Strategic Staffing, 2e (Phillips/Gully) Chapter 12 Managing Workforce Flow 1) Orientation provides employees with the knowledge and skills they need to their jobs Answer: FALSE Diff: Page Ref: 321 Skill: Concept Objective: 2) Socialization programs help new employees understand the traditions of the company Answer: TRUE Diff: Page Ref: 322 Skill: Concept Objective: 3) When coworkers show a new employee how to their job, formal socialization is taking place Answer: FALSE Diff: Page Ref: 322 Skill: Concept Objective: 4) Anticipatory socialization occurs when employees receive training and begin learning about the company culture and norms, and how to the job Answer: FALSE Diff: Page Ref: 323 Skill: Concept Objective: 5) Sequential socialization occurs when the steps in socialization occur in a specific order Answer: TRUE Diff: Page Ref: 325 Skill: Concept Objective: 6) Investiture socialization programs try to strip away new hires' personal characteristics Answer: FALSE Diff: Page Ref: 325 Skill: Concept Objective: 7) With disjunctive socialization, newcomers are left alone to develop their own interpretations of the organization and situations they observe Answer: TRUE Diff: Page Ref: 325 Skill: Concept Objective: 1 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 8) Optimal turnover is the lowest turnover level you can achieve Answer: FALSE Diff: Page Ref: 328 Skill: Concept Objective: 9) When a valued employee quits because his spouse takes a new job in another state, this is unavoidable turnover Answer: TRUE Diff: Page Ref: 329 Skill: Concept Objective: 10) When a poor performer leaves, functional turnover has occurred Answer: TRUE Diff: Page Ref: 329 Skill: Concept Objective: 11) Exit interviews are done to inform employees why they are being let go Answer: FALSE Diff: Page Ref: 329 Skill: Concept Objective: 12) Stock options that vest in the future create a mobility barrier for the employee receiving them Answer: TRUE Diff: Page Ref: 334 Skill: Concept Objective: 13) Layoffs are permanent end of the employment of employees Answer: FALSE Diff: Page Ref: 339 Skill: Concept Objective: 14) Attrition occurs when a company hires fewer new employees Answer: FALSE Diff: Page Ref: 340 Skill: Concept Objective: Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 15) Having terminated employees sign a severance agreement that includes a release stating that the departing employee gives up some or all rights to sue reduces the risk of future litigation Answer: TRUE Diff: Page Ref: 341 Skill: Concept Objective: 16) Interacting with recruiters and future coworkers during the hiring process is the phase of the socialization process A) anticipatory B) encounter C) settling in D) onboarding Answer: A Diff: Page Ref: 323 Skill: Concept Objective: 17) Who usually has overall responsibility for conducting socialization programs? A) coworkers B) hiring managers C) human resources D) top management Answer: C Diff: Page Ref: 323 Skill: Concept Objective: 18) The first stage of the socialization process is A) settling in B) anticipatory C) encounter D) expectation Answer: B Diff: Page Ref: 323 Skill: Concept Objective: Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 19) Socialization programs putting newcomers through a common set of experiences as a group rather than individually are called A) one-time programs B) collective programs C) variable programs D) tournament programs Answer: B Diff: Page Ref: 324 Skill: Concept Objective: 20) Processing a new employee's employment-related paperwork, acquiring necessary keys and identification cards, and establishing an e-mail account for them is part of A) socialization B) orientation C) attrition D) training Answer: B Diff: Page Ref: 321 Skill: Concept Objective: 21) Denise, the human resource manager of a manufacturing company found that the company's socialization process was too overwhelming for new hires It consisted of presentations, meetings, and seminars packed into the first week of joining the company She decided to switch into a(n) approach to socializing so that new employees did not suffer from information overload A) investiture B) staggered C) sequential D) formal Answer: B Diff: Page Ref: 324 Skill: Application Objective: AACSB: Analytic skills Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 22) Earlene Gibson, the HR manager of BioMd, a manufacturer of high-end medical diagnostic equipments, is planning to implement a socialization program in the organization She designs a program in which each stage of socialization is an "elimination tournament," and a new hire is out of the organization if he or she fails Earlene submits the program draft to the CEO for approval Which of the following, if true, would be the strongest counterargument for the implementation of this plan? A) BioMd has a strong R&D orientation and innovation and risk taking are the major values that the company promote B) The management is intending to develop a homogeneous workforce that is highly cohesive and goal oriented C) One of the goals of the socialization program is to exercise more discipline and control in the organization D) The company is characterized by a vertical organizational structure and centralized decision making Answer: A Diff: Page Ref: 324 Skill: Critical thinking Objective: AACSB: Reflective thinking skills 23) A socialization program that requires new hires to "pass" different stages of socialization