76. When
implementing a layoff, employees should first be informed:
a) by the HR department in a large meeting.
b) in writing through the mail.
c) by their supervisor in writing.
d) in a work unit meeting with HR present.
e)
by their supervisor in
face-to-face meetings.

77. The
information given in the initial meeting between a manager and an employee who
is being laid off should include:
a)
the reasons why the employee
is being laid off.
b)
a brief period of time for the
employee to vent frustrations and debate the layoff.
c)
appreciation for what the
employee has contributed to the business, if appropriate.
d)
how much severance pay will be
provided.
e)
c and d

78. While no
time is a good time for a termination, the best time seems to be:
a) midweek.
b) Friday afternoon, after 3 p.m.
c) the beginning of the workweek so employees
have time to plan.
d) just after an employee comes back from
vacation.
e)
on the weekend, so there is
plenty of time for employees to ask questions.

79. As the head of the HR department for a
large technology-production company, you have been notified that the company is
preparing for a mass lay-off. Which of
the following should be your greatest priority in preparing for the layoff?
a)
Maintaining privacy and
delaying notification of the layoff to employees until the latest possible
moment.
b)
Limiting contact with the
media.
c)
Coordinating communication and
press releases to the media.
d)
Organizing outplacement
services.
e)
None of the above

80. When
implementing a layoff, managers sometimes forget that:
a) they may need to rehire these laid-off
employees.
b) it is usually appropriate to escort laid-off
employees off the premises.
c) they need to develop plans for the
survivors of the layoff.
d) there are hidden labor costs not reduced
through layoffs.
e)
they need to plan for
outplacement of the laid-off employees.

81. After a
layoff, it is not uncommon to see ___ among the remaining workers.
a) a sharp increase in innovation
b) greater diversity
c) gratitude
d) increased absenteeism
e)
little change in quality or
productivity

82. Management
can minimize problems with the remaining workforce after a layoff by:
a) developing special programs for survivors
providing emotional support.
b) minimizing the rumor mill by keeping
communication to a minimum.
c) initiating close supervision of the remaining
workers, watching for any problems that may arise.
d) getting the remaining workers involved in the
transition process by getting their ideas.
e)
documenting the reasons for
release and aggressively preparing for litigation.

83. Companies
provide outplacement to terminated workers for a number of reasons, such as:
a) reducing problems with the remaining
workforce.
b) meeting federal requirements to do so if the
company releases more than 100 workers.
c) reducing their unemployment compensation tax
by reducing the time people are out of a job.
d) reducing absenteeism among remaining workers.
e)
reducing morale problems for
laid-off workers and helping them find another job.

84. The use of
outplacement services among large corporations:
a) is in significant decline due to the expense.
b) has become a global management practice used
by corporations around the world.
c) has caused several to take the process
in-house and use their own HRM staff.
d) is entirely a U.S. management practice.
e)
is not known among Japanese
corporations.

85. Horrace
has been asked to design a job-search assistance program as part of a companys
outplacement services. Which of the
following might he include in the program?

a) Resume writing.
b) Career planning.
a)
Job negotiation skills.
b)
Interviewing skills.
c)
All of the above

CASE QUESTIONS

Case 6.1
Your company, Painting Products, Inc., is reviewing
employee turnover. The CEO and VP of Operations are arguing. The CEO doesnt
see what the big deal is: the company can capture savings from reduced
salary/wages and benefits this quarter. Unemployment insurance is not impacted
because people are quitting. The job market is tight so the company gets more
walk-in applicants and mailed-in resumes than it needs.

The VP of Operations argues that he cant keep absorbing the
productivity losses due to employees need for orientation and learning time on
the job. He admits that new hires are bringing fresh ideas and his
better-performing people do tend to stay and move up as a consequence of this
turnover, but hes still frustrated with the loss of productivity.

86. Refer to
Case 6.1. What category of employee replacement costs is the CEO not
considering?
a) Recruitment costs.
b) Training costs.
c) Separation costs.
d) Damage to the corporate image.
e)
Selection costs.

