Why might a firm choose to hold employment constant rather than follow demand exactly?
Explanation
The 'hold employment constant' policy focuses on maintaining a stable, trained workforce. While it risks under-utilization during downturns, its main advantage is avoiding the significant financial and morale costs associated with frequent hiring and layoffs that occur when a firm tries to match its workforce size precisely to fluctuating demand.
Other questions
What is the primary objective of a human resource strategy?
Which of the following best defines 'job enrichment'?
What is the normal time for an operation if the average observed time is 4.0 minutes and the performance rating is 85 percent?
A time study is being conducted. An initial sample has a standard deviation of 1.0 and a mean of 3.00. What is the required sample size for a 95 percent confidence level and an accuracy of within plus or minus 5 percent?
What is the standard time for a task if the total normal time is 3.4 minutes and the firm uses a 13 percent allowance factor?
What are the two very basic policies for dealing with employment stability?
According to Hackman and Oldham, which of the five core job characteristics refers to offering freedom, independence, and discretion to the worker?
Which of the following is NOT one of the four advantages of labor specialization mentioned in the text?
The study of the human interface with the environment and machines is known as what?
Which tool of methods analysis uses graphic representations with symbols to depict the sequence of steps for a process, helping to identify non-value-added activities?
Which of the following is NOT one of the four ways of establishing labor standards mentioned in the chapter?
A manager at a welfare office estimates that employees are idle 25 percent of the time. To conduct a work sampling study that is accurate within plus or minus 3 percent with 95.45 percent confidence, how many observations are needed?
A lab technician's task of pouring a tube specimen has a total time of 238 TMUs (Time Measurement Units). What is this standard time in seconds, given that 1 TMU equals 0.0006 minutes?
What is the primary finding of the Hawthorne studies conducted at Western Electric?
What are the small basic elements of manual work, such as select, grasp, and position, called in the context of predetermined time standards?
In a time study for preparing letters, the task 'Compose and type letter' has four valid observations of 8, 10, 9, and 11 minutes. What is the average observed time for this task element?
For the task element 'Stuff, stamp, seal, and sort envelopes', the average observed time is 1.5 minutes and the performance rating is 110 percent. What is the normal time for this element?
What is the primary disadvantage of using 'historical experience' to set labor standards?
A time study of a work operation at a bank yielded an average observed time of 12 minutes. The analyst rated the observed worker at 105 percent. The bank uses a 16 percent allowance factor. What is the standard time for this process?
Which of the following describes a key limitation of job expansion strategies like job enrichment and empowerment?
What is the primary difference between a 'flow diagram' and an 'operations chart' in methods analysis?
A manager needs to determine the sample size for a time study. Which of the following is NOT one of the three items the text states must be considered?
What does a 'visual workplace' aim to achieve?
A work operation consists of three elements with the following normal times: Element A is 0.16 min, Element B is 0.75 min, and Element C is 0.40 min. The total allowance factor is 20 percent (5 percent personal, 5 percent delay, 10 percent fatigue). What is the standard time for the entire job?
What is the primary purpose of an 'activity chart'?
What is the primary advantage of predetermined time standards (like MTM) over direct time studies?
A random work sample of 300 observations of an assembly-line worker over a 40-hour workweek showed the worker was busy 250 times. What percentage of time was the worker busy?
In the context of job design, what is a self-directed team?
What is the primary objective of an operations manager when designing jobs, according to the section on Ergonomics?
A welding operation has a normal time of 5.565 minutes. The union contract allows for 3 minutes of personal time and 2 minutes of fatigue time per hour. An additional delay allowance of 1 minute per hour is also applied. What is the standard time for the operation?
In a time study, why might an observation be deleted from the calculations?
Which of the following is NOT a benefit of job rotation?
For a hotel housekeeper, the task 'Clean bath' has a performance rating of 100 percent and five observed times of 3.5, 3.6, 3.6, 3.6, and 3.2 minutes. What is the normal time for this task?
According to the text, what is a key disadvantage of work sampling compared to time studies?
A time study for typing a letter has an average observed time of 2.8 minutes and a performance rating of 85 percent. What is the normal time for this element?
What does an 'allowance factor' in a time study account for?
What is the key characteristic of 'employee empowerment'?
In a work sampling study, a manager wants to be 98 percent confident that the results are within plus or minus 5 percent. The initial estimate for machine idle time is 20 percent. What is the required number of observations?
What is the primary goal of using a 'visual workplace'?
A time study for a loan processor has an element with an average observed time of 0.5 minutes and a performance rating of 110 percent. The total allowance factor is 20 percent. What is the standard time for this element?
Which of the following is a key advantage of using work sampling?
What are the three distinct decision areas of human resource strategy discussed in the chapter?
A time study of an inspector's job allows for a 6 percent fatigue allowance, a 6 percent delay allowance, and a 6 percent personal time allowance. If the inspector works an 8-hour day, what is the normal time he is assumed to take per inspection if his daily quota is 130 chairs?
What is the primary characteristic of a 'compressed workweek'?
In a work sampling study of a marketing firm, 485 observations showed employees on the phone with clients, 126 were idle, 62 were on personal time, 23 were in discussions with a supervisor, and 137 were filing or doing data entry. What percentage of employee time is considered work related?
What is the most popular type of gain-sharing plan mentioned in the text?
In a time study, the job element 'typing envelope address' has an average observed time of 2.2 minutes. The performance rating is 105 percent. What is the normal time for this task element?
What is the primary characteristic of a flexible workweek, also known as a compressed workweek?
A inspector is expected to inspect 130 chairs per 8-hour day (480 minutes). What is the standard time allowed for each inspection?