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Chapter: Chapter 07: Managing Employee Retention and Separation
True/False
1. Fortunately, the loss to an organization from an employee leaving employment is captured in the costs to hire a replacement employee.
Answer: False
Difficulty: Medium Page: 252
Ref: How Can Strategic Employee Retention and Separation Make an Organization Effective?
2. Ensuring that nonproductive employees leave an organization is just as important as retaining productive workers.
Answer: True
Difficulty: Easy Page: 252
Ref: How Can Strategic Employee Retention and Separation Make an Organization Effective?
3. Maximizing employee retention is a strategy that should be followed by all organizations.
Answer: False
Difficulty: Easy Page: 255
Ref: How Are Employee Retention and Separation Strategic?
4. Employees whose performance is in the middle range are most likely to remain with an organization.
Answer: True
Difficulty: Easy Page: 256
Ref: How Can Undesirable Employee Turnover Be Reduced?
5. Functional turnover is desirable and occurs when low performing employees voluntarily quit.
Answer: True
Difficulty: Easy Page: 257
Ref: How Can Undesirable Employee Turnover Be Reduced?
6. When a high or low performing employee chooses to leave it is highly disruptive for an organization.
Answer: False
Difficulty: Easy Page: 257
Ref: How Can Undesirable Employee Turnover Be Reduced?
7. Employees usually do not reflect much concerning a decision to quit; rather, quitting is in response to immediate events
Answer: False
Difficulty: Easy Page: 258
Ref: How Can Undesirable Employee Turnover Be Reduced?
8. An important part of each employee decision to quit is a lack of satisfaction with the current state in their current employment.
Answer: True
Difficulty: Easy Page: 260-261
Ref: How Can Undesirable Employee Turnover Be Reduced?
9. An employee decision to quit is always proceeded by a specific event that creates a sense of dissatisfaction with the status quo.
Answer: False
Difficulty: Medium Page: 259
Ref: How Can Undesirable Employee Turnover Be Reduced?
10. When work is consistent with employees’ values and needs, job satisfaction is likely to be high.
Answer: True
Difficulty: Easy Page: 260
Ref: How Can Undesirable Employee Turnover Be Reduced?
11. Overall, job satisfaction varies among organizations as well as among individuals.
Answer: True
Difficulty: Easy Page: 261
Ref: How Can Undesirable Employee Turnover Be Reduced?
12. Organizations with more satisfied employees tend to be more productive.
Answer: True
Difficulty: Medium Page: 261
Ref: How Can Undesirable Employee Turnover Be Reduced?
13. All dissatisfied employees eventually quit their jobs.
Answer: False
Difficulty: Easy Page: 262
Ref: How Can Undesirable Employee Turnover Be Reduced?
14. Some people are predisposed toward either high or low levels of satisfaction regardless of the work environment.
Answer: True Difficulty: Easy
Page: 262
Ref: How Can Undesirable Employee Turnover Be Reduced?
15. Withdrawal occurs when an employee who is dissatisfied pulls away from the organization over time. Early signs of employee withdrawal include: absenteeism, increased lateness, and decreasing commitment
Answer: True
Difficulty: Easy Page: 262
Ref: How Can Undesirable Employee Turnover Be Reduced?
16. People with chronically low job satisfaction tend to experience negative moods in all aspects of their lives.
Answer: True
Difficulty: Easy Page: 262
Ref: How Can Undesirable Employee Turnover Be Reduced?
17 Organizations seeking to reduce employee turnover frequently measure their employees’ job satisfaction.
Answer: True
Difficulty: Easy Page: 263
Ref: How Can Undesirable Employee Turnover Be Reduced?
18. Once an employee has decided to quit it is often too late to do anything to change that individual’s mind about leaving.
Answer: True
Difficulty: Easy Page: 262
Ref: How Can Undesirable Employee Turnover Be Reduced?
19. Job satisfaction survey results will likely make things appear more positive than they are.
Answer: True
Difficulty: Medium Page: 264
Ref: How Can Undesirable Employee Turnover Be Reduced?
20. Effective socialization begins when employees are given critical information that helps them understand the organization.
Answer: True
Difficulty: Easy Page: 264
Ref: How Can Undesirable Employee Turnover Be Reduced?
21. The job analysis process is often used to help newcomers to an organization adjust.
Answer: False
Difficulty: Easy
Page: 265: Technology in HR
Ref: How Can Undesirable Employee Turnover Be Reduced?
22. As employees acquire information about an organization through socialization they are more likely to experience increased feelings of fit with the organization.
Answer: True
Difficulty: Easy Page: 264
Ref: How Can Undesirable Employee Turnover Be Reduced?
23. Research indicates that socialization/orientation programs must include personal interactions.
Answer: True
Difficulty: Easy Page: 264
Ref: How Can Undesirable Employee Turnover Be Reduced?
24. Job satisfaction and general life satisfaction are related so conflict between work and family roles reduces happiness both on and off the job.
Answer: True
Difficulty: Easy Page: 268
Ref: How Can Undesirable Employee Turnover Be Reduced?
25. Layoffs are employee terminations related specifically to job performance.
Answer: False
Difficulty: Easy Page: 269
Ref: How Do Layoffs Affect Individuals and Organizations?
26. Firms that downsize have higher performance in subsequent years because they have reduced labor costs.
Answer: False
Difficulty: Easy Page: 269
Ref: How Do Layoffs Affect Individuals and Organizations?
27. Individuals with low work centrality suffer much less from job loss than those with high work centrality.
Answer: False
Difficulty: Easy Page: 270
Ref: How Do Layoffs Affect Individuals and Organizations?
28 Two factors that influence how a laid off employee copes with the layoff are the quality of the new job acquired after layoff and perceptions of the fairness surrounding the layoff process.
Answer: True
Difficulty: Medium Page: 270
Ref: How Do Layoffs Affect Individuals and Organizations?
29. Employees who survive a layoff who are the primary wage earners in their households are more likely to voluntarily begin searching for a new job
Answer: True
Difficulty: Medium Page: 272
Ref: How Do Layoffs Affect Individuals and Organizations?
30 When an organization needs to lay off employees, it is best to lay off employees across the board, regardless of their level of performance.
Answer: False
Difficulty: Easy Page: 273
Ref: How Do Layoffs Affect Individuals and Organizations?
31 Not replacing people who leave an organization is a quick and effective means for downsizing.
Answer: False
Difficulty: Easy Page: 273
Ref: How Do Layoffs Affect Individuals and Organizations?
32. Plans to lay off employees should be announced to employees and the media simultaneously.
Answer: False
Difficulty: Easy Page: 273-274
Ref: How Do Layoffs Affect Individuals and Organizations?
33. The steps of progressive discipline must always be followed regardless of the nature of an employee’s misconduct.
Answer: False
Difficulty: Easy Page: 275-276
Ref: What Are Common Steps in Disciplining Employees?
34 During a dismissal meeting the manager should not directly tell the employee that he/she is being dismissed or terminated; rather the message should be upbeat to allow the employee to save face.
Answer: False
Difficulty: Easy Page: 278
Ref: How Should Employee Dismissals Be Carried Out?
35. Severance compensation is payment so a dismissed employee will not file a lawsuit against the organization.
Answer: False
Difficulty: Easy Page: 279
Ref: How Should Employee Dismissals Be Carried Out?
Multiple Choice
36. Benefits of an emphasis on employee retention include all of the following EXCEPT:
a) reduced recruiting expenses
b) retaining employees supports HR strategy, regardless of an organization’s strategy.
c) employees have a sense of security that persuades them to work for slightly lower wages than they may be able to earn elsewhere.
d) employee retention helps build a workforce with unique skills.
Answer: b
Difficulty: Medium Page: 254-255
Ref: How Are Employee Retention and Separation Strategic?
37 For an organization with a Free Agent HR strategy:
a) the organization seeks to attract a large number of applicants who may have the characteristics that are needed to perform the specific job.
b) some employee turnover is desirable, since those who leave can be replaced by individual with more-up-to-date knowledge and skills.
c) employee retention is of primary importance for the organization
d) the organization emphasizes employee commitment to avoid turnover.
Answer: b
Difficulty: Medium
Page: 256
Ref: How Are Employee Retention and Separation Strategic?
38. For organizations pursuing a differentiation strategy:
a) employee retention is not an issue because the organization hires the lowest cost labor
b) retaining employees is extremely important
c) employee separations can be an important part of the strategy
d) there’s little emphasis on removing low performers
Answer: c
Difficulty: Medium
Page: 255
Ref: How Are Employee Retention and Separation Strategic?
39. An organization pursuing a Loyal Soldier HR strategy:
a) is not concerned with employee separations
b) usually puts little emphasis on employee retention
c) can benefit from employee separations
d) seeks to manage employee separations
Answer: d
Difficulty: Easy
Page: 256
Ref: How Are Employee Retention and Separation Strategic?
40 An organization with a Bargain Laborer HR strategy:
a) is not especially concerned with effective management of employee separation
b) places emphasis on retaining high performing employees
c) places emphasis on retention because of recruiting and hiring costs
d) places emphasis on removing low performers
Answer: a
Difficulty: Easy Page: 256
Ref: How Are Employee Retention and Separation Strategic?
41 Dysfunctional retention:
a) occurs when a high performing employee remains employed with the organization
b) occurs when a low performing employee remains with the organization
c) occurs when all turnover is low
d) is critical for the Committed Expert HR strategy
Answer: b
Difficulty: Easy Page: 257
Ref: How Can Undesirable Employee Turnover Be Reduced?
42. Functional turnover:
a) occurs when an employee whose performance is at least adequate voluntarily quits
b) occurs when low performing employees quit
c) occurs when all turnover is low
d) occurs when high performing employees remain employed
Answer: b
Difficulty: Easy Page: 257
Ref: How Can Undesirable Employee Turnover Be Reduced?
43. Dysfunctional turnover:
a) occurs when a low performing employee remains employed with the organization
b) occurs when a high performing member of the organization quits
c) occurs when any employee who is a member of the organization quits
d) occurs when a high performing member of the organization remains employed
Answer: b
Difficulty: Medium Page: 257
Ref: How Can Undesirable Employee Turnover Be Reduced?
44 Employee dissatisfaction with their current state at work:
a) does not influence tendency to quit
b) is unlikely to lead to quitting
c) can lead to withdrawal and thoughts of quitting
d) usually leads to immediate quitting
Answer: c
Difficulty: Easy Page: 260
Ref: How Can Undesirable Employee Turnover Be Reduced?
45 Employee satisfaction:
a) has little influence on employee retention
b) is consistent across all aspects of an employee’s work situation
c) results in happier employees being more productive when satisfaction is high
d) is totally separate from employee life satisfaction
Answer: c
Difficulty: Easy Page: 261
Ref: How Can Undesirable Employee Turnover Be Reduced?
46. Which of the following is NOT a dimension of job satisfaction?
a) Satisfaction with job fulfillment
b) Satisfaction with security
c) Satisfaction with pay
d) Satisfaction with social relationships in the organization
Answer: d
Difficulty: Easy Page: 261, Table 7.1
Ref: How Can Undesirable Employee Turnover Be Reduced?
47 Employee withdrawal:
a) occurs when employers use effective means such as exit interviews to gather information from departing employees
b) results in short-term increases in productivity as an employee tries to make a decision about remaining with an employer
c) results in an employee feeling less obligated to work for their organization’s success
d) most all the time results in the employee leaving the organization
Answer: c
Difficulty: Medium Page: 261
Ref: How Can Undesirable Employee Turnover Be Reduced?
48 Which of the following is NOT true about an employee’s decision to leave their employment?
a) Once an employee decides to quit, offering a significant pay raise will likely result in them remaining employed with the organization
b) The decision to quit is influenced significantly by the availability of desirable job alternatives
c) People are more likely to stay with their current job when they perceive high economic and psychological costs of quitting
d) Some employees are simply more likely than others to leave organizations
Answer: a
Difficulty: Medium Page: 262
Ref: How Can Undesirable Employee Turnover Be Reduced?
