Human Resource Management, Global Edition, 13e (Mondy)

Chapter 5 Recruitment

5.1 Multiple-Choice Questions

1) The process of attracting individuals on a timely basis, in sufficient numbers, and with
appropriate qualifications to apply for jobs with an organization is known as ________.
A) development
B) selection
C) recruitment
D) planning
Answer: C
Explanation: C) Recruitment is the process of attracting individuals on a timely basis, in
sufficient numbers, and with appropriate qualifications to apply for jobs with an organization.
The firm may then select those applicants with qualifications most closely related to job
descriptions.
Diff: 1
Chapter: 5
Skill: Concept
LO: 1

2) What does recruitment involve?

A) encouraging qualified people to apply for employment with a firm
B) selecting qualified people for employment at a firm
C) attracting and selecting employees for the firm
D) determining sources of employees
Answer: A
Explanation: A) Recruitment is the process of attracting individuals on a timely basis, in
sufficient numbers, and with appropriate qualifications to apply for jobs with an organization.
The firm may then select those applicants with qualifications most closely related to job
descriptions.
Diff: 2
Chapter: 5
Skill: Concept
LO: 1

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3) Pro-Cleaning Corporation needs additional employees, but the firm lacks the finances
involved in recruiting and selection. All of the following are alternatives to recruiting that would
help Pro-Cleaning EXCEPT ________.
A) outsourcing
B) hiring contingent workers
C) implementing e-learning processes
D) using a professional employer organization
Answer: C
Explanation: C) Recruitment and selection costs are significant when you consider all the related
expenses. Therefore, Pro-Cleaning should consider alternatives such as outsourcing, contingent
workers, professional employer organizations (employee leasing), and overtime carefully before
engaging in recruitment. E-learning is for training rather than recruiting.
Diff: 2
Chapter: 5
Skill: Application
LO: 2

4) Ultra Cosmetics is in the process of hiring an external provider to handle all of the firm's
administrative tasks, which were once handled internally. Ultra Cosmetics is most likely
participating in ________.
A) broadbanding
B) outsourcing
C) employee leasing
D) recruiting
Answer: B
Explanation: B) Outsourcing is the process of hiring an external provider to do the work that
was previously done internally. Outsourcing has become a widespread and increasingly popular
alternative involving virtually every business area.
Diff: 1
Chapter: 5
Skill: Application
LO: 2

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5) Soundgear Electronics recently shifted all of its customer support services to a vendor in
India. Soundgear is most likely involved in the activity of ________.
A) telecommuting
B) offshoring
C) recruiting
D) staffing
Answer: B
Explanation: B) Offshoring refers to the migration of all or a significant part of the
development, maintenance and delivery of services to a vendor located in another country,
typically in developing countries like India and China. Offshoring is considered an alternative to
recruiting.
Diff: 2
Chapter: 5
Skill: Application
LO: 2

6) When the Secretary of Labor referred to the disposable American workforce, the reference
was to ________.
A) contingent workers
B) offshored employees
C) retired workers
D) hourly employees
Answer: A
Explanation: A) Contingent workers, described as the "disposable American workforce" by a
former secretary of labor, have a nontraditional relationship with the worksite employer and
work as part-timers, temporaries, or independent contractors.
Diff: 1
Chapter: 5
Skill: Concept
LO: 1

7) Harold's Department Stores frequently use contingent workers. What is the most likely reason
that the firm uses contingency workers ?
A) implementing telecommuting
B) minimizing specialty training
C) having scheduling flexibility
D) experiencing exceptional work ethics
Answer: C
Explanation: C) Contingent workers permit distinct advantages: maximum flexibility for the
employer and lower labor costs. Firms want flexibility with their workforces because they want
to be able to ramp up or scale back based on business needs.
Diff: 2
Chapter: 5
Skill: Application
LO: 1

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8) Which of the following would NOT be considered a contingent worker?
A) temporary worker
B) part-time employee
C) nonexempt employee
D) independent contractor
Answer: C
Explanation: C) Contingent workers work as part-timers, temporaries, or independent
contractors. Being exempt or nonexempt relates to receiving overtime pay.
Diff: 2
Chapter: 5
Skill: Concept
LO: 1

9) What is perhaps the most common approach to meeting short-term fluctuations in work
volume?
A) paying overtime
B) re-hiring retirees
C) leasing employees
D) hiring temporary employees
Answer: A
Explanation: A) Perhaps the most commonly used alternative to recruitment, especially in
meeting short-term fluctuations in work volume, is overtime. Overtime may help both employer
and employee. The employer benefits by avoiding recruitment, selection, and training costs. The
employees gain from increased income during the overtime period.
Diff: 2
Chapter: 5
Skill: Concept
LO: 2

10) All of the following are disadvantages associated with overtime EXCEPT ________.
A) employees become too accustomed to the added income
B) employees become too tired to work at a normal rate
C) employees pace themselves to ensure overtime
D) employees require additional training
Answer: D
Explanation: D) Employees may become fatigued and lack the energy to perform at a normal
rate. Consciously or not, employees may pace themselves to ensure overtime. They may also
become accustomed to the added income resulting from overtime pay and elevate their standard
of living. It is less likely that employees would require additional training because they are
working longer hours.
Diff: 3
Chapter: 5
Skill: Concept
LO: 2

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11) Which one of the following is not typical of passive job seekers?
A) They are looking for a new challenge.
B) They are employed.
C) They are happy with their employer.
D) They are content in their current role.
Answer: A
Explanation: A) Passive job seekers are potential job candidates who are typically employed,
satisfied with their employer, and content in their current role. But, if the right opportunity came
along, they might like to learn more. These individuals want to move slower and will ask a lot of
questions before making a job change. They are more hesitant to risk leaving a good job for a
new challenge and increased risk.
Diff: 1
Chapter: 5
Skill: Application
LO: 3

12) A firm's recruitment process would most likely be easier if the unemployment rate in an
organization's labor market was ________.
A) low
B) high
C) average
D) fluctuating
Answer: B
Explanation: B) Of particular importance to recruiting efforts is the demand for and supply of
specific skills in the labor market. A firm's recruitment process may be simplified when the
unemployment rate in an organization's labor market is high as was the case in the recession
when it jumped to over 10 percent in 2009.
Diff: 2
Chapter: 5
Skill: Concept
LO: 3

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13) Michael is presently employed as a loan officer at a local bank, but dislikes his job. Michael
has posted his résumé on Monster.com and CareerBuilder.com in hopes of landing a job at
another organization. Which of the following best describes Michael?
A) contingent worker
B) active job seeker
C) contract employee
D) passive candidate
Answer: B
Explanation: B) Active job seekers, whether presently employed or not, are committed to
finding another job. They place their résumés on job boards and contact friends, associates, or
companies to learn about job opportunities. Passive candidates, on the other hand, are typically
employed, satisfied with their employer, and content in their current role. However, if the right
opportunity came along, they might like to learn more.
Diff: 2
Chapter: 5
Skill: Application
LO: 3

14) Erin is presently employed as a public relations specialist at a news organization. Erin enjoys
her job and the company. Recently, Erin learned of an available position at an advertising agency
that sounds interesting. Erin is gathering information about the position, although she is unsure
whether leaving her current job would be wise. Which of the following best describes Erin?
A) contingent worker
B) active job seeker
C) contract employee
D) passive candidate
Answer: D
Explanation: D) Passive candidates are typically employed, satisfied with their employer, and
content in their current role. However, if the right opportunity came along, they might like to
learn more. Active job seekers, whether presently employed or not, are committed to finding
another job. They place their résumés on job boards and contact friends, associates, or companies
to learn about job opportunities.
Diff: 2
Chapter: 5
Skill: Application
LO: 3

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15) Kelly and Associates employs 150 people. According to the EEOC guidelines, the firm
should keep recruitment records for a minimum of ________.
A) six months
B) one year
C) two years
D) five years
Answer: C
Explanation: C) EEOC guidelines suggest that companies with more than 100 employees keep
staffing records for a minimum of two years. The threshold coverage is 50 employees if dealing
with the Office of Federal Contract Compliance Programs (OFCCP).
Diff: 2
Chapter: 5
Skill: Application
LO: 3

16) The EEOC and OFCCP require firms to keep their staffing records in order to ________.
A) ensure that qualified individuals are filling positions
B) gather statistical information for federal tax purposes
C) assess whether a firm's hiring practices are discriminatory
D) create publication materials about firms in various industries
Answer: C
Explanation: C) EEOC and OFCCP guidelines suggest that companies keep staffing records for
a minimum of two years. This information enables a compilation of demographic data, including
age, race, and gender, based on that applicant pool. The EEOC uses these data to determine
whether a company's hiring practices are discriminatory.
Diff: 3
Chapter: 5
Skill: Concept
LO: 3

17) According to OFCCP guidelines, which of the following does NOT describe an Internet
applicant?
A) A job seeker applies for a position through a firm's Web site.
B) A job seeker sends an e-mail to the Webmaster of an organization.
C) A job seeker has not indicated that he or she is no longer interested in a position.
D) A job seeker indicates that he or she meets the position's basic qualifications.
Answer: B
Explanation: B) According to OCCP rules, there are four criteria to determine whether an
individual is an Internet applicant. 1. The job seeker has expressed interest through the Internet.
2. The employer considers the job seeker for employment in a particular open position. 3. The
job seeker has indicated he or she meets the position's basic qualifications. 4. The applicant has
not indicated he or she is no longer interested in the position.
Diff: 3
Chapter: 5
Skill: Concept
LO: 3

