Q&A Hero

Q: If a business is downsizing, it is most likely: A) offering training and development opportunities to new hires. B) improving worker efficiency through reorganization. C) reducing the size and scope of the business. D) offering early retirements to older workers.

Q: Dixon Enterprises needs to reduce its long-term workforce. The firm wants to reduce the scale and scope of its business to improve financial performance. The company is most likely: A) conducting a layoff. B) downsizing. C) buying out the workforce. D) rightsizing.

Q: All of the following are primary reasons for layoffs EXCEPT: A) mergers B) misconduct C) global competition D) technology advancements

Q: Layoffs are most likely to occur because: A) the firm offers lucrative incentives to reduce the workforce. B) adequate documentation exists of the worker's poor performance. C) a poor fit exists between the employee and the company. D) the company's strategy forces a reduction in its workforce.

Q: The primary difference between a layoff and a discharge is: A) a layoff is an involuntary separation and a discharge is a voluntary separation. B) a layoff is a voluntary separation and a discharge is an involuntary separation. C) a discharge occurs when the company's strategy forces it to reduce its workforce and a layoff occurs when there is a poor fit between the employee and the organization. D) a layoff occurs when the company's strategy forces it to reduce its workforce and a discharge occurs when there is a poor fit between the employee and the organization.

Q: Delmus' performance reports have been increasingly poor, and he seems to have negative relationships with other workers in his department. His line manager has taken him aside twice to discuss his behavior and work and has offered him time to improve, but there has been very little positive progress. Management decides to end the employment relationship with Delmus. This is an example of a: A) layoff. B) quit. C) discharge. D) buyout.

Q: Bertha wishes to discharge one of her poorly performing employees. She has tried progressive discipline with no effect. She asks you, the HR manager, what she must do to discharge the employee. You should most likely tell her the policy and procedures, and then ask her if she has ________ in order to protect the company from a wrongful discharge suit. A) documented the inappropriate behavior B) given sixty days notice as required by law C) used non-progressive disciplinary actions D) analyzed the department's diversity levels

Q: Alex is a first-line supervisor with an employee who has a performance problem. After coaching the employee with no improvement, Alex decides to terminate the employment relationship. Which term refers to this type of separation? A) Layoff B) Discharge C) Rightsizing D) Early retirement

Q: The decision to terminate an employee is management's role. HR's primary role is to: A) implement outplacement services immediately. B) serve as the employee's advocate against management. C) make certain the employee receives due process. D) document poor performance so the termination can be justified.

Q: 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.

Q: 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

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

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

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

Q: 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?

Q: 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?

Q: 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?

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

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

Q: 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.

Q: The rate of employee separations in an organization is referred to as ________.

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

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

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

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

Q: 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.

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

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

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

Q: Yao-Huan is reviewing the rate at which employees have been leaving his firm. He is reviewing the firm's turnover rate.

Q: Additional Case 6.1 Central Enterprises is suffering an economic downturn, and the workforce needs to be reduced. Upper-level managers are debating the costs and benefits of various employee separations. Brian argues that the company needs to make immediate cuts to 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. The firm needs to do more with fewer people according to Brian. Other managers want to take a long-term, less traumatic approach. According to Natalie, the firm has time to consider the problems and gradually reduce the workforce rather than making sudden staff cuts. Natalie points out that 35% of the workforce is over age 62. The VP of HR, LaTisha, wants the least disruptive reduction process possible. LaTisha just finished a major labor negotiation with the union and is not ready for another. She points out that turnover has been fairly high. Along with considering workforce reductions, LaTisha wants to know why people are leaving the company voluntarily. Refer to Additional Case 6.1. To answer LaTisha's question about why people are leaving, the company should most likely institute: A) outplacement services. B) orientation sessions. C) exit interviews. D) appraisals.

Q: Which of the following is most likely a benefit of employee separations for employers? A) Employees are grouped into teams. B) The workforce becomes more homogenous. C) Surviving employees work more conscientiously. D) They open doors for promotion within the company.

Q: Which of the following is most likely true about employee separations? A) Salary savings often outweigh other separation costs. B) Innovation declines as people take their ideas with them. C) The best workers tend to quit, so workforce quality declines over time. D) Most separations are due to unfair employment practices by the employer.

Q: Sanford Enterprises provides outplacement assistance through its HR department. The firm is most likely attempting to: A) lower unemployment insurance taxes. B) help departing employees find jobs. C) improve employee motivation. D) comply with EEOC rules.

Q: Carlie quit her job as a data analyst at APEX Designs, and she is scheduled to participate in an exit interview. Which of the following individuals would be the most appropriate to conduct Carlie's exit interview? A) Subordinate B) Co-worker C) HR representative D) Immediate supervisor

Q: What is the primary reason for holding exit interviews? A) Providing counseling to departing employees B) Assisting departing employees with job-search skills C) Determining the reason for the employee's departure D) Allowing the employee's co-workers to provide feedback

Q: Your company is planning a layoff. As you explain the process to the management team, you tell them that outplacement assistance is available, which means that the: A) employee will receive a final interview. B) company will help departing employees find new jobs. C) company will measure the rate of employee separations. D) company can terminate the relationship with the employee for any reason.

Q: Which term refers to an employee's final interview following separation? A) Exit interview B) Follow-up interview C) Appraisal interview D) Outplacement interview

Q: The time and cost of exit interviews are part of the ________ costs of an employee separation. A) recruitment B) selection C) training D) separation

Q: Which of the following is the most significant separation cost for employers? A) Search firm fees B) Lost productivity C) Outplacement assistance D) Compensation

Q: Which of the following is a replacement cost associated with training new employees? A) Employment testing B) Outplacement services C) Recruiter time D) Lost productivity

Q: Martin is reviewing HR's costs for interviewing, testing, and checking references for new hires. Martin is most likely reviewing the ________ costs of employee replacement. A) training B) selection C) separation D) recruitment

Q: Which of the following is a selection cost of employee replacement? A) Advertising B) Outplacement C) Search firm fees D) Reference checks

Q: Which of the following factors is the LEAST common reason for turnover among Chinese workers? A) Lack of development opportunities B) Manager-employee relationships C) Insufficient compensation D) Tedious work

Q: Which of the following is a recruitment cost associated with employee replacement? A) Outplacement B) Reference checks C) Orientation D) Advertising

Q: The costs of employee separations primarily depend 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

Q: Companies most likely attempt to manage their turnover rates because of: A) potential problems associated with public relations. B) legal requirements regarding layoff notifications. C) inadequate affirmative action plans. D) high employee replacement costs.

Q: A company wants to know the rate at which employees voluntarily leave the firm. The company most likely needs to: A) measure its turnover rate. B) conduct an HR audit. C) implement a diversity audit. D) track reasons for discharges.

Q: An employee separation occurs when: A) employee turnover reaches maximum capacity. B) global competition increases beyond labor supply. C) an employee ceases to be a member of an organization. D) technologies are introduced into a new industry.

Q: If an employer does not thoroughly check information provided by a potential employee who later commits a crime while an employee, the company can be held liable for a negligent hiring.

Q: Additional Case 5.3 You are a middle manager looking for a first-line supervisor. The selection criteria in priority order are: 1) the ability to learn and adapt to a changing job, 2) willingness to perform the job assigned under its current conditions, and 3) strong verbal and quantitative skills. In addition, the cost of the selection process is a concern since you want to look at a broad range of candidates. The firm has about 500 employees and is a federal contractor. There is a racial imbalance among the management team, which favors white males. No evidence of discrimination exists, and the firm has never received a discrimination complaint. The firm's hourly employees are about 50% female and 35% minority. You have actively sought to provide access to disabled employees. Two years ago, the firm experienced an incident in which one employee became violent and injured several other employees. The firm was held liable for the occurrence. Refer to Additional Case 5.3. Which of the following would most likely help the firm avoid liability for negligent hiring? A) Instituting a sexual harassment policy B) Strictly using structured interview methods C) Administering personality tests to screen for violent personalities D) Developing hiring policies that require employee background checks

Q: Additional Case 5.3 You are a middle manager looking for a first-line supervisor. The selection criteria in priority order are: 1) the ability to learn and adapt to a changing job, 2) willingness to perform the job assigned under its current conditions, and 3) strong verbal and quantitative skills. In addition, the cost of the selection process is a concern since you want to look at a broad range of candidates. The firm has about 500 employees and is a federal contractor. There is a racial imbalance among the management team, which favors white males. No evidence of discrimination exists, and the firm has never received a discrimination complaint. The firm's hourly employees are about 50% female and 35% minority. You have actively sought to provide access to disabled employees. Two years ago, the firm experienced an incident in which one employee became violent and injured several other employees. The firm was held liable for the occurrence. Refer to Additional Case 5.3. Given the nature of the firm, which of the following laws is most relevant at this time? A) Vocational Rehabilitation Act B) Americans with Disabilities Act C) Equal Pay Act D) Executive Order 11246

Q: One of your employees, a member of a protected class, loses his temper and assaults and injures a customer. The customer is also a member of a protected class. During the investigation, the police discover that the employee has a long history of such behavior and served jail time for assault and battery. As the employer, you are most likely: A) not liable for any injuries because the employee was a member of a protected class. B) not liable for negligent hiring because you had an affirmative action plan. C) liable for negligent hiring because you did not conduct a background check. D) liable for injuries under Executive Order 11246.

Q: What are the advantages and disadvantages of traditional interviews and structured interviews when making staffing decisions? What topics should be avoided to ensure that interviews are legal?

Q: The selection process may involve a significant amount of testing. Describe the various tests HR professionals have to choose from, why they use each, and the importance of the validity and reliability of the tests used.

Q: What is the difference between reliability and validity in testing? How can valid selection methods protect a firm from employment lawsuits?

Q: What is human resource planning? How can effective selection procedures improve the HR planning process?

Q: A(n) ________ is a set of simulated tasks or exercises that candidates are asked to perform.

Q: A job interview based on a thorough job analysis, applying job-related questions with predetermined answers consistently across all interviews for a job is called a(n) ________.

Q: The extent to which the technique measures the intended knowledge, skill, or ability is known as ________.

Q: ________ is consistency of measurement, usually across time but also across judges.

Q: Small businesses benefit most from using e-mail to prescreen applicants because of the cost savings and the high degree of information learned about an applicant's interpersonal skills.

Q: John is subjectively evaluating all applicant information prior to making a hiring decision. He is using a clinical approach in the selection process.

Q: Unstructured interviews are more effective than structured interviews at screening out unsuitable job candidates who don't fit with the organization.

Q: In an interview, worker-requirement questions assess whether a candidate has the basic knowledge needed to perform the job.

Q: Personality tests, while valid and reliable, are not generally accepted as legally defensible in the selection process.

Q: Letters of recommendation are among the best predictors of future job performance.

Q: Selection tools should be reliable and valid. By reliable, we mean that the tool measures consistently across time and evaluators. By valid, we mean that scores from the tools correspond to actual job performance.

Q: Additional Case 5.3 You are a middle manager looking for a first-line supervisor. The selection criteria in priority order are: 1) the ability to learn and adapt to a changing job, 2) willingness to perform the job assigned under its current conditions, and 3) strong verbal and quantitative skills. In addition, the cost of the selection process is a concern since you want to look at a broad range of candidates. The firm has about 500 employees and is a federal contractor. There is a racial imbalance among the management team, which favors white males. No evidence of discrimination exists, and the firm has never received a discrimination complaint. The firm's hourly employees are about 50% female and 35% minority. You have actively sought to provide access to disabled employees. Two years ago, the firm experienced an incident in which one employee became violent and injured several other employees. The firm was held liable for the occurrence. Refer to Additional Case 5.3. To meet your second criterion, your best selection tool would be: A) structured interviews. B) psychological testing. C) reference checking. D) an assessment center.

Q: Additional Case 5.3 You are a middle manager looking for a first-line supervisor. The selection criteria in priority order are: 1) the ability to learn and adapt to a changing job, 2) willingness to perform the job assigned under its current conditions, and 3) strong verbal and quantitative skills. In addition, the cost of the selection process is a concern since you want to look at a broad range of candidates. The firm has about 500 employees and is a federal contractor. There is a racial imbalance among the management team, which favors white males. No evidence of discrimination exists, and the firm has never received a discrimination complaint. The firm's hourly employees are about 50% female and 35% minority. You have actively sought to provide access to disabled employees. Two years ago, the firm experienced an incident in which one employee became violent and injured several other employees. The firm was held liable for the occurrence. Refer to Additional Case 5.3. The best selection tool for assessing your number one criterion is: A) structured interviews. B) psychological testing. C) cognitive ability testing. D) reference checking.

Q: Additional Case 5.3 You are a middle manager looking for a first-line supervisor. The selection criteria in priority order are: 1) the ability to learn and adapt to a changing job, 2) willingness to perform the job assigned under its current conditions, and 3) strong verbal and quantitative skills. In addition, the cost of the selection process is a concern since you want to look at a broad range of candidates. The firm has about 500 employees and is a federal contractor. There is a racial imbalance among the management team, which favors white males. No evidence of discrimination exists, and the firm has never received a discrimination complaint. The firm's hourly employees are about 50% female and 35% minority. You have actively sought to provide access to disabled employees. Two years ago, the firm experienced an incident in which one employee became violent and injured several other employees. The firm was held liable for the occurrence. Refer to Additional Case 5.3. The best way to combine predictors used in the selection process would be a: A) statistical strategy. B) clinical strategy. C) multiple hurdle strategy. D) differentiated strategy.

Q: Additional Case 5.2 You are the HR director for a large company. Production has implemented a very successful TQM program, and the firm has a reputation for innovation and quality. Money is tight due to aggressive expansion and marketing efforts, but the firm is doing well. The firm has a diverse, well-balanced workforce. The CEO prefers to reward performance through promotion from within. However, if an employee chooses to leave the company, he or she is not eligible for rehire. The firm's MIS managers have requested that you identify 10 candidates for newly created computer programming jobs. These are entry-level jobs in MIS that require a bachelor's degree. Expansion plans in production have also created a number of new entry-level jobs and two new first-line supervisor jobs. An upper-level management position is open as well. This is a key position, and the longer it remains open, the more likely it is that the company will begin to lose market share. There are a number of excellent candidates for this job. "Fit" with the organization is one of the top criteria for the selection. The CEO wants both peers and subordinates to be involved in the process, but the CEO will make the final decision. The CEO wants your advice about the best selection tool. The CEO wants to narrow the field quickly and work with the data as he goes along, rather than obtain all the information on each candidate first. Refer to Additional Case 5.2. What is your best choice of selection tool to assess your number one criterion? A) Unstructured interview B) Cognitive ability testing C) An assessment center D) Reference checking

Q: Additional Case 5.1 About a year ago, Powley Publishing began looking for a new managing editor for its home and garden magazine. The previous editor retired after 25 years on the job. The editors and the HR department debated about the key requirements for a new managing editor. Some felt it was knowledge of the business, others thought it was interpersonal skills. A few others believed it was the ability to attract writing talent and subscribers. Finally, it was decided that HR would screen candidates, and the editors would interview finalists in conjunction with HR. The HR director would make the final choice to avoid competition among the editors. Advertisements were placed nationally. A number of candidates were tested and interviewed by the HR manager, and references were checked. After a long search, a new managing editor, Jeff, was hired, but it quickly became apparent that a poor selection had been made. Although Jeff was competent, his overbearing management style drove two talented editors to leave for jobs with competitors. Jeff fulfilled all tasks of the position except soliciting writers and subscribers. In addition, Jeff offered no ideas or direction about increasing circulation. After 10 months, the publisher let Jeff go and began looking for a new managing editor. This time, the firm wants to find someone who is willing to tackle all tasks of the position and who has the right skills and personality mix. The firm wants someone who can start quickly and doesn't require significant training. The ability to innovate is less critical than the motivation to work hard. Recruiting funds are very limited. Refer to Additional Case 5.1. The best selection tool for helping Powley Publishing to identify organizational fit as well as job skill and knowledge, would most likely be: A) ability tests. B) personality tests. C) unstructured interviews. D) assessment centers.

Q: Which selection strategy is most appropriate when a large number of applicants are being considered for a position? A) Single-variant B) Multiple-hurdle C) Statistical D) Clinical

Q: A manager wants to combine selection tools to help him make a staffing decision. He wants to make a preliminary selection after administering each instrument. He is most likely using a ________ strategy. A) clinical B) statistical C) centralized D) multiple hurdle

Q: It is generally held in the U.S. that graphology is: A) an invalid predictor of job performance. B) an unreliable but valid predictor of job performance. C) a valid selection tool when combined with psychological testing. D) associated with creating disparate impact among minority groups.

Q: Which screening method is most commonly used to help firms avoid negligent hiring lawsuits? A) Recommendation letters B) Assessment centers C) Background checks D) Honesty tests

Q: Most state courts have upheld that employers have a qualified privilege to discuss an employee's past performance. Which of the following is NOT one of the rules a firm must follow to have this privilege? A) Applicant must receive a copy of any information released by a former employer. B) Inquirer must exhibit a job-related need to know the information. C) Former employers must release only truthful information. D) EEO-related information should not be released.

Q: Many former employers are reluctant to give references for fear of liability if the reference keeps the former employee from getting a job. The courts have held that employers have a "qualified privilege" if the employer: A) only discusses EEO-related information. B) has selection test information to support the reference. C) only gives information to an inquirer who has a job-related need to know. D) qualifies the information as "his/her opinion" and not necessarily factual.

Q: An employer's best defense against liability in a negligent hiring lawsuit is to use which of the following selection tools? A) Structured interviews B) Honesty tests C) Personality tests D) Reference checks