87. Refer to
Case 6.1. The VP of Operations is concerned about what category of employee
separation costs?
a) Recruitment costs.
b) Training costs.
c) Separation costs.
d) Damage to the corporate image.
e) Selection costs.

88. Refer to
Case 6.1. What benefit is the VP of Operations getting from the turnover
problem?
a) Reduced labor costs.
b) Lower training costs.
c) Increased innovation.
d) Greater EEO-related diversity.
e) Higher productivity.

Case 6.2
Your firm is suffering an economic downturn, and it
appears you need to reduce your workforce. The managers are debating the costs
and benefits of various employee separations. Some managers argue that the
company needs to do it now and shorten the pain. They need to cut 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; they just need to do more with
fewer people.

Other managers want to take a long-term, less traumatic
approach. They believe the company has time to think through the problems and
reduce the workforce gradually, rather than with sudden cuts. They point out
that 35% of the workforce is over age 62.

The VP of HR, LaTisha, wants the least disruptive
reduction process possible. Shes just finished a major labor negotiation and fight
with the union and is not ready for another. She points out that turnover has
been fairly high. Along with looking at workforce reductions, she wants to know
why people are leaving the company voluntarily.

89. Refer to
Case 6.2. The managers who want to make the reduction now seem to be arguing
for:
a) a layoff.
b) downsizing.
c) rightsizing.
d) discharges.
e)
early retirements.

90. Refer to
Case 6.2. What relatively quick, but less traumatic, reduction strategy is
suggested by the make-up of the workforce?
a) Rightsizing.
b) Retraining.
c) Discharging low performers.
d) An early retirement program.
e)
Job redesigns.

91. Refer to
Case 6.2. LaTishas observations open the door for what other reduction
strategies?
a) The use of employment policies like attrition
and a hiring freeze.
b) Instituting changes in pay and benefit
policies.
c) Job redesign.
d) Additional training or cross-training.
e)
None of the above

92. Refer to
Case 6.2. To answer LaTishas question about why people are leaving, the
company needs to institute:
a) outplacement services for separated workers.
b) new training.
c) a calculation of the real costs of employee
separations.
d) exit interviews.
e)
a layoff.

Case 6.3
Terra Alta, Inc., an employer of some 15,000 employees
worldwide, wants to reduce its workforce through an early retirement program.
They have hired you to put the program together and implement it.

This will be a one-time offer. They want employees over
age 58 to be eligible, but they dont want to lose key older employees. Terra
Alta wants a fairly accurate estimate of how many employees will take part in
the program.

Terra Alta wants a legal and humane program. They do not
want to be caught up in any litigation. They want employees to have an accurate
picture of their future if they take part in the early retirement program.

93. Refer to
Case 6.3. Given Terra Altas desire to get employees to take advantage of the
program, what could you recommend they do, beyond the standard, to ensure
maximum participation?
a) Create a formula that accelerates eligibility
for retirement.
b) Open a window that restricts eligibility.
c) Give potential layoff notices to those who
might hesitate to participate but are eligible.
d) Offer a lump sum payment equal to 1-2 years
of salary.
e)
Provide outplacement
counseling.

94. Refer to
Case 6.3. How could Terra Alta keep key older workers from leaving?
a) Restrict eligibility to areas with redundant
employees.
b) Dont give them potential layoff notices.
c) Pull them aside and guarantee them their
jobs.
d) Fine tune the eligibility requirements by
lowering the amount of seniority required to participate.
e) Put a hiring freeze into place.

95. Refer to
Case 6.3. To avoid any legal problems, what would you recommend?
a) Tell managers not to treat older workers any
differently than they have in the past.
b) Offer minority and women employees larger
severance packages.
c) Give at least 60 days advance warning by
placing potential layoff notices in their pay voucher packets.
d) Explain to these workers what its like out
there if they retire or try to go into business for themselves.
e)
Implement a hiring freeze at
the same time as you offer the early retirement program.

96. Refer to
Case 6.3. How could Terra Alta manage the number of people who might
participate in the early retirement program?
a) Take key employees aside and guarantee them
their jobs.
b) Fine tune the incentives if a survey shows
too many will participate.
c) Hire retirees back as consultants.
d) Offer protected class employees less generous
retirement packages.
e)
Build an estimate on industry
data and stop the program when they get to that number.

