Exam 6: Managing Employee Separations, Downsizing, and Outplacement

Your company is planning a layoff. As you explain the process to the management team, you tell them that outplacement assistance is available, which means that the:

Steve's job has been eliminated. Steve, a senior employee, will take a job in a different unit from an employee with less seniority. Steve's employer is most likely using the practice of:

Which of the following is a common problem with early retirement programs?

The use of outplacement services among large corporations serves all of the following goals EXCEPT:

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. What relatively quick, but less traumatic, reduction strategy is suggested by the make-up of the workforce?

________ is an employment policy designed to reduce the company's workforce by not refilling job vacancies that are created by turnover.

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. As an HR consultant, you should most likely recommend:

A firm with too many management layers and bureaucratic work processes would most likely benefit from:

What problems are frequently associated with early retirement programs? How can HR minimize such problems? What benefits might a firm experience from such employee separations?

Which term refers to an employee's final interview following separation?

In order to reassure surviving employees of recent layoff information, they should be informed of the reasons for the layoff and how it occurred.

Teresa, a manager at FSE Manufacturing, wants to help employees make decisions about early retirement. As an HR manager, you should most likely caution Teresa that certain behaviors on her part will appear coercive. Which of the following activities should Teresa most likely avoid in this situation?

Dixon Enterprises needs to reduce its long-term workforce. The firm wants to reduce the scale and scope of its business to improve financial performance. The company is most likely:

An employee separation occurs when:

Involuntary separation results from one of two conditions: 1)economic necessity or 2)a poor fit between the employee and the organization.

The key to avoiding lawsuits over early retirement programs is to:

The rate of employee separations in an organization is referred to as ________.

Elizabeth is a 59-year-old account representative at a large bank. Due to the increasing popularity of online banking, the bank has more employees than it needs. Recently, the bank has offered early retirement to account representatives between the ages of 55 and 65 who have been with the company for a minimum of 15 years. Four employees, including Elizabeth, meet these requirements. It is most likely that:

Which of the following is most likely a benefit of employee separations for employers?

Voluntary separations may include: