Chapter 6 Managing Employee Separations, Downsizing, and Outplacement

| August 14, 2017

51. Which of
the following would be considered the first alternative to a layoff?
a)
An early retirement option.
b)
Changes in job design.
c)
A discharge.
d)
Downsizing.
e)
A buyout.

52. Which of
the following is an employment policy that could be used as an alternative to
layoffs?
a)
Job sharing.
b)
Leaves of absence.
c)
Demotions.
d)
Pay cuts.
e) Relocation.

53. Transferring and relocating employees
are both ways to reduce employee costs in what area?
a)
Employment policies.
b)
Pay and benefits.
c)
Job design.
d)
Training.
e)
None of the above

54. Cuts in overtime
pay, profit sharing, and encouraging employees to take leave days are all ways
to reduce employee costs in what area?
a)
Employment policies.
b)
Pay and benefits.
c) Job design.
d) Training.
e) None of the above

55. Marion’s
water bottling company has recently lost a handful of employees through quits
and retirement. The company has decided
not to hire workers to replace these employees.
Marion is reducing its workforce by:
a)
layoffs.
b)
voluntary separations.
c)
attrition.
d)
job redesign.
e)
a hiring freeze.

56. A number of
policies provide alternatives to layoffs. One of the least intrusive
alternatives to the day-to-day management of the business is:
a) the use of job redesign.
b) implementing bumping policies.
c) changing pay and benefits policies.
d) changing employment policies.
e) conducting extra training to retool workers
for new jobs.

57. A “rings of
defense” strategy in terms of employment security and workforce reductions is
when:
a) a union has workers at other plants supplying
the firm.
b) a firm freezes wages to avoid laying off
workers.
c) a company uses contingency workers to be able
to add or subtract workers from its workforce as it needs to.
d) a company goes to job sharing in order to
keep workers.
e) a firm provides job security for its core
employees.

58. An example
of a change in employment policy that will help reduce the size of a company’s
workforce is:
a) reducing the number of work hours or
instituting job sharing.
b) implementing training.
c) instituting an across-the-board pay cut.
d) profit sharing.
e) an attrition strategy or hiring freeze.

59. If a
manager offers a senior employee whose job has been eliminated a different job
that will be taken from another employee who is less senior, this manager is
using ____ to reduce his/her workforce.
a) attrition
b) a hiring freeze
c) bumping
d) job redesign
e)
training

60. A company
doesn’t want to lay workers off, but instead it is willing to implement a
fairly radical and intrusive alternative. Frankly, it will probably still be
fairly demoralizing, but people will keep their jobs. Their best alternative
within their pay and benefits policy would be to ______.
a) offer a pay freeze
b) initiate a hiring freeze
c) start a profit-sharing program
d) implement a pay cut
e)
start a new skills training
program

61. You are the
head of an HR department for a large department store. The general manager, Frank, comes to you
claiming that a pay freeze is needed in order to reduce costs to the
store. Frank wants to freeze pay for the
retail staff but not for department line managers. What is your response?
a) That this is a good strategy and that retail
staff will be encouraged to advance to higher positions to take responsibility
as line manager in order to receive pay increases.
b) That it would be better to freeze pay for the
line managers than retail workers because retail staff would sooner become
demoralized by a pay freeze than line managers.
c)
That the pay freeze should be
the same across the board in order to avoid potential discrimination
accusations.
d) That a layoff
would be a much better solution.
e) That
the company should institute a “ring of defense” approach instead.

62. A company
that institutes profit sharing can save up to ___ of its payroll costs during
downturns in the business cycle.
a) 50%
b) 35%
c) 20%
d) 15%
e) 5%

63. A long-term
pay policy that may protect jobs and help companies to control labor costs by
tying them more closely to production is called:
a) a pay freeze.
b) a pay cut.
c) profit sharing.
d) early retirement.
e)
a hiring freeze.

64. Goodwill,
Incorporated has recently proposed a plan to base 15% of employees’ salaries
upon their meeting set goals and work requirements. Goodwill, Inc. is proposing what type of pay
policy?
a)
Profit sharing.
b)
Variable pay.
c)
Pay freezing.
d)
Bumping.
e)
Demotions.

65. ____ is the
legislation that requires employers to inform employees of impending layoffs.
a) The Employment Security Act
b) Title VII of the 1991 Civil Rights Act
c) Executive Order 11426
d) The Worker Adjustment and Retraining
Notification Act
e) None of the above

66. According
to the law, which of the following must provide warning of an impending layoff?
a) All federal contractors.
b) All employers regardless of size.
c) Any employer laying off more than 25 workers
or 10% of the workforce.
d) Any employer that employs more than 3% of a
community’s labor pool.
e) Any employer with more than 100 employees.

67. Workers of
companies with over 100 employees are entitled to _____ if they are not given
60 days advance warning in cases of a mass separation.
a)
30 days income
b)
60 days income
c)
90 days income
d)
continuing health benefits
e)
c and d

68. When it
comes to notification-of-layoff requirements, the United States:
a) has less stringent requirements than those of
any European country.
b) is far more stringent than Sweden.
c) is less stringent than France.
d) is more stringent than France.
e)
is similar to those in Great
Britain.

69. Though WARN
requires that employees be given 60 days notification prior to a mass
separation, some arguments support giving no notification, including:
a)
surviving employees’ job
performance will not suffer to the extent that it would have in the case of a
60-day notice.
b)
employees who are given no
notification are not entitled to any compensation.
c)
the likelihood of theft and
sabotage decreases.
d)
the decrease in productivity
that often accompanies mass separations is unlikely to occur when no
notification is given.
e)
all of the above

70. Layoff
criteria are important for the proper layoff implementation. One of the most
important criteria is:
a) the employee’s age.
b) employee ethnic origins.
c) the gender of the employee.
d) the employee’s seniority with the company.
e)
the salary level of the
employee.

71. The use of
seniority as a layoff criterion:
a) is not common among most companies.
b) tends to impact women and minorities more
than other groups.
c) is the most difficult layoff criterion to
implement.
d) is to guarantee a union fight, as unions
prefer performance or quota criteria.
e)
is the only safe legal option
in today’s HRM legal environment.

72. The use of seniority as a layoff
criterion:
a)
is more difficult to document
than other criteria.
b)
is less commonly used as a
layoff criterion than performance.
c)
is most likely to rid the company
of incompetent employees.
d)
prevents managers from playing
favorites with employees.
e)
prevents businesses from
losing top performers.

73. The use of
seniority as a layoff criterion has some drawbacks, including:
a) adversely impacting white males.
b) the fact that it is often contested by
unions.
c) the loss of top performers.
d) the difficulty in documenting it, compared to
other criteria.
e)
having to consider the entire
employment period.

74. The use of performance as a layoff criterion:
a) is a common practice among large companies.
b) disproportionately affects women and
minorities.
c) tends to eliminate older workers rather than
younger workers.
d) is harder to defend than seniority because of
uneven documentation of work performance by management.
e)
is easier to implement than
seniority.

75. Glenda has been an employee at your
curtain manufacturing company for over 6 years.
During the past three months, her performance has been a concern as her
productivity has decreased by almost 15 percent. In addition, you need to reduce the workforce
in order to trim employee costs. Your
best option is to:
a)
lay Glenda off on the basis of
her performance.
b)
lay Glenda off on the basis of
her performance, but use seniority as the rationale when explaining to her the
reason for her termination.
c)
only use her performance as
the reason for laying her off if there is long-term documentation of the
decline in her productivity and performance.
d)
encourage her to take early
retirement.
e)
offer Glenda incentives to
quit.

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