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Ch.10 Managing Employee Separations And + Complete Test Bank

Chapter 10: Managing Employee Separations and Retention

Test Bank

Multiple Choice

1. Catalina let her manager know that she was offered a better position at another company and that she would be leaving her current job. What is this scenario an example of?

A. involuntary turnover

B. voluntary turnover

C. retirement

D. layoff

KEY: Learning Objective: 10.1: Describe multiple aspects of managing employee retention and separations.

REF: Cognitive Domain: Application

Answer Location: Understanding and Managing Employee Separations

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

2. Frank has been at the same company for the past 15 years, he just turned 65 and is now ending his work life. What is this scenario an example of?

A. leave of absence

B. layoff

C. retirement

D. involuntary turnover

KEY: Learning Objective: 10.1: Describe multiple aspects of managing employee retention and separations.

REF: Cognitive Domain: Application

Answer Location: Understanding and Managing Employee Separations

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

3. Hector was placed on a performance improvement plan after his last performance review. He did not make the necessary improvements and now is being dismissed from his job. What is this scenario an example of?

A. retirement

B. layoff

C. voluntary turnover

D. involuntary turnover

KEY: Learning Objective: 10.1: Describe multiple aspects of managing employee retention and separations.

REF: Cognitive Domain: Application

Answer Location: Understanding and Managing Employee Separations

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

4. ______ are a form of involuntary turnover that involves separation due to economic or strategic reasons.

A. Retirements

B. Resignations

C. Layoffs

D. Notifications

KEY: Learning Objective: 10.1: Describe Multiple Aspects of Managing Employee Retention and Separations.

REF: Cognitive Domain: Knowledge

Answer Location: Understanding and Managing Employee Separations

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

5. Anton is worried about replacing several employees who have left the company. He knows his budget will be impacted by the cost of replacing, onboarding, and training replacements. This problem is an example of costs associated with ______.

A. voluntary turnover

B. absenteeism

C. tardiness

D. employee retention

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Application

Answer Location: Causes of Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

6. ______ refers to being late to work without giving advance notice.

A. Voluntary turnover

B. Absenteeism

C. Layoff

D. Tardiness

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

7. ______ refers to unscheduled absences from work.

A. Tardiness

B. Absenteeism

C. Voluntary turnover

D. Shortages

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

8. Nell has a poor relationship with her manager and decides to find a new job. Based on the information provided, Nell’s relationship with her manager is causing ______.

A. absenteeism

B. tardiness

C. a desire to leave

D. work–life conflict

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Causes of Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

9. When employees use social media platforms such as LinkedIn to find jobs, assess the market, and examine the availability of jobs that are at least as good as their current job, they are trying to determine ______.

A. qualifications

B. ease of movement

C. the rate of unfolding turnover

D. job embeddedness

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Causes of Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

10. The ______ recognizes that employees often leave without lining up a new job.

A. job embeddedness model

B. employment at will model

C. unfolding model of turnover

D. bridge employment model

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Causes of Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

11. Kathleen recently found out her mother is ill. The shock of the illness caused Kathleen to rethink her immediate career plans, and she decided to quit her job to be available to her mother. This is an example of the ______ model of turnover.

A. unfolding

B. shock

C. job embeddedness

D. classic

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Application

Answer Location: Causes of Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

12. Derek has thought about looking for a new job, but then considers his benefits, social network, short commute, and the fact that his family is settled in their community with connections to the school and neighborhood organizations. Why does Derek opt to stay at his job rather than leave?

A. engagement

B. upper management support

C. unfolding model

D. embeddedness

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Analysis

Answer Location: Causes of Voluntary Turnover

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

13. Lee decides he is not going into work today, even though he is scheduled to go into the office. What is this an example of?

A. tardiness

B. absenteeism

C. voluntary turnover

D. loss of human capital

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Application

Answer Location: Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

14. Craig decided he wants to find a new job and is in the process of looking for one. In the meantime, at his current job, he finds himself calling in sick when in fact he just does not want to go in to work, and he has accumulated several incidences of tardiness for the same reason. What might this mean for Craig?