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18) The policy of filling vacancies above the entry-level positions with present employees is
referred to as ________.
A) promotion from within
B) promotion by merit
C) performance promotion
D) seniority promotion
Answer: A
Explanation: A) Promotion from within (PFW) is the policy of filling vacancies above entry-
level positions with current employees. When an organization emphasizes promotion from
within, its workers have an incentive to strive for advancement.
Diff: 1
Chapter: 5
Skill: Concept
LO: 3

19) Firms are most likely using promotion from within more frequently because the policy
________.
A) meets EEOC requirements
B) eases the repatriation process
C) improves employee motivation
D) lessens the need for employee development
Answer: C
Explanation: C) When an organization emphasizes promotion from within, its workers have an
incentive to strive for advancement. Motivation provided by this practice often improves
employee morale. For this reason, managers appear to be using internal promotions more and
more.
Diff: 2
Chapter: 5
Skill: Concept
LO: 3

20) A strictly applied promotion from within policy eventually leads to ________.
A) morale deterioration
B) inbreeding
C) increased risk taking
D) gainsharing
Answer: B
Explanation: B) A strictly applied "PFW" policy eventually leads to inbreeding, a lack of cross-
fertilization, and a lack of creativity. Although seldom achieved, a good goal would be to fill 80
percent of openings above entry-level positions from within. Frequently, new blood provides
new ideas and innovation that must take place for firms to remain competitive.
Diff: 1
Chapter: 5
Skill: Concept
LO: 3

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21) The recruitment process most likely begins when a manager ________.
A) initiates an employee requisition
B) administers employment tests
C) interviews candidates
D) trains a recruiter
Answer: A
Explanation: A) Frequently, recruitment begins when a manager initiates an employee
requisition, a document that specifies job title, department, the date the employee is needed for
work, and other details. With this information, managers can refer to the appropriate job
description to determine the qualifications the recruited person needs.
Diff: 2
Chapter: 5
Skill: Concept
LO: 4

22) Which term refers to a document that specifies various details, including job title,
department, and the date the employee is needed for work?
A) job description
B) job specification
C) recruitment source
D) employee requisition
Answer: D
Explanation: D) Frequently, recruitment begins when a manager initiates an employee
requisition, a document that specifies job title, department, the date the employee is needed for
work, and other details. With this information, managers can refer to the appropriate job
description to determine the qualifications the recruited person needs.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

23) Jeremy, an HR manager, has received an employee requisition for a data analyst job at his
firm. Which of the following would most likely help Jeremy determine the qualifications the
recruited person needs for the data analyst job?
A) job posting
B) job identifier
C) job description
D) job-knowledge test
Answer: C
Explanation: C) Frequently, recruitment begins when a manager initiates an employee
requisition, a document that specifies job title, department, the date the employee is needed for
work, and other details. With this information, managers can refer to the appropriate job
description to determine the qualifications the recruited person needs.
Diff: 2
Chapter: 5
Skill: Application
LO: 4
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24) Which term refers to where qualified individuals are located?
A) job posts
B) job boards
C) recruitment sources
D) employee requisitions
Answer: C
Explanation: C) Recruitment sources are where qualified candidates are located, such as
colleges or competitors. Tapping productive sources of applicants and using suitable recruitment
methods are essential to maximizing recruiting efficiency and effectiveness.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

25) Which term refers to specific means through which potential employees are attracted to the
firm?
A) employment descriptions
B) recruitment methods
C) recruitment sources
D) job postings
Answer: B
Explanation: B) Recruitment methods are the specific means used to attract potential employees
to the firm, such as online recruiting. Tapping productive sources of applicants and using suitable
recruitment methods are essential to maximizing recruiting efficiency and effectiveness. When a
firm identifies the sources of candidates, it uses appropriate methods for either internal or
external recruitment to accomplish recruitment objectives.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

26) Job postings and job bidding procedures enable current employees of an organization to
________.
A) request promotions and salary raises
B) locate skilled subordinate workers
C) receive training for new positions
D) learn about current job openings
Answer: D
Explanation: D) The job posting and bidding procedures can help minimize the commonly heard
complaint that insiders never hear of a job opening until it is filled. Job posting is a procedure for
informing employees that job openings exist. Job bidding is a procedure that permits employees
who believe that they possess the required qualifications to apply for a posted job.
Diff: 3
Chapter: 5
Skill: Concept
LO: 4

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27) Which of the following is NOT an internal recruitment method?
A) employment agency
B) employee referral
C) job bidding
D) job posting
Answer: A
Explanation: A) Employee referrals, job bidding procedures, and job postings are internal
recruiting methods. Employment agencies are external sources for job candidates.
Diff: 2
Chapter: 5
Skill: Concept
LO: 4

28) The procedure for communicating to employees the fact that job openings exist is known as
________.
A) job bidding
B) skills inventory
C) job posting
D) job analysis
Answer: C
Explanation: C) Job posting is a procedure for informing employees that job openings exist. Job
bidding is a procedure that permits employees who believe that they possess the required
qualifications to apply for a posted job.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

29) Which of the following is a procedure that permits employees who believe that they possess
the required qualifications to apply for a posted position?
A) skills inventory
B) employee requisition
C) job enlargement
D) job bidding
Answer: D
Explanation: D) Job bidding is a procedure that permits employees who believe that they
possess the required qualifications to apply for a posted job. Job posting is a procedure for
informing employees that job openings exist.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

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30) The complaint that employees never hear of a position until it is filled can best be handled
through a system of ________.
A) networking and onboarding
B) job analysis and staffing
C) job posting and bidding
D) recruiting and testing
Answer: C
Explanation: C) The job posting and bidding procedures can help minimize the commonly heard
complaint that insiders never hear of a job opening until it is filled. Job posting is a procedure for
informing employees that job openings exist. Job bidding is a procedure that permits employees
who believe that they possess the required qualifications to apply for a posted job.
Diff: 2
Chapter: 5
Skill: Concept
LO: 4

31) According to your text, what continues to be the way that top performers are primarily
identified?
A) employee referrals
B) headhunters
C) internships
D) job fairs
Answer: A
Explanation: A) Employee referrals continue to be the way that top performers are identified.
Organizations like Southwest Airlines, Microsoft, Disney, and Ritz Carlton reportedly get from
50 to 70 percent of their new hires exclusively through employee referrals. These organizations
have found that their employees can serve an important role in the recruitment process by
actively soliciting applications from among their friends and associates.
Diff: 2
Chapter: 5
Skill: Concept
LO: 4

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32) Which of the following is the LEAST likely benefit of using employee referrals to identify
job candidates?
A) lower recruitment costs
B) better chance of diversity
C) lower employee turnover
D) better chance of organizational fit
Answer: B
Explanation: B) Costs can be 75 percent lower with employee referrals compared to the use of
ads and employment agencies. Using referrals also reduces turnover among both new and
existing employees because applicants come prescreened for culture fit. However using
employee referrals exclusively may generate applicant pools that do not reflect the diversity in
the labor market.
Diff: 3
Chapter: 5
Skill: Concept
LO: 4

33) Every employee at Raymond Consulting has been asked to include an e-mail footer that
states "Raymond Consulting is looking for amazing employees." Which recruitment method is
the firm using?
A) employee enlistment
B) job bidding
C) employee referrals
D) job posting
Answer: A
Explanation: A) Employee enlistment is a unique form of employee referral in which every
employee becomes a company recruiter by using e-mail footers or business cards to
communicate that the firm is hiring. Employee referrals involve employees referring friends and
associates for jobs. Job bidding is a procedure that permits employees who believe that they
possess the required qualifications to apply for a posted job. Job posting is a procedure for
informing employees that job openings exist.
Diff: 2
Chapter: 5
Skill: Application
LO: 4

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34) Universal Engineering provides employees with cards that state "We are always looking for
great engineers. For additional information, log on to our Web site." Which recruiting method is
Universal Engineering using?
A) job posting
B) job bidding
C) employee enlistment
D) online job board notifications
Answer: C
Explanation: C) Employee enlistment is a unique form of employee referral in which every
employee becomes a company recruiter. This is not the same as merely asking employees to
refer friends to the company. The technique can be accomplished by giving employees special
cards or having employees include e-mail footers regarding the firm's hiring needs.
Diff: 2
Chapter: 5
Skill: Application
LO: 4

35) External recruitment is LEAST likely required to ________.

A) fill entry-level jobs
B) acquire skills not possessed by current employees
C) obtain employees with different backgrounds and ideas
D) develop managers with an extensive understanding of the firm
Answer: D
Explanation: D) At times, a firm must look beyond its own borders to find employees,
particularly when expanding its workforce. External recruitment is needed to: (1) fill entry-level
jobs; (2) acquire skills not possessed by current employees; and (3) obtain employees with
different backgrounds to provide a diversity of ideas. Manager development would most likely
occur with internal rather than external candidates.
Diff: 3
Chapter: 5
Skill: Concept
LO: 5

36) Which of the following is NOT an external recruitment source?