76. When
implementing a layoff, employees should first be informed: a) by the HR department in a large meeting. b) in writing through the mail. c) by their supervisor in writing. d) in a work unit meeting with HR present.e)
by their supervisor in
face-to-face meetings. 77. The
information given in the initial meeting between a manager and an employee who
is being laid off should include:a)
the reasons why the employee
is being laid off.b)
a brief period of time for the
employee to vent frustrations and debate the layoff.c)
appreciation for what the
employee has contributed to the business, if appropriate.d)
how much severance pay will be
provided.e)
c and d 78. While no
time is a good time for a termination, the best time seems to be: a) midweek. b) Friday afternoon, after 3 p.m. c) the beginning of the workweek so employees
have time to plan. d) just after an employee comes back from
vacation.e)
on the weekend, so there is
plenty of time for employees to ask questions. 79. As the head of the HR department for a
large technology-production company, you have been notified that the company is
preparing for a mass lay-off. Which of
the following should be your greatest priority in preparing for the layoff?a)
Maintaining privacy and
delaying notification of the layoff to employees until the latest possible
moment.b)
Limiting contact with the
media.c)
Coordinating communication and
press releases to the media.d)
Organizing outplacement
services.e)
None of the above 80. When
implementing a layoff, managers sometimes forget that: a) they may need to rehire these laid-off
employees. b) it is usually appropriate to escort laid-off
employees off the premises. c) they need to develop plans for the
survivors of the layoff. d) there are hidden labor costs not reduced
through layoffs.e)
they need to plan for
outplacement of the laid-off employees. 81. After a
layoff, it is not uncommon to see ___ among the remaining workers. a) a sharp increase in innovation b) greater diversity c) gratitude d) increased absenteeisme)
little change in quality or
productivity 82. Management
can minimize problems with the remaining workforce after a layoff by: a) developing special programs for survivors
providing emotional support. b) minimizing the rumor mill by keeping
communication to a minimum. c) initiating close supervision of the remaining
workers, watching for any problems that may arise. d) getting the remaining workers involved in the
transition process by getting their ideas.e)
documenting the reasons for
release and aggressively preparing for litigation. 83. Companies
provide outplacement to terminated workers for a number of reasons, such as: a) reducing problems with the remaining
workforce. b) meeting federal requirements to do so if the
company releases more than 100 workers. c) reducing their unemployment compensation tax
by reducing the time people are out of a job. d) reducing absenteeism among remaining workers.e)
reducing morale problems for
laid-off workers and helping them find another job. 84. The use of
outplacement services among large corporations: a) is in significant decline due to the expense. b) has become a global management practice used
by corporations around the world. c) has caused several to take the process
in-house and use their own HRM staff. d) is entirely a U.S. management practice.e)
is not known among Japanese
corporations. 85. Horrace
has been asked to design a job-search assistance program as part of a companys
outplacement services. Which of the
following might he include in the program?
a) Resume writing. b) Career planning.a)
Job negotiation skills.b)
Interviewing skills.c)
All of the above Case 6.1Your company, Painting Products, Inc., is reviewing
employee turnover. The CEO and VP of Operations are arguing. The CEO doesnt
see what the big deal is: the company can capture savings from reduced
salary/wages and benefits this quarter. Unemployment insurance is not impacted
because people are quitting. The job market is tight so the company gets more
walk-in applicants and mailed-in resumes than it needs. The VP of Operations argues that he cant keep absorbing the
productivity losses due to employees need for orientation and learning time on
the job. He admits that new hires are bringing fresh ideas and his
better-performing people do tend to stay and move up as a consequence of this
turnover, but hes still frustrated with the loss of productivity.86. Refer to
Case 6.1. What category of employee replacement costs is the CEO not
considering? a) Recruitment costs. b) Training costs. c) Separation costs. d) Damage to the corporate image.e)
Selection costs. 87. Refer to
Case 6.1. The VP of Operations is concerned about what category of employee