or be removed from the organization is a A) one-time program B) collective program C) variable program D) tournament program Answer: D Diff: Page Ref: 325 Skill: Concept Objective: 24) The Wolverines are a leading university soccer team All new recruits to the team must go through certain "rites of passage" which include shaving their heads, swimming in cold water, getting a tattoo of the team's emblem, and other tests of servitude and obedience This is an example of A) investiture socialization B) disjunctive socialization C) divestiture socialization D) tournament socialization Answer: C Diff: Page Ref: 325 Skill: Application Objective: AACSB: Analytic skills Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 25) After a wave of retirements, new employees hired to replace the retirees are likely to experience what type of socialization? A) disjunctive B) serial C) informal D) transitory Answer: A Diff: Page Ref: 325 Skill: Concept Objective: 26) has been found to enhance new hires' loyalty and reduce their turnover A) Socializing new employees as a group B) Using random socialization methods C) Disjunctive socialization D) Informal socialization methods Answer: A Diff: Page Ref: 327 Skill: Concept Objective: 27) What is optimal turnover? A) It is the lowest turnover that a firm can achieve B) It produces lowest level of long-term productivity C) It produces the highest level of long-term business improvement D) It sees any employee turnover as a loss for the company Answer: C Diff: Page Ref: 328 Skill: Concept Objective: 28) When a call center fires an employee who cannot meet her call volume goals, which of the following types of turnover has occurred? A) dysfunctional B) functional C) avoidable D) voluntary Answer: B Diff: Page Ref: 329 Skill: Concept Objective: Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 29) A layoff is an example of which type of turnover? A) dysfunctional B) voluntary C) involuntary D) avoidable Answer: C Diff: Page Ref: 329 Skill: Concept Objective: 30) Which of the following is true of voluntary turnover? A) It occurs especially if employees' job duties are well-defined B) It has been proven that average performers are most likely to quit C) It reduces when the economy is good and vice versa D) It can be reduced by giving new hires a realistic job preview Answer: D Diff: Page Ref: 329 Skill: Concept Objective: 31) Exit interviews should be directed at A) finding out which rivals are poaching talent from the firm B) areas in which the company feels it could improve C) informing ex-employees of their shortcomings D) optimal turnover and should measure the loss to the firm Answer: B Diff: Page Ref: 329 Skill: Concept Objective: 32) Asking a departing employee why he or she is leaving the firm is a(n) A) unstructured interview B) structured interview C) behavioral interview D) exit interview Answer: D Diff: Page Ref: 329 Skill: Concept Objective: Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 33) Which of the following are generally well received by employees? A) reneging B) buyout incentives C) downsizing D) layoffs Answer: B Diff: Page Ref: 340 Skill: Concept Objective: 34) Companies generally try to minimize turnover that is A) unavoidable, voluntary, and functional B) voluntary and functional C) voluntary, dysfunctional, and avoidable D) dysfunctional and involuntary Answer: C Diff: Page Ref: 329 Skill: Concept Objective: 35) Working from a.m to p.m is an example of A) job sharing B) flextime C) telecommuting D) homesourcing Answer: B Diff: Page Ref: 332 Skill: Concept Objective: 36) As an invaluable employee to her company, Emma has been given the freedom to choose her work hours She can also opt to work from home for a maximum of days in a month Which of the following retention strategies is being used in this example? A) creating work flexibility B) challenging employees C) clarifying promotion paths D) creating mobility barriers Answer: A Diff: Page Ref: 332 Skill: Application Objective: AACSB: Analytic skills Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 37) Holding managers accountable for turnover of the employees under them is an effective retention strategy because A) managers become stressed about being laid-off B) managers know which employees to retain C) employees have most grievances about their supervisors D) employees cannot complain about miscommunication Answer: B Diff: Page Ref: 334 Skill: Concept Objective: 38) When IBM extensively trains employees in processes and procedures that are unique to the company, it is creating A) job challenge B) strong culture C) accountability D) mobility barriers Answer: D Diff: Page Ref: 334 Skill: Application Objective: AACSB: Analytic skills 39) In order to reduce turnover rates, Sigma Corp offers middle and high-ranking employees stock options in the company This is an example of which retention strategy? A) job challenge B) strong culture C) accountability D) mobility barriers Answer: D Diff: Page Ref: 334 Skill: Application Objective: AACSB: Analytic skills 40) Workforce redeployment applies the principles used to optimize inventory management, planning, and production to optimize the utilization of a firm's employees A) product innovation B) customer management C) supply chain D) competitive advantage Answer: C Diff: Page Ref: 335 Skill: Concept Objective: Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 41) Moving employees to