49. A dissatisfied employee:
a) will almost always make the decision to leave the organization
b) will almost always look for alternative employment
c) will almost always stay in their current job when they perceive it is difficult to find an alternative job
d) will almost always leave, regardless of psychological or economic costs
Answer: c
Difficulty: Medium Page: 262
Ref: How Can Undesirable Employee Turnover Be Reduced?
50. Which of the following is NOT likely to reduce turnover?
a) Developing fair pay practices
b) The establishment of quick and fair grievance procedures
c) Providing growth and promotion opportunities
d) The use of idealistic job previews
Answer: d
Difficulty: Easy Page: 263, Table 7.2
Ref: How Can Undesirable Employee Turnover Be Reduced?
51. Which of the following is NOT true about job satisfaction?
a) A common survey that measures satisfaction is the Job Descriptive Index
b) Job satisfaction is another component of job analysis
c) Job satisfaction data provides insight into areas of concern and helps an organization determine which aspects of the work experience might need improvement
d) Job satisfaction surveys include questions to assess facets of work such as satisfaction about work tasks, pay, promotions, co-workers and supervision
Answer: b
Difficulty: Medium Page: 263-264
Ref: How Can Undesirable Employee Turnover Be Reduced?
52 Job satisfaction surveys:
a) should ask routine questions such as length of time worked at the organization near the beginning of the survey
b) are oftentimes not completed by the least satisfied employees
c) are usually not completed by very satisfied employees
d) should not contain questions concerning the organization’s strategic objectives as job satisfaction questionnaires should focus on the individual
Answer: b
Difficulty: Medium Page: 264
Ref: How Can Undesirable Employee Turnover Be Reduced?
53. People are more likely to leave an organization:
a) when the organization has programs that support diversity
b) when job satisfaction surveys are used
c) when they are risk averse
d) when they perceive that they are very different from other members of the organization
Answer: d
Difficulty: Medium Page: 264
Ref: How Can Undesirable Employee Turnover Be Reduced?
53. Socialization:
a) begins during the job analysis process
b) is best accomplished outside of work hours
c) should not occur between an employee and supervisor
d) is the process through which a new employee acquire knowledge and behaviors needed to be a member of an organization
Answer: d
Difficulty: Easy
Page: 264
Ref: How Can Undesirable Employee Turnover Be Reduced?
54. Which of the following statements is NOT true about employee perceived organizational support?
a) Perceived organizational support is employees’ beliefs about the extent to which an organization values their contributions and cares about their well-being
b) Employees who perceive organizational support are more committed to remaining with an organization
c) The actions of top level organizational leaders are not important; rather, the actions of the Human Resource personnel are more critical
d) Better compensation practices, better-designed jobs, fairness of procedures, and absence of politics are critical for building positive perceptions of organizational support
Answer: c
Difficulty: Medium
Page: 264-265
Ref: How Can Undesirable Employee Turnover Be Reduced?
55. Which of the following is NOT true about computer-based socialization?
a) Computer-based socialization is as effective as in person socialization for conveying information about an organization’s goals, politics and people
b) Computer-based socialization results in lower levels of employee satisfaction
c) Computer-based socialization results in lower levels of employee commitment
d) Computer-based socialization is not helpful in developing social relationships in the organization
Answer: a
Difficulty: Medium
Page: 265: Technology in HR
Ref: How Can Undesirable Employee Turnover Be Reduced?
56. Organizations seeking to increase employee embeddedness:
a) should more frequently conduct job analysis on employee positions
b) should provide enjoyable work, strong promotional opportunities and good benefits
c) should ensure that employees work standardized work hours so balancing work and family responsibilities is possible
d) should have a strong policy that discourages employee associations outside of work hours.
Answer: b
Difficulty: Easy Page: 268
Ref: How Can Undesirable Employee Turnover Be Reduced?
57. Which factor(s) influence positively how an individual will cope with job loss?
a) Low work-role centrality
b) Perceptions that the layoff process was unfair
c) Finding a job immediately, regardless of what it is
d) Perception that the job loss resulted from something they did wrong
Answer: a
Difficulty: Medium
Page: 270
Ref: How Do Layoffs Affect Individuals and Organizations?
