Deck 10: Downsizing and Restructuring

Question 1

What is one challenge that managers must confront when managing in times of uncertainty and potential downsizing?

A)focusing on the short term
B)paying attention to middle management
C)controlling the rumour mill
D)taking charge and minimizing involvement

Answer 1

C

Question 2

According to your textbook,what is the most common benefit provided to displaced workers?

A)job referral service
B)benefits continuation
C)family counselling
D)severance pay

Answer 2

D

Question 3

What organizational initiative provides a program of counselling and job search assistance for workers who have been terminated?

A)ethics
B)succession
C)outplacement
D)reintegration

Answer 3

C

Question 4

Downsizing became a huge phenomenon in the 1990s and then it waned.In which year did downsizing make a comeback?

A)2008
B)2009
C)2010
D)2011

Question 5

When survivors of downsizing continue to work for an organization,there are several impacts on them personally.Which of the following is NOT an impact experienced by survivors?

A)compliance with workplace safety
B)negative attitudes and behaviours
C)reduced performance capabilities
D)lower organizational productivity

Question 6

What is one HR program associated with embeddedness,given that downsizing is unavoidable?

A)flextime
B)off-site child care
C)defined-contribution plans
D)severance pay

Question 7

What should union officials and management protect when anticipating potential downsizing and restructuring?

A)human rights of employees
B)positive labour relations programs
C)wage and benefit concessions
D)labour-management climate

Question 8

If an organization wants to achieve an effective restructuring,what is one strategy that it might implement?

A)outsourcing
B)rightsizing
C)designing
D)rationalizing

Question 9

What time horizon is generally associated with systematic change related to downsizing and restructuring?

A)immediate
B)short-term
C)medium-term
D)long-term

Question 10

If employees believe that they will be rewarded for loyal service and feel protected by job security,what type of contract do they have?

A)employment contract
B)psychological contract
C)union contract
D)long-term contract

Question 11

Which of the following is a medium-term alternative to downsizing?

A)exit incentives
B)hiring freeze
C)mandatory vacation
D)reduced overtime

Question 12

According to Pfeffer,which of the following happens first when a layoff is announced?

A)Companies lose people they don't want to lose.
B)Morale declines and fear rises in the workplace.
C)People head for the door who have not been laid off.
D)Motivation,commitment,and job satisfaction decline.

Question 13

According to your textbook,what is the least commonly used restructuring and organizational change tactic?

A)across-the-board cuts
B)eliminating tasks
C)contracting out
D)use of part-time employees

Question 14

Which of the following is a medium-term strategy in which organizations focus on work processes and assess whether specific functions,products,and/or services should be changed or eliminated?

A)restructuring
B)systematic change
C)work redesign
D)workforce reduction

Question 15

Which of the following is a short-term strategy aimed at cutting the number of employees through programs such as attrition and early retirement?

A)work redesign
B)workforce reduction
C)systematic change
D)downsizing

Question 16

According to a poll of almost 7,000 employees discussed in your textbook,what personal strategy would the majority of individuals implement if they heard that their company was planning layoffs?

A)visit a lawyer and be aware of their legal rights
B)search for a new job before the layoffs occur
C)make sure that they remain invisible to the managers
D)spend more time at the office and less with family

Question 17

Perceptions of fairness and equity play a key role in understanding how survivors react to a downsizing.What type of justice is associated with the fairness of a downsizing decision?

A)procedural
B)interactional
C)distributive
D)manipulative

Question 18

How do you define job insecurity?

A)expectations about continuity and life employment
B)overall concern about the future existence of a job
C)inability to predict future employment
D)understanding of negative implications of job analysis

Question 19

What do you call an employee who remains with an organization after a downsizing?

A)employed
B)victim
C)survivor
D)talented

Question 20

Which of the following is a short-term strategy aimed at cutting the number of employees through programs such as voluntary severance packages and layoffs or terminations?

