MGMT 2430 Study Guide - Final Guide: Layoff, Distributive Justice, Job Performance
Chapter 15: Managing Employee Separations
Questions:
1.Why is it important to manage employee separations?
• Who leaves, how they are treated during the exist, what the cause or
nature of the exit is, and how remaining employees perceive this all
impacts the long-term sustainability of the organization
2. How is turnover managed?
• Voluntary turnover – decision made by employee
o Quit
o Retirement
o Resignation
• Involuntary turnover – decision made by employer
o Dismissal
o Layoff
3. What are the costs of turnover?
• Separation costs
o Separation interview, administration, separation or severance
pay
• Vacancy costs – temporary workers, overtime, loss of sales due to
vacancy
• Replacement costs – recruiting/hiring replacement
• Training costs – for replacement
4. Describe the differences between voluntary and involuntary turnover.
• Voluntary
o Unanticipated challenges of replacing employee
o Reasons
▪ Suboptimal hiring practices
▪ Difficult managerial style
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