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MBA - HRM Human Resource Management 2017 - Managing Human Resources, 8e (Gomez-Mejia et al.) - Quiz 06

HRM Human Resource Management

MBA - Human Resource Management 2017

Managing Human Resources, 8e (Gomez-Mejia et al.)

Chapter 6   Managing Employee Separations, Downsizing, and Outplacement 

1) An employee separation occurs when:

  1. A) employee turnover reaches maximum capacity.
  2. B) global competition increases beyond labor supply.
  3. C) an employee ceases to be a member of an organization.
  4. D) technologies are introduced into a new industry.

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

2) A company wants to know the rate at which employees voluntarily leave the firm. The company most likely needs to:

  1. A) measure its turnover rate.
  2. B) conduct an HR audit.
  3. C) implement a diversity audit.
  4. D) track reasons for discharges.

Answer:  A

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

3) Companies most likely attempt to manage their turnover rates because of:

  1. A) potential problems associated with public relations.
  2. B) legal requirements regarding layoff notifications.
  3. C) inadequate affirmative action plans.
  4. D) high employee replacement costs.

Answer:  D

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

4) The costs of employee separations primarily depend upon which of the following?

  1. A) Whether the employee was a member of a protected class or not
  2. B) Whether the employee had a voluntary separation
  3. C) Whether the employee will be replaced or not
  4. D) Whether the employee was a new hire

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

5) Which of the following is a recruitment cost associated with employee replacement?

  1. A) Outplacement
  2. B) Reference checks
  3. C) Orientation
  4. D) Advertising

Answer:  D

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

6) Which of the following factors is the LEAST common reason for turnover among Chinese workers?

  1. A) Lack of development opportunities
  2. B) Manager-employee relationships
  3. C) Insufficient compensation
  4. D) Tedious work

Answer:  B

Diff: 2

AACSB:  Diverse and multicultural work environments

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

7) Which of the following is a selection cost of employee replacement?

  1. A) Advertising
  2. B) Outplacement
  3. C) Search firm fees
  4. D) Reference checks

Answer:  D

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

8) Martin is reviewing HR's costs for interviewing, testing, and checking references for new hires. Martin is most likely reviewing the ________ costs of employee replacement.

  1. A) training
  2. B) selection
  3. C) separation
  4. D) recruitment

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.1: Understand what employee separations are

 

9) Which of the following is a replacement cost associated with training new employees?

  1. A) Employment testing
  2. B) Outplacement services
  3. C) Recruiter time
  4. D) Lost productivity

Answer:  D

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

10) Which of the following is the most significant separation cost for employers?

  1. A) Search firm fees
  2. B) Lost productivity
  3. C) Outplacement assistance
  4. D) Compensation

Answer:  D

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

11) The time and cost of exit interviews are part of the ________ costs of an employee separation.

  1. A) recruitment
  2. B) selection
  3. C) training
  4. D) separation

Answer:  D

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

 

12) Which term refers to an employee's final interview following separation?

  1. A) Exit interview
  2. B) Follow-up interview
  3. C) Appraisal interview
  4. D) Outplacement interview

Answer:  A

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

13) Your company is planning a layoff. As you explain the process to the management team, you tell them that outplacement assistance is available, which means that the:

  1. A) employee will receive a final interview.
  2. B) company will help departing employees find new jobs.
  3. C) company will measure the rate of employee separations.
  4. D) company can terminate the relationship with the employee for any reason.

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.1: Understand what employee separations are

 

14) What is the primary reason for holding exit interviews?

  1. A) Providing counseling to departing employees
  2. B) Assisting departing employees with job-search skills
  3. C) Determining the reason for the employee's departure
  4. D) Allowing the employee's co-workers to provide feedback

Answer:  C

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

15) Carlie quit her job as a data analyst at APEX Designs, and she is scheduled to participate in an exit interview. Which of the following individuals would be the most appropriate to conduct Carlie's exit interview?

  1. A) Subordinate
  2. B) Co-worker
  3. C) HR representative
  4. D) Immediate supervisor

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

16) Sanford Enterprises provides outplacement assistance through its HR department. The firm is most likely attempting to:

  1. A) lower unemployment insurance taxes.
  2. B) help departing employees find jobs.
  3. C) improve employee motivation.
  4. D) comply with EEOC rules.

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.1: Understand what employee separations are

17) Which of the following is most likely true about employee separations?

  1. A) Salary savings often outweigh other separation costs.
  2. B) Innovation declines as people take their ideas with them.
  3. C) The best workers tend to quit, so workforce quality declines over time.
  4. D) Most separations are due to unfair employment practices by the employer.

Answer:  A

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

18) Which of the following is most likely a benefit of employee separations for employers?

  1. A) Employees are grouped into teams.
  2. B) The workforce becomes more homogenous.
  3. C) Surviving employees work more conscientiously.
  4. D) They open doors for promotion within the company.

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

 

Additional Case 6.1

Central Enterprises is suffering an economic downturn, and the workforce needs to be reduced. Upper-level managers are debating the costs and benefits of various employee separations. Brian argues that the company needs to make immediate cuts to both management and labor. The cuts need to be made in such a way that the scope of the company and its markets are not affected. The firm needs to do more with fewer people according to Brian.

 

Other managers want to take a long-term, less traumatic approach. According to Natalie, the firm has time to consider the problems and gradually reduce the workforce rather than making sudden staff cuts. Natalie points out that 35% of the workforce is over age 62.

 

The VP of HR, LaTisha, wants the least disruptive reduction process possible. LaTisha just finished a major labor negotiation with the union and is not ready for another. She points out that turnover has been fairly high. Along with considering workforce reductions, LaTisha wants to know why people are leaving the company voluntarily.

 

19) Refer to Additional Case 6.1. To answer LaTisha's question about why people are leaving, the company should most likely institute:

  1. A) outplacement services.
  2. B) orientation sessions.
  3. C) exit interviews.
  4. D) appraisals.

Answer:  C

Diff: 2

AACSB:  Reflective thinking

Skill:  Application

LO:  6.1: Understand what employee separations are

20) Yao-Huan is reviewing the rate at which employees have been leaving his firm. He is reviewing the firm's turnover rate.

Answer:  TRUE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

21) A firm with an extremely high turnover rate compared to other firms in the same industry most likely needs to address HR issues.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

 

22) The costs to replace a departing employee primarily include: recruitment, selection, and long-term health care benefits.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

23) Selection costs include relocation costs, training costs, orientation, and severance pay.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

24) Marissa quit her current employer for a new job. She is talking with the director of HR about why she left. Marissa is most likely receiving outplacement assistance.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

25) When conducting exit interviews, the interviewer should be one of the employee's former supervisors.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

26) Web-based exit interviews are used by firms that assume former employees may prefer to avoid face-to-face interaction.