A)workforce reduction
B)downsizing
C)systematic change
D)work redesign

Question 21

What is an essential component that is necessary for senior management prior to developing a downsizing strategy?

A)knowing financial indicators
B)scanning the external environment
C)communicating with employees
D)creating a culture of trust

Question 22

What type of justice focuses on the interpersonal treatment employees receive during the implementation of the downsizing decision?

A)procedural justice
B)interactional justice
C)distributive justice
D)manipulative justice

Question 23

Perceptions of fairness and equity play a key role in understanding how survivors react to a downsizing.What type of justice is associated with the interpersonal treatment employees receive during the implementation of the downsizing decision?

A)procedural
B)interactional
C)distributive
D)manipulative

Question 24

In the research by Classen and Dunn,what is one of their major findings associated with job loss?

A)The risk for suicide increases with long periods of unemployment.
B)Losing a job can have positive benefits.
C)Employees are more likely to quit following a downsizing.
D)Cost-cutting is unlikely to disappear in the future.

Question 25

Which of the following is a short-term cost adjustment that an organization could consider to reduce costs?

A)exit incentives
B)extending reductions in salaries
C)voluntary sabbaticals
D)reduced work week

Question 26

Perceptions of fairness and equity play a key role in understanding how survivors react to a downsizing.What type of justice is associated with the procedures or rules used to determine which employees will be downsized?

A)procedural
B)interactional
C)distributive
D)manipulative

Question 27

What are three types of downsizing strategies?

A)systematic change,service reduction,restructuring
B)systematic change,work design,employee layoffs
C)work redesign,workforce reduction,systematic change
D)work redesign,bottom-line cost cutting,workforce reduction

Question 28

Which of the following is a medium-term cost adjustment that an organization could consider to reduce costs?

A)exit incentives
B)hiring freeze
C)mandatory vacation
D)reduced overtime

Question 29

What is one issue that has received little attention relative to downsizing?

A)reputation for corporate social performance
B)pension contributions and defined benefits
C)effects on long-term profitability and debt
D)employee satisfaction of survivors

Question 30

According to your textbookbook,what is the least common benefit provided to displaced workers?

A)job search support
B)benefits continuation
C)retraining assistance
D)severance pay

Question 31

An organization is paring back services.What type of downsizing strategy is it implementing?

A)systematic change
B)service reduction
C)work redesign
D)service cost cutting

Question 32

What type of strategy requires an organization to focus on work process and to assess whether specific functions,products,and/or services should be eliminated?

A)downsizing
B)workforce reduction
C)work redesign
D)systematic change

Question 33

According to your textbookbook,what is the main goal to be achieved if an organization is downsizing and restructuring with a systematic change strategy?

A)competitive advantage
B)environmental scanning
C)scenario planning
D)continuous improvement

Question 34

Historically,what issue necessitated so much of the emphasis on downsizing today?

A)organizations focused on growth
B)organizations focused on the bottom line
C)organizations focused on competitive advantage
D)organizations focused on stock prices

Question 35

An organization is implementing a downsizing strategy that requires the elimination of specific work processes and functions.What type of downsizing strategy is this organization executing?

A)culture redesign
B)workforce reduction
C)systematic change
D)work redesign

Question 36

What is another term that experienced downsizers might use to describe a workforce reduction or realignment?

A)reinventing
B)reorganizing
C)redistributing
D)revectoring

Question 37

According to your textbookbook,what is the relationship between job loss and social withdrawal?

A)inverse relationship
B)no relationship
C)negative relationship
D)positive relationship

Question 38

An organization is working with senior HR planners to develop a long-term downsizing strategy that changes not only the organization's culture and attitudes but also employees' values.The organization's goals are to reduce costs and enhance quality.What type of downsizing strategy is this organization developing?

A)downsizing
B)workforce reduction
C)work redesign
D)systematic change

Question 39

What is the relationship between downsizing and workplace safety for employees?

