Test Bank

to accompany

Human Resource
th
Management, 9 edition
by Raymond J. Stone

© John Wiley & Sons Australia, Ltd

Chapter 2
Human Resource Management, 9th edition

Human resource planning

Multiple choice questions

1. The focus of human resource planning is on:

*a. labour demand and labour supply.

b. matching internal and external labour sources.
c. matching internal and external labour costs.
d. balancing financial and organisational needs.

General Feedback:
Learning Objective 2.2: Appreciate the importance of HR planning. HRP is intended to ensure that the
right employees are available at the right time, which means the focus is on the organisation's needs for
employees and the availability of these employees.

2. Organisations with too many low-skilled and poorly qualified employees:

a. are more likely to be the target of unexpected corporate takeovers and mergers.
b. will need to outsource or decentralise many of the important HR functions.
*c. may face obstacles when introducing new technology and other change initiatives.
d. will find themselves under strong trade union pressure to increase training budgets.

General Feedback:
Learning Objective 2.2: Appreciate the importance of HR planning. Organisations face great difficulty
in bringing about change in practices and technology and direction when their staff members have not
been prepared for the onset of these changes.

3. Which of the following generations in the Australian workforce is motivated by long-term job
security, promotion and salary?

a. Generation X.
b. Generation Y.
*c. Baby boomers.
d. Veterans.

General Feedback:
Learning Objective 2.3: Identify the key environmental influences on HR planning. Baby boomers tend
to be very loyal to their employers, hardworking and motivated by long term job security, promotional
opportunities and salary.

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

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a. changing social attitudes towards work.

*b. increasing numbers of women in the workforce.
c. attempts to reduce levels of employee absenteeism.
d. the requirements of EEO legislation.

General Feedback:
Learning Objective 2.3: Identify the key environmental influences on HR planning. The increasing
participation of women in the workforce has required employers to allow flexible working
arrangements, provide maternity and paternity leave and provide job security for women returning to
work after child bearing. In the broader community, these changes have increased demand for childcare
places.

5. Trade unions in Australia, Hong Kong and the USA have opposed moves by companies to recruit
overseas on the grounds that:

a. trade unions do not exist in the countries where employees are sought.
b. other countries do not allow their companies to recruit overseas.
*c. it is unpatriotic and allows competition from cheap labour countries.
d. wages in other countries are generally higher than local companies pay.

General Feedback:
Learning Objective 2.3: Identify the key environmental influences on HR planning. Typically unions in
these countries are not in favour of organisations recruiting internationally as they believe it that
deprives locals of jobs and that it fosters lower wages as other nationals are prepared to accept lower pay
and conditions in comparison to home country employees.

6. Quantitative HR forecasting technique is primarily used by:

*a. theoreticians and professional HR planners in large organisations.

b. theoreticians and professional HR planners in small organisations.
c. in-house functional managers rather than expert HR consultants.
d. all levels of HR managers in organisations both large and small.

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. Quantitative forecasting has
tended to be used by theoreticians and professional HR planners due to the highly sophisticated
mathematical and statistical techniques utilised.

7. HR surpluses, shortages and career blockages are the focus of which approach to HR planning?

a. Qualitative approach
b. Reactive approach
c. Instrumental approach

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*d. Quantitative approach

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. The aim of the quantitative
approach is to forecast HR shortfalls, surpluses and career blockages and to reconcile the supply and
demand for labour given the firm's overall strategic objectives.

8. According to the human resource planning process presented by Stone, the first step is to:

*a. determine the number and type of jobs to be filled.

b. examine human resource inventory levels and trends.
c. identify critical internal labour shortages.
d. employ experienced external HR consultants.

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. Stone considers that the
determination of the classification and number of vacancies is the first step in the HR planning process.

9. The technique which involves building complex computer models to simulate future events based on
probability and multiple assumptions is:

a. trend projection.
*b. econometric modelling.
c. time-line analysis.
d. projected growth analysis.

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. In econometric modelling
forecasts are based on deriving the statistical relationships among variables (such as the relationship of
turnover and average bonus to employment) using computer modelling.

10. Trend projections are based on the assumption that:

a. statistical relationships remain predictable over time.

b. data needs to be adjusted for changing situations.
*c. the future will be a continuation of the past.
d. qualitative statistical tools are strong predictors.

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. The essence of trend
projections and their greatest limitation is that they assume things will continue into the future as they
have occurred in the past.

