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 s

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