Answer:  TRUE

Diff: 2

AACSB:  Information technology

Skill:  Concept

LO:  6.1: Understand what employee separations are

27) Employee separations can stimulate innovation and create opportunities for workplace diversity.

Answer:  TRUE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

28) The termination of an employee's membership in an organization is referred to as ________.

Answer:  employee separation

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

29) The rate of employee separations in an organization is referred to as ________.

Answer:  turnover rate

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

30) The purpose of a(n) ________ is to find out the reasons why the employee is leaving or to provide counseling and/or assistance in finding a new job.

Answer:  exit interview

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

31) A program in which companies help their departing employees find jobs more rapidly by providing them with training in job-search skills is called ________.

Answer:  outplacement assistance

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.1: Understand what employee separations are

 

32) Hernando is working with management to calculate the costs of employee turnover. What issues or costs should Hernando raise to management?

Answer:  Summary of suggested answer - The details of the answer will vary, but the costs should include:

  • Recruitment - ads, recruiter time, etc.
  • Selection - interviewing, testing, relocation, etc.
  • Training - orientation, lost productivity, trainer's time, etc.
  • Separation - benefits, unemployment, exit interview, etc.

Diff: 3

AACSB:  Analytical thinking

Skill:  Application

LO:  6.1: Understand what employee separations are

 

33) What problems are frequently associated with early retirement programs? How can HR minimize such problems? What benefits might a firm experience from such employee separations?

Answer:  Summary of suggested answer -

Problems -

  • too many participate
  • employees leave who you want to keep
  • leaving employees become competitors, some employees feel coerced into participation by their managers

Solutions -

  • set criteria to restrict the total number eligible
  • plan to hire back, as consultants, any good employees who got away
  • explain to managers what they can and cannot say
  • don't start changing performance evaluations, lower raises, or hint at possible layoffs to older employees

Benefits -

  • reduced labor costs
  • replacement of poor performers
  • increased motivation
  • opportunity for greater diversity

Diff: 3

AACSB:  Analytical thinking

Skill:  Synthesis

LO:  6.1: Understand what employee separations are

 

Additional Case 6.3

MedEquip, a medical services company with 500 employees, has experienced an extensive business downturn, and a layoff is necessary. MedEquip managers expect a layoff to be problematic because the firm made verbal commitments to workers for lifetime employment. You are an HR consultant brought in to assist with the layoff. The firm has also hired a PR specialist to handle the press releases and public communications about the layoff. Although MedEquip is a large company, the firm has built a family atmosphere. Corporate headquarters is located in a small community of about 10,000 people.

 

The firm is planning to implement a layoff of 20% of its hourly and managerial employees. Because of time demands and financial pressures, the layoff will occur in 30 days. The firm plans to use work performance as the layoff criterion. Three areas of the business will be affected: MIS, facilities, and accounting. Management is concerned about security in these areas.

 

Olivia, a middle manager who will not be laid off, has decided to hold group meetings with the units affected by the layoff. Employees will not receive information in writing regarding the layoff to avoid litigation issues. Instead, affected employees will receive verbal communications from Olivia about the layoff. Employees at the firm who are not losing their jobs will receive e-mails that summarize the current situation at MedEquip.

 

34) Refer to Additional Case 6.3. Which of the following questions is LEAST relevant to MedEquip at this time?

  1. A) How will MedEquip's community reputation be affected?
  2. B) How can MedEquip maintain the morale of surviving employees?
  3. C) How do MedEquip's competitors handle employee security during layoffs?
  4. D) What policies exist regarding separation pay for laid-off MedEquip employees?

Answer:  C

Diff: 3

AACSB:  Analytical thinking

Skill:  Synthesis

LO:  6.1: Understand what employee separations are

 

 

35) Your CEO asks you, as the director of HR, to lead a layoff planning session. What layoff alternatives are available to the firm? If layoffs are necessary, what separation costs would the firm most likely incur?

Answer:  Summary of suggested answer -

Alternatives:

  • change employment policies using attrition and/or a hiring freeze
  • redesign jobs using bumping
  • job sharing, reducing hours, etc.
  • change pay and benefits policies, such as pay freezes, pay cuts, profit sharing, and training.

Separation Costs:

  • separation pay
  • benefits
  • unemployment insurance costs
  • exit interviews
  • outplacement

Diff: 3

AACSB:  Analytical thinking

Skill:  Synthesis

LO:  6.1: Understand what employee separations are

36) Resignations and retirements are examples of:

  1. A) essential downsizing measures.
  2. B) involuntary separations.
  3. C) voluntary separations.
  4. D) discharges.

Answer:  C

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

37) Studies show that approximately ________ of voluntary employee separations are avoidable.

  1. A) 20%
  2. B) 40%
  3. C) 60%
  4. D) 80%

Answer:  D

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

 

38) Voluntary separations may include:

  1. A) early retirements.
  2. B) hiring freezes.
  3. C) discharges.
  4. D) job redesigns.

Answer:  A

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

39) Similar to a quit, a ________ is initiated by the employee, but in this case the employee is unlikely to search for another job.

  1. A) layoff
  2. B) retirement
  3. C) discharge
  4. D) buyout

Answer:  B

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

40) Sara is 57 years old and she has been a division manager for Elf Cookies for 32 years. Recently, the business has seen an increase in efficiency and has a surplus of labor. Elf Cookies is offering employees who are 55 and older, and who have worked for the company for over 30 years, specific benefits and financial incentives to retire within the next 60 days. Sara does so. She has:

  1. A) quit.
  2. B) been bought out.
  3. C) taken early retirement.
  4. D) been discharged.

Answer:  C

Diff: 1

AACSB:  Analytical thinking

Skill:  Application

LO:  6.2: Gain mastery in identifying types of employee separations

 

 

41) The decision to terminate an employee is management's role. HR's primary role is to:

  1. A) implement outplacement services immediately.
  2. B) serve as the employee's advocate against management.
  3. C) make certain the employee receives due process.
  4. D) document poor performance so the termination can be justified.

Answer:  C

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

42) Alex is a first-line supervisor with an employee who has a performance problem. After coaching the employee with no improvement, Alex decides to terminate the employment relationship. Which term refers to this type of separation?

  1. A) Layoff
  2. B) Discharge
  3. C) Rightsizing
  4. D) Early retirement

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.2: Gain mastery in identifying types of employee separations

 

43) Bertha wishes to discharge one of her poorly performing employees. She has tried progressive discipline with no effect. She asks you, the HR manager, what she must do to discharge the employee. You should most likely tell her the policy and procedures, and then ask her if she has ________ in order to protect the company from a wrongful discharge suit.

  1. A) documented the inappropriate behavior
  2. B) given sixty days notice as required by law
  3. C) used non-progressive disciplinary actions
  4. D) analyzed the department's diversity levels

Answer:  A

Diff: 3

AACSB:  Analytical thinking

Skill:  Application

LO:  6.2: Gain mastery in identifying types of employee separations

 

44) Delmus' performance reports have been increasingly poor, and he seems to have negative relationships with other workers in his department. His line manager has taken him aside twice to discuss his behavior and work and has offered him time to improve, but there has been very little positive progress. Management decides to end the employment relationship with Delmus. This is an example of a:

  1. A) layoff.
  2. B) quit.
  3. C) discharge.
  4. D) buyout.

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.2: Gain mastery in identifying types of employee separations

 

45) The primary difference between a layoff and a discharge is:

  1. A) a layoff is an involuntary separation and a discharge is a voluntary separation.
  2. B) a layoff is a voluntary separation and a discharge is an involuntary separation.
  3. C) a discharge occurs when the company's strategy forces it to reduce its workforce and a layoff occurs when there is a poor fit between the employee and the organization.
  4. D) a layoff occurs when the company's strategy forces it to reduce its workforce and a discharge occurs when there is a poor fit between the employee and the organization.

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Critical Thinking

LO:  6.2: Gain mastery in identifying types of employee separations

 

46) Layoffs are most likely to occur because:

  1. A) the firm offers lucrative incentives to reduce the workforce.
  2. B) adequate documentation exists of the worker's poor performance.
  3. C) a poor fit exists between the employee and the company.
  4. D) the company's strategy forces a reduction in its workforce.

Answer:  D

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

 

47) All of the following are primary reasons for layoffs EXCEPT:

  1. A) mergers
  2. B) misconduct
  3. C) global competition
  4. D) technology advancements

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

48) Dixon Enterprises needs to reduce its long-term workforce. The firm wants to reduce the scale and scope of its business to improve financial performance. The company is most likely:

  1. A) conducting a layoff.
  2. B) downsizing.
  3. C) buying out the workforce.
  4. D) rightsizing.

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

49) If a business is downsizing, it is most likely:

  1. A) offering training and development opportunities to new hires.
  2. B) improving worker efficiency through reorganization.
  3. C) reducing the size and scope of the business.
  4. D) offering early retirements to older workers.

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

50) A firm with too many management layers and bureaucratic work processes would most likely benefit from:

  1. A) rightsizing.
  2. B) discharges.
  3. C) downsizing.
  4. D) early retirements.

Answer:  A

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

 

51) The major difference between downsizing and rightsizing is that:

  1. A) rightsizing reduces the size and scope of a business, while downsizing reorganizes the business.
  2. B) more workers are likely to lose their jobs during rightsizing than during downsizing.
  3. C) downsizing reduces the size and scope of a business, while rightsizing reorganizes the business.
  4. D) rightsizing attempts to improve financial performance, while downsizing attempts to increase efficiency.

Answer:  C

Diff: 3

AACSB:  Analytical thinking

Skill:  Application

LO:  6.2: Gain mastery in identifying types of employee separations

Additional Case 6.1

Central Enterprises is suffering an economic downturn, and the workforce needs to be reduced. Upper-level managers are debating the costs and benefits of various employee separations. Brian argues that the company needs to make immediate cuts to both management and labor. The cuts need to be made in such a way that the scope of the company and its markets are not affected. The firm needs to do more with fewer people according to Brian.

 

Other managers want to take a long-term, less traumatic approach. According to Natalie, the firm has time to consider the problems and gradually reduce the workforce rather than making sudden staff cuts. Natalie points out that 35% of the workforce is over age 62.

 

The VP of HR, LaTisha, wants the least disruptive reduction process possible. LaTisha just finished a major labor negotiation with the union and is not ready for another. She points out that turnover has been fairly high. Along with considering workforce reductions, LaTisha wants to know why people are leaving the company voluntarily.

 

52) Refer to Additional Case 6.1. Brian would most likely advocate a strategy of:

  1. A) attrition.
  2. B) downsizing.
  3. C) rightsizing.
  4. D) early retirements.

Answer:  C

Diff: 2

AACSB:  Reflective thinking

Skill:  Critical Thinking

LO:  6.2: Gain mastery in identifying types of employee separations

 

 

Additional Case 6.4

Organizers, Inc. has implemented new business technologies that require fewer employees. Paul, the firm's CEO, sees the need to eliminate some middle managers and institute work teams to eliminate ineffective or unnecessary work processes. He believes that such changes won't be costly to the business. Most of the middle managers have been with the company anywhere from 10-15 years but are a long way from retirement.

 

One specific problem that Paul recognizes involves Zena, an upper-level manager. Zena has been coming to work late, missing deadlines on assignments, and refusing to complete an important assignment. Paul has warned Zena personally about the consequences for further actions and has even meted out several proscribed disciplinary actions against Zena. Her work habits have not improved, and Paul feels he may have to take further action.

 

53) Refer to Additional Case 6.4. By Paul's estimation, Organizers, Inc. most likely needs to do which of the following to improve efficiency?

  1. A) Implement internship opportunities
  2. B) Perform a large-scale layoff
  3. C) Downsize
  4. D) Rightsize

Answer:  D

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.2: Gain mastery in identifying types of employee separations

54) Recent studies have shown that 80% of voluntary separations are unavoidable.

Answer:  FALSE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

55) A quit and a retirement are similar types of employee separations since both are initiated by the employee.

Answer:  TRUE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

56) Employers can force an employee to retire if the employee is 65 years of age or older.

Answer:  FALSE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

57) Involuntary separation results from one of two conditions: 1) economic necessity or 2) a poor fit between the employee and the organization.

Answer:  TRUE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

58) Rightsizing is synonymous with downsizing.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

59) ________ is a separation that occurs when an employee decides, for personal or professional reasons, to end the relationship with the employer.

Answer:  Voluntary separation

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

60) A separation that occurs when an employer decides to terminate its relationship with an employee due to economic necessity or a poor fit between the employee and the organization is called ________.

Answer:  involuntary separation

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

61) ________ is a company strategy to reduce the scale and scope of its business in order to improve the company's financial performance.

Answer:  Downsizing

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

62) The process of reorganizing a company's employees to improve their efficiency is referred to as ________.

Answer:  rightsizing

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

63) ________ is an employment policy designed to reduce the company's workforce by not refilling job vacancies that are created by turnover.

Answer:  Attrition

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.2: Gain mastery in identifying types of employee separations

 

Additional Case 6.4

Organizers, Inc. has implemented new business technologies that require fewer employees. Paul, the firm's CEO, sees the need to eliminate some middle managers and institute work teams to eliminate ineffective or unnecessary work processes. He believes that such changes won't be costly to the business. Most of the middle managers have been with the company anywhere from 10-15 years but are a long way from retirement.

 

One specific problem that Paul recognizes involves Zena, an upper-level manager. Zena has been coming to work late, missing deadlines on assignments, and refusing to complete an important assignment. Paul has warned Zena personally about the consequences for further actions and has even meted out several proscribed disciplinary actions against Zena. Her work habits have not improved, and Paul feels he may have to take further action.

 

64) Refer to Additional Case 6.4. Paul believes strongly in trying to provide lifetime employment and will use a layoff only as a last resort. What would be the best strategy to reduce middle management?

  1. A) Offering early retirement to employees in middle management.
  2. B) Instituting a pay freeze only for employees in middle management.
  3. C) Encouraging employees in middle management to take voluntary time off for at least 60 days.
  4. D) Developing HR policies regarding the use of pay incentives to encourage middle managers to quit.

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Synthesis

LO:  6.2: Gain mastery in identifying types of employee separations

 

65) What is an involuntary separation? What are some examples of involuntary separations? How can the difficulties of involuntary separations be managed with outplacement programs?

Answer:  An involuntary separation occurs when management decides to terminate its relationship with an employee due to (1) economic necessity or (2) a poor fit between the employee and the organization. Involuntary separations are the result of very serious and painful decisions that can have a profound effect on the entire organization and especially on the employee who loses his or her job. A discharge results from poor performance or a failure to change unacceptable behavior. Layoffs are large-scale discharges related to economic necessity and the individual does not necessarily have a direct cause for his/her discharge. These can affect the whole organization. Downsizing/rightsizing is the concept of getting the organization smaller in scope (downsizing) or getting it to a more efficient size (rightsizing). An outplacement program can help a firm control the disruption caused by layoffs and other employee separations. The most important of these goals are (1) reducing the morale problems of employees who are about to be laid off so that they remain productive until they leave the firm, (2) minimizing the amount of litigation initiated by separated employees, and (3) assisting separated employees in finding comparable jobs as quickly as possible. In addition, providing an outplacement service can help keep the remaining employees focused on their work.

Diff: 3

AACSB:  Analytical thinking

Skill:  Synthesis

LO:  6.2: Gain mastery in identifying types of employee separations

 

66) One of the most popular alternatives to layoffs is:

  1. A) inducing quits.
  2. B) offering early retirement.
  3. C) providing outplacement services.
  4. D) transferring workers to other plants.

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

67) What are the two primary features of early retirement programs?

  1. A) Exit interviews and open windows
  2. B) Open windows and financial incentives
  3. C) Outplacement services and financial incentives
  4. D) Health-care benefits and lump-sum payments

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

68) Elizabeth is a 59-year-old account representative at a large bank. Due to the increasing popularity of online banking, the bank has more employees than it needs. Recently, the bank has offered early retirement to account representatives between the ages of 55 and 65 who have been with the company for a minimum of 15 years. Four employees, including Elizabeth, meet these requirements. It is most likely that:

  1. A) the bank is violating the Equal Pay Act by forcing female employees to retire.
  2. B) the bank is violating the Age Discrimination Act by forcing Elizabeth to retire.
  3. C) Elizabeth has received poor performance appraisals for many years.
  4. D) Elizabeth must make her decision by a specific date.

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Application

LO:  6.3: Have familiarity with managing early retirements

 

69) It is most likely true that early retirement programs:

  1. A) can substantially reduce the size of a company's workforce.
  2. B) usually drive stock prices up because of the reduced overhead.
  3. C) have minimal effect on reducing the size of a company's workforce.
  4. D) typically require little effort from HR to generate large financial returns.

Answer:  A

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

70) Which of the following is a common problem with early retirement programs?

  1. A) Insufficient management participation
  2. B) Short-term cash flow issues for the firm
  3. C) Excessive unplanned health-care costs
  4. D) Too much participation by eligible employees

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

71) A firm can best manage participation in an early retirement program by:

  1. A) restricting the program to areas of the business with a redundancy of employees.
  2. B) outsourcing highly skilled employees to competing firms.
  3. C) offering the program only to employees with poor performance appraisals.
  4. D) requiring participating employees to sign no-compete agreements.

Answer:  A

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

72) Teresa, a manager at FSE Manufacturing, wants to help employees make decisions about early retirement. As an HR manager, you should most likely caution Teresa that certain behaviors on her part will appear coercive. Which of the following activities should Teresa most likely avoid in this situation?

  1. A) Suddenly lowering an employee's performance appraisals which have been good over past years
  2. B) Discussing the specific details of the early retirement program with the employees
  3. C) Offering older employees the opportunity to bump younger employees
  4. D) Implementing an across-the-board pay cut

Answer:  A

Diff: 3

AACSB:  Analytical thinking

Skill:  Application

LO:  6.3: Have familiarity with managing early retirements

 

73) The key to avoiding lawsuits over early retirement programs is to:

  1. A) give preferential treatment to protected-class individuals.
  2. B) treat all employees the same regardless of their age.
  3. C) study the probable impact on the local community.
  4. D) implement layoffs on a regular basis.

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

 

Additional Case 6.1

Central Enterprises is suffering an economic downturn, and the workforce needs to be reduced. Upper-level managers are debating the costs and benefits of various employee separations. Brian argues that the company needs to make immediate cuts to both management and labor. The cuts need to be made in such a way that the scope of the company and its markets are not affected. The firm needs to do more with fewer people according to Brian.

 

Other managers want to take a long-term, less traumatic approach. According to Natalie, the firm has time to consider the problems and gradually reduce the workforce rather than making sudden staff cuts. Natalie points out that 35% of the workforce is over age 62.

 

The VP of HR, LaTisha, wants the least disruptive reduction process possible. LaTisha just finished a major labor negotiation with the union and is not ready for another. She points out that turnover has been fairly high. Along with considering workforce reductions, LaTisha wants to know why people are leaving the company voluntarily.

 

74) Refer to Additional Case 6.1. What relatively quick, but less traumatic, reduction strategy is suggested by the make-up of the workforce?

  1. A) Rightsizing
  2. B) Employee training
  3. C) A job redesign program
  4. D) An early retirement program

Answer:  D

Diff: 2

AACSB:  Reflective thinking

Skill:  Critical Thinking

LO:  6.3: Have familiarity with managing early retirements

 

Additional Case 6.2

Terra Alta employs nearly 15,000 workers worldwide. The firm wants to reduce its workforce through an early retirement program. The firm has hired you to organize and implement the program.

