Exam 6: Managing Employee Separations, Downsizing, and Outplacement

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.

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

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. Which of the following layoff alternatives would LaTisha most likely support?

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

When implementing a layoff, employees should first be informed:

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

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.

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?

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. Given Terra Alta's desires, which of the following would be the most appropriate HR policy?

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.

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

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

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

Rightsizing is synonymous with downsizing.

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 most likely prevent key, older workers from leaving?

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

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?

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

If a business is downsizing, it is most likely:

The least disruptive way to cut labor costs is through: