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:

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?

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.

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:

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?