Chapter 6 Managing Employee Separations, Downsizing, and Outplacement

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112. Comments made by exiting employees at an exit interview are confidential, except in cases where they may concern legal issues.

113. Interestingly enough, employee separations can actually stimulate innovation.

114. A quit and a retirement are similar types of employee separations since both are initiated by the employee.

115. Employers can force an employee to retire if the employee is 65 years of age or older.

116. Recent studies have shown that 80% of voluntary separations are unavoidable.

117. Involuntary separation results from one of two conditions: 1) economic necessity or 2) a poor fit between the employee and the organization.

118. Rightsizing is simply a euphemism for downsizing.

119. 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.

120. Early retirement programs have proven to be almost flawless ways to make small reductions in a firm’s workforce.

121. A firm that tells employees that if they don’t take early retirement they may still lose their jobs due to future layoffs, may be open to age discrimination charges.

122. A firm’s overall HR strategy influences its employee workforce reduction strategy.

123. Generally, the first alternative to layoffs that companies use to reduce their labor costs is to redesign existing jobs.

124. Changes in job design may include: job sharing, rings of defense, bumping, and job relocation.

125. A company can save up to 20% of its payroll during lows in its business cycle by instituting a profit-sharing compensation program.

126. WARN requires employers with 60 or more employees to give 100 days’ warning of layoffs of more than 10% of its employees.

127. One of the most commonly used lay-off criterion is job seniority.

128. Basing a layoff on performance can be a legal hazard for an employer if the employee’s performance has not been well documented over a period of time.

129. In a termination meeting, a manager should interject personal remarks and talk about how valued the employee was in order to soften the blow of job loss.

130. Companies should communicate the reasons for a layoff and provide some emotional support to the survivors of a layoff in order to help them manage their layoff stress.

131. In order to reassure surviving employees of recent layoff information, they should be informed of the reasons for the layoff and how it occurred.

132. An important goal of outplacement services for laid-off workers is to help them remain productive, pending their layoff.

133. Job-search assistance and emotional support are often two functions of a business’ outplacement services.


134. The termination of an employee’s membership in an organization is referred to as _______.

135. The rate of employee separations in an organization is referred to as _______.

136. 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.

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

138. _______ is a separation that occurs when an employee decides, for personal or professional reasons, to end the relationship with the employer.

139. A separation that occurs when an employer decides to terminate its relationship with an employee due to economic necessity or a poor fit between the employee and the organization is called _______.

140. _______ is a company strategy to reduce the scale and scope of it business in order to improve the company’s financial performance.

141. The process of reorganizing a company’s employees to improve their efficiency is referred to as _______.

142. _______ is an employment policy designed to reduce the company’s workforce by not refilling job vacancies that are created by turnover.

143. _______ is an employment policy designed to reduce the company’s workforce by not hiring any new employees into the company.

144. A federal law requiring U.S. employers with 100 or more employees to give 60 days’ advance notice to employees who will be laid off as a result of a plant closing or a mass separation of 50 or more workers is the _______.

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