A) universities
B) employee databases
C) military personnel
D) self-employed workers
Answer: B
Explanation: B) Universities, military personnel, and self-employed workers are all considered
sources for external recruitment. A firm's employee database would be a source for internal
recruitment.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

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37) O'Neal Engine Repair is a local business that services large and small engines and also does
auto body work. The business is growing, and the owner needs to hire three more mechanics.
Which of the following would most likely provide O'Neal's with the best source of entry-level
mechanics?
A) vocational school
B) state university
C) online job board
D) job bidding
Answer: A
Explanation: A) Organizations concerned with recruiting clerical and other entry-level
employees often depend on high schools and vocational schools. Many of these institutions have
outstanding training programs for specific occupational skills, such as home appliance repair and
small engine mechanics. Universities and job boards are less likely sources for mechanics.
Diff: 2
Chapter: 5
Skill: Critical Thinking
LO: 5

38) What recruitment source has two-year programs designed for both a terminal education and
preparation for a four-year university degree program?
A) high schools
B) community colleges
C) private universities
D) virtual career fairs
Answer: B
Explanation: B) Many community colleges are sensitive to the specific employment needs in
their local labor markets and graduate highly-sought-after students with marketable skills.
Typically, community colleges have two-year programs designed for both a terminal education
and preparation for a four-year university degree program.
Diff: 1
Chapter: 5
Skill: Concept
LO: 5

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39) Executive recruiting director Owen Williams regularly uses his smartphone and the mobile
version of LinkedIn to post job listings and connect to potential candidates. This is an example of
________ in action.
A) digital recruitment
B) leading edge recruiting
C) social media recruitment
D) mobile recruiting
Answer: D
Explanation: D) The world of recruiting via mobile technology is moving at lightning speed.
Recruiters use mobile apps to post jobs, run text message—based recruiting campaigns, create
online communities for potential new hires to learn about their companies, monitor social
networks for news about industries they hire for, and keep in touch with staff and outside
agencies. These tasks previously had to be done from a desktop or laptop computer.
Diff: 2
Chapter: 5
Skill: Application
LO: 6

40) Potential professional, technical, and management employees are typically recruited from
what source?
A) competitors
B) universities
C) community colleges
D) local high schools
Answer: B
Explanation: B) Colleges and universities represent a major recruitment source for many
organizations. Organizations typically find potential professional, technical, and management
employees in these institutions.
Diff: 1
Chapter: 5
Skill: Concept
LO: 5

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41) Milton Marketing needs to hire two account managers, and the firm wants job candidates
who have recent experience in that position. Which of the following would be the best
recruitment source for Milton Marketing?
A) competitors in the labor market
B) colleges and universities
C) community colleges
D) unemployed people
Answer: A
Explanation: A) When recent experience is required, competitors and other firms in the same
industry or geographic area may be the most important source of recruits. The most highly
qualified applicants often come directly from competitors in the same labor market, as people
typically do not enter the workforce loaded with experience and job skills.
Diff: 2
Chapter: 5
Skill: Application
LO: 5

42) What is the process of actively recruiting employees from competitors called?
A) stealing
B) plundering
C) poaching
D) rustling
Answer: C
Explanation: C) When recent experience is required, competitors and other firms in the same
industry or geographic area may be the most important source of recruits. Another name for
actively recruiting employees from competitors is called poaching. In fact, the most highly
qualified applicants often come directly from competitors in the same labor market, as people
typically do not enter the workforce loaded with experience and job skills.
Diff: 1
Chapter: 5
Skill: Concept
LO: 5

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43) The most highly qualified experienced applicants often come from what source?
A) the unemployed
B) colleges and universities
C) community colleges
D) industry competitors
Answer: D
Explanation: D) When recent experience is required, competitors and other firms in the same
industry or geographic area may be the most important source of recruits. Another name for
actively recruiting employees from competitors is called poaching. In fact, the most highly
qualified applicants often come directly from competitors in the same labor market, as people
typically do not enter the workforce loaded with experience and job skills.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

44) During the recession of 2008/2010, many well-qualified employees at Advanced Control
were laid off when the firm struggled financially. The firm has actively stayed in touch with
these former employees in hopes of rehiring them when the economy improves. Which of the
following best supports the argument that Advanced Control should rehire these former
employees?
A) Advanced Control knows the strengths and weaknesses of the employees.
B) Advanced Control will avoid being sued for discriminatory hiring practices.
C) Advanced Control will prevent competitors from learning trade secrets.
D) Advanced Control has already established employee database information.
Answer: A
Explanation: A) The advantage of tracking former employees is that the firm knows their
strengths and weaknesses and the ex-employees know the company. Tracking, recruiting, and
hiring a former employee can be a tremendous benefit and can encourage others to stay with the
firm.
Diff: 3
Chapter: 5
Skill: Critical Thinking
LO: 5

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45) During the recession of 2008/2010, which of the following recruitment sources grew most
significantly?
A) former criminal offenders
B) former military personnel
C) self-employed individuals
D) unemployed workers
Answer: D
Explanation: D) Qualified applicants join the unemployment rolls every day for various reasons.
Companies may downsize their operations, go out of business, or merge with other firms, leaving
qualified workers without jobs, which was certainly the case in the recession of 2008/10. In
2010, over six million people had been out of work for six months or more.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

46) All of the following EXCEPT ________ are challenges involved in social media recruiting.
A) candidates might complain they were rejected for a job based on their social network
B) decision makers can become aware of race, ethnicity, or other protected information
C) employers can use social media to drive their brands to attract top talent
D) it can be ineffective or risky if the applicant pool is unfamiliar with social media
Answer: C
Explanation: C) There are some downsides to social media recruiting. If the applicant pool is
unfamiliar or uncomfortable with using social media, then employing social media can be
ineffective or even risky. Also, decision makers could become aware of an individual's race,
ethnicity, or other protected information. Then, candidates might complain that they were
rejected for a job based on content posted on their social networking site.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

47) If discouraged workers who gave up looking for jobs are counted, the total unemployment
rate in the USA for 2012 was about ________.
A) 16 percent
B) 10 percent
C) 12 percent
D) 13 percent
Answer: A
Explanation: A) In 2012, approximately 14 million Americans were unemployed creating an
unemployment rate of around 9 percent. However, if discouraged workers who have given up
looking for jobs are counted, the total unemployment rate was about 16 percent.
Diff: 1
Chapter: 5
Skill: Concept
LO: 5

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48) According to a recent analysis by the National Employment Law Project, ________ has an
arrest or conviction that would appear in a routine criminal background check.
A) two out of three U.S. adults
B) more than one in four U.S. adults
C) nearly fifteen percent of U.S. adults
D) less than one in ten U.S. adults
Answer: B
Explanation: B) A recent analysis by the National Employment Law Project shows that more
than one in four U.S. adults has an arrest or conviction that would appear in a routine criminal
background check.
Diff: 1
Chapter: 5
Skill: Concept
LO: 5

49) Which of the following best explains why GE and Walmart hire former service members?
A) technologically skilled
B) proven work history
C) physically healthy
D) unique creativity
Answer: B
Explanation: B) Hiring former service members may make sense to a lot of employers because
many of these individuals typically have a proven work history and are flexible, motivated, and
drug-free. Understanding technology, being healthy, and showing creativity are less likely to
explain the interest in former service members.
Diff: 2
Chapter: 5
Skill: Application
LO: 5

50) Kevin recently resigned from the army and is searching for a civilian job. Which of the
following Web sites would most likely benefit Kevin?
A) servicejobs.com
B) armyjobs.com
C) hirepatriots.com
D) militaryjobs.com
Answer: C
Explanation: C) Service members nationwide looking for jobs can also go to HirePatriots.com.
"We help citizens and businesses to thank our current military, veterans, and their spouses by
posting their job opportunities on our free military job posting and search Web site," said Mark
Baird, president of Patriotic Hearts.
Diff: 2
Chapter: 5
Skill: Application
LO: 5
AACSB: Use of IT

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51) What has revolutionized the way companies recruit employees and job seekers search and
apply for jobs?
A) online recruitment methods
B) state employment agencies
C) local job fairs
D) headhunters
Answer: A
Explanation: A) Online recruiting has revolutionized the way companies recruit employees and
job seekers search and apply for jobs. Employment agencies, job fairs, and recruiters have been
in existence for some time, so they have not altered how firms and job seekers make connections.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

52) Alan works in the HR department at a manufacturing firm, and his primary responsibility is
to use the firm's Web site to monitor and coordinate recruitment activities. Which term most
likely describes Alan's position at the firm?
A) Webmaster
B) data analyst
C) Internet recruiter
D) technical recruiter
Answer: C
Explanation: C) The Internet recruiter, also called a "cyber recruiter," is a person whose primary
responsibility is to use the Internet in the recruitment process. Most companies currently post
jobs on their corporate career Web site. Individuals must be in place to monitor and coordinate
these activities.
Diff: 2
Chapter: 5
Skill: Application
LO: 7
AACSB: Use of IT

21
Copyright © 2014 Pearson Education
53) An employee whose primary task is to use the Internet in the recruitment process is best
known as a(n) ________.
A) online manager
B) IT recruiter
C) cyber recruiter
D) headhunter
Answer: C
Explanation: C) The Internet recruiter, also called a "cyber recruiter," is a person whose primary
responsibility is to use the Internet in the recruitment process. Most companies currently post
jobs on their corporate career Web site. Individuals must be in place to monitor and coordinate
these activities.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

54) An event at a local university allowed students to visit virtual employer booths and submit
their résumés online 24 hours a day, seven days a week. What is this recruitment method called?
A) mass recruiting
B) universal recruiting
C) virtual job fair
D) corporate job board
Answer: C
Explanation: C) A virtual job fair is an online recruiting method engaged in by a single
employer or group of employers to attract a large number of applicants.
Diff: 2
Chapter: 5
Skill: Application
LO: 7
AACSB: Use of IT