A. Craig is risking his social capital at work.

B. Craig no longer cares about policies.

C. Craig has a time management problem.

D. Craig has withdrawn from the job.

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Analysis

Answer Location: Voluntary Turnover

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

15. When unemployment is high, turnover is usually ______.

A. high

B. low

C. unexpected

D. unpredictable

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

16. The retention rate is equal to ______.

A. the number of employees who stayed during the entire period divided by the number of employees at the beginning of the period multiplied by 100

B. the number of employees who left during the entire period multiplied by the number of employees at the beginning of the period divided by 100

C. the number of employees at the beginning of the period multiplied by the number of employees who stayed during the entire period divided by 100

D. the number of employees at the beginning of the period divided by the number of employees who stayed during the entire period multiplied by 100

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Voluntary Turnover

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

17. The turnover rate is equal to ______.

A. the number of departures divided by the number of employees who stayed during the entire period multiplied by 100

B. The number of employees at the beginning of the period divided by the number of employees who departed during the year divided by 100

C. the number of employees who stayed during the entire period divided by the average number of employees during the year multiplied by 100

D. the number of departures during the year divided by the average number of employees during the year multiplied by 100

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Voluntary Turnover

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

18. Replacing an employee who leaves a company may cost anywhere from ______ of the annual salary of the departing employee.

A. 70% to 100%

B. 80% to 125%

C. 90% to200%

D. 100% to150%

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Costs of Voluntary Turnover

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

19. In an engagement survey, asking employees to respond to a statement such as, “I intend to leave my job in the next year” is an example of ______.

A. descriptive analytics

B. reporting turnover

C. predictive analytics

D. involuntary turnover

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Application

Answer Location: Leverage Engagement and Attitude Surveys

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

20. Krysta, a human resource professional, is analyzing engagement survey results. She uses the data to help her manage retention by predicting who is ______.

A. most disruptive

B. likely to leave

C. likely to perform well

D. most qualified

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Leverage Engagement and Attitude Surveys

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

21. ______ surveys are short, frequent questionnaires that can help predict and manage turnover.

A. Pulse

B. Desire to leave

C. Turnover

D. Annual

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Leverage Engagement and Attitude Surveys

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

22. Barbara, a human resource professional, meets with employees after they resign, before they leave their job. What is this an example of?

A. feedback

B. exit interview

C. data analysis

D. dismissal interview

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Application

Answer Location: Utilize Exit Interviews

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

23. An interview with an employee who is not leaving the organization in which questions such as “Are you happy on the job and with your career?” are asked is called a(n) ______ interview.

A. desire to leave

B. stay

C. ease of movement

D. pulse

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Utilize Exit Interviews

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

24. Exit interviews help organizations make changes to increase ______.

A. feedback

B. control

C. power

D. retention

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Utilize Exit Interviews

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

25. Once data from exit interviews are analyzed, the results must be shared with ______ in order to be useful.

A. decision makers

B. employees

C. mentors

D. shareholders

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Analysis

Answer Location: Utilize Exit Interviews

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

26. Marek is asked to participate in an exit interview after resigning from his job. He is leaving because he is unhappy with some things his boss has done. His boss agreed to give him a positive reference. Marek worries that if he shares the real reason for leaving during an exit interview, his boss may withhold his reference. What does this exemplify?

A. why a person might distrust human resource professionals

B. why a person secures a positive reference before leaving

C. why a person may be reluctant to share the reason for their departure

D. why a person has little motivation to perform

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Application

Answer Location: Utilize Exit Interviews

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

27. In addition to exit interviews, human resource professionals also conduct ______ to find out why people are not leaving their jobs.

A. retention interviews

B. face-to-face interviews

C. stay interviews

D. telephone interviews

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Utilize Exit Interviews

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

28. Providing job candidates with information about their tasks, responsibilities, level of autonomy, job demands, and expected degree of change and stability are among the issues that would be included in a(n) ______.

A. performance appraisal

B. realistic job preview

C. employability assessment

D. job specification

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Hire for Fit

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

29. When human resource practice shows commitment to employees and increases embeddedness of employees, turnover is ______.

A. higher

B. steady

C. faster

D. lower

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Invest in High-Commitment HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

30. Which person is most likely to leave their job?

A. Someone who was recently promoted.

B. Someone who just returned to school.

C. Someone who recently completed a graduate degree.

D. Someone who wants to make a career change.

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Invest in High-Commitment HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

31. James returned to school and is using his tuition reimbursement benefit from the company to pay for his degree. What is BEST thing his employer can do to ensure they retain James after he graduates?

A. praise his accomplishment

B. provide a one-time bonus after graduation

C. give him a raise after graduation

D. provide a job that matches his new skill set

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Invest in High-Commitment HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

32. Employees expect their current work to enhance their ______. In other words, they expect to gain skills and abilities that will help them find a job and be successful in their careers.

A. job embeddedness

B. job satisfaction

C. employability

D. work engagement

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Invest in High-Commitment HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

33. ______ refers to an employee’s contentment with different facets of their work, including the work itself, supervision, pay, and advancement opportunities.