other parts of the company or to other jobs the company needs filled to match its workforce with its talent needs is A) socialization B) workforce redeployment C) mobility barriers D) golden handcuffs Answer: B Diff: Page Ref: 335 Skill: Concept Objective: 42) Which of the following is true about downsizing? A) It works best when done regularly B) It is never constrained by a collective bargaining agreement C) It enhances employees' perceptions of fairness D) It can improve shareholders' return Answer: D Diff: Page Ref: 336 Skill: Concept Objective: 43) downsizing targets specific locations for headcount reduction, perhaps due to the loss of an important customer A) Seniority-based B) Business-based C) Geographic D) Across the board Answer: C Diff: Page Ref: 336 Skill: Concept Objective: 44) Which of the following, if implemented, would reduce the number of low quality workers in a firm? A) across the board downsizing B) performance-based downsizing C) competency-based downsizing D) business-based downsizing Answer: B Diff: Page Ref: 336 Skill: Concept Objective: 10 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 45) BioMd is a manufacturer of high-end medical diagnostic equipments The company's revenues and profit margins have come under pressure during the last two years because of decline in product demand Daisy Howell, the CEO of the company, calls for a senior management meeting to finalize the strategies to be adopted to tackle the dip in profit margins In the meeting, most managers argue in favor of using downsizing as a means to reducing costs and improving margins However, Daisy strongly argued for the use of layoffs instead of downsizing Which of the following, if true, would most strengthen Daisy's argument? A) The organization has a business-based target for reducing the number of employees B) Major hospital chains have announced plans to open up more facilities in the coming year C) An internal demographics review has shown that about ten percent of the firm's employees would retire within three years D) Worker Adjustment and Retraining Notification Act applies to the organization as it has more than hundred employees Answer: C Diff: Page Ref: 339-340 Skill: Critical thinking Objective: AACSB: Reflective thinking skills 46) In which of the following cases is asking employees to take a leave without pay a good idea? A) The company is planning to expand its operations B) The company is relocating abroad and needs foreign workers C) The company needs to cut down costs for a specific period D) The company has decided to conduct mass downsizing Answer: C Diff: Page Ref: 340 Skill: Concept Objective: 47) Firms that not have proper documentation to fire an employee but want to end the employment relationship, and at the same time reduce the possibility of a lawsuit, offer the employee a(n) A) non-compete agreement B) non-disclosure agreement C) employment at will statement D) release Answer: D Diff: Page Ref: 341 Skill: Concept Objective: 11 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 48) How is orientation different from socialization? Answer: Orientation is the process of completing new hires' employment-related paperwork, providing them with keys, identification cards, workspaces, and technology such as computers, company e-mail addresses, and telephone numbers It also includes introducing the new hires to their coworkers (who will be important to their success), and familiarizing them with their jobs and with the company's work policies and benefits Socialization is a long-term process of planned and unplanned, formal and informal activities and experiences through which an individual acquires the attitudes, behaviors, and knowledge needed to successfully participate as a member of an organization and learns the firm's culture Socialization helps new employees understand the values, processes, and traditions of the company and prepares them to fit into the organization and establish productive work relationships Diff: Page Ref: 321-323 Skill: Concept Objective: 49) List and describe the six types of turnover Answer: The six different types of turnover are voluntary, involuntary, avoidable, unavoidable, functional, and dysfunctional Voluntary turnover is when the separation occurs when an employee chooses to leave the firm of his or her own accord Involuntary turnover is when the separation is due to the organization asking the employee to leave Functional turnover is the departure of poor performers Dysfunctional turnover is the departure of effective performers the company would have liked to retain Avoidable turnover is turnover that the employer could have prevented by addressing the cause of the turnover Unavoidable turnover is turnover that could not have been prevented by the employer Diff: Page Ref: 328-329 Skill: Concept Objective: 12 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 50) What is downsizing and how is it best done? List and describe four ways of choosing who gets targeted during a downsizing Answer: Downsizing is the process of permanently reducing the number of a firm's employees so as to improve the efficiency or effectiveness of the firm Downsizing is a popular way for organizations to attempt to improve their flexibility by reducing their bureaucratic structures, giving employees who have been retained by the firm the power to make decisions more quickly, and improving communication within