NRNP 6635 STUDY GUIDE 2026 ACTUAL
QUESTIONS WITH SOLUTIONS GRADED A+
● Forecasting Demand. Answer: Consider how much labor will we need
Benchmarking, statistical methods, subject matter experts (educated
guesses)
● Forecasting Supply. Answer: Consider how much labor will we have
Requires us to anticipate how people will move up through (and out of)
the company. We do this using a Transitional Matrix.
Also requires us to examine our business environment by asking these
questions:
What's the unemployment rate?
Is that likely to change?
What is the overall size of our labor pool?
Are people training for the jobs for which we anticipate vacancies?
● Surplus vs. shortage in supply and demand forecasting. Answer:
Comparing the results of demand and supply forecasting tells us whether
we're likely to have a surplus or a shortage.
Depending on which one we forecast, we plan to implement various
strategies for creating equilibrium.
,● Methods for correcting a surplus. Answer: Downsize
Reduce pay
Demotions
Transfers
Early retirement
Wait for natural attrition
Hiring freeze
● Downsizing. Answer: Companies choose this strategy when:
- Attempting to reduce costs
- Closing or altering production facilities
- Outsourcing and offshoring for economic reasons
Human suffering is high
- Financial and psychological damage - Which is worse?
- Damage to future employment chances over time
- Skill erosion
● Drawbacks of downsizing. Answer: - Often irreplaceable people are
let go
- Survivors just work harder
- Survivors become disillusioned
, ● Methods for correcting a shortage. Answer: - Existing people work
harder
- Use temporary employees
- Outsource
- Promote from within
- Decrease voluntary turnover
- Recruit and hire new people
● Workforce. Answer: An enterprise's employees
● Labor Force. Answer: The pool of potential employees from which
the firm attracts and hires its workforce
● Challenges of international staffing. Answer: Availability of data
- IHR professionals must often develop such data from independent
sources.
- MNEs should not make the assumption that local labor forces will be
adequate to provide the talent they need.
Increasing Diversity of Labor Forces
Brain Drain
QUESTIONS WITH SOLUTIONS GRADED A+
● Forecasting Demand. Answer: Consider how much labor will we need
Benchmarking, statistical methods, subject matter experts (educated
guesses)
● Forecasting Supply. Answer: Consider how much labor will we have
Requires us to anticipate how people will move up through (and out of)
the company. We do this using a Transitional Matrix.
Also requires us to examine our business environment by asking these
questions:
What's the unemployment rate?
Is that likely to change?
What is the overall size of our labor pool?
Are people training for the jobs for which we anticipate vacancies?
● Surplus vs. shortage in supply and demand forecasting. Answer:
Comparing the results of demand and supply forecasting tells us whether
we're likely to have a surplus or a shortage.
Depending on which one we forecast, we plan to implement various
strategies for creating equilibrium.
,● Methods for correcting a surplus. Answer: Downsize
Reduce pay
Demotions
Transfers
Early retirement
Wait for natural attrition
Hiring freeze
● Downsizing. Answer: Companies choose this strategy when:
- Attempting to reduce costs
- Closing or altering production facilities
- Outsourcing and offshoring for economic reasons
Human suffering is high
- Financial and psychological damage - Which is worse?
- Damage to future employment chances over time
- Skill erosion
● Drawbacks of downsizing. Answer: - Often irreplaceable people are
let go
- Survivors just work harder
- Survivors become disillusioned
, ● Methods for correcting a shortage. Answer: - Existing people work
harder
- Use temporary employees
- Outsource
- Promote from within
- Decrease voluntary turnover
- Recruit and hire new people
● Workforce. Answer: An enterprise's employees
● Labor Force. Answer: The pool of potential employees from which
the firm attracts and hires its workforce
● Challenges of international staffing. Answer: Availability of data
- IHR professionals must often develop such data from independent
sources.
- MNEs should not make the assumption that local labor forces will be
adequate to provide the talent they need.
Increasing Diversity of Labor Forces
Brain Drain