58. Layoff Survivors:
a) do not have a negative reaction to lay-offs since they remain employed after a lay-off
b) oftentimes think it is just a matter of time until they are laid off as well, so performance suffers among layoff survivors
c) may begin to search voluntarily for new jobs
d) are more likely to request a job analysis after a lay-off
Answer: c
Difficulty: Easy
Page: 272
Ref: How Do Layoffs Affect Individuals and Organizations?
59 Which of the following is NOT a viable alternative to layoffs?
a) Using financial incentives to induce employees near retirement age to retire early
b) Having employees perform work tasks that might have been outsourced to other firms
c) Having employees share jobs so that neither works a full-time week
d) Flexible schedules and benefits to accommodate work and life balance
Answer: d
Difficulty: Easy Page: 272, Table 7.3
Ref: How Do Layoffs Affect Individuals and Organizations?
60. Which of the following would NOT help minimize the negative effects of layoffs?
a) Identify the business need
b) Involve HR staff
c) Identify past work
d) Analyze adverse impact
Answer: c
Difficulty: Medium Page: 273, Table 7.4
Ref: How Do Layoffs Affect Individuals and Organizations?
61. Due process:
a) is markedly different for different organizations
b) requires that every level of disciplinary action be in writing
c) ensures that layoff notices are given in a timely fashion
d) is a set of procedures carried out in accordance with established rules and principles
Answer: d
Difficulty: Easy Page: 275
Ref: What are Common Steps in Disciplining Employees?
62 The ultimate goal of discipline is:
a) to reduce the number of employees on the payroll
b) to dismiss employees whose behavior does not contribute to the organization
c) to avoid legal issues
d) to change employee behavior so the employee can become a contributing member of the organization
Answer: d
Difficulty: Easy Page: 274
Ref: What are Common Steps in Disciplining Employees
63. Which of the following provides a set of principles for due process that is supported by court cases and labor arbitrators?
a) Communication of clear expectations for acceptable performance, allowing an employee to present their case and consistent discipline
b) Communication of consequences for inappropriate behaviors, careful investigation, confirmation by witnesses, and punishment consistent with the nature of the offense
c) Communication of clear expectations for acceptable performance, careful investigation of facts and circumstances, an opportunity for employees to provide their version of events, and punishment consistent with the nature of the offense
d) Communication of consequences for inappropriate behaviors, an investigation, presentation of witnesses, consistent punishment and the opportunity for an employee to appeal any decision
Answer: c
Difficulty: Hard Page: 275
Ref: What Are Common Steps in Disciplining Employees?
64. Progressive discipline
a) provides successively more severe punishment for each occurrence of negative behavior
b) always has a follow-up action
c) never results in termination of employment
d) always results in termination of employment
Answer: a
Difficulty: Easy Page: 276
Ref: What Are Common Steps in Disciplining Employees?
65 Most progressive discipline systems include the following steps:
a) written warning, suspension, discharge, and appeal of discharge
b) verbal warning by first level supervisor, verbal warning by second level supervisor, written warning by second level supervisor, and discharge
c) verbal warning, suspension, discharge and appeal of discharge
d) verbal warning, written warning, suspension and final written warning that a repeat of behavior will result in discharge
Answer: d
Difficulty: Medium
Page: 276, Figure 7.7
Ref: What Are Common Steps in Disciplining Employees?
66. Which of the following is a common problem with progressive discipline?
a) A pattern of constructive discipline
b) An inappropriate channel is used
c) Supervisors are sometimes unwilling to take the first step in the process
d) Employee appeals delay implementation
Answer: c
Difficulty: Easy Page: 277
Ref: What Are Common Steps in Disciplining Employees?
67. Outplacement services:
a) are usually paid for by an employee union
b) are generally more effective if an outside firm is employed
c) are generally more effective if provided by the organization’s human resource professionals
d) are not allowed to include actual job leads
Answer: b
Difficulty: Medium Page: 278
Ref: How Should Employee Dismissals Be Carried Out?