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11. The Delphi technique aims to:

a. collect information that supports the staffing decisions of management.

b. review the ideas of an expert in relation to projected employment 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.

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. The Delphi technique uses
independent anonymous predictions in answer to a series of questions posed by the HR department
relating to HRP. The results are analysed and then fed back to the participants along with another set of
questions. This process is repeated until consensus is reached.

12. Which forecasting technique uses team members to independently generate as many solutions to a
HRP problem as possible?

a. Econometric forecasting
b. The Delphi technique
*c. The nominal group technique
d. Trend projections

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. The nominal group technique
enables team members to independently rank proposed solutions to HRP problems without the group
criticising or debating the solutions.

13. Which of the following methods is used to forecast the supply of internal human resources?

a. Expert opinion
b. Nominal group technique
*c. Turnover analysis
d. Trend projection

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Turnover analysis enables
HR managers to predict the number of people that will leave an organisation based on past data.

14. The skills inventory allows the HR manager to do all of the following EXCEPT:

*a. identify where qualified external labour sources can be found.

b. identify qualified employees for different jobs in the organisation.
c. determine which skills are present or lacking in the organisation.
d. assess longer-term recruitment, selection and development requirements.

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General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. The skills inventory enables
the HR manager to evaluate the internal supply of labour.

15. One of the strengths of the nominal group technique is that:

a. is far less costly to implement than the Delphi technique and more reliable.
b. it has wide international acceptance and support and a strong track record.
*c. it counterbalances attempts by an individual to dominate decision making.
d. it uses a range of quantitative HR tools to improve the decision making process.

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. As the nominal group
technique prohibits debate and criticism of proposed solutions it prevents any individual dominating the
process.

16. A skills inventory can benefit employees by:

a. giving them access to their personal employment records.

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.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Skills inventories assist in
ensuring that existing employees are not overlooked for promotional opportunities.

17. Replacement charts are used to identify:

a. how often succession planning activities need to be reviewed and evaluated.

*b. present incumbents and potential replacements for given organisational positions.
c. which positions are no longer necessary when the current incumbent leaves the organisation.
d. which positions can be replaced by machines due to advances in production technology.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Replacement charts are a
pictorial representation of positions indicating present incumbents and those who have the potential to
replace them should the position become vacant.

18. Which of the following techniques for forecasting the internal supply of human resources is
concerned with the filling of key management and professional vacancies?

a. Replacement charts

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*b. Succession planning

c. Markov analysis
d. Skills inventory

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Succession planning takes a
long term view of the organisation's HR needs and focuses on preparing high potential employees for
key management and professional roles.

19. Replacement charts are primarily used with which type of employees?

*a. Technical, professional and managerial

b. Sales and marketing specialists
c. Administrative front-office staff
d. Contract and casually employed staff

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Replacement charts tend to
focus on technical, managerial and professional employees.

20. Succession planning stresses the development of high-potential employees and:

a. makes uses of sophisticated quantitative HR planning techniques.

b. usually requires the use of external experienced consultants.
c. has largely replaced the use of replacement charts in organisations.
*d. takes a long term view of the organisation's HR needs.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Succession planning uses
similar data to replacement charts but includes additional information regarding performance,
promotability, training and development needs as well as potential for growth in the long term.

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

a. employee loss.
b. downsizing.
c. employee departure.
*d. labour turnover.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Labour turnover includes all
those who have left the organisation due to voluntary or involuntary reasons.

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22. Markov analysis:

*a. uses a mathematical technique to forecast the availability of internal job 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.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Markov analysis is a
mathematical technique used in large organisations like the army to predict the transfer and departure of
employees based on past data.

23. When a matrix is developed to show the probability of an employee moving from one job to another
in an organisation, or leaving the organisation, this requires the use of:

a. econometric modelling.
b. turnover analysis.
*c. Markov analysis.
d. succession planning.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Markov analysis utilises a
matrix indicating the likely movements of employees within the organisation as well as possible
turnover.

24. The use of Markov analysis requires:

a. a knowledge of the techniques of regression analysis.

b. the use of replacement charts and succession planning.
c. a maximum of 20 employees in any one job classification.
*d. a minimum of 50 employees in any one job classification.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Markov analysis is limited
in its application to very large organisations that have at least 50 employees in a single job classification.

25. To accurately forecast the availability of external human resources, the HR manager must monitor
and respond to:

a. changes in business strategy.

