Exam 6: Managing Employee Separations, Downsizing, and Outplacement

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:

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

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?

The use of performance as a layoff criterion:

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

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

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.

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

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

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.

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

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

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

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 ________.

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

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

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

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

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?

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