 

Employees over age 58 are eligible, but managers don't want to lose key older employees. Program eligibility should be limited to a short period of time. Terra Alta managers need a fairly accurate estimate of how many employees will participate in the program.

 

Terra Alta expects a legal and humane program that avoids litigation issues. Employees should have an accurate picture of their future if they decide to accept early retirement.

 

75) Refer to Additional Case 6.2. How could Terra Alta most likely prevent key, older workers from leaving?

  1. A) Restricting eligibility to areas with redundant employees
  2. B) Establishing an immediate hiring freeze
  3. C) Lowering the eligibility requirements
  4. D) Shortening the eligibility time frame

Answer:  A

Diff: 3

AACSB:  Reflective thinking

Skill:  Critical Thinking

LO:  6.3: Have familiarity with managing early retirements

 

76) Refer to Additional Case 6.2. To avoid any legal problems, what would you most likely recommend?

  1. A) Offer minority employees larger severance packages to minimize discrimination concerns.
  2. B) Tell managers not to treat older workers any differently than they have in the past.
  3. C) Implement a hiring freeze at the same time as early retirement is offered.
  4. D) Avoid giving more than 30 days advance warning of a layoff.

Answer:  B

Diff: 3

AACSB:  Reflective thinking

Skill:  Critical Thinking

LO:  6.3: Have familiarity with managing early retirements

 

77) Refer to Additional Case 6.2. How could Terra Alta best manage the number of participants in the early retirement program?

  1. A) Guarantee jobs to key employees and implement job redesign.
  2. B) Survey senior employees and fine tune incentive packages.
  3. C) Hire retirees as part-time consultants with stock options.
  4. D) Develop an estimate based on industry data.

Answer:  B

Diff: 3

AACSB:  Reflective thinking

Skill:  Critical Thinking

LO:  6.3: Have familiarity with managing early retirements

78) Early retirement programs generally are offered by a business for only a short period of time and consist of financial incentives to encourage senior employees to retire earlier than they had planned.

Answer:  TRUE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

79) Early retirement programs are simple ways to make small reductions in a firm's workforce.

Answer:  FALSE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

80) A firm that tells employees that if they don't take early retirement they may still lose their jobs due to future layoffs is most likely open to age discrimination charges.

Answer:  TRUE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

81) A company can save up to 20% of its payroll during lows in its business cycle by instituting a profit-sharing compensation program.

Answer:  TRUE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

82) ________ is an employment policy designed to reduce the company's workforce by not hiring any new employees into the company.

Answer:  Hiring freeze

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.3: Have familiarity with managing early retirements

 

Additional Case 6.2

Terra Alta employs nearly 15,000 workers worldwide. The firm wants to reduce its workforce through an early retirement program. The firm has hired you to organize and implement the program.

 

Employees over age 58 are eligible, but managers don't want to lose key older employees. Program eligibility should be limited to a short period of time. Terra Alta managers need a fairly accurate estimate of how many employees will participate in the program.

 

Terra Alta expects a legal and humane program that avoids litigation issues. Employees should have an accurate picture of their future if they decide to accept early retirement.

 

83) Refer to Additional Case 6.2. Given Terra Alta's desires, which of the following would be the most appropriate HR policy?

  1. A) Creating a formula that accelerates retirement eligibility for low performing workers
  2. B) Implementing outplacement service programs for retiring employees
  3. C) Mandating a leave of absence for all employees near retirement
  4. D) Establishing a 30-day open window for early retirement

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Synthesis

LO:  6.3: Have familiarity with managing early retirements

 

84) A layoff is typically implemented by an organization when:

  1. A) alternative methods for reducing labor costs are unavailable.
  2. B) most employees have less than 15 years of experience.
  3. C) the firm employs fewer than 100 workers.
  4. D) outplacement services are successful.

Answer:  A

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

85) Once a firm has decided to reduce its workforce through voluntary means, its next choice is:

  1. A) whether to discharge employees.
  2. B) if it should downsize or rightsize.
  3. C) what outplacement services to offer.
  4. D) if any alternative strategies are available.

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

86) The least disruptive way to cut labor costs is through:

  1. A) layoffs.
  2. B) attrition.
  3. C) job redesign.
  4. D) hiring freezes.

Answer:  B

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

87) Springtime Water has recently lost a small number of employees through quits and retirements. The company has decided not to replace these employees. Marion is most likely reducing its workforce by:

  1. A) outplacement.
  2. B) attrition.
  3. C) rightsizing.
  4. D) downsizing.

Answer:  B

Diff: 1

AACSB:  Analytical thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

 

88) Which of the following alternatives to layoffs is LEAST intrusive on the day-to-day management of a business?

  1. A) Making changes in job design
  2. B) Implementing a pay freeze
  3. C) Changing benefits policies
  4. D) Modifying employment policies

Answer:  D

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

89) A "rings of defense" strategy in terms of employment security and workforce reductions is when a firm:

  1. A) freezes employee wages to avoid laying off workers.
  2. B) uses contingency workers for a flexible workforce.
  3. C) implements job sharing in order to keep workers.
  4. D) provides job security for its core employees.

Answer:  D

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

90) An example of a change in employment policy that will help reduce the size of a company's workforce is:

  1. A) reducing work hours.
  2. B) implementing training.
  3. C) offering profit sharing.
  4. D) cutting part-time employees.

Answer:  D

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

91) Farley Enterprises wants to reduce its labor costs in the LEAST disruptive method that is available. Which of the following is most appropriate?

  1. A) Layoffs
  2. B) Attrition
  3. C) Paycuts
  4. D) Relocation

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

 

92) Which of the following is an employment policy that serves as an alternative to layoffs?

  1. A) Job sharing
  2. B) Hiring freeze
  3. C) Demotions
  4. D) Pay freeze

Answer:  B

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

93) Transferring and relocating employees are both ways to reduce employee costs through which function?

  1. A) Employment policies
  2. B) Pay and benefits policies
  3. C) Job design methods
  4. D) Outsourcing methods

Answer:  C

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

94) Cuts in overtime pay, profit sharing, and encouraging employees to take leave days are all ways to reduce employee costs in what area?

  1. A) Employment policies
  2. B) Pay and benefits
  3. C) Job design
  4. D) Training

Answer:  B

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

95) Steve's job has been eliminated. Steve, a senior employee, will take a job in a different unit from an employee with less seniority. Steve's employer is most likely using the practice of:

  1. A) attrition.
  2. B) bumping.
  3. C) job redesign.
  4. D) rightsizing.

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

 

96) Which term refers to reconfiguring one job into two part-time jobs?

  1. A) Job sharing
  2. B) Job enlargement
  3. C) Rightsizing
  4. D) Bumping

Answer:  A

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

 

97) You are the head of an HR department for a large department store. The general manager, Frank, comes to you claiming that a pay freeze is needed in order to reduce costs to the store. Frank wants to freeze pay for the retail staff but not for department line managers. What would be your most appropriate response?

  1. A) The strategy will encourage the retail staff to advance towards higher positions.
  2. B) The pay freeze should be the same across the board.
  3. C) A layoff would be a much better solution.
  4. D) The firm should institute a ring of defense.

Answer:  B

Diff: 3

AACSB:  Reflective thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

98) A company that institutes profit sharing can save approximately ________ of its payroll costs during downturns in the business cycle.

  1. A) 50%
  2. B) 35%
  3. C) 20%
  4. D) 5%

Answer:  C

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

99) Which of the following is a long-term pay policy that can protect jobs and control labor costs by linking compensation to production?

  1. A) Internships
  2. B) Overtime pay
  3. C) Profit sharing
  4. D) Early retirement

Answer:  C

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

 

100) Goodwin, Inc. has recently proposed a plan to base 15% of employees' salaries upon their accomplishment of specific performance goals. Goodwin, Inc. is most likely proposing what type of pay policy?

  1. A) Profit sharing
  2. B) Variable pay
  3. C) Pay freezing
  4. D) Bumping

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

 

101) Which of the following requires employers to inform employees of impending layoffs?

  1. A) ERISA
  2. B) Title VII
  3. C) EO 11426
  4. D) WARN Act

Answer:  D

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

102) According to the WARN Act, which of the following must provide warning of an impending layoff?

  1. A) All federal contractors
  2. B) All employers regardless of size
  3. C) Any employer laying off more than 25 workers
  4. D) Any employer with more than 100 employees

Answer:  D

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

103) Workers of companies with over 100 employees are entitled to ________ if they are not given 60 days advance warning in cases of a mass separation.

  1. A) 30 days income
  2. B) 60 days income
  3. C) 90 days income
  4. D) continuing health benefits

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

104) Critics of the WARN Act argue that employees should not be given notification because:

  1. A) litigation is more likely to occur.
  2. B) employees will demand more pay.
  3. C) employee productivity is likely to decline.
  4. D) competitors may try to hire departing workers.

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

105) York Enterprises is a unionized firm on the verge of conducting layoffs. Which of the following factors is most likely the primary determinant in layoff decisions?

  1. A) Age
  2. B) Salary
  3. C) Seniority
  4. D) Performance

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

106) The use of seniority as a layoff criterion:

  1. A) is not common among most modern organizations.
  2. B) tends to impact women and minorities more than other groups.
  3. C) tends to be the most difficult layoff criterion to implement.
  4. D) is the only safe option in today's HRM legal environment.

Answer:  B

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

107) The use of seniority as a layoff criterion has some drawbacks, including:

  1. A) adverse impacts on white males.
  2. B) the frequent contests from unions.
  3. C) the loss of top performers.
  4. D) documentation difficulties.

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

 

108) The use of performance as a layoff criterion:

  1. A) usually protects firms from discrimination suits.
  2. B) disproportionately affects women and minorities.
  3. C) tends to eliminate older workers rather than younger workers.
  4. D) can be problematic due to inconsistent management documentation.

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

109) Glenda has been an employee at your curtain manufacturing company for over 6 years. During the past six months, Glenda's productivity has decreased by almost 15 percent as documented by her manager. In addition, you need to reduce the workforce in order to trim employee costs. Your best option is to:

  1. A) bump Glenda from her job with a younger employee.
  2. B) use performance as the basis for laying off Glenda.
  3. C) force Glenda to take early retirement.
  4. D) offer Glenda incentives to quit.

Answer:  B

Diff: 3

AACSB:  Reflective thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

110) When implementing a layoff, employees should first be informed:

  1. A) through a company memo.
  2. B) by their supervisor over the phone.
  3. C) in a work unit meeting with HR present.
  4. D) by their supervisor in a face-to-face meeting.

Answer:  D

Diff: 2

AACSB:  Written and oral communication

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

111) The information given in the initial meeting between a manager and an employee who is being laid off should include:

  1. A) reasons why the employee is being laid off.
  2. B) time for the employee to debate the layoff.
  3. C) comments about the employee's recent appraisal.
  4. D) how much severance pay the employee will receive.

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Critical Thinking

LO:  6.4: Learn practices for managing layoffs

 

112) While no time is a good time for a termination, the best time seems to be:

  1. A) midweek.
  2. B) Friday afternoon.
  3. C) during vacation.
  4. D) early in the workweek.

Answer:  A

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

113) As the head of the HR department for a large technology-production company, you have been notified that the company is preparing for a mass layoff. Which of the following should be your greatest priority in preparing for the layoff?

  1. A) Delaying notification to employees
  2. B) Limiting contact with the media
  3. C) Coordinating media relations
  4. D) Organizing outplacement services

Answer:  C

Diff: 2

AACSB:  Reflective thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

114) Which of the following is most common among survivors of a layoff?

  1. A) Increased diversity
  2. B) Improved morale
  3. C) Increased absenteeism
  4. D) Improved productivity

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

115) Management can most likely minimize problems with the remaining workforce after a layoff by:

  1. A) explaining the financial reasons for the layoff.
  2. B) minimizing communication to eliminate rumors.
  3. C) initiating close supervision of the remaining workers.
  4. D) preparing for litigation with former and current employees.

Answer:  A

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

116) Which of the following is LEAST likely to be associated with layoff survivors?

  1. A) Performance concerns
  2. B) Compensation losses
  3. C) Work group changes
  4. D) Additional tasks

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

117) Which of the following actions by an HR manager would most likely improve the morale of layoff survivors?

  1. A) Avoiding discussion of the firm's financial issues
  2. B) Mandating new work procedures
  3. C) Encouraging workers to set goals
  4. D) Discussing outplacement options

Answer:  C

Diff: 2

AACSB:  Written and oral communication

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

Additional Case 6.1

Central Enterprises is suffering an economic downturn, and the workforce needs to be reduced. Upper-level managers are debating the costs and benefits of various employee separations. Brian argues that the company needs to make immediate cuts to both management and labor. The cuts need to be made in such a way that the scope of the company and its markets are not affected. The firm needs to do more with fewer people according to Brian.

 

Other managers want to take a long-term, less traumatic approach. According to Natalie, the firm has time to consider the problems and gradually reduce the workforce rather than making sudden staff cuts. Natalie points out that 35% of the workforce is over age 62.