22
Copyright © 2014 Pearson Education
55) Heather is searching for a job as a software designer. She is currently reviewing available
positions on Cisco's Web site to determine if any openings at the firm match her qualifications.
Which of the following terms best describes the Web site that Heather is using to find a job?
A) human resources Web site
B) corporate career Web site
C) recruiting Web site
D) niche Web site
Answer: B
Explanation: B) Corporate career Web sites are job sites accessible from a company homepage
that list the company positions available and provide a way for applicants to apply for specific
jobs. They have become a major resource for both job seekers and companies seeking new
employees.
Diff: 2
Chapter: 5
Skill: Application
LO: 7
AACSB: Use of IT

56) Which term refers to a job site that is accessible from a company homepage that lists
available jobs at the company and provides a way for applicants to apply for jobs?
A) corporate career Web site
B) Internet niche job board
C) corporate Weblog
D) general purpose job board
Answer: A
Explanation: A) Corporate career Web sites are job sites accessible from a company homepage
that list the company positions available and provide a way for applicants to apply for specific
jobs. They have become a major resource for both job seekers and companies seeking new
employees.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

23
Copyright © 2014 Pearson Education
57) Which of the following is a characteristic of an effective corporate career Web site?
A) indicates appraisal methods
B) specifies health benefit plans
C) provides a brief job description
D) promotes the firm in a positive tone
Answer: D
Explanation: D) A career Web site should be upbeat and informative. It should be used as a
selling device that promotes the company to prospective job candidates. Writing effective
recruitment ads on the Internet is different from the short, one-inch-column ads in the Sunday
newspaper. The Internet provides enough space to fully describe the job, location, and company.
A good Web site should provide a feeling of the kind of corporate culture that exists within the
company.
Diff: 3
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

58) Employers and employment agencies are using Weblogs to ________.

A) share information about job applicants
B) discuss company policies and procedures
C) conduct background checks of applicants
D) hire contingent workers for short-term projects
Answer: C
Explanation: C) Weblogs, or blogs, have changed the ways in which individuals access
information. Some employers and employment agencies have discovered that blogging is a way
to do detailed and stealthy background checks.
Diff: 3
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

24
Copyright © 2014 Pearson Education
59) Natalie is using Monster.com and CareerBuilder.com in her job search. These sites are
examples of ________.
A) Weblogs
B) cyber recruiters
C) corporate career Web sites
D) general-purpose job boards
Answer: D
Explanation: D) Firms use general-purpose job boards, such as Monster.com and
CareerBuilder.com, by typing in key job criteria, skills, and experience, and indicating their
geographic location. Job seekers can search for jobs by category, experience, education, location,
or any combination of categories.
Diff: 2
Chapter: 5
Skill: Application
LO: 7
AACSB: Use of IT

60) Experts suggest that general-purpose job boards, such as Monster.com, are best for job
seekers in professions ________.
A) that require graduate level degrees
B) that require technological skills
C) within small industries
D) with high-turnover
Answer: D
Explanation: D) Many believe that the general-purpose big job boards are best for job seekers in
professions that experience high turnover like sales but often are less effective for highly
qualified applicants or those looking for work in smaller industries.
Diff: 2
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

25
Copyright © 2014 Pearson Education
61) Which of the following is a national recruiting network and suite of Web-based recruiting
and career services automation tools for colleges, employers, and job candidates?
A) CareerBuilder.com
B) Monster.com
C) NACElink Network
D) AllianceQ database
Answer: C
Explanation: C) The NACElink Network, the result of an alliance among the National
Association of Colleges and Employers, DirectEmployers Association, and Symplicity
Corporation, is a national recruiting network and suite of Web-based recruiting and career
services automation tools serving the needs of colleges, employers, and job candidates. The
system includes three components: job posting, résumé database, and interview scheduling.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7

62) Which of the following is NOT one of the components of the NACElink Network?
A) job posting
B) résumé database
C) interview scheduling
D) virtual interviewing
Answer: D
Explanation: D) The NACElink Network, the result of an alliance among the National
Association of Colleges and Employers, DirectEmployers Association, and Symplicity
Corporation, is a national recruiting network and suite of Web-based recruiting and career
services automation tools serving the needs of colleges, employers, and job candidates. The
system includes three components: job posting, résumé database, and interview scheduling.
Diff: 2
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

26
Copyright © 2014 Pearson Education
63) AllianceQ is best described as a(n) ________.
A) alliance of colleges and employers
B) shared pool of job candidates
C) general-purpose job board
D) international niche site
Answer: B
Explanation: B) In a potential blow to headhunters and a boost to managers seeking to slash
recruiting costs, certain large companies have begun pooling job candidates through a
consortium known as AllianceQ. Those passed over by one company are invited to submit their
résumés to the AllianceQ database.
Diff: 2
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

64) What are Web sites that cater to a specific profession called?
A) niche sites
B) Weblogs
C) Web links
D) contract sites
Answer: A
Explanation: A) Sites that specialize by industry and level of employment are becoming much
more common. Niche sites are Web sites that cater to highly specialized job markets such as a
particular profession, industry, education, location, or any combination of these specialties.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

65) Which of the following is NOT a niche site?

A) dice.com
B) monster.com
C) TVjobs.com
D) joyjobs.com
Answer: B
Explanation: B) Niche sites are Web sites that cater to highly specialized job markets such as a
particular profession, industry, education, location, or any combination of these specialties.
Monster.com is a general-purpose job board, while the other sites are for niche markets.
Diff: 2
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

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66) Jeff wants to teach math in a high school overseas. Which niche site would be most
beneficial to Jeff?
A) cfo.com
B) joyjobs.com
C) dice.com
D) coolworks.com
Answer: B
Explanation: B) Joyjobs.com is a niche site with postings for international employment for
teachers. The other niche sites listed are not for teachers.
Diff: 2
Chapter: 5
Skill: Application
LO: 7
AACSB: Use of IT

67) Which of the following is the latest recruiting trend?

A) social network recruiting
B) niche site recruiting
C) Internet recruiting
D) job fair recruiting
Answer: A
Explanation: A) Some organizations are leaving general-purpose job boards and turning instead
to such avenues as social networking recruiting. Social networking is the business buzzword in
recruiting these days. As previously mentioned, it is well known that networking is one of the
best recruiting tools and numerous Web sites have been developed to utilize social network
recruiting. Sites such as Twitter, Facebook, and LinkedIn are used.
Diff: 1
Chapter: 5
Skill: Concept
LO: 3
AACSB: Use of IT

28
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68) What is a potential problem for firms that rely too heavily on social network sites for
recruiting?
A) high set-up costs
B) unreliable technology
C) corporate poaching
D) age and race discrimination
Answer: D
Explanation: D) Depending heavily on social networking sites for recruiting could lead to age
and race discrimination suits because the sites contain few minority and older people. Also,
candidates have sued companies because they believe they were rejected for a job based on
content posted on their profile on a social networking site.
Diff: 3
Chapter: 5
Skill: Concept
LO: 3
AACSB: Use of IT

69) Professional social networks are considered good sources for recruiters searching for
________.
A) experienced managers
B) passive candidates
C) technical specialists
D) active candidates
Answer: B
Explanation: B) Giuseppe Rosati, founder of the restaurant jobs portal www.restogigs.com, said,
"When passive job seekers stumble upon your job postings on social media sites, it opens up a
whole new group of potential candidates, candidates that would not see the job on a traditional
job site because they're not actively looking.
Diff: 2
Chapter: 5
Skill: Concept
LO: 3
AACSB: Use of IT

29
Copyright © 2014 Pearson Education
70) A Web site is most likely a job search scam if an applicant is required to provide any of the
following information online EXCEPT ________.
A) job history information
B) bank account information
C) credit card number
D) social security number
Answer: A
Explanation: A) After hiring an employee or meeting with applicants personally, account
information and social security numbers may be necessary. However, a site that requests this
personal information is most likely a job scam. Actual job sites would request an applicant's job
history.
Diff: 2
Chapter: 5
Skill: Concept
LO: 7

71) What traditional recruitment method communicates the firm's employment needs to the
public through media such as newspapers and industry publications?
A) internships
B) recruiters
C) job fairs
D) advertising
Answer: D
Explanation: D) Advertising communicates the firm's employment needs to the public through
media such as newspapers, trade journals, radio, television, and billboards. Although few
individuals base their decision to change jobs on advertising, ads create awareness, generate
interest, and encourage a prospect to seek more information about the firm and the job
opportunities that it provides.
Diff: 1
Chapter: 5
Skill: Concept
LO: 8

30
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72) Maria, an HR manager at a software firm, wants a low cost method for generating broad
interest in her firm to attract job candidates. Which of the following would be the best method
for Maria to use?
A) TV ad
B) billboard
C) career fair
D) newspaper ad
Answer: D
Explanation: D) A traditional common form of advertising that provides broad coverage at a
relatively low cost is the newspaper ad. Radio, billboards, and television are likely to be more
expensive than newspapers or journals, but, in specific situations, they may prove successful.
Diff: 2
Chapter: 5
Skill: Application
LO: 8

73) Jack, an HR manager at an electronics firm, has been informed that he needs to hire twenty
technicians immediately. Which of the following would most likely be the best method for
quickly attracting experienced technicians?
A) job fair
B) event recruiting
C) radio advertisement
D) newspaper advertisement
Answer: C
Explanation: C) In situations in which hiring needs are urgent, television and radio may provide
good results. Broadcast messages can let people know that an organization is seeking recruits.
Job fairs, event recruiting, and newspaper ads are less likely to recruit candidates quickly.
Diff: 2
Chapter: 5
Skill: Application
LO: 8

