Chapter 15: Managing Employee Separations: Foundations of Employee Engagement , Communication, and Turnover Management

Question 1

Voluntary turnover:

Answer 1

-decision made by employee
=quit
=retirement
=resignation

Question 2

Involuntary turnover:

Answer 2

-decision made by employer
=Dismissal
=layoff

Question 3

The Cost of Turnover

Answer 3

• separation costs
• vacancy costs
• replacement costs
• training costs

Question 4

-separation costs

Answer 4

separation interview, administration, separation or severance pay

Question 5

-vacancy costs

Answer 5

temporary workers, overtime, loss of sales due to vacancy

Question 6

• replacement costs

Answer 6

recruiting/hiring replacement

Question 7

• training costs

Answer 7

for replacement (formal and informal)

Question 8

Voluntary Turnover: reasons for voluntary turnover:

Answer 8

• sub-optimal hiring practices
• difficult managerial style
• lack of recognition
• lack of competitive compensation systems
• toxic workplace environments

Question 9

Involuntary Turnover: reasons for involuntary turnover:

Answer 9

• unacceptable job performance
• economic/financial pressures
• new strategic direction

should be fair, after all reasonable steps taken to rehabilitate employment relationship

Question 10

Fair and Just Disciplinary Process: Foundations:

Answer 10

1. rules and regulations
   - clear expectations of acceptable behaviour
2. progressive discipline
   - warning, suspension, termination
3. appeals process
   - allow employee to present case

Question 11

Dismissal for Just Cause

Answer 11

• -termination based on poor behaviour

- -no severance or additional notice period required

Question 12

dismissal

Answer 12

involuntary termination of employment

Question 13

insubordination

Answer 13

• -disregard or disobedience of authority

- -often provides grounds for just cause

Question 14

Layoff

Answer 14

temporary withdrawal of employment to workers

Question 15

Conditions for Layoff

Answer 15

1. no work available
2. situation expected to be temporary
3. management intention to recall employees

Question 16

alternatives to layoffs

Answer 16

pay reduction, use of vacation time, contingent workers, work sharing

Question 17

distributive justice

Answer 17

fairness of a decision outcome

Question 18

procedural justice

Answer 18

fairness of the process used to make a decision

Question 19

interactional justice

Answer 19

fairness in interpersonal interactions by treating others with dignity and respect

Question 20

Employee-Employer Relationship: employment contract

Answer 20

–formal agreement between employer and employee

–employee cannot be prematurely dismissed without just cause if a term is specified

Question 21

Employee-Employer Relationship: Implied contract

Answer 21

• -indefinite period of time, may be terminated by either party with reasonable notice
• -more common

Question 22

Providing Reasonable Notice

Answer 22

–required when terminating an employee if just cause does not exist

–considerations:

    - rule of thumb is 3-4 weeks per year service
     - failure to provide notice may result in wrongful dismissal
      - large group terminations require more notice
     - avoid “bad faith conduct”
     - wrongful acts may result in punitive damages

Question 23

Constructive Dismissal

Answer 23

–employer makes unilateral changes in the employment contract that are unacceptable to the employee (demotion, reduction in pay and benefits, forced resignation)

–employee is eligible for reasonable notice

Question 24

Avoiding Wrongful Dismissal Suits

Answer 24

1. Use termination clause and probationary period in employment contracts
2. Document all disciplinary action
3. Do not allege just cause for dismissal unless it can be proven
4. Time the termination so that it does not conflict with special occasions
5. Clearly state a settlement offer in writing
6. Schedule the termination interview in a private location at a discrete time of day
7. Include two managers in the termination meeting

Question 25

The Termination Interview

Answer 25

1. Plan the interview
2. Get to the point
3. Describe the situation briefly
4. Listen
5. Review all elements of the severance package
6. Identify the next step

Question 26

Employee Engagement

Answer 26

–emotional and intellectual involvement of employees in their work

–creates vested interest in company’s success, willingness, and motivation to exceed job performance requirements

–effective communication is important to employee engagement

Question 27

Turnover

Answer 27

The termination of an individual’s employment with an organization

Question 28

Quitting

Answer 28

Voluntary, employee-initiated resignation

Question 29

retirees on call

Answer 29

a program where retirees can continue to work on a part-time or as-needed basis post-retirement

Question 30

phased retirement

Answer 30

potential retirees gradually reduce the number of hours worked per week over time.

Question 31

pre-retirement counselling

Answer 31

counselling provided to employees some months (or even years) before retirement, which covers such matters as benefits advice, second careers, and so on.

Question 32

dismissal

Answer 32

involuntary termination of an employee’s employment

Question 33

dismissal for just cause

Answer 33

an employer-initiated termination based on an employee’s poor behaviours; in these situations, no severance, reasonable notice periods, or additional payments beyond what the employee has already earned are owed.

Question 34

downsizing

Answer 34

refers to an intentional decision made by executives within the organization that involves a reduction of the workforce to improve efficiency or effectiveness of the organization by affecting the work process. Often the term layoff is used to define downsizing in research and organizations .

Question 35

wrongful dismissal

Answer 35

an employee dismissal that does not comply with the law or does not comply with a written or implied contractual arrangement

Question 36

reasonable notice legislation

Answer 36

laws that require an employer to notify employees in the event that they decide to terminate employees through layoffs (i.e. no just cause) . Minimum notice varies on size of the layoffs, with smaller layoffs determining minimum notice based on employee tenure and mass layoffs determining minimum notice based on total layoff size.

Question 37

bad-faith damages

Answer 37

Reserved for extreme circumstances in which the employers was untruthful, misleading, or unduly insensitive to the employee in the course of a dismissal.

Question 38

punitive damages

Answer 38

Reserved for malicious of outrageous cases in which an employer engages in harsh and vindictive treatment of an employee , or if the employee suffered undue distress from not being given adequate notice of termination.

Question 39

constructive dismissal

Answer 39

when the employer makes unilateral changes in the employment contract that are unacceptable to the employee, even through the employee has not been formally terminated.

Question 40

employee opinion surveys

Answer 40

communication devices that use questionnaires to ask for employees’ opinions about the company, management, and work life.