 

The VP of HR, LaTisha, wants the least disruptive reduction process possible. LaTisha just finished a major labor negotiation with the union and is not ready for another. She points out that turnover has been fairly high. Along with considering workforce reductions, LaTisha wants to know why people are leaving the company voluntarily.

 

118) Refer to Additional Case 6.1. Which of the following layoff alternatives would LaTisha most likely support?

  1. A) Implementing a hiring freeze
  2. B) Instituting pay cuts
  3. C) Offering job sharing
  4. D) Retraining workers

Answer:  A

Diff: 3

AACSB:  Reflective thinking

Skill:  Critical Thinking

LO:  6.4: Learn practices for managing layoffs

 

Additional Case 6.3

MedEquip, a medical services company with 500 employees, has experienced an extensive business downturn, and a layoff is necessary. MedEquip managers expect a layoff to be problematic because the firm made verbal commitments to workers for lifetime employment. You are an HR consultant brought in to assist with the layoff. The firm has also hired a PR specialist to handle the press releases and public communications about the layoff. Although MedEquip is a large company, the firm has built a family atmosphere. Corporate headquarters is located in a small community of about 10,000 people.

 

The firm is planning to implement a layoff of 20% of its hourly and managerial employees. Because of time demands and financial pressures, the layoff will occur in 30 days. The firm plans to use work performance as the layoff criterion. Three areas of the business will be affected: MIS, facilities, and accounting. Management is concerned about security in these areas.

 

Olivia, a middle manager who will not be laid off, has decided to hold group meetings with the units affected by the layoff. Employees will not receive information in writing regarding the layoff to avoid litigation issues. Instead, affected employees will receive verbal communications from Olivia about the layoff. Employees at the firm who are not losing their jobs will receive e-mails that summarize the current situation at MedEquip.

 

119) Refer to Additional Case 6.3. Given the situation at MedEquip, which of the following statements is most likely true?

  1. A) MedEquip must offer laid-off employees 60 days of income to avoid WARN Act violations.
  2. B) MedEquip is in violation of the WARN Act and must extend the layoff deadline by 30 days.
  3. C) MedEquip is not subject to the WARN Act because the business is not bankrupt.
  4. D) MedEquip is not subject to the WARN because the business is too small.

Answer:  A

Diff: 3

AACSB:  Analytical thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

 

120) Refer to Additional Case 6.3. As an HR consultant, you should most likely recommend:

  1. A) escorting affected employees off-site as soon as they are notified.
  2. B) holding the large group termination session at the end of the week.
  3. C) requiring surviving employees to start working overtime and weekends.
  4. D) informing employees that they will be laid off through a corporate memo.

Answer:  A

Diff: 3

AACSB:  Reflective thinking

Skill:  Critical Thinking

LO:  6.4: Learn practices for managing layoffs

 

Additional Case 6.4

Organizers, Inc. has implemented new business technologies that require fewer employees. Paul, the firm's CEO, sees the need to eliminate some middle managers and institute work teams to eliminate ineffective or unnecessary work processes. He believes that such changes won't be costly to the business. Most of the middle managers have been with the company anywhere from 10-15 years but are a long way from retirement.

 

One specific problem that Paul recognizes involves Zena, an upper-level manager. Zena has been coming to work late, missing deadlines on assignments, and refusing to complete an important assignment. Paul has warned Zena personally about the consequences for further actions and has even meted out several proscribed disciplinary actions against Zena. Her work habits have not improved, and Paul feels he may have to take further action.

 

121) Refer to Additional Case 6.4. Paul's actions regarding Zena are most likely an example of:

  1. A) discrimination.
  2. B) forced retirement.
  3. C) progressive discipline.
  4. D) a ring of defense.

Answer:  C

Diff: 2

AACSB:  Analytical thinking

Skill:  Application

LO:  6.4: Learn practices for managing layoffs

 

122) A firm's overall HR strategy influences its employee workforce reduction strategy.

Answer:  TRUE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

123) Generally, the first alternative to layoffs that companies use to reduce their labor costs is to redesign existing jobs.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

124) Changes in job design may include: job sharing, rings of defense, bumping, and job relocation.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

125) WARN requires employers with 200 or more employees to give 100 days' warning of layoffs of more than 10% of its employees.

Answer:  FALSE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

126) One of the most commonly used layoff criterion is job seniority.

Answer:  TRUE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

127) Basing a layoff on performance can be a legal hazard for an employer if the employee's performance has not been well documented over a period of time.

Answer:  TRUE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

128) In a termination meeting, a manager should interject personal remarks and discuss future opportunities for the employee to soften the blow of job loss.

Answer:  FALSE

Diff: 2

AACSB:  Written and oral communication

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

129) Companies should communicate the reasons for a layoff and provide some emotional support to the survivors of a layoff in order to help them manage their layoff stress.

Answer:  TRUE

Diff: 2

AACSB:  Written and oral communication

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

130) In order to reassure surviving employees of recent layoff information, they should be informed of the reasons for the layoff and how it occurred.

Answer:  TRUE

Diff: 2

AACSB:  Written and oral communication

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

 

131) A federal law requiring U.S. employers with 100 or more employees to give 60 days' advance notice to employees who will be laid off as a result of a plant closing or a mass separation of 50 or more workers is the ________.

Answer:  Worker Adjustment and Retraining Notification Act (WARN) of 1988

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.4: Learn practices for managing layoffs

132) As the director of HR, you have the responsibility of implementing a layoff for a medium-sized company. List the key issues that must be settled in the implementation.

Answer:  Summary of suggested answer -

Key issues -

  • notifying employees
  • explaining WARN
  • developing layoff criteria
  • communicating to laid-off employees
  • coordinating media relations
  • maintaining security
  • reassuring survivors
  • deciding whether or not to offer outplacement

Diff: 3

AACSB:  Analytical thinking

Skill:  Critical Thinking

LO:  6.4: Learn practices for managing layoffs

 

133) How can a firm maintain the morale of employees who survive a layoff? How can outplacement services improve the morale and self-esteem of displaced workers?

Answer:  Summary of suggested answer -

  • Jobs may be redesigned or enriched to keep the employees interested in their jobs.
  • Survivors should be given the reasons for the layoff and how the layoff process occurred.
  • Emotional support by small-group discussions, large-group pep talks, or even a party can be held in order to bolster the confidence and camaraderie of the employees.

 

Outplacement programs usually provide counseling to help employees deal with the emotions associated with job loss–shock, anger, denial, and lowered self-esteem. Because the family may suffer if the breadwinner becomes unemployed, sometimes family members are included in the counseling as well.

