Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) layoff 
B) retirement 
C) discharge 
D) buyout 
A) layoff 
B) retirement 
C) discharge 
D) buyout

Question 6

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?

Accepted Answer

Summary of suggested answer -
•Jobs may

Question 7

Layoffs are most likely to occur because:

Accepted Answer

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) Performance concerns 
B) Compensation losses 
C) Work group changes 
D) Additional tasks 
A) Performance concerns 
B) Compensation losses 
C) Work group changes 
D) Additional tasks

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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.

Accepted Answer

Summary of suggested answer -
Key issues

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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. To avoid any legal problems, what would you most likely recommend?

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

Voluntary

Question 17

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

Accepted Answer

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

Question 18

The major difference between downsizing and rightsizing is that:

Accepted Answer

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

Question 19

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

Accepted Answer

outplaceme

Question 20

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

Accepted Answer

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

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

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

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

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

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

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?

Layoffs are most likely to occur because:

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

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

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

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.

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

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

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.

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

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

The major difference between downsizing and rightsizing is that:

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

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

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Appraising and Managing Performance

Training the Workforce

Developing Careers

Managing Compensation

Rewarding Performance

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

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Exam 6: Managing Employee Separations, Downsizing, and Outplacement

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

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

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

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

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

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?

Layoffs are most likely to occur because:

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

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

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

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.

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

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

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.

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

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

The major difference between downsizing and rightsizing is that:

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

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

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Appraising and Managing Performance

Training the Workforce

Developing Careers

Managing Compensation

Rewarding Performance

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters