Exam 6: Managing Employee Separations, Downsizing, and Outplacement

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. Brian would most likely advocate a strategy of:

Hernando is working with management to calculate the costs of employee turnover. What issues or costs should Hernando raise to management?

The primary difference between a layoff and a discharge is:

A layoff is typically implemented by an organization when:

A "rings of defense" strategy in terms of employment security and workforce reductions is when a firm:

Cuts in overtime pay, profit sharing, and encouraging employees to take leave days are all ways to reduce employee costs in what area?

Which of the following factors is the LEAST common reason for turnover among Chinese workers?

Which of the following is a long-term pay policy that can protect jobs and control labor costs by linking compensation to production?

A federal law requiring U.S. employers with 100 or more employees to give 60 days' advance notice to employees who will be laid off as a result of a plant closing or a mass separation of 50 or more workers is the ________.

Recent studies have shown that 80% of voluntary separations are unavoidable.

________ is a company strategy to reduce the scale and scope of its business in order to improve the company's financial performance.

While no time is a good time for a termination, the best time seems to be:

The information given in the initial meeting between a manager and an employee who is being laid off should include:

Resignations and retirements are examples of:

What is an involuntary separation? What are some examples of involuntary separations? How can the difficulties of involuntary separations be managed with outplacement programs?

Job-search assistance and emotional support are two functions of a firm's job design services.

What are the two primary features of early retirement programs?

The use of seniority as a layoff criterion:

Farley Enterprises wants to reduce its labor costs in the LEAST disruptive method that is available. Which of the following is most appropriate?