*b. demographic changes.
c. changes to skill requirements.
d. changes in government regulations.

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General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. HR managers need to be
attuned to demographic changes such as the ageing population, which affect the external labour market.

26. The country with 20 per cent of its population aged 65 or over is:

a. China.
b. India.
c. Australia.
*d. Japan.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Japan is now the world's
most aged society, with 20 percent of its population aged 65 or over.

27. Which of the following is NOT a demographic change affecting the external supply of labour?

a. The ageing population

b. Increased female participation rate
c. Increases in school retention rates
*d. Increasing turnover rates

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Turnover rates will only
affect the internal supply of labour.

28. Competitive pressures, changes in technology and outsourcing have all contributed to the trend
toward:

a. the multiskilling of the workforce.

*b. the casualisation of the workforce.
c. high turnover rates.
d. the mobility of the workforce.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Casualisation of the
workforce has been a response to a number of business changes, including increasing competition,
technological changes, pressures for greater flexibility, increased use of outsourcing and changes to
industrial relations legislation.

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

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a. specialising.
b. consulting.
c. de-skilling.
*d. outsourcing.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Outsourcing is
subcontracting non-core activities to external organisations that specialise in that form of work.
Common examples of outsourced activities include recruitment, payroll and HR record-keeping
services.

30. The 457 visa scheme:

a. is criticised by some sectors in the community because it grants permanent residency to foreign
workers.
b. generally applies to non-skilled workers.
*c. has been resisted by trade unions for fear that the wages and conditions of Australian workers will be
eroded and the power of trade unions will be weakened.
d. mostly applies to guest workers from South-East Asia and the Pacific Islands.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Some politicians and trade
unions argue against the use of 457 visas as they believe that some employers will prefer to employ
foreign workers who are prepared to accept inferior pay and conditions compared to local workers.

31. Employees can be targeted for separation and termination may be selected on the basis of:

a. age.
*b. seniority.
c. timing.
d. cost.

General Feedback:
Learning Objective 2.6: Explain the basics of exit management. Employees can be separated based on
groupings, performance, seniority, or rank.

32. If the termination process is perceived by management, employees and trade unions as fair, then this
is known as which type of justice?

a. Distributive
*b. Procedural
c. Interactional
d. Socially responsible

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General Feedback:
Learning Objective 2.6: Explain the basics of exit management. Factual. Procedural justice occurs when
the termination process is perceived by management, employees and trade unions as fair.

33. If an HR manager concentrates on meeting short-term replacement needs it can result in:

a. significant cost savings.

*b. quantity and quality problems.
c. up-to-date employee skills.
d. improved job satisfaction.

General Feedback:
Learning Objective 2.2: Appreciate the importance of HR planning. Focussing on short term
replacement needs can lead to difficulties associated with lack of suitably qualified candidates to fill
unexpected labour requirements.

34. Linking HR planning with organisational strategy allows the HR manager:

a. to understand the role he/she plays within the organisation.

b. to influence the future structure of the organisation's management.
*c. to anticipate and influence the future HR requirements of the organisation.
d. to more clearly understand the impact of increased global competition.

General Feedback:
Learning Objective 2.2: Appreciate the importance of HR planning. HR managers need to be proactive
and ensure that HR planning is underscored by the overall strategic planning process and thus be able to
predict the future skill needs of the organisation.

35. Qualitative HR forecasting using the estimates of experts is popular because:

a. it is more sophisticated than quantitative techniques of forecasting.

b. it is far more reliable than quantitative techniques of forecasting.
*c. it is simple, cheap and fast for organisations to implement.
d. there is a ready supply of skilled people expert in forecasting.

General Feedback:
Learning Objective 2.4: Understand the basic approaches to HR planning. The qualitative approach,
although far less sophisticated than quantitative methods, is far simpler, less expensive and quicker to
utilise.

36. A major criticism of replacement charts is that they:

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a. are expensive to produce and statistically invalid.

b. are based upon outdated assumptions about the workforce.
*c. focus attention on current not future skills and positions.
d. focus attention on the future not current skills and positions.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Replacement charts are
primarily concerned with the organisation's current HR requirements and as such do not take cognisance
of future needs associated with strategic objectives.

37. Management development and succession planning are considered superfluous by many
organisations because of:

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 mobile workforce.
*d. rapid changes in business and a mobile job market.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Many consider that long
term development of managers and succession planning have in many respects been made redundant due
to significant changes in the business sector, flexibility in the job market and the trend away from long-
term employment with a single employer.

38. Succession planning will become merely an academic exercise producing only static charts unless it:

a. has the support of all levels of management in the organisation.

b. uses a number of dynamic sophisticated quantitative planning tools.
*c. has an effective appraisal and needs-based training programs.
d. increasing turnover rates.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. For succession planning to
be effective and gain support within the organisation, it needs to be underpinned by an organisational
culture that fosters employee development and internal promotion via performance appraisal and
effective training.

39. The practice of managers developing their own replacements has been found to be:

a. successful and cost efficient.

*b. ad hoc and subjective.
c. objective and well-structured.
d. difficult to implement and monitor.

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General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Unless a systematic
approach is adopted with regard to succession planning, then it is likely that promotions will be based on
how well employees are able to flatter their superiors or on non-objective or irrelevant criteria.

40. Effective development of managers requires:

a. employing outside external consultants with relevant job experience.

b. employing a specialist trainer to identify company training needs.
c. the use of a computer based forms of individual needs assessment.
*d. identifying appropriate learning experiences via relevant job assignments.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Development of managers
requires an effective needs analysis that pinpoints which roles or assignments, special projects and/or
training programs will enhance their current skill set.

41. Critics of casualisation of the workforce have argued that it:

a. hinders workforce flexibility.

*b. marginalises employees in terms of career, training and benefits.
c. increases managerial responsibilities.
d. adversely affects worker satisfaction.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Casual, part-time, temporary
and contract workers are often disadvantaged with regards to training and development opportunities,
career development and non-cash benefits when compared to their full-time or permanent counterparts.

42. Which of the following is NOT an advantage associated with knowledge workers being employed on
a contingent basis?

a. Varied and interesting work

*b. Long term career prospects
c. Flexibility to enable effective balancing of work and personal commitments.
d. The opportunity to work for a variety of organisations in a range of different industries.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Contingent knowledge
workers typically work on short-term contracts for a variety of firms and thus sacrifice long term career
development with a single organisation.

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43. Quinn and Hilmer argue that by strategically outsourcing and emphasising a company's core
competencies:

*a. managers can leverage their firm's skills and resources for increased competitiveness.
b. resources can then be allocated to improved marketing and financial activities.
c. the need for any future HR planning techniques will be greatly diminished.
d. a closer integration with globalisation trends in employment practices is possible.

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Quinn and Hilmer argue that
strategic outsourcing enables organisations to focus their resources and employee skills on their core
functions and thus improve their competitive position.

44. Which of the following HR activities would not be outsourced?

a. Recruitment
b. Payroll
c. Retirement services
*d. Performance management

General Feedback:
Learning Objective 2.5: Describe the ways of forecasting HR requirements. Performance management
would not be outsourced to an external firm as managing and developing employees is the key to
fostering an organisation's sustainable competitive advantage.

45. Given that human resource planning is the cornerstone of all HRM activity, it is astounding how
many organisations:

a. continue to use contractors to carry out the planning exercise.

b. fail to provide for such activities in their budget allocations.
*c. perceive the activity as little more than a headcount.
d. prefer qualitative planning methods to the quantitative techniques.

General Feedback:
Learning Objective 2.2: Appreciate the importance of HR planning. Many organisations fail to fully
integrate HR planning into the organisation's strategic business plan.

46. The HR plan:

a. is increasingly being developed by external consultants with extensive HR experience.

*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 objectives.

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General Feedback:
Learning Objective 2.2: Appreciate the importance of HR planning. HR planning is critically linked to
all other HR activities and supports the achievement of the overall strategic objectives.

47. A measure of the effectiveness of HR planning is whether:

a. it positively affects the organisation's share price.

b. it gains increased recognition at top management levels.
*c. the right people are available at the right time.
d. employee turnover rates are significantly reduced.

General Feedback:
Learning Objective 2.7: Understand the requirements for effective HR planning. HR planning is
effective when appropriately skilled people are available to help achieve the organisation's strategic
objectives.

48. Which of the following is NOT a termination cause?

a. GFC
b. Technology
*c. Getting older
d. Outsourcing

General Feedback:
Learning Objective 2.6: Explain the basics of exit management. Globalisation, cost pressures,
competition, technology, the GFC, organisation structural changes, mergers and acquisitions etc. are all
forms of termination from the firm.

