Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Alex is a first-line supervisor with an employee who has a performance problem.After coaching the employee with no improvement,Alex decides to terminate the employment relationship.Which term refers to this type of separation?

Accepted Answer

A)  Layoff 
B)  Discharge 
C)  Rightsizing 
D)  Early retirement

Question 3

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

Accepted Answer

The answer of The rate of employee separations in an...

Question 4

One of the most commonly used layoff criterion is job seniority.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  implement outplacement services immediately. 
B)  serve as the employee's advocate against management. 
C)  make certain the employee receives due process. 
D)  document poor performance so the termination can be justified.

Question 6

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.

Question 7

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 8

Springtime Water has recently lost a small number of employees through quits and retirements.The company has decided not to replace these employees.Marion is most likely reducing its workforce by:

Accepted Answer

A)  outplacement. 
B)  attrition. 
C)  rightsizing. 
D)  downsizing.

Question 9

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 10

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

Accepted Answer

A)  give preferential treatment to protected-class individuals. 
B)  treat all employees the same regardless of their age. 
C)  study the probable impact on the local community. 
D)  implement layoffs on a regular basis.

Question 11

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:

Accepted Answer

A)  attrition. 
B)  bumping. 
C)  job redesign. 
D)  rightsizing.

Question 12

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

Accepted Answer

A)  Search firm fees 
B)  Lost productivity 
C)  Outplacement assistance 
D)  Compensation

Question 13

The use of seniority as a layoff criterion has some drawbacks,including:

Accepted Answer

A)  adverse impacts on white males. 
B)  the frequent contests from unions. 
C)  the loss of top performers. 
D)  documentation difficulties.

Question 14

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

Accepted Answer

A)  Employment policies 
B)  Pay and benefits 
C)  Job design 
D)  Training

Question 15

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:

Accepted Answer

A)  conducting a layoff. 
B)  downsizing. 
C)  buying out the workforce. 
D)  rightsizing.

Question 16

Companies most likely attempt to manage their turnover rates because of:

Accepted Answer

A)  potential problems associated with public relations. 
B)  legal requirements regarding layoff notifications. 
C)  inadequate affirmative action plans. 
D)  high employee replacement costs.

Question 17

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

Accepted Answer

The answer of ________ is an employment policy designed to...

Question 18

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:

Accepted Answer

A)  attrition. 
B)  downsizing. 
C)  rightsizing. 
D)  early retirements.

Question 19

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?

Accepted Answer

A)  MedEquip must offer laid-off employees 60 days of income to avoid WARN Act violations. 
B)  MedEquip is in violation of the WARN Act and must extend the layoff deadline by 30 days. 
C)  MedEquip is not subject to the WARN Act because the business is not bankrupt. 
D)  MedEquip is not subject to the WARN because the business is too small.

Exam 6: Managing Employee Separations, Downsizing, and Outplacement

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

Alex is a first-line supervisor with an employee who has a performance problem.After coaching the employee with no improvement,Alex decides to terminate the employment relationship.Which term refers to this type of separation?

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

One of the most commonly used layoff criterion is job seniority.

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

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.

Springtime Water has recently lost a small number of employees through quits and retirements.The company has decided not to replace these employees.Marion is most likely reducing its workforce by:

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

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

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 the most significant separation cost for employers?

The use of seniority as a layoff criterion has some drawbacks,including:

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

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:

Companies most likely attempt to manage their turnover rates because of:

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