A)Downsizing results in greater safety for employees because there are fewer employees to monitor.
B)Downsizing results in lower levels of job satisfaction,which results in lower safety motivation.
C)Downsizing results in more job insecurity,which produces more turnover and sick days.
D)Downsizing results in higher safety compliance,which produces higher productivity.

Question 40

An organization is NOT taking a career management approach that would be aimed at absorbing displaced workers into other divisions of the organization.What is this organization NOT doing?

A)ethical placement
B)inplacement
C)outplacement
D)replacement

Question 41

What HR planning strategy refers to a career management approach aimed at reabsorbing excess or inappropriately placed workers into a restructured organization?

A)inplacement
B)outplacement
C)mentoring
D)career development

Question 42

Refer to Scenario: ConocoPhillips.What is the key reason why ConocoPhillips continues to downsize?

A)to improve its competitive position
B)to cut back its deep water and Alberta oil sands exploration projects
C)global financial crisis
D)lower spending forecasts and less deep water exploration work

Question 43

Refer to Scenario: ConocoPhillips.ConocoPhillips is implementing a downsizing strategy that requires the elimination of specific work processes and functions.What type of downsizing strategy is it adopting?

A)downsizing
B)workforce reduction
C)work redesign
D)systematic change

Question 44

Jobs are being dramatically altered due to several factors such as artificial intelligence and computerization.Which of the following is an important factor resulting from the intelligence resolution shaping the future of work?

A)The concept of a job has been fundamentally changed.
B)A declining number of employees are consultants.
C)Both humans and machines are learning faster.
D)Technological change will result in limited disruption.

Question 45

Several alternatives to downsizing are available to organizations faced with the challenge of cutting costs.Which of the following is a medium-term cost adjustment alternative?

A)reducing salaries
B)voluntary sabbaticals
C)short-term facility shutdowns
D)obtaining cost-reduction ideas from employees

Question 46

Refer to Scenario: ConocoPhillips.ConocoPhillips is paring back its deep water and Alberta oil sands exploration projects and is laying off workers.What type of downsizing strategy is the company implementing?

A)systematic change and operation reductions
B)work redesign and workforce reduction
C)work redesign and bottom line cost cutting
D)systematic change and work design

Question 47

Which of the following terms best defines the type of interpersonal treatment employees receive during the implementation of the downsizing decision?

A)procedural justice
B)interactional justice
C)distributive justice:
D)psychological contract

Question 48

Refer to Scenario: ConocoPhillips.ConocoPhillips is working with senior HR planners to develop a long-term downsizing strategy that changes not only the organization's culture and attitudes but also employees' values.The company's goals are to reduce costs and enhance quality.What type of downsizing strategy is it adopting?

A)culture change
B)workforce reduction
C)work redesign
D)systematic change

Question 49

Which of the following is a long-term strategy characterized by changing the organization's culture and the attitudes and values of employees with the ongoing goal of reducing costs and enhancing quality?

A)work redesign
B)restructuring
C)systematic change
D)workforce reduction

Question 50

What type of organizational restructuring involves changes in the mix and/or percentage makeup of the organization's businesses?

A)portfolio restructuring
B)financial restructuring
C)organizational restructuring
D)workforce restructuring

Question 51

What HR planning strategy focuses on the provision of a program of counselling and job search assistance for workers who have been terminated?

A)mentoring
B)inplacement
C)outplacement
D)career development

Question 52

Which of the following terms best defines the fairness of the downsizing decision?

A)psychological contract
B)procedural justice
C)distributive justice
D)interactional justice

Question 53

Refer to Scenario: ConocoPhillips.Which of the following is a short-term cost adjustment that ConocoPhillips could consider to reduce costs?

A)exit incentives
B)lending workers
C)extending reductions in salary
D)reducing overtime

Question 54

Refer to Scenario: ConocoPhillips.What is the main reason that ConocoPhillips is downsizing?