74) Which of the following is primarily used to recruit white collar employees for specific niches
in the job market?
A) private employment agency
B) community job fair
C) radio advertising
D) special event
Answer: A
Explanation: A) Private employment agencies, often called "head hunters," are best known for
recruiting white collar employees and offer an important service in bringing qualified applicants
and open positions together. Today, private employment agencies often specialize in filling a
particular niche in the job market.
Diff: 1
Chapter: 5
Skill: Concept
LO: 8

31
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75) Individuals are often turned off by private employment agencies because of their ________.
A) lack of technology
B) inconvenience
C) requirements
D) fees
Answer: D
Explanation: D) Private employment agencies' fees can range up to 35 percent of a person's first
year salary. The one-time fees that some agencies charge often turn off candidates, although
many private employment agencies deal primarily with firms that pay the fees.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

76) ________ are operated by each state but receive overall policy direction from the U.S.
Employment Service.
A) Newspapers
B) Special events agencies
C) Private recruitment agencies
D) Public employment agencies
Answer: D
Explanation: D) Public employment agencies are operated by each state but receive overall
policy direction from the U.S. Employment Service. Public employment agencies have become
increasingly involved in matching people with technical, professional, and managerial positions.
Diff: 1
Chapter: 5
Skill: Concept
LO: 8

77) Which of the following would most likely operate a public employment agency located in
Albany, New York?
A) EEOC
B) City of Albany
C) State of New York
D) Department of Labor
Answer: C
Explanation: C) Public employment agencies are operated by each state but receive overall
policy direction from the U.S. Employment Service. Therefore, a public employment agency in
Albany, New York would be operated by the State of New York.
Diff: 2
Chapter: 5
Skill: Application
LO: 8

32
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78) Which of the following pays for the services provided by public employment agencies?
A) state governments that run the agencies
B) employees who are placed in jobs
C) individuals who apply for jobs
D) employers who hire workers
Answer: A
Explanation: A) Public employment agencies are operated by each state but receive overall
policy direction from the U.S. Employment Service. Public employment agencies have become
increasingly involved in matching people with technical, professional, and managerial positions.
The government covers the costs of their services.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

79) Technical and vocational schools, community colleges, colleges, and universities are the
primary focus of ________.
A) public recruitment agencies
B) private employment agencies
C) executive search firms
D) recruiters
Answer: D
Explanation: D) Recruiters most commonly focus on technical and vocational schools,
community colleges, colleges, and universities. Some firms are using videoconferencing with
equipment at both corporate headquarters and on college campuses. Recruiters can communicate
with college career counselors and interview students through a videoconferencing system
without leaving the office.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

80) The student placement director at a university helps corporate recruiters in all of the
following ways EXCEPT ________.
A) negotiating salaries and benefits
B) identifying qualified candidates
C) providing interview rooms
D) scheduling interviews
Answer: A
Explanation: A) The key contact for recruiters on college and university campuses is often the
student placement director. Placement services identify qualified candidates, schedule
interviews, and provide suitable rooms for interviews, but they are not involved in negotiations.
Diff: 3
Chapter: 5
Skill: Concept
LO: 8

33
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81) Which of the following is an effort on the part of a single employer or group of employers to
attract a large number of applicants to one location for interviews?
A) mass recruiting
B) event recruiting
C) job board
D) job fair
Answer: D
Explanation: D) A job fair is a recruiting method engaged in by a single employer or group of
employers to attract a large number of applicants to one location for interviews. From an
employer's viewpoint, a primary advantage of job fairs is the opportunity to meet a large number
of candidates in a short time. Conversely, applicants may have convenient access to a number of
employers.
Diff: 1
Chapter: 5
Skill: Concept
LO: 8

82) Which method of external recruiting is designed primarily for students?

A) radio advertising
B) employment agencies
C) internships
D) employee referrals
Answer: C
Explanation: C) An internship is a special form of recruitment that involves placing a student in
a temporary job with no obligation either by the company to hire the student permanently or by
the student to accept a permanent position with the firm following graduation. An internship
typically involves a temporary job for the summer months or a part-time job during the school
year.
Diff: 1
Chapter: 5
Skill: Application
LO: 8

34
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83) Which recruitment method especially aids students in determining whether a given company
would be a desirable employer?
A) college recruiting
B) job analysis
C) event recruiting
D) internship
Answer: D
Explanation: D) An internship is a special form of recruitment that involves placing a student in
a temporary job with no obligation either by the company to hire the student permanently or by
the student to accept a permanent position with the firm following graduation. An internship
typically involves a temporary job for the summer months or a part-time job during the school
year and helps students and employers determine if the match is a good one.
Diff: 1
Chapter: 5
Skill: Concept
LO: 8

84) Organizations used by firms to locate experienced professionals when other sources prove
inadequate are referred to as ________.
A) employee leasing firms
B) executive search firms
C) private employment agencies
D) professional associations
Answer: B
Explanation: B) Executive search firms are organizations used by some firms to locate
experienced professionals and executives when other sources prove inadequate. The key benefit
of executive search firms is the targeting of ideal candidates. In addition, the search firm can find
those not actively looking for a job.
Diff: 1
Chapter: 5
Skill: Concept
LO: 8

35
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85) A representative from an executive search firm would most likely ________.
A) write a potential job candidate's résumé to match the client's needs
B) temporarily hire employees for a client to train and interview
C) interview a client's managers about the required job qualifications
D) create newspaper advertisements for a client's available positions
Answer: C
Explanation: C) An executive search firm's representatives often visit the client's offices and
interview the company's management. This enables them to gain a clear understanding of the
company's goals and the job qualifications required. After obtaining this information, they
contact and interview potential candidates, check references, and refer the best-qualified person
to the client for the selection decision.
Diff: 3
Chapter: 5
Skill: Concept
LO: 8

86) Which of the following is LEAST likely to be offered by a professional association?

A) job referral services
B) recruitment services
C) reduced headhunter fees
D) Web site job advertisements
Answer: C
Explanation: C) Virtually every professional group publishes a journal and has a Web site that is
widely used by its members. Many professional associations provide recruitment and placement
services for their members. Jobs advertised are placed in the journal in hard copy and also
advertised on the professional group's Web site. Professional associations are less likely to offer
reduced fees for executive recruiters.
Diff: 3
Chapter: 5
Skill: Concept
LO: 8

36
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87) An organization that has a reputation of being a good place to work will most likely
________.
A) receive unsolicited applications
B) participate in college recruiting
C) sponsor local events
D) hold open houses
Answer: A
Explanation: A) If an organization has the reputation of being a good place to work, it may be
able to attract qualified prospects even without extensive recruitment efforts, such as college
recruiting, event recruiting, or open houses. Acting on their own initiative, well-qualified
workers may seek out a specific company to apply for a job. Unsolicited applicants who apply
because they are favorably impressed with the firm's reputation often prove to be valuable
employees.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

88) Which recruitment method pairs potential hires and managers in a warm, casual environment
that encourages on-the-spot job offers?
A) college internships
B) university recruiting
C) employee referrals
D) open houses
Answer: D
Explanation: D) Open houses are a valuable recruiting tool, especially during days of low
unemployment. Here, firms pair potential hires and recruiters in a warm, casual environment that
encourages on-the-spot job offers. Open houses are cheaper and faster than hiring through
recruitment agencies, and they are also more popular than job fairs.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

37
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89) Recruiters who go to marathons or bike races that are attended by individuals the company is
seeking are participating in ________.
A) event recruiting
B) special event
C) open houses
D) job fairs
Answer: A
Explanation: A) Event recruiting involves having recruiters go to events being attended by
individuals the company is seeking. Cisco Systems pioneered event recruiting as a recruitment
approach. In the case of programmers in the Silicon Valley, the choice spots have been
marathons and bike races. Companies that participate in these events become involved in some
way that promotes their name and cause.
Diff: 1
Chapter: 5
Skill: Concept
LO: 8

90) Which recruitment method gives a company the opportunity to reflect its image by
promoting its name and a specific cause?
A) open houses
B) event recruiting
C) virtual job fairs
D) internships
Answer: B
Explanation: B) Event recruiting involves having recruiters go to events being attended by
individuals the company is seeking. Companies that participate in events, such as bike races or
marathons, promote their name and cause and have a chance to reflect their image to potential
job candidates.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

91) In 2011, ________ of firms surveyed by Altura Consulting Group offered signing bonuses.
A) 15 percent
B) 54 percent
C) 75 percent
D) 30 percent
Answer: B
Explanation: B) Employers use sign-on bonuses to attract top talent, particularly in high-demand
fields such as health care, sales, marketing, and accounting. Overall, in 2011, 54 percent of firms
surveyed by Altura Consulting Group offered signing bonuses.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

38
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92) What is the primary reason that employers use sign-on bonuses?
A) eliminate the need to offer costly stock-options
B) attract talented workers in high-demand fields
C) recruit young, energetic workers into sales jobs
D) encourage workers to apply for technical jobs
Answer: B
Explanation: B) Employers use sign-on bonuses to attract top talent, particularly within high-
demand fields such as health care, sales, marketing, accounting, and finance. Employers are not
necessarily trying to attract young workers, but those that exhibit skills.
Diff: 3
Chapter: 5
Skill: Concept
LO: 8

93) What recruitment method was Google using when it sponsored its Code Jam?
A) Internet recruiting
B) competitive games
C) event recruiting
D) open house
Answer: B
Explanation: B) Google uses competitive games to get individuals interested in applying for
technical positions. It sponsors an annual computer programming competition, Google Code
Jam, in which students from around the world enter and the winners of the competition are sure
to be noticed.
Diff: 2
Chapter: 5
Skill: Application
LO: 8

94) Google uses competitive games as a means to ________.