A. Job satisfaction

B. Work engagement

C. Ease of movement

D. Employability

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Focus on Turnover Predictors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

34. Roberto is happy at his new job. He likes the work, and the pay is good. His supervisor is supportive, and he sees opportunities for advancement. Roberto is likely experiencing ______.

A. job satisfaction

B. work engagement

C. job hopping

D. employability

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Application

Answer Location: Focus on Turnover Predictors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

35. ______ refers to feelings of emotional connection to work and a state of being where employees bring their personal selves to work.

A. Job satisfaction

B. Work engagement

C. Ease of movement

D. Employability

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Focus on Turnover Predictors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

36. Cathy feels emotionally connected to her work. What is this a sign of?

A. employability

B. engagement

C. positive feedback

D. work–life balance

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Application

Answer Location: Focus on Turnover Predictors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

37. Lei has small children at home and is caring for her ill mother while trying to work full-time. Which option would be good for the company and the employee?

A. if Lei left her job

B. offering tuition reimbursement

C. providing Lei with a promotion

D. allowing Lei to work remotely

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Analysis

Answer Location: Focus on Turnover Predictors

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

38. Kevin is offered a job at another company that interests him, but he decides to stay where he is because he has a strong bond with his manager. Steve, on the other hand, is also offered another job and decides to take it because he does not like the way his manager treats people and has a low trust in him. Kevin staying is an example of ______.

A. boomeranging

B. employability

C. management driving retention

D. bridge employment

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Application

Answer Location: Focus on Turnover Predictors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

39. Marion manages a team in an industry with high turnover. She makes sure that everyone is aware of what is going on with the work and that knowledge is accessible across the team. Marion is trying to ensure ______.

A. minimal loss of organizational knowledge

B. reduced need for onboarding of new hires

C. increased work engagement after an employee leaves

D. reduced loss of social capital

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Analysis

Answer Location: Learn How to Cope With Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

40. Because an organization’s former employees may provide useful business intelligence, serve as brand ambassadors, and even become customers of the organization, some companies deliberately invest in ______ relations and stay in touch with them.

A. boomerang

B. seniority

C. alumni

D. engagement

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Managing Relations With Former Employees

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

41. Felix’s manager, Cory, is disappointed that Felix is leaving his job but understands that he has a good opportunity with another company. Cory is happy that Felix will be leading a team for one of the company’s best prospective customers. He knows it will be important to maintain a good relationship with Felix as he will be instrumental in signing the new customer. What is this an example of?

A. leveraging alumni network

B. business intelligence

C. interpersonal tactics

D. company strategy

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Application

Answer Location: Managing Relations With Former Employees

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

42. Judith left a job but after some time returned. Judith is referred to as ______.

A. a risk

B. unstable

C. engaged

D. a boomerang

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Managing Relations With Former Employees

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

43. One benefit of hiring boomerang employees is that ______.

A. they probably will not stay long due to family obligations

B. their personal issues are resolved

C. onboarding takes less time due to mutual experience

D. they probably will not need another break from work

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Managing Relations With Former Employees

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

44. Departing employees are more likely to come back to a company if they left ______.

A. for personal reasons

B. due to boredom

C. due to interpersonal issues

D. related to a trust violation

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Comprehension

Answer Location: Managing Relations With Former Employees

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

45. Retirement is normally a type of ______.

A. voluntary turnover

B. involuntary turnover

C. satisfaction

D. dismissal

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Retirements

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

46. Many older workers are embracing ______ in the form of reducing one’s hours or reducing job demands within the same or a different organization instead of exiting the workforce.

A. voluntary turnover

B. boomerangs

C. bridge employment

D. employment at will

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Retirements

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

47. ______ systems aim to ensure that employees have a chance to correct their behavior before being dismissed from the organization.

A. Employment at will

B. Job embeddedness

C. Employability

D. Progressive discipline

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: When to Dismiss an Employee

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

48. Baldwin was fired from his job and afterward posted negative comments online about the company. This is an example of ______.

A. a blog

B. poor person–job fit

C. a cost of dismissal

D. poor work ethic

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Comprehension.

Answer Location: Costs of Dismissals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

49. An employee who is dismissed in a harsh way from an angry manager is MOST likely to respond with ______.

A. regret

B. anger

C. remorse

D. surprise

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Costs of Dismissals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

50. Bella is a human resource professional working with Jane, a manager. Jane is concerned that she may need to dismiss Carlo for performance issues. What is the first question Bella should ask Jane?

