Exam 6: Managing Employee Separations, Downsizing, and Outplacement

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

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

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

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.

What is the primary reason for holding exit interviews?

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.

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

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

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

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

It is most likely true that early retirement programs:

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

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.

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

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:

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

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

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

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:

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. -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?