A) earn advertising revenue
B) attract the general public to its search engine
C) market its Android operating system
D) identify top talent for potential employment
Answer: D
Explanation: D) Google has a unique way to get individuals interested in applying for technical
positions. Google Code Jam is an international programming competition hosted and
administered by Google. The competition began in 2003 as a means to identify top engineering
talent for potential employment.
Diff: 3
Chapter: 5
Skill: Concept
LO: 8

39
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95) What would be the most likely external recruitment source for a firm that has an immediate
need for an experienced IT manager?
A) universities
B) competitors
C) vocational schools
D) self-employed individuals
Answer: B
Explanation: B) Firms with an immediate need for a skilled IT manager would most likely look
at a competitor's employees. Universities, vocational schools, and self-employed individuals are
less likely sources in this case.
Diff: 2
Chapter: 5
Skill: Synthesis
LO: 9

96) HealthCorp has an immediate need for an experienced IT manager. The firm's HR manager
has decided that the best external source for the position is the firm's competitors in the labor
market. Which of the following methods would most likely be LEAST effective for HealthCorp?
A) media advertising
B) competitive games
C) executive search firm
D) professional association
Answer: B
Explanation: B) It would most likely be appropriate for HealthCorp to advertise the job in the
newspaper or online. Alternatively, an executive search firm may serve as viable options. In
addition, the recruiter may attend meetings of professional information technology associations.
One or more of these methods will likely yield a pool of qualified applicants but using
competitive games would be less likely to fill the position quickly or attract experienced
individuals.
Diff: 3
Chapter: 5
Skill: Synthesis
LO: 9

40
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97) What would be the most likely external recruitment source for a firm that needs 30 entry-
level machine operators?
A) vocational schools
B) community colleges
C) state universities
D) former military soldiers
Answer: A
Explanation: A) For a firm that needs numerous entry-level machine operators, high schools and
vocational schools would be good recruitment sources. Methods of recruitment might include
newspaper ads, public employment agencies, recruiters, visiting vocational schools, and
employee referrals.
Diff: 2
Chapter: 5
Skill: Synthesis
LO: 9

98) U.S. Manufacturing needs to hire 30 entry-level machine operators, which the firm will train.
Which recruitment method would most likely be appropriate for the firm?
A) public employment agencies
B) professional associations
C) private employment agencies
D) executive search firms
Answer: A
Explanation: A) Public employment agencies would be the best source for finding appropriate
applicants for U.S. Manufacturing. Professional associations would not be the best source in this
case because the firm needs entry-level applicants. Private employment agencies and executive
search firms are best known for recruiting white-collar employees and managers rather than
entry-level workers.
Diff: 3
Chapter: 5
Skill: Synthesis
LO: 9

99) The trend in bringing offshored jobs back to the United States is known as ________.
A) recapturing
B) reshoring
C) regaining
D) reestablishing
Answer: B
Explanation: B) Reshoring is the reverse of offshoring and involves bringing work back to the
United States.
Diff: 2
Chapter: 5
Skill: Concept
LO: 10

41
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100) Which of the following is not contributing to reshoring–bringing offshored work back to the
United States?
A) the decline in value of the U.S. dollar
B) decreasing labor costs in overseas countries
C) higher costs for packaging and inventory
D) rising costs for currency exchange
Answer: B
Explanation: B) Reshoring is the reverse of offshoring and involves bringing work back to the
United States. A number of factors are fueling the reshoring trend. Some of the reasons cited
included rising costs for currency exchange, transportation, and labor in countries that were once
much less expensive. There are often hidden expenses such as higher costs for travel, packaging,
shipping, and inventory. In addition, wages have been rising in countries where manufacturing
has been outsourced. Also, the decline of the U.S. dollar has provided a fiscal climate
advantageous to manufacturing machine tools in North America.
Diff: 3
Chapter: 5
Skill: Concept
LO: 10

5.2 True/False Questions

1) Contingent workers have a non-traditional relationship with worksite employers and work as
part-timers, temporaries, or independent contractors.
Answer: TRUE
Explanation: Contingent workers, described as the "disposable American workforce" by a
former secretary of labor, have a nontraditional relationship with the worksite employer and
work as part-timers, temporaries, or independent contractors.
Diff: 1
Chapter: 5
Skill: Concept
LO: 1

2) Recruitment is the process of attracting qualified individuals and encouraging them to apply
for jobs with an organization.
Answer: TRUE
Explanation: Recruitment is the process of attracting individuals on a timely basis, in sufficient
numbers, and with appropriate qualifications to apply for jobs with an organization. The firm
may then select those applicants with qualifications most closely related to job descriptions.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7

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3) Recruiting programs have little impact on a firm's financial status.
Answer: FALSE
Explanation: It is estimated that just the cost of replacing an employee alone when a bad
decision is made is two to three times the employee's annual salary. Thus, a properly functioning
recruiting program can have a major impact on the bottom line of a company.
Diff: 1
Chapter: 5
Skill: Concept
LO: 2

4) The migration of all or a significant part of the development, maintenance, and delivery of
services to an overseas vendor is known as outsourcing.
Answer: FALSE
Explanation: Offshoring refers to the migration of all or a significant part of the development,
maintenance and delivery of services to a vendor located in another country, typically in
developing countries like India and China. Outsourcing is the process of hiring an external
provider to do the work that was previously done internally but not necessarily to an overseas
vendor.
Diff: 1
Chapter: 5
Skill: Concept
LO: 2

5) The offshoring trend is expected to decline in the near future because of the high
unemployment rate that remains from the 2008/2010 recession.
Answer: FALSE
Explanation: Some are quite concerned about the offshoring trend, citing lost wages of $135
billion, 3.3 million lost jobs, and reduced salaries for the jobs that remain. Even so, the trend is
not likely to reverse itself in the near future.
Diff: 2
Chapter: 5
Skill: Concept
LO: 2

6) Contingent workers include part-timers, temporaries, and independent contractors.

Answer: TRUE
Explanation: Contingent workers have a nontraditional relationship with the worksite employer
and work as part-timers, temporaries, or independent contractors. They are the human
equivalents of just-in-time inventory.
Diff: 1
Chapter: 5
Skill: Concept
LO: 1

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7) Contingent workers offer employers flexibility, which is important in an unstable economy.
Answer: TRUE
Explanation: Contingent workers provide the flexibility that employers desire when cuts need to
be made. It is starting to become one of the most important initiatives and priorities as they look
to future planning and forecasting. Firms want to be able to ramp up or scale back based on
business needs.
Diff: 2
Chapter: 5
Skill: Concept
LO: 1

8) Outsourcing is the process of hiring an external provider to do the work that was previously
done internally.
Answer: TRUE
Explanation: Outsourcing is the process of hiring an external provider to do the work that was
previously done internally. Outsourcing has become a widespread and increasingly popular
alternative involving virtually every business area.
Diff: 1
Chapter: 5
Skill: Concept
LO: 2

9) Onshoring involves moving jobs not to another country but to lower-cost American cities.
Answer: TRUE
Explanation: Onshoring involves moving jobs not to another country but to lower-cost
American cities. Some companies might like to offshore their jobs but the government may
require onshore handling of certain financial, health, and defense data.
Diff: 2
Chapter: 5
Skill: Concept
LO: 2

10) By using overtime, an employer avoids the costs and time associated with recruiting,
selecting, and training employees.
Answer: TRUE
Explanation: Perhaps the most commonly used alternative to recruitment, especially in meeting
short-term fluctuations in work volume, is overtime. Overtime may help both employer and
employee. The employer benefits by avoiding recruitment, selection, and training costs. The
employees gain from increased income during the overtime period.
Diff: 2
Chapter: 5
Skill: Concept
LO: 1

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11) Active job seekers are always unemployed, while passive candidates are generally satisfied
with their current jobs.
Answer: FALSE
Explanation: Active job seekers, whether presently employed or not, are committed to finding
another job. These individuals are usually easier to identify because their names have been
placed in the job market. Passive candidates, on the other hand, are typically employed, satisfied
with their employer, and content in their current role.
Diff: 2
Chapter: 5
Skill: Concept
LO: 3

12) EEOC guidelines suggest that companies with more than 100 employees keep staffing
records for a minimum of four years.
Answer: FALSE
Explanation: Equal Employment Opportunity Commission (EEOC) guidelines suggest that
companies with more than 100 employees keep staffing records for a minimum of two years. The
threshold coverage is 50 employees if dealing with the Office of Federal Contract Compliance
Programs (OFCCP).
Diff: 2
Chapter: 5
Skill: Concept
LO: 3

13) By having companies maintain detailed staffing and recruitment records, the EEOC can
determine whether a firm's hiring practices are legal.
Answer: TRUE
Explanation: Equal Employment Opportunity Commission (EEOC) guidelines suggest that
companies with more than 100 employees keep staffing records for a minimum of two years.
This information enables a compilation of demographic data, including age, race, and gender,
based on that applicant pool. The EEOC uses these data to determine whether a company's hiring
practices are discriminatory.
Diff: 2
Chapter: 5
Skill: Concept
LO: 3

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14) Most modern firms strive for a rigid promotion from within policy to develop a strong
organizational culture and foster creativity.
Answer: FALSE
Explanation: Most firms do not adhere rigidly to a practice of promotion from within. A strictly
applied "PFW" policy eventually leads to inbreeding, a lack of cross-fertilization, and a lack of
creativity. Although seldom achieved, a good goal would be to fill 80 percent of openings above
entry-level positions from within.
Diff: 2
Chapter: 5
Skill: Concept
LO: 3