A. What is root cause of the performance issues?

B. When do you want to fire Carlo?

C. What does the team think about dismissing Carlo?

D. How do you want to tell Carlo about the dismissal?

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Analysis

Answer Location: When to Dismiss an Employee

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

51. Mario filed a discrimination complaint against his employer. The following week he was terminated from his job for harassing other employees. The timing of dismissal may look like ______, even though Mario has been disruptive.

A. bias

B. retaliation

C. negligence

D. poor judgment

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Analysis

Answer Location: When to Dismiss an Employee

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

52. ______ means that organizations have the right to terminate the employment of anyone at any time, and employees have the right to quit at any time.

A. Employment at will

B. Voluntary turnover

C. Unemployment insurance

D. Bridge employment

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: The Legal Side of Dismissals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

53. Carissa decides to quit her job. She investigated the laws in her state and found out that she is not required to give a 2-week notice. What is this an example of?

A. a bargaining agreement

B. unemployment insurance

C. implied contract

D. employment at will

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Application

Answer Location: The Legal Side of Dismissals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

54. Claude was dismissed from his job after performing jury duty. This suggests a violation of the ______ of employment at will.

A. implied contract

B. public policy exception

C. statutory exception

D. covenant of good faith

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Application

Answer Location: The Legal Side of Dismissals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

55. Suzette closed a deal for her company that should have resulted in a large commission payment. Her manager did not want to pay her and she was dismissed without her earned commission being paid. This is a violation of ______.

A. implied contract

B. covenant of good faith

C. statutory exception

D. verbal contract

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Application

Answer Location: The Legal Side of Dismissals

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

56. Ultimately, it is up to the employee’s ______ to communicate the news about a dismissal to the employee.

A. human resource partner

B. team

C. manager

D. coach

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: The Dismissal Interview

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

57. It is best to be straightforward when conducting a dismissal interview. According to the textbook, thanking an employee or mentioning strengths may seem ______.

A. apologetic

B. dishonest

C. helpful

D. patronizing

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: The Dismissal Interview

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

58. When layoffs are based on ______, the organization retains the workers who have been with the organization the longest and dismisses newer workers.

A. performance

B. pay

C. seniority

D. desire to leave

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Deciding Layoff Criteria

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

59. When ______ is used as the layoff criterion, the organization will retain those with high scores on their annual appraisals.

A. job embeddedness

B. pay

C. performance

D. employability

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Deciding Layoff Criteria

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

60. Why might a company decide to lay off employees?

A. financial pressures

B. to get rid of bad employees

C. to avoid paying bonuses

D. to avoid retraining

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Application

Answer Location: Involuntary Turnover: Layoffs

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

61. When John’s company decided to offshore, his job was eliminated. This is considered a(n) ______.

A. notification

B. layoff

C. voluntary turnover

D. early retirement

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Involuntary Turnover: Layoffs

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

62. What is it called when a company lays off employees due to a strategic decision to purchase some of its operation from a vendor?

A. turnover

B. offshoring

C. outsourcing

D. retirement

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Involuntary Turnover: Layoffs

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

63. Liza is being asked to pick up extra work after part of her team was laid off. What is a term used to describe Liza in relation to the layoff?

A. victim

B. survivor

C. volunteer

D. loyal

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Application

Answer Location: Costs of Layoffs

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

64. Lucida is a manager who recently had to lay off several people from her team. She has been feeling depressed and irritable lately. What could explain this change in relation to the layoffs?

A. Lucida is having a psychological reaction to the layoffs.

B. Lucida is tired from working extra hours.

C. Lucida is having a physiological reaction to the layoffs.

D. Lucida does not have a good work–life balance.

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Analysis

Answer Location: Costs of Layoffs

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

65. Raul was laid off but quickly found another job similar to his old job. Raul does not have any complaints about the new company. However, he soon left that job because he was unable to form a strong attachment with the new employer. Why might this scenario occur after a person has been laid off?

A. because layoffs result in a psychological contract violation

B. because layoffs contribute to a false sense of security

C. because layoffs result in poor dependability

D. because layoffs contribute to future disappointments

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Analysis

Answer Location: Costs of Layoffs

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

66. Individuals who are laid off are eligible for ______ to provide a temporary source of income.

A. a payroll tax

B. a tax refund

C. a bonus

D. unemployment insurance

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Costs of Layoffs

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

67. Unemployment insurance is a federal program administered by the ______.

A. local municipality

B. county

C. states

D. federal government

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Costs of Layoffs

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

68. Brycin was dismissed from his job due to misconduct. Although states’ laws vary, in most states, Brycin would be ______.