49. What is one of the disadvantages of terminating employees from a firm?

*a. The organisation may lose employees it would prefer to keep

b. The organisation saves on costs
c. The organisation is more efficient
d. The organisation is more productive

General Feedback:
Learning Objective 2.6: Explain the basics of exit management. Losing employees it would prefer to
keep might mean that an organisation is left with the 'dead wood' employees.

50. Which is NOT a factor to consider before commencing a termination program?

a. Timing

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b. Cost
c. Selection
*d. Outsourcing

General Feedback:
Learning Objective 2.6: Explain the basics of exit management. Some of the major factors to consider
are objective, numbers, selection, timing, cost, and audit.

Essay questions

51. 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?

Correct Answer:
An HR plan acts as the strategic link between organisational and HR objectives. Thus an effective HR
planning process is critical to optimising the utilisation of an organisation's human resources. The
purpose of HR planning is ensuring that the right number of employees is available to the organisation at
the right time in order for the organisation to be able to pursue its objectives. Without appropriate
planning processes for future staffing requirements it can be extremely difficult for the organisation to
be assured that its goals can be successfully pursued.

52. 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.

Correct Answer:
Future employees can be found both internally and externally. Many organisations prefer to fulfil future
staffing needs from within their own staff. Present employees who can be promoted, transferred,
demoted or developed make up the internal labour supply. There are various techniques available for
forecasting the internal supply of people including turnover analysis, skill inventories, replacement
charts, Markov analysis and succession planning.
The external supply consists of people who do not currently work for the organisation. It is unrealistic to
assume that every vacancy can be filled from within an organisation. So the manager must enter the
global labour market and be especially aware of demographic trends, changes in participation rates,
increasing casualisation of employment and the trend towards outsourcing.
Human resource planning requires the right combination of internal and external labour supply if it is to
be effective.

53. How does accurate human resource planning assist an organisation in its recruitment and selection
activities?

Correct Answer:
In fulfilling the recruiting and selection function the HR department needs to know what the strategic
focus of the organisation is and in particular what the HR objectives are. The approach taken towards

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recruiting and selection will be largely driven by whether the company is pursuing a strategy of
retrenchment, stability or growth. In considering internal supply, if a growth strategy is being pursued,
HR will need to take account of whether the company has a policy of favouring existing employees first
if any increase in employment is undertaken. In considering external supply, recruiting and selection
needs to be critically aware of changing demographics, the growth of the international labour market, the
casualisation of the workforce and changing participation rates brought about by changing social trends.

54. You have been asked to prepare some human resource forecasts for Correctional Services Officers
for the Department of Corrective Services. What factors will affect the demand for and supply of these
officers?

Correct Answer:
In considering the demand for Correctional Services Officers, some of the factors to be considered
would be the trends in crime statistics, whether the prisoner/officer ratio was at the predetermined
correct level or not, the attitude of the judiciary towards placing convicted criminals in prisons,
budgetary constraints of the government, any social and political pressures to build more prisons and
changing population demographics. In considering supply, the age composition of the present
correctional services officers would be a critical factor, the terms and conditions of employment offered
for such positions and the present turnover of officers in their positions. This would depend on the
current state of the employment market since jobs as prison officers are usually sought when the labour
market offers few alternatives. Other factors affecting supply would be the attractions of the job such as
security and opportunities for promotion.

55. What do you consider to be the major problems in human resource planning?

Correct Answer:
Many organisations feel that HR planning is a waste of time in the present climate of rapid change,
especially in demography, technology and the labour market. HR planning will remain a fad while its
value to the achievement of the organisation's objectives are questioned or misunderstood. HR must
ensure that its planning objectives are in accord with those of the organisation or it will never gain the
recognition it seeks. Further problems HR planning faces are its overemphasis on sophisticated statistical
techniques and its reliance on qualitative techniques that do not always have the support of top
managers. Moreover satisfactorily matching employees with predetermined needs can be expensive,
time consuming and subject to a range of legislative requirements, all of which can undermine attempts
to get the right employees available when needed.

56. Identify and discuss some of the major factors that need to be considered before commencing a
termination program.

Correct Answer:
Some of the major factors to consider include: objective (what is to be achieved and will it be
achieved?), numbers (how many people are to be terminated?), selection (using a rationale that is
perceived as just), timing (quickly and at one time), cost (all identified and accounted for), and audit
(evaluation of the program).

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