Managing Employee Separations, Downsizing, and Outplacement

Subject: Business    / Management
Question
Chapter 6
Managing Employee Separations, Downsizing, and Outplacement

OBJECTIVE QUESTIONS

1. During the late 1990s and the early 2000s, which of the following was true of the business and employment environment?

a) Involuntary separations increased by 30%.

b) Global competition created a need for larger workforces.

c) The labor market became tighter as employees quit jobs voluntarily to find better jobs.

d) The labor market weakened as new technologies replaced many workers in large corporations.

e) Voluntary separations decreased as most employees were reluctant to leave stable jobs in such an uncertain market.

2. A company wants to know the rate at which employees voluntarily leave the firm. The company needs to:

a) measure its turnover rate.

b) conduct an HR audit.

c) conduct a diversity audit.

d) track reasons for discharges and separations.

e) none of the above

3. Companies strive to manage their turnover rates because:

a) of the potential impact on their public relations image.

b) of the legal requirements regarding warnings of layoffs.

c) of the need to plan for replacement workers.

d) turnover provides an opportunity for greater diversity and a positive affirmative action image.

e) they want to monitor and control employee replacement costs.

4. The costs of employee separations depends upon which of the following?

a) Whether the employee was a member of a protected class or not.

b) Whether the employee had a voluntary separation.

c) Whether the employee will be replaced or not.

d) Whether the employee was a new hire.

e) All of the above

5. According to your text, the median cost of replacing information technology professionals is:

a) $10,000 per hire.

b) $15,000 per hire.

c) $29,000 per hire.

d) $33,000 per hire.

e) $38,000 per hire.

6. Recruiting costs include which of the following?

a) Testing costs.

b) Reference check costs.

c) Orientation costs.

d) Advertising costs.

e) All of the above

7. A middle manager wants you to contact a search firm to find a key technological manager. You advise him that the search firm will probably charge him about ____ of the candidate’s first year salary for the search.

a) 10%

b) 20%

c) 30%

d) 40%

e) 50%

8. A business may accrue considerable interviewing costs because of:

a) the cost of travel to the interview site.

b) the time lost by other workers in the business who are to conduct the interviews.

c) training costs involved with orienting the candidate.

d) the added costs of search firm fees.

e) a and b

9. Which of the following expenses is a selection cost?

a) Advertising.

b) Benefits.

c) Outplacement.

d) Search firm fees.

e) Reference checks.

10. Martin is reviewing HR’s costs for interviewing, testing, and checking references for new hires. Martin is reviewing the _____ of employee replacement costs.

a) training costs

b) selection costs

c) separation costs

d) outplacement costs

e) media costs

11. An important element of new-employee training costs is:

a) employment testing.

b) the attrition rate.

c) tracking turnover.

d) lost productivity.

e) the replacement of poor performers.

12. Which of the following is a common loss associated with new hires?

a) Loss of innovation.

b) Loss of diversity.

c) Loss of community within the business.

d) Loss of productivity by inexperienced hires.

e) Loss of market share.

13. Which of the following is a cost of training new employees?

a) Recruiter time.

b) Orientation.

c) Interviewing.

d) Relocation.

e) Search firm fees.

14. A company incurs a variety of separation costs, such as:

a) severance pay.

b) exit interviewing.

c) outplacement assistance.

d) continuing health care costs.

e) all of the above

15. The time and cost of exit interviews are part of the _____ costs of an employee separation.

a) recruitment

b) selection

c) training

d) hidden

e) separation

16. Your company is planning a layoff. As you explain the process to the management team, you tell them that outplacement assistance will be part of the process. Outplacement assistance is when:

a) an employee is given a final interview following separation.

b) the number of employees is reduced by not refilling job vacancies.

c) the company helps departing employees find jobs by training them in job-search skills.

d) the company measures the rate of employee separations.

e) the company terminates the relationship with the employee for any reason.

17. Karlie has recently resigned from her job as retail manager at a chain store. She comes to you, concerned about an interview that the store manager wishes to have with her before her last day of work. You tell her that:

a) at this interview, the store manager will try to convince her to stay, offering increased financial benefits.

b) this is probably an exit interview and that the store manager will want to understand the reasons why she is leaving.

c) it is a legal interview to make sure that all proper paperwork is signed and that neither she nor the company will have any further obligations to the other.

d) the store manager will help her to find new employment at this interview.

e) the interview is generally a scare tactic to keep good employees involved with the business.

18. When conducting an exit interview, a manager:

a) should expect employees to be honest as they are leaving the company.

b) does not need to be as skilled an interviewer as in employment interviews.

c) needs to use closed-ended questions to control and direct the interview.

d) starts with routine departure basics, then moves on to why the employee is leaving.

e) should do nothing with the information. The interview is only for the employee’s feelings.

19. Which of the following is a benefit of employee separations?

a) Lower unemployment insurance tax.

b) Being able to redistribute the cultural and gender composition of the workforce.

c) Having “surviving” employees work much harder to avoid being caught in later separations.

d) Creating unexpected promotional opportunities for employees under the separated employee.

e) Having poor performers quit rather than face layoff or dismissal.

20. Which of the following is true about employee separations?

a) Salary savings can often outweigh other separation costs.

b) It usually reduces diversity in an organization.

c) Innovation declines as people take their ideas with them.

d) Your best people tend to quit, so the quality of the workforce declines over time.

e) 80% is due to unfair employment practices by the employer.

21. A benefit of employee separations is:

a) new employees are apt to be better educated that older workers.

b) the workforce becomes more homogenous.

c) the surviving employees will work more diligently and conscientiously.

d) it opens doors for promotion within the company.

e) all of the above

22. Layoffs and other employee separations are not generally thought of as positive experiences. However, the affected employee may reap the benefit of:

a) a sizable severance package.

b) being able to continue his/her health benefits package.

c) being able to voluntarily separate from the company.

d) an early retirement.

e) finding a more satisfying, less stressful job.

23. The primary benefit a company seeks when it initiates large-scale workforce reductions is:

a) greater diversity in the workforce through new replacement workers.

b) innovation through new ideas from new workers.

c) reduction in labor costs.

d) wholesale replacement of poor performers.

e) avoidance of litigation over terminations.

24. Which of the following is an example of a voluntary separation?

a) A layoff.

b) A retirement.

c) A quit.

d) A discharge.

e) b and c

25. Employers can offer early retirement plans to encourage certain workers to retire earlier than they had originally planned:

a) but these are generally of questionable legal standing.

b) but rarely enough workers are interested in such a plan to make it worth a company’s time.

c) and these are considered involuntary separations.

d) and some companies use a similar strategy to encourage employee quits.

e) and these are counted as unavoidable voluntary separations.

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