees

Question 22 1 / 1 pts

When a company faces a shortage of employees in the workforce, and it predicts that current demand for products or services may not extend to the future, it will

recruit and train new employees.

be willing to hire part-time employees.

try to garner more hours out of the existing labour force.

lease out its machinery to other factories, thereby maintaining income.

decrease the production rate by half to meet quality standards.

Question 23 1 / 1 pts

Which of the following is true about temporary workers?

The objective perspective that temporary workers bring with them is of no value because of their lack of experience.

Trend analysis refers to:

a statistical method of forecasting that uses the proportion of employees in various job categories for making predictions.

No answer text provided.

a process that accurately predicts labor demand for the next year using leading indicators.

the use of subjective judgments to understand relationships among variables during fluctuating and unstable conditions.

a comparison of the proportion of employees in protected groups with the proportion that each group represents in the relevant labor market.

a pooling of the "best guesses," or subjective judgments, of experts to predict labor demand and supply.

Quiz Score: 24 out of 25

What is a benefit of applying statistical methods to HR forecasting?

What is the name of accurate measures that predict future labor needs?

What are the 3 key areas of human resources planning?

Which of the following strategies are the two most common ways to eliminate a labor shortage?