A. ineligible for unemployment insurance

B. eligible for unemployment insurance after a 30-day period

C. eligible for unemployment insurance for only 30 days

D. eligible for unemployment only if he had been employed full time

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Costs of Layoffs

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

69. Capri left her job voluntarily to travel. Is she eligible for unemployment benefits?

A. Yes, anyone who is unemployed is eligible.

B. Yes, if she worked at her job for more than 1 year.

C. Yes, if she will be unemployed for more than 60 days.

D. No, people who leave voluntarily are not eligible.

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Application

Answer Location: Costs of Layoffs

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

70. Colt is worried about layoffs at his company and fears he may lose his job. What is this an example of?

A. turnover

B. unhealthy work–life balance

C. an attitude problem

D. job insecurity

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Application

Answer Location: Benefits of Job Security

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

71. Job insecurity is often associated with an employee’s past experience with layoffs. However, it may also be due to an employee’s ______.

A. personality

B. sociability

C. emotionality

D. vulnerability

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Analysis

Answer Location: Benefits of Job Security

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

72. Having a zero-layoff policy is one way a company can build ______.

A. company debt

B. payroll expense

C. employee attachment

D. relationships with employees

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Benefits of Job Security

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

73. Drake is a human resource professional at a large company with impending layoffs due to a facility shutdown. As a result, he familiarizes himself with WARN and learns that employees must be given ______ written notice.

A. 30-day

B. 45-day

C. 60-day

D. 90-day

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: The Legal Side of Layoffs

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

74. ______ pay refers to payments made to departing employees during organizationally initiated turnover.

A. Severance

B. Performance

C. Unemployment

D. Bridge

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Severance Pay

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

75. When an employee is laid off, he or she may receive severance pay. Typically, severance pay is based on ______.

A. performance

B. regulations

C. length of service

D. unemployment tax rate

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Severance Pay

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

True/False

1. A strategic reason for layoff could be related to technology-related productivity improvements.

KEY: Learning Objective: 10.1: Describe multiple aspects of managing employee retention and separations.

REF: Cognitive Domain: Application

Answer Location: Understanding and Managing Employee Separations

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

2. Dismissal is a form of voluntary turnover.

KEY: Learning Objective: 10.1: Describe multiple aspects of managing employee retention and separations.

REF: Cognitive Domain: Comprehension

Answer Location: Understanding and Managing Employee Separations

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

3. One of the manifestations of withdrawal is early retirement.

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Voluntary Turnover

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

4. Knowing the turnover rate is not mandatory to manage turnover.

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

5. Some employees worry that being honest during an exit interview may cost them a positive reference.

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Knowledge

Answer Location: Utilize Exit Interviews

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

6. Best practice is to have an employee’s direct manager conduct an exit interview.

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Application

Answer Location: Utilize Exit Interviews

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

7. Even when an employee’s behavior is egregious, there are still important considerations to be accounted for when making a decision to fire her.

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Comprehension

Answer Location: Costs of Dismissals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

8. All organizations are required to have a progressive discipline system in place.

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: When to Dismiss an Employee

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

9. Some employees who are laid off may see it positively.

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Costs of Layoffs

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

10. Employees who leave voluntarily are eligible for unemployment benefits.

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Knowledge

Answer Location: Costs of Layoffs

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

Essay

1. Discuss three reasons why voluntary turnover is problematic for a company.

KEY: Learning Objective: 10.1: Describe multiple aspects of managing employee retention and separations.

REF: Cognitive Domain: Comprehension

Answer Location: Costs of Voluntary Turnover

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

2. Examine the reasons why people stay in their job, even when they may be interested in leaving.

KEY: Learning Objective: 10.2: Explain the costs of voluntary turnover to an organization.

REF: Cognitive Domain: Analysis

Answer Location: Causes of Voluntary Turnover

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

3. Explain how effective human resource professionals utilize exit interviews.

KEY: Learning Objective: 10.3: Identify the steps organizations should take to manage employee retention.

REF: Cognitive Domain: Analysis

Answer Location: Utilize Exit Interviews

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

4. Provide a scenario where you are a human resource professional terminating an employee. Analyze the dismissal interview, your role, and how you would tell the team about the termination in a way that helps them make sense of the change.

KEY: Learning Objective: 10.4: Indicate the costs of dismissals to an organization.

REF: Cognitive Domain: Analysis

Answer Location: Involuntary Turnover: Dismissals

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

5. Examine at least five ways a company might avoid layoffs.

KEY: Learning Objective: 10.5: Estimate the cost of employee layoffs to an organization.

REF: Cognitive Domain: Analysis

Answer Location: Benefits of Job Security

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

Document Information

Document Type:
DOCX
Chapter Number:
10
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 10 Managing Employee Separations And Retention
Author:
Talya Bauer

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