Exam 6: Managing Employee Separations, Downsizing, and Outplacement

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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?

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

(True/False)
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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's actions regarding Zena are most likely an example of:

(Multiple Choice)
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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?

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Which of the following typically handles outplacement activities?

(Multiple Choice)
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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?

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All of the following are primary reasons for layoffs EXCEPT:

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

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

(Multiple Choice)
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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?

(Multiple Choice)
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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. By Paul's estimation, Organizers, Inc. most likely needs to do which of the following to improve efficiency?

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

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

(Multiple Choice)
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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:

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

(Short Answer)
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A firm can best manage participation in an early retirement program by:

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

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

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

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One of the most popular alternatives to layoffs is:

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