68. Notification that an employee is being dismissed:
a) is best delivered in person
b) is best delivered using e-mail so an employee learns the news in a private setting
c) is best delivered on a Friday
d) is best delivered in a private meeting with only the employee and supervisor present
Answer: a
Difficulty: Medium Page: 278
Ref: How Should Employee Dismissals Be Carried Out?
69. Which of the following is NOT true about employee dismissal?
a) Employees should be dismissed on Friday so they have the weekend with family and friends to help them recover
b) It is important to tell an employee directly that he or she is being dismissed
c) Outplacement services help employees who have been dismissed to copy with job loss
d) Severance compensation provides money to an employee as part of a dismissal package.
Answer: a
Difficulty: Easy Page: 278
Ref: How Should Employee Dismissals Be Carried Out?
70. Severance compensation
a) is only given if an employee agrees not to file a lawsuit after dismissal
b) is only given if an employee agrees not to file a discrimination complaint
c) provides money to an employee to help cover living expenses during a period of unemployment
d) is usually paid during the dismissal meeting so it is easier to dismiss an employee and to allow the employee to save face
Answer: c
Difficulty: Medium Page: 279
Ref: How Should Employee Dismissals Be Carried Out?
Short Answer
71. _________ occurs when an employee makes a decision to leave an organization.
Answer: Voluntary turnover
Difficulty: Easy Page: 257
Ref: How Can Undesirable Employee Turnover Be Reduced?
72. _____ occurs when an employee whose performance is at least adequate voluntarily quits.
Answer: Dysfunctional turnover
Difficulty: Easy Page; 257
Ref: How Can Undesirable Employee Turnover Be Reduced?
73. ________ is employee feelings and beliefs about the quality of their jobs.
Answer: Job satisfaction
Difficulty: Easy
Page: 260
Ref: How Can Undesirable Employee Turnover Be Reduced?
74. An interview with an employee who is leaving to determine why the employee decided to quit is called the ____ ___.
Answer: exit interview
Difficulty: Easy
Page: 263
Ref: How Can Undesirable Employee Turnover Be Reduced?
75. Employees are more _________ in an organization when they have strong connections to others, when they have values and goals that fit with their environment, and when they feel leaving would result in monetary or psychological losses.
Answer: embedded
Difficulty: Medium
Page: 268
Ref: How Can Undesirable Employee Turnover Be Reduced?
76 When an organization engages in widespread layoffs intended to permanently reduce the size of its workforce, it is said to be _________.
Answer: downsizing
Difficulty: Easy
Page: 269
Ref: How Do Layoffs Affect Individuals and Organizations?
77. A set of procedures carried out in accordance with established rules and principles and aimed at ensuring fairness is called ___________.
Answer: due process
Difficulty: Medium Page: 275
Ref: What Are Common Steps in Disciplining Employees?
78. A process which involves management providing successively more severe punishment for each occurrence of negative behavior is ___________.
Answer: progressive discipline
Difficulty: Easy Page: 276
Ref: What Are Common Steps in Disciplining Employees?
Essays
79 List and discuss alternative actions an organization can take to limit layoffs.
A. Reduce work hours
B. Reassign workers
C. Lend employees
D. Reduce hiring
E. Cut costs
F. Encourage voluntary separation
Difficulty: Medium Page: 272, Table 7.3
Ref: How Do Layoffs Affect Individuals and Organizations
80. Discuss progressive discipline what is it, why do employers use it and what are the most common four steps in a progressive discipline process?
Answer:
A. progressive discipline is a due process that provides successively more severe punishment for each occurrence of negative behavior
B. organizations use progressive discipline to provide a due process that allows an employee to correct misbehavior
C. most progressive discipline systems include the following steps:
1. a verbal warning when the supervisor clearly communicates what the employee did wrong and consequences for future inappropriate behaviors
2. a written warning, usually placed in the employee’s personnel file for a period of time
3. a suspension that is usually without pay
4. discharge from the organization
Difficulty: Medium
Page: 275-277, Figure 7.7
Ref: What Are Common Steps in Disciplining Employees?