Exam 6: Managing Employee Separations, Downsizing, and Outplacement

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

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:

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

The use of seniority as a layoff criterion:

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?

When implementing a layoff,employees should first be informed:

What is the primary reason for holding exit interviews?

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

Which of the following is a selection cost of employee replacement?

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.

Which of the following is an employment policy that serves as an alternative to layoffs?

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:

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

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

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?

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.Which of the following questions is LEAST relevant to MedEquip at this time?

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.

Which of the following alternatives to layoffs is LEAST intrusive on the day-to-day management of a business?

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?

Additional Case 6.4 Organizers, Inc. has implemented new business technologies that require fewer employees. Paul, the firm's CEO, sees the need to eliminate some middle managers and institute work teams to eliminate ineffective or unnecessary work processes. He believes that such changes won't be costly to the business. Most of the middle managers have been with the company anywhere from 10-15 years but are a long way from retirement. One specific problem that Paul recognizes involves Zena, an upper-level manager. Zena has been coming to work late, missing deadlines on assignments, and refusing to complete an important assignment. Paul has warned Zena personally about the consequences for further actions and has even meted out several proscribed disciplinary actions against Zena. Her work habits have not improved, and Paul feels he may have to take further action. -Refer to Additional Case 6.4.Paul's actions regarding Zena are most likely an example of: