Question :
Case 6.1
Central Enterprises suffering an economic downturn, and the : 1346246
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.
81) Refer to Case 6.1. Brian would most likely advocate a strategy of:
A) attrition.
B) downsizing.
C) rightsizing.
D) early retirements.
82) Refer to Case 6.1. What relatively quick, but less traumatic, reduction strategy is suggested by the make-up of the workforce?
A) Rightsizing
B) Employee training
C) A job redesign program
D) An early retirement program
83) Refer to Case 6.1. Which of the following layoff alternatives would LaTisha most likely support?
A) Implementing a hiring freeze
B) Instituting pay cuts
C) Offering job sharing
D) Retraining workers
84) Refer to 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.
Case 6.2
Terra Alta employs nearly 15,000 workers worldwide. The firm wants to reduce its workforce through an early retirement program. The firm has hired you to organize and implement the program.
Employees over age 58 are eligible, but managers don’t want to lose key older employees. Program eligibility should be limited to a short period of time. Terra Alta managers need a fairly accurate estimate of how many employees will participate in the program.
Terra Alta expects a legal and humane program that avoids litigation issues. Employees should have an accurate picture of their future if they decide to accept early retirement.
85) Refer to Case 6.2. Given Terra Alta’s desires, which of the following would be the most appropriate HR policy?
A) Creating a formula that accelerates retirement eligibility for low performing workers
B) Implementing outplacement service programs for retiring employees
C) Mandating a leave of absence for all employees near retirement
D) Establishing a 30-day open window for early retirement
86) Refer to Case 6.2. How could Terra Alta most likely prevent key, older workers from leaving?
A) Restricting eligibility to areas with redundant employees
B) Establishing an immediate hiring freeze
C) Lowering the eligibility requirements
D) Shortening the eligibility time frame
87) Refer to Case 6.2. To avoid any legal problems, what would you most likely recommend?
A) Offer minority employees larger severance packages to minimize discrimination concerns.
B) Tell managers not to treat older workers any differently than they have in the past.
C) Implement a hiring freeze at the same time as early retirement is offered.
D) Avoid giving more than 30 days advance warning of a layoff.
88) Refer to Case 6.2. How could Terra Alta best manage the number of participants in the early retirement program?
A) Guarantee jobs to key employees and implement job redesign.
B) Survey senior employees and fine tune incentive packages.
C) Hire retirees as part-time consultants with stock options.
D) Develop an estimate based on industry data.
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 layofff. 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.
89) Refer to Case 6.3. Given the situation at MedEquip, which of the following statements is most likely true?
A) MedEquip must offer laid-off employees 60 days of income to avoid WARN Act violations.
B) MedEquip is in violation of the WARN Act and must extend the layoff deadline by 30 days.
C) MedEquip is not subject to the WARN Act because the business is not bankrupt.
D) MedEquip is not subject to the WARN because the business is too small.
90) Refer to 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?
91) Refer to Case 6.3. As an HR consultant, you should most likely recommend:
A) escorting affected employees off-site as soon as they are notified.
B) holding the large group termination session at the end of the week.
C) requiring surviving employees to start working overtime and weekends.
D) informing employees that they will be laid off through a corporate memo.
Case 6.4
Organizers, Inc. has implemented new business technologies that require fewer employees. Paul, the firm’s CEO, sees the need to eliminate some middle managers and institute work teams to eliminate ineffective or unnecessary work processes. He believes that such changes won’t be costly to the business. Most of the middle managers have been with the company anywhere from 10-15 years but are a long way from retirement.
One specific problem that Paul recognizes involves Zena, an upper-level manager. Zena has been coming to work late, missing deadlines on assignments, and refusing to complete an important assignment. Paul has warned Zena personally about the consequences for further actions and has even meted out several proscribed disciplinary actions against Zena. Her work habits have not improved, and Paul feels he may have to take further action.
92) Refer to Case 6.4. By Paul’s estimation, Organizers, Inc. most likely needs to do which of the following to improve efficiency?
A) Implement internship opportunities
B) Perform a large-scale layoff
C) Downsize
D) Rightsize
93) Refer to Case 6.4. Paul believes strongly in trying to provide lifetime employment and will use a layoff only as a last resort. What would be the best strategy to reduce middle management?
A) Offering early retirement to employees in middle management.
B) Instituting a pay freeze only for employees in middle management.
C) Encouraging employees in middle management to take voluntary time off for at least 60 days.
D) Developing HR policies regarding the use of pay incentives to encourage middle managers to quit.
94) Refer to Case 6.4. Paul’s actions regarding Zena are most likely an example of:
A) discrimination.
B) forced retirement.
C) progressive discipline.
D) a ring of defense.