the firm A downsizing can also be done, however, in response to a merger or acquisition, revenue or market-share loss, technological and industrial changes, a restructuring, and inaccurate labor-demand forecasting If the choice of which employees to downsize is not constrained by a collective bargaining agreement (which usually mandates that union members with the most seniority be retained), there are several ways to choose who to target in a downsizing Across the board downsizing requires all of a company's units to reduce their headcount by the same percentage Geographic downsizing targets specific locations for employee reductions, perhaps due to the loss of an important customer Business-based downsizing targets only certain segments of a business In addition, downsizing can target specific functions or departments that need to be reduced, or specific positions or jobs that are overstaffed Performance-based downsizing targets poor performers When downsizing is seniority-based, the last people hired are the first people let go If cost cutting is a goal of the downsizing, salary-based downsizing can help a firm reach this goal This method involves targeting a firm's most highly paid employees Competency-based downsizing involves retaining employees with the competencies the company expects to need in the future and downsizing employees who lack them Downsizing can also be done through selfselection, if a firm offers its employees inducements to leave, such as early retirement packages or buyouts Diff: Page Ref: 336 Skill: Concept Objective: 13 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 51) Describe some alternatives to layoffs Answer: Instead of layoffs, organizations often reduce their employee headcount in other ways Attrition is the normal reduction of a firm's workforce due to the retirement, death, or resignation of employees Combining natural attrition with a hiring freeze, which involves not hiring any new employees to replace departing employees, can result in a sufficient amount of headcount reduction, if the attrition is high enough and the freeze can be imposed for a long enough period of time Early retirement and buyout incentives are a good way to achieve attrition and are often well received by employees Companies often fund early retirement and buyout incentives with money they save during hiring freezes Another way to reduce the size of a company's workforce is to encourage employees to take a leave without pay Although an employee's benefits are usually reduced during the leave, the company guarantees that the employee can return at the end of a designated period Leaves without pay can appeal to some employees who need to complete their education, care for family, or transition to another career When the company wants to downsize to cut its costs rather than meet a mandated reduction in the number of employees, this can be a good strategy Diff: Page Ref: 340 Skill: Concept Objective: 14 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 52) Assume you are a high-ranking manager in a firm who has to discharge a middle-ranking employee Plan how you would go about this task Who are the other members of the organization whom you would involve? Answer: Student answers may vary When an employee is being told that he or she is being discharged, my main task, as a manager, is to be respectful but clear in letting the employee know that he or she has been terminated and provide a reason During the meeting, I need to be sure to describe all the relevant facts about the employee's dismissal and be prepared to explain how the employee violated the company's policies or failed to meet his or her job requirements, despite persistent attempts to help him or her so A human resources professional should write a simple letter that outlines the employee's date of discharge, any contractual obligations owed to the employee, such as severance pay, continuing benefits, and so forth, and my name as the name of the manager who approved the discharge The HR professional should then send copies of the letter to the discharged employee's immediate supervisor, payroll and benefits department, compliance officers, any labor organization to which the employee belongs, and to the employee Having discharged (or downsized) employees sign a severance agreement that includes a release stating that the departing employee gives up some or all of his or her rights to sue the company can reduce its risk of future litigation Employee releases are used most often when a company does not have the proper documentation to fire an employee but wants to end the employment relationship with him or her and reduce the possibility of a lawsuit Diff: Page Ref: 341 Skill: Synthesis Objective: AACSB: Analytic skills 15 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall ... prevented by addressing the cause of the turnover Unavoidable turnover is turnover that could not have been prevented by the employer Diff: Page Ref: 328-329 Skill: Concept Objective: 12 Copyright... 329 Skill: Concept Objective: Copyright © 2 012 Pearson Education, Inc Publishing as Prentice Hall 33) Which of the following are generally well received by employees? A) reneging B) buyout incentives... organizations to attempt to improve their flexibility by reducing their bureaucratic structures, giving employees who have been retained by the firm the power to make decisions more quickly,