separation costs? a) Recruitment costs. b) Training costs. c) Separation costs. d) Damage to the corporate image. e) Selection costs. 88. Refer to
Case 6.1. What benefit is the VP of Operations getting from the turnover
problem? a) Reduced labor costs. b) Lower training costs. c) Increased innovation. d) Greater EEO-related diversity. e) Higher productivity. Case 6.2Your firm is suffering an economic downturn, and it
appears you need to reduce your workforce. The managers are debating the costs
and benefits of various employee separations. Some managers argue that the
company needs to do it now and shorten the pain. They need to cut 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; they just need to do more with
fewer people.Other managers want to take a long-term, less traumatic
approach. They believe the company has time to think through the problems and
reduce the workforce gradually, rather than with sudden cuts. They point out
that 35% of the workforce is over age 62. The VP of HR, LaTisha, wants the least disruptive
reduction process possible. Shes just finished a major labor negotiation and fight
with the union and is not ready for another. She points out that turnover has
been fairly high. Along with looking at workforce reductions, she wants to know
why people are leaving the company voluntarily.89. Refer to
Case 6.2. The managers who want to make the reduction now seem to be arguing
for: a) a layoff. b) downsizing. c) rightsizing. d) discharges.e)
early retirements. 90. Refer to
Case 6.2. What relatively quick, but less traumatic, reduction strategy is
suggested by the make-up of the workforce? a) Rightsizing. b) Retraining. c) Discharging low performers. d) An early retirement program.e)
Job redesigns. 91. Refer to
Case 6.2. LaTishas observations open the door for what other reduction
strategies? a) The use of employment policies like attrition
and a hiring freeze. b) Instituting changes in pay and benefit
policies. c) Job redesign. d) Additional training or cross-training.e)
None of the above 92. Refer to
Case 6.2. To answer LaTishas question about why people are leaving, the
company needs to institute: a) outplacement services for separated workers. b) new training. c) a calculation of the real costs of employee
separations. d) exit interviews.e)
a layoff. Case 6.3Terra Alta, Inc., an employer of some 15,000 employees
worldwide, wants to reduce its workforce through an early retirement program.
They have hired you to put the program together and implement it.This will be a one-time offer. They want employees over
age 58 to be eligible, but they dont want to lose key older employees. Terra
Alta wants a fairly accurate estimate of how many employees will take part in
the program.Terra Alta wants a legal and humane program. They do not
want to be caught up in any litigation. They want employees to have an accurate
picture of their future if they take part in the early retirement program.93. Refer to
Case 6.3. Given Terra Altas desire to get employees to take advantage of the
program, what could you recommend they do, beyond the standard, to ensure
maximum participation? a) Create a formula that accelerates eligibility
for retirement. b) Open a window that restricts eligibility. c) Give potential layoff notices to those who
might hesitate to participate but are eligible. d) Offer a lump sum payment equal to 1-2 years
of salary.e)
Provide outplacement
counseling. 94. Refer to
Case 6.3. How could Terra Alta keep key older workers from leaving? a) Restrict eligibility to areas with redundant
employees. b) Dont give them potential layoff notices. c) Pull them aside and guarantee them their
jobs. d) Fine tune the eligibility requirements by
lowering the amount of seniority required to participate. e) Put a hiring freeze into place. 95. Refer to
Case 6.3. To avoid any legal problems, what would you recommend? a) Tell managers not to treat older workers any
differently than they have in the past. b) Offer minority and women employees larger
severance packages. c) Give at least 60 days advance warning by
placing potential layoff notices in their pay voucher packets. d) Explain to these workers what its like out
there if they retire or try to go into business for themselves.e)
Implement a hiring freeze at
the same time as you offer the early retirement program. 96. Refer to
Case 6.3. How could Terra Alta manage the number of people who might
participate in the early retirement program? a) Take key employees aside and guarantee them
their jobs. b) Fine tune the incentives if a survey shows
too many will participate. c) Hire retirees back as consultants. d) Offer protected class employees less generous
retirement packages.e)
Build an estimate on industry
data and stop the program when they get to that number.