A)restructuring of exploration work
B)declining company profits
C)low company share prices
D)lower spending forecasts and less deep water exploration work

Question 55

Refer to Scenario: ConocoPhillips.What two downsizing strategies is ConocoPhillips implementing?

A)combining systematic change and workforce reduction
B)combining systematic change and work redesign
C)combining work redesign and workforce reduction
D)combining work redesign and bottom-line cost cutting

Question 56

Several alternatives to downsizing are available to organizations faced with the challenge of cutting costs.Which of the following is a short-term cost adjustment alternative?

A)extending reductions in salary
B)lending employees
C)exit incentives
D)hiring freeze

Question 57

Which of the following terms best defines an unwritten commitment between employers and their employees that historically guaranteed job security and rewards for loyal service?

A)distributive justice
B)psychological contract
C)procedural justice
D)interactional justice

Question 58

There are several alternatives to downsizing available to organizations.Which of the following is a medium-term cost adjustment alternative?

A)mandatory vacation
B)reducing the workweek
C)voluntary sabbaticals
D)reducing overtime

Question 59

What type of organizational restructuring involves changes such as reducing cash flow or increasing levels of debt?

A)financial restructuring
B)business restructuring
C)strategic restructuring
D)portfolio restructuring

Question 60

What type of organizational restructuring involves any major reconfiguration of internal administrative structure that is associated with an intentional management change program?

A)workforce restructuring
B)organizational restructuring
C)portfolio restructuring
D)financial restructuring

Question 61

Downsizing is unlikely to disappear in the future because it helps to alleviate the huge financial burdens facing many organizations.

Question 62

There is considerable evidence that workforce reduction programs ultimately achieve their objectives of cutting costs.

Question 63

Offshoring occurs when an organization moves work to foreign entities outside the company.

Question 64

Refer to Scenario: ConocoPhillips.ConocoPhillips is NOT taking a career management approach that would be aimed at absorbing displaced workers into other divisions of the organization? What is ConocoPhillips NOT doing?

A)ethical placement
B)inplacement
C)outplacement
D)replacement

Question 65

Interactional justice refers to the interpersonal treatment employees receive during the implementation of the downsizing decision.

Question 66

Outsourcing refers to the reabsorbing of excess or inappropriately placed workers into a restructured organization.

Question 67

Refer to Scenario: ConocoPhillips.ConocoPhillips is providing job referral services and job search assistance for workers who have been terminated.What is this organizational initiative called?

A)ethics
B)succession
C)outplacement
D)reintegration

Question 68

Outplacement is providing a program of counselling and job search assistance for workers who have been terminated.

Question 69

There are three types of downsizing strategies: workforce reduction,work redesign,and systemic change.

Question 70

Many organizations are reactive to downsizing instead of proactive.

Question 71

Systematic change is a short-term strategy.

Question 72

A downsizing strategy seeks to improve an organization's efficiency by reducing the workforce,redesigning the work,or changing the systems of the organization.

Question 73

Some researchers have found evidence that the longer a person is unemployed,the higher the person's risk for suicide.

Question 74

A psychological contract is a written commitment between employers and their employees that guarantees job security and rewards for loyal behaviour.

Question 75

Inplacement provides a program of counselling and job search assistance for workers who have been terminated.

Question 76

Refer to Scenario: ConocoPhillips.Which of the following is a medium-term cost adjustment that ConocoPhillips could consider to reduce costs?

A)exit incentives
B)hiring freeze
C)mandatory vacation
D)reducing overtime

Question 77

Work redesign is a short-term strategy,whereas workforce reduction is a medium-term strategy.

Question 78

Downsizing may be considered a breach of the unwritten employment contract between employers and their employees.

Question 79

Refer to Scenario: ConocoPhillips.Which of the following is a short-term cost adjustment that ConocoPhillips is implementing to reduce costs?

A)exit incentives
B)exploration work shutdowns
C)extending reductions in salary
D)voluntary sabbaticals

Question 80

There are three types of restructuring: portfolio,human capital,and organizational.