Question 1

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

Accepted Answer

The answer of Hernando is working with management to calculate...

Question 2

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

Accepted Answer

Selection costs typically include expenses related to the recruitment and hiring process, such as advertising, interviewing, and testing of candidates, but not relocation costs, training, orientation, or severance pay, which are considered post-hire expenses.

Question 3

When conducting exit interviews,the interviewer should be one of the employee's former supervisors.

Accepted Answer

It is generally recommended that the exit interview be conducted by someone other than the employee's former supervisor, as the employee may not feel comfortable sharing their true feelings and concerns with someone who has authority over them. It is best to have an HR representative, a neutral third party, or an outside consultant conduct the exit interview.

Question 4

Sara is 57 years old and she has been a division manager for Elf Cookies for 32 years.Recently,the business has seen an increase in efficiency and has a surplus of labor.Elf Cookies is offering employees who are 55 and older,and who have worked for the company for over 30 years,specific benefits and financial incentives to retire within the next 60 days.Sara does so.She has:
A) quit.
B) been bought out.
C) taken early retirement.
D) been discharged.

Accepted Answer

Sara has taken early retirement, as she meets the eligibility criteria for the benefits and financial incentives being offered to employees who are 55 and older and have worked for the company for over 30 years.

Question 5

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 6

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.

Accepted Answer

The answer of The purpose of a(n)________ is to find...

Question 7

A firm with an extremely high turnover rate compared to other firms in the same industry most likely needs to address HR issues.

Accepted Answer

The answer of A firm with an extremely high turnover...

Question 8

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?

Accepted Answer

The answer of What problems are frequently associated with early...

Question 9

Studies show that approximately ________ of voluntary employee separations are avoidable.
A) 20%
B) 40%
C) 60%
D) 80%

Accepted Answer

The answer of Studies show that approximately ________ of voluntary...

Question 10

Voluntary separations may include:
A) early retirements.
B) hiring freezes.
C) discharges.
D) job redesigns.

Accepted Answer

Voluntary separations refer to employees leaving a company on their own accord, and early retirement is a prime example of this. Hiring freezes and job redesigns are not voluntary separations because they typically involve the company's decision, and discharges are involuntary separations. Therefore, the correct choice is A.

Question 11

Resignations and retirements are examples of:
A) essential downsizing measures.
B) involuntary separations.
C) voluntary separations.
D) discharges.

Accepted Answer

Resignations and retirements are examples of voluntary separations, meaning the employee chooses to leave the organization on their own terms.

Question 12

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?
A) How will MedEquip's community reputation be affected?
B) How can MedEquip maintain the morale of surviving employees?
C) How do MedEquip's competitors handle employee security during layoffs?
D) What policies exist regarding separation pay for laid-off MedEquip employees?

Accepted Answer

While employee security is a concern for MedEquip, how competitors handle it is not relevant to their specific situation. The other questions are all relevant and important for MedEquip to consider during the layoff process.

Question 13

The costs to replace a departing employee primarily include: recruitment,selection,and long-term health care benefits.

Accepted Answer

While recruitment and selection may be costs associated with replacing an employee, long-term health care benefits are not typically considered a primary cost unless the departing employee is retiring or has a disability. Other costs to consider may include training, severance pay, lost productivity, and potential legal fees.

Question 14

Web-based exit interviews are used by firms that assume former employees may prefer to avoid face-to-face interaction.

Accepted Answer

Web-based exit interviews do provide an option for former employees to avoid face-to-face interaction, making it a preferred choice for many firms.

Question 15

Your CEO asks you,as the director of HR,to lead a layoff planning session.What layoff alternatives are available to the firm? If layoffs are necessary,what separation costs would the firm most likely incur?

Accepted Answer

The answer of Your CEO asks you,as the director of...

Question 16

A program in which companies help their departing employees find jobs more rapidly by providing them with training in job-search skills is called ________.

Accepted Answer

The answer of A program in which companies help their...

Question 17

The termination of an employee's membership in an organization is referred to as ________.

Accepted Answer

The answer of The termination of an employee's membership in...

Question 18

Similar to a quit,a ________ is initiated by the employee,but in this case the employee is unlikely to search for another job.
A) layoff
B) retirement
C) discharge
D) buyout

Accepted Answer

A retirement is initiated by the employee and implies that they are unlikely to search for another job because they have reached the end of their career and will now live off their retirement savings and pension. A layoff is initiated by the employer due to financial reasons or restructuring, a discharge is initiated by the employer due to poor performance or misconduct, and a buyout is initiated by the employer offering a financial incentive for employees to voluntarily leave their job.

Question 19

Marissa quit her current employer for a new job.She is talking with the director of HR about why she left.Marissa is most likely receiving outplacement assistance.

Accepted Answer

Outplacement assistance is typically provided by the current employer to help exiting employees transition to new jobs, not by the new employer.

Question 20

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

Accepted Answer

Employee separations can bring in new perspectives, skills and ideas from new hires, thus stimulating innovation. It also creates opportunities to hire a more diverse workforce, which can lead to diverse ideas and problem-solving approaches.

Quiz 6: Managing Employee Separations, Downsizing, and Outplacement