Diff: 3

AACSB:  Analytical thinking

Skill:  Synthesis

LO:  6.4: Learn practices for managing layoffs

 

 

134) Companies provide outplacement to terminated workers for a number of reasons, such as:

  1. A) meeting federal requirements.
  2. B) decreasing unemployment taxes.
  3. C) lowering absenteeism among remaining workers.
  4. D) reducing morale problems associated with laid-off workers.

Answer:  D

Diff: 3

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.5: Recognize the role of outplacement

135) Which of the following typically handles outplacement activities?

  1. A) External consultants hired by the firm
  2. B) Local employment agencies
  3. C) HR specialists at the firm
  4. D) Federal agencies

Answer:  A

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.5: Recognize the role of outplacement

 

136) The use of outplacement services among large corporations serves all of the following goals EXCEPT:

  1. A) minimizing litigation.
  2. B) implementing HR strategies.
  3. C) protecting the firm's reputation.
  4. D) helping separated workers find jobs.

Answer:  B

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.5: Recognize the role of outplacement

 

137) Anita, an HR manager, has been asked to design a job-search assistance program as part of her employer's outplacement services. Which of the following skills would LEAST likely be addressed in the program?

  1. A) Resume writing
  2. B) Career planning
  3. C) Downsizing
  4. D) Interviewing

Answer:  C

Diff: 1

AACSB:  Analytical thinking

Skill:  Application

LO:  6.5: Recognize the role of outplacement

 

138) An important goal of outplacement services for laid-off workers is to help them remain productive, pending their layoff.

Answer:  TRUE

Diff: 2

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.5: Recognize the role of outplacement

 

139) Job-search assistance and emotional support are two functions of a firm's job design services.

Answer:  FALSE

Diff: 1

AACSB:  Analytical thinking

Skill:  Concept

LO:  6.5: Recognize the role of outplacement

 

 

 

 

------

Human Resource Management
Human Resource Management, 15th Edition, 2017, Gary Dessler,
Strategic Compensation: A Human Resource Management Approach, 9th Edition, 2017, Joseph J. Martocchio
Fundamentals of Human Resource Management, 4th Edition, 2016, Gary Dessler
Human Resource Management, 14th Edition, 2016, R. Wayne Dean Mondy, Retired, Joseph J. Martocchio
Mastering Project Human Resource Management: Effectively Organize and Communicate with All Project Stakeholders, 2015, Harjit Singh
Managing Human Resources, 8th Edition, 2016, Luis R. Gomez-Mejia, David B. Balkin, Robert L. Cardy

-----

PART 1: Setting the Stage for Strategic Compensation
1. Strategic Compensation: A Component of Human Resource Systems
2. Contextual Influences on Compensation Practice
PART 2: Bases for Pay
3. Seniority Pay and Merit Pay
4. Incentive Pay
5. Person-Focused Pay
PART 3: Designing Compensation Systems
6. Building Internally Consistent Compensation Systems
7. Market-Competitive Compensation Systems
8. Building Pay Structures that Recognize Employee Contributions
PART 4: Employee Benefits
9. Discretionary Benefits
10. Legally-Required Benefits
PART 5: Contemporary Strategic Compensation Challenges
11. Compensating Executives
12. Compensating the Flexible Workforce
PART 6: Compensation Around the World
13. Compensating Expatriates
14. Pay and Benefits outside the United States
Epilogue
15. Challenges Facing Compensation Professionals
------
Managing Human Resources Today
Managing Equal Opportunity and Diversity
Human Resource Strategy and Analysis
STAFFING: WORKFORCE PLANNING AND ENFORCEMENT
Job Analysis and Talent Management
Personnel Planning and Recruiting
Selecting Employees
TRAINING AND HUMAN RESOURCE DEVELOPMENT
Training and Developing Employees
Performance Management and Appraisal
Managing Careers
COMPENSATION AND TOTAL REWARDS
Developing Compensation Plans
Pay for Performance and Employee Benefits
EMPLOYEE AND LABOR RELATIONS
Maintaining Positive Employee Relations
Labor Relations and Collective Bargaining
Improving Occupational Safety, Health, and Risk Management
SPECIAL ISSUES IN HUMAN RESOURCE MANAGEMENT
Managing HR Globally
Managing Human Resources in Small and Entrepreneurial Firms
PHR and SPHR Knowledge Base
Comprehensive Cases
------
Human Resource Management: An Overview
Business Ethics and Corporate Social Responsibility
Equal Employment Opportunity, Affirmative Action, and Workforce Diversity
Staffing
Strategic Planning, Human Resource Planning, and Job Analysis
Recruitment
Selection
Performance Management and Training
Performance Management and Appraisal
Training and Development
Compensation
Direct Financial Compensation (Core Compensation)
Indirect Financial Compensation (Employee Benefits)
Labor Relations, Employee Relations, Safety, and Health
Labor Unions and Collective Bargaining
Internal Employee Relations
Employee Safety, Health, and Wellness
Operating in a Global Environment
Global Human Resource Management
------
Lectures, Test Bank, Case Study, Video Guides
Equal Opportunity,
Recruitment, Placement, Talent Management,
Job Analysis, Talent Management Process,
Personnel Planning, Recruiting,
Employee Testing, Selection,
Training, Development,
Developing Employees,
Performance Management, Appraisal,
Managing Careers, Retention,
Compensation,
Establishing Strategic Pay Plans,
Pay for Performance, Financial Incentives,
Benefits, Services,
Labor Relations,
Safety,
Health,
Human Resource Management Lectures

 

----

 

HRM Human Resource Management - New Collection 2017

1. Youtube Playlist: See the collection of HRM Videos - link

2. Download the Selected HRM Human Resource Management E-books for Free

3. HRM Human Resource Management PPT slides - Free Download

Human Resource Management, 15th Edition, 2017, Gary Dessler - LINK Free PPT Download

Strategic Compensation: A Human Resource Management Approach, 9th Edition, 2017, Joseph J. Martocchio - LINK 

Fundamentals of Human Resource Management, 4th Edition, 2016, Gary Dessler - Link Free PPT Download

Managing Human Resources, 8th Edition, 2016, Luis R. Gomez-Mejia, David B. Balkin - Link Free PPT download

4. HRM Cases and Answers  - buy

5. Instructor Manualbuy

6. Test Bank  - Free Download

Managing Human Resources, 8e (Gomez-Mejia et al.) - link free download

Strategic Compensation: A Human Resource Management Approach, 9th Edition, 2017, Martocchio   - link free download

Human Resource Management, 15th Edition, 2017, Gary Dessler   - Link free Download

 

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