15) Recruitment usually begins when a manager initiates an employee requisition, a document
that specifies job title, department, the date the employee is needed for work, and other details.
Answer: TRUE
Explanation: Frequently, recruitment begins when a manager initiates an employee requisition, a
document that specifies job title, department, the date the employee is needed for work, and other
details. With this information, managers can refer to the appropriate job description to determine
the qualifications the recruited person needs.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

16) Colleges, universities, vocational schools, and competing firms are types of recruitment
sources.
Answer: TRUE
Explanation: Recruitment sources are where qualified candidates are located, such as colleges or
competitors. Recruitment methods are the specific means used to attract potential employees to
the firm, such as online recruiting.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

17) Management should be able to use employee databases to identify current employees who
are capable of filling available positions.
Answer: TRUE
Explanation: Management should be able to identify current employees who are capable of
filling positions as they become available. Helpful tools used for internal recruitment include
employee databases, job postings, and job bidding procedures. Databases can be valuable in
locating talent internally and supporting the concept of promotion from within.
Diff: 2
Chapter: 5
Skill: Concept
LO: 4

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18) Job posting is a procedure that permits employees who believe that they possess the required
qualifications to apply for a posted job.
Answer: FALSE
Explanation: Job posting is a procedure for informing employees that job openings exist. Job
bidding is a procedure that permits employees who believe that they possess the required
qualifications to apply for a posted job.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

19) Organizations need to be sure to treat internal candidates properly so they will not be
prompted to leave if they do not get the job.
Answer: TRUE
Explanation: Organizations need to be sure to treat internal candidates properly so they will not
be discouraged or prompted to leave if they do not get the job. When bidders are unsuccessful,
someone must explain to them why they were not selected. Management must choose the most
qualified applicant or else the system will lack credibility.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

20) Online job boards are the most effective method used by employers such as Microsoft and
Southwest Airlines to identify top performers.
Answer: FALSE
Explanation: Employee referrals continue to be the way that top performers are identified.
Organizations like Southwest Airlines, Microsoft, Disney, and Ritz Carlton reportedly get many
of their new hires exclusively through employee referrals. It is just human nature that people do
not want to recommend a person unless they believe they are going to fit in and be productive.
Diff: 2
Chapter: 5
Skill: Concept
LO: 4

21) The 2006 EEOC Compliance Manual warns that relying on word-of-mouth recruiting may
generate applicant pools that do not reflect diversity in the labor market.
Answer: TRUE
Explanation: The EEOC Compliance Manual, issued in 2006, updates guidance on the
prohibition of discrimination under Title VII of the Civil Rights Act of 1964. The manual
explicitly warns that recruiting only at select colleges or relying on word-of-mouth recruiting,
which includes employee referral programs, may generate applicant pools that do not reflect
diversity in the labor market.
Diff: 2
Chapter: 5
Skill: Concept
LO: 4
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22) Job bidding is a unique form of employee referral where every employee becomes a
company recruiter.
Answer: FALSE
Explanation: Employee enlistment is a unique form of employee referral in which every
employee becomes a company recruiter by using business cards that mention the firm is hiring.
Job bidding is a procedure that permits employees who believe that they possess the required
qualifications to apply for a posted job.
Diff: 1
Chapter: 5
Skill: Concept
LO: 4

23) Organizations who need to recruit clerical and other entry-level operative employees often
depend on high schools and vocational schools.
Answer: TRUE
Explanation: Organizations concerned with recruiting clerical and other entry-level employees
often depend on high schools and vocational schools. Many of these institutions have
outstanding training programs for specific occupational skills, such as home appliance repair and
small engine mechanics.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

24) Firms typically find potential management employees in colleges and universities.
Answer: TRUE
Explanation: Colleges and universities represent a major recruitment source for many
organizations. Organizations typically find potential professional, technical, and management
employees in these institutions.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

25) When recent experience is required, former employees or unemployed workers are the most
important source of recruits.
Answer: FALSE
Explanation: When recent experience is required, competitors and other firms in the same
industry or geographic area may be the most important source of recruits. Former employees and
unemployed workers are less likely to have the most recent experience necessary.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

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26) Tracking and recruiting former employees is more common now than it was in the past.
Answer: TRUE
Explanation: At one time, when employees quit, their managers and peers tended to view them
as being disloyal, ungrateful, and they were "punished" with no-return policies. A common
attitude was that if you left your firm, you did not appreciate what the company had done for
you. Today's young workers are more likely to change jobs and later return to a former employer
than their counterparts who entered the workforce 20 or 30 years ago and smart employers try to
get their best ex-employees to come back.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

27) Former service members are recruited by many employers because many of these individuals
typically have a proven work history and are flexible, motivated, and drug free.
Answer: TRUE
Explanation: Hiring of former service members may make sense to a lot of employers because
many of these individuals typically have a proven work history and are flexible, motivated, and
drug-free. Another valuable characteristic of veterans is their goal and team orientation.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

28) Ex-offenders are a viable source of employees for restaurants and farms.
Answer: TRUE
Explanation: Ex-offenders are a viable labor pool for restaurants. Several restaurant chains have
programs to hire ex-offenders, for working third shift. In another example, supermarket retail
consultant and restaurateur Howard Solganik has launched a program that puts ex-offenders to
work helping area farmers increase the supply of local, seasonal produce accessible to
consumers.
Diff: 2
Chapter: 5
Skill: Concept
LO: 5

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29) Mobile recruiting involves holding job fairs, offering internships, hosting open houses, and
visiting community colleges and vocational schools.
Answer: FALSE
Explanation: Mobile recruiting involves the use of mobile apps to post jobs, run text message-
based recruiting campaigns, create online communities for potential new hires to learn about
their companies, monitor social networks for news about industries they hire for, and keep in
touch with staff and outside agencies. These tasks previously had to be done from a desktop or
laptop computer.
Diff: 2
Chapter: 5
Skill: Concept
LO: 6

30) The cyber recruiter uses the Internet to monitor and coordinate a firm's recruitment activities.
Answer: TRUE
Explanation: The Internet recruiter, also called a "cyber recruiter," is a person whose primary
responsibility is to use the Internet in the recruitment process. Most companies currently post
jobs on their corporate career Web site. Individuals must be in place to monitor and coordinate
these activities.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

31) Virtual job fairs are accessible from a company homepage that lists the company positions
available and provides a way for applicants to apply for specific jobs.
Answer: FALSE
Explanation: A virtual job fair is an online recruiting method engaged in by a single employer or
group of employers to attract a large number of applicants. Corporate career Web sites are job
sites accessible from a company homepage that list the company positions available and provide
a way for applicants to apply for specific jobs.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

50
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32) Recently, corporate career Web sites are becoming more accessible to job seekers through
handheld mobile devices.
Answer: TRUE
Explanation: Of late, another dimension has entered the equation with regard to making the
corporate career Web site accessible to job seekers. Now it is important that job boards and
recruitment sites are easy to use on handheld mobile devices.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

33) Employers and employment agencies use blogging to conduct background checks on job
applicants.
Answer: TRUE
Explanation: Weblogs, or blogs, have changed the ways in which individuals access
information. Some employers and employment agencies have discovered that blogging is a way
to do detailed and stealthy background checks.
Diff: 2
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

34) The NACElink Network is a general purpose job board.

Answer: FALSE
Explanation: The NACElink Network is the result of an alliance among the National
Association of Colleges and Employers, DirectEmployers Association, and Symplicity
Corporation. It is a national recruiting network and suite of Web-based recruiting and career
services automation tools serving the needs of colleges, employers, and job candidates.
Diff: 1
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

35) Accountantsworld.com is an example of a general-purpose job board.

Answer: FALSE
Explanation: Accountantsworld.com is a niche site that caters to a highly specialized job market.
Monster.com is a general-purpose job board.
Diff: 2
Chapter: 5
Skill: Concept
LO: 7

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36) Freelance.com and guru.com are Web sites for contract workers to advertise their skills.
Answer: TRUE
Explanation: Contract workers are part of the contingent workforce and an alternative to
recruitment. Sites such as freelance.com and guru.com assist these workers. These sites let
workers advertise their skills, set their price, and pick an employer.
Diff: 2
Chapter: 5
Skill: Concept
LO: 7
AACSB: Use of IT

37) Public employment agencies are operated by the federal government and given policy
direction through the EEOC.
Answer: FALSE
Explanation: Public employment agencies are operated by each state but receive overall policy
direction from the U.S. Employment Service. Public employment agencies have become
increasingly involved in matching people with technical, professional, and managerial positions.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

38) An internship allows students to contribute to a firm and to observe business practices
firsthand.
Answer: TRUE
Explanation: During the internship, the student gets to view business practices firsthand. At the
same time, the intern contributes to the firm by performing needed tasks. In addition to other
benefits, internships provide opportunities for students to bridge the gap from business theory to
practice.
Diff: 1
Chapter: 5
Skill: Concept
LO: 8

39) As a form of recruitment, internships involve placing a student in a permanent job to help
pay for his or her college tuition.
Answer: FALSE
Explanation: An internship is a special form of recruitment that involves placing a student in a
temporary job with no obligation either by the company to hire the student permanently or by the
student to accept a permanent position with the firm following graduation.
Diff: 2
Chapter: 5
Skill: Concept
LO: 8

52
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40) Reshoring is the reverse of offshoring and involves bringing work back to the United States.
Answer: TRUE
Explanation: Reshoring is the reverse of offshoring and involves bringing work back to the
United States. Advocates of reshoring believe that manufacturers should calculate the total
impact of offshoring because there are often hidden expenses such as higher costs for travel,
packaging, shipping, and inventory.
Diff: 2
Chapter: 5
Skill: Concept
LO: 10

5.3 Essay Questions

1) What is recruitment? How do labor market conditions affect recruitment?

Answer: Recruitment is the process of attracting individuals on a timely basis, in sufficient
numbers, and with appropriate qualifications to apply for jobs with an organization. The firm
may then select those applicants with qualifications most closely related to job descriptions. Of
particular importance is the demand for and supply of specific skills in the labor market. A firm's
recruitment process may be simplified when the unemployment rate in an organization's labor
market is high as was the case in the recession when it jumped to over 10 percent in 2009.
However, even in a depressed economy, top quality workers are in demand and forward thinking
organizations are looking to entice these individuals to join their firms.The number of unsolicited
applicants is usually greater, and the increased size of the labor pool provides a better
opportunity for attracting qualified applicants. If demand for a particular skill is high relative to
supply, an extraordinary recruiting effort may be required.
Diff: 3
Chapter: 5
Skill: Synthesis
LO: 1, 3

2) Why would a firm look to competitors for recruits? How do sites such as LinkedIn and
Twitter assist firms with finding passive candidates at competing firms?
Answer: When recent experience is required, competitors and other firms in the same industry
or geographic area may be the most important source of recruits. The most highly qualified
applicants often come directly from competitors in the same labor market, as people typically do
not enter the workforce loaded with experience and job skills. Competitors and other firms serve
as external sources of recruitment for high-quality talent. Even organizations that have policies
of promotion from within occasionally look elsewhere to fill positions. Sites such as LinkedIn
and Facebook are excellent for searching for passive candidates. These sites house millions of
passive candidates and include tools that let would-be employers search for candidates by
geography, skills, interests, and numerous other criteria.
Diff: 3
Chapter: 5
Skill: Synthesis
LO: 3, 5
AACSB: Use of IT

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3) What is the contingent workforce? What is the outlook for the contingent workforce going
forward?
Answer: Contingent workers, described as the "disposable American workforce" by a former
secretary of labor, have a nontraditional relationship with the worksite employer and work as
part-timers, temporaries, or independent contractors. The United States Government
Accountability Office has estimated that so-called contingent workers make up nearly a third of
the workforce. And forecasters believe that amount will rise.

Historically, contingent workers have been called the bookends of recessions. They are the first
to go when a recession begins and the last to be recalled when the economy gets better.
However, toward the end of the recent recession, many companies were reversing this trend and
following the strategy of holding off on the hiring of regular full-time employees and choosing
instead to use contingent workers. Companies are now using contingent workers as a continuing
strategy in both good and bad times. In fact, the Bureau of Labor Statistics data suggest that
between 2008 and 2018, staffing companies will add jobs at almost twice the rate of estimated
job growth overall. In fact, the pace of contingent job growth suggests a shift toward more use of
temporary labor at the expense of permanent jobs.
Diff: 3
Chapter: 5
Skill: Synthesis
LO: 1
AACSB: Use of IT

4) What are some alternatives to recruitment? What are the possible benefits of using such
alternatives?
Answer: Outsourcing, offshoring, contingent workers, PEOs, and overtime are alternatives to
recruitment. Even when HR planning indicates a need for additional employees, a firm may
decide against increasing the size of its workforce. Recruitment and selection costs are
significant when you consider all the related expenses. Contingent workers provide firms with a
high degree of flexibility, which is beneficial during financial ups and downs. Overtime
minimizes the need to select and train new employees. Therefore, a firm should consider these
alternatives before engaging in recruitment.
Diff: 3
Chapter: 5
Skill: Critical Thinking
LO: 2

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5) What is a promotion from within policy? What are the advantages and disadvantages of such a
policy?
Answer: Promotion from within (PFW) is the policy of filling vacancies above entry-level
positions with current employees. When an organization emphasizes promotion from within, its
workers have an incentive to strive for advancement. When employees see co-workers promoted,
they become more aware of their own opportunities. Motivation provided by this practice often
improves employee morale. Another advantage of internal recruitment is that the organization is
usually well aware of its employees' capabilities. The employee has a track record, as opposed to
being an unknown entity. Also, the company's investment in the individual may yield a higher
return. Still another positive factor is the employee's knowledge of the firm, its policies, and its
people. However, a strictly applied "PFW" policy eventually leads to inbreeding, a lack of cross-
fertilization, and a lack of creativity. New blood provides new ideas and innovation that must
take place for firms to remain competitive.
Diff: 3
Chapter: 5
Skill: Critical Thinking
LO: 3

6) What are the steps involved in the recruitment process?

Answer: Recruitment is the process of attracting individuals on a timely basis, in sufficient
numbers, and with appropriate qualifications, to apply for jobs with an organization. Frequently,
recruitment begins when a manager initiates an employee requisition, a document that specifies
job title, department, the date the employee is needed for work, and other details. With this
information, managers can refer to the appropriate job description to determine the qualifications
the recruited person needs. The next step in the recruitment process is to determine whether
qualified employees are available within the firm (the internal source) or if it is necessary to look
to external sources, such as colleges, universities, and other organizations. Because of the high
cost of recruitment, organizations need to use the most productive recruitment sources and
methods available. Tapping productive sources of applicants and using suitable recruitment
methods are essential to maximizing recruiting efficiency and effectiveness. When a firm
identifies the sources of candidates, it uses appropriate methods for either internal or external
recruitment to accomplish recruitment objectives. A candidate responds to the firm's recruitment
efforts by submitting professional and personal data on either an application for employment or a
résumé, depending on the company's policy.
Diff: 3
Chapter: 5
Skill: Critical Thinking
LO: 4

55
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7) What are the advantages and disadvantages of using employee referrals for recruiting?
Answer: Employee referrals continue to be the way that top performers are identified. It is just
human nature that people do not want to recommend a person unless they believe they are going
to fit in and be productive. Thus, it is a powerful recruiting tool. Costs associated with employee
referrals are very low compared to advertising or agencies. Using referrals also reduces turnover
among both new and existing employees because applicants come prescreened for culture fit. A
note of caution should be observed with regard to the extensive use of employee referral. The
EEOC Compliance Manual, issued in 2006, updates guidance on the prohibition of
discrimination under Title VII of the Civil Rights Act of 1964. The manual explicitly warns that
relying on word-of-mouth recruiting, which includes employee referral programs, may generate
applicant pools that do not reflect diversity in the labor market.
Diff: 3
Chapter: 5
Skill: Critical Thinking
LO: 4

8) What are the main reasons that firms use external recruitment sources? What are the benefits
of recruiting at vocational schools, community colleges, and universities?
Answer: At times, a firm must look beyond its own borders to find employees, particularly when
expanding its workforce. External recruitment is needed to: (1) fill entry-level jobs; (2) acquire
skills not possessed by current employees; and (3) obtain employees with different backgrounds
to provide a diversity of ideas. Organizations concerned with recruiting clerical and other entry-
level employees often depend on high schools and vocational schools. Many of these institutions
have outstanding training programs for specific occupational skills, such as home appliance
repair and small engine mechanics. Many community colleges are sensitive to the specific
employment needs in their local labor markets and graduate highly-sought-after students with
marketable skills. Many community colleges also have excellent mid-management programs
combined with training for specific trades. Colleges and universities represent a major
recruitment source for many organizations. Organizations typically find potential professional,
technical, and management employees in these institutions.
Diff: 3
Chapter: 5
Skill: Critical Thinking
LO: 5

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9) What are the advantages and disadvantages of social media recruiting?
Answer: Many organizations are leaving newspapers and general-purpose job boards and
turning instead to such avenues as social media recruiting. Used properly, social media recruiting
can benefit nearly all phases of recruiting. Using social media as a strategy in the recruiting
process permits a firm to interact with potential hires on Facebook, LinkedIn, and Twitter. Jobs
can be posted daily on those sites. Such sites also permit talent groups to be developed by linking
professional groups and preserving contact with potential hires. Today many workers live out a
large portion of their lives online. Most of the new talent entering the job market these days is
quite comfortable with social media and firms are increasingly being led to use it in their
recruitment effort.

There are some downsides to social media recruiting. If the applicant pool is unfamiliar or
uncomfortable with using social media, then employing social media can be ineffective or even
risky. Also, decision makers could become aware of an individual's race, ethnicity, or other
protected information. Then, candidates might complain that they were rejected for a job based
on content posted on their social networking site.
Diff: 3
Chapter: 5
Skill: Critical Thinking
LO: 3

10) What is reshoring? Identify the trends that are compelling companies to consider it.
Answer: Reshoring is the reverse of offshoring and involves bringing work back to the United
States. Advocates of reshoring believe that manufacturers should calculate the total impact of
offshoring because there are often hidden expenses such as higher costs for travel, packaging,
shipping, and inventory. There are those who believe that reshoring is destined to happen as
wages in countries where the manufacturing has been outsourced increase. According to a study
by The Boston Consulting Group, net labor costs in the United States and China are expected to
converge by 2015, thereby making it more attractive to return to the United States. Also, the
decline of the U.S. dollar has provided a fiscal climate advantageous to manufacturing machine
tools in North America.
Diff: 3
Chapter: 5
Skill: Critical Thinking
LO: 10

57
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