Title: Employee Termination
Course: Question Banks

Q: Which of the following best describes downsizing?
- Reducing the amount of supplies and resources in order to reduce costs (Incorrect. While cutting back on resources can save companies money, it is not the primary function of a company downsizing.)
- Restructuring and organization to reduce its size (Incorrect. This is a more accurate description for rightsizing, which is slightly different from downsizing. Revisit the material from this section to read about the nuanced differences between the two terms and try again.)
- Switching from a brick and mortar office space to a virtual one (Incorrect. Switching from an actual office to a virtual one has the ability to cut costs but is not usually associated with downsizing. Revisit the information from this section and make a different selection.)
- Terminating a large number of employees to cut overhead costs (Correct. Companies decide to downsize for a number of reasons including poor economic conditions, a merger or acquisition, or after the elimination of a product or service.)
A: Terminating a large number of employees to cut overhead costs

Q: Which of the following best describes the differences between downsizing and rightsizing?
- Rightsizing drastically reduces the size of a company, while downsizing is the reorganization of the organization. (Incorrect. Rightsizing is focused on restructuring the organization and layoffs may occur as a side effect. Review this section and try again.)
- Downsizing and rightsizing are the same thing. (Incorrect. Downsizing and rightsizing are very similar, however, they do have a few differences that can help to differentiate between the two. Revisit the section and make a different selection.)
- Downsizing does not require companies to hire new employees to replace the terminated ones, while rightsizing does. (Incorrect. Both downsizing and rightsizing aim to reduce costs and it would be counterintuitive to replace eliminated positions and employees with new ones. Revisit the information discussed in this section and try again.)
- Downsizing drastically reduces the size of a company, while rightsizing is the reorganization of the organization. (Correct. While downsizing and rightsizing have a lot of similarities, downsizing is more focused on reducing overhead costs through terminating employees. Rightsizing on the other hand, is more focused on restructuring the organization and typically does not require the company to layoff as many employees as downsizing.)
A: Downsizing drastically reduces the size of a company, while rightsizing is the reorganization of the organization.

Q: A company may choose to downsize for a number of reasons. Which of the following is not a reason to downsize?
- Company merger or acquisition (Incorrect. A company merger or acquisition is one of the main reasons a company may choose to downsize. Review the material from this section and try again.)
- Tough economic conditions (Incorrect. Poor economic conditions is a large reason many companies decide to downsize. Review the information from this module and make a different selection.)
- A discontinued product or service (Incorrect. When a product or service is discontinued, companies may need to eliminate a large number of employees through downsizing in order to cut newly unnecessary costs. Revisit the information from this section and try again.)
- To restructure the current workforce (Correct. This is actually a better description for rightsizing. While downsizing and rightsizing have a lot of similarities, rightsizing is more focused on restructuring an organization and may incorporate layoffs. The goal of downsizing, however, is focused on terminating a large number of employees to drastically cut company expenses.)
A: To restructure the current workforce

Q: A large clothing company recently downsized their operations by laying off 40% of their seamstresses. Which of the following does NOT describe how laying off such a large percentage of their seamstresses will affect the company?
- reduced overhead costs (Incorrect. Reduced overhead costs is one of the main reasons many companies decide to downsize. If the clothing company reduced their seamstresses by 40%, they are making large cuts to their expenses.)
- a loss of knowledge and expertise (Incorrect. When 40% of the workforce is let go, valuable knowledge and expertise is lost. This may slow down operations and require the remaining workforce to expand their current knowledge to fill in the gaps.)
- increased employee workloads (Incorrect. If 40% of the workforce is let go, the remaining 60% will be required to pick up their work. Therefore, after layoffs, there are fewer employees to complete the pre existing workload, meaning all the remaining employees will be assigned more work.)
- increased company morale (Correct. Morale is typically lower after a company downsizes. Remaining employees may feel a lack of job security or frustrations over their increased workload.)
A: increased company morale

Q: When a company downsizes, they layoff employees with a wide variety of experiences and expertise. How does a loss of employee knowledge impact the remaining employees?
- It does not affect the remaining employees since they all work together to fill in the knowledge gap. (Incorrect. While it is important for remaining employees to work together, it does not always fill in the knowledge gap left by terminated employees.)
- Remaining employees will be required to train the influx of new hires. (Incorrect. Since a main reason for downsizing is to reduce expenses, companies will most likely not make any new hires, especially to fill the positions of recently terminated employees. Therefore, the remaining employees will not be required to train new hires soon after layoffs.)
- Remaining employees feel more valued for the knowledge and expertise they offer. (Incorrect. Oftentimes, large layoffs make employees seem less valuable as they worry about their job security.)
- It requires the remaining employees to attend additional training events. (Correct. In order to fill the gap, it is important for remaining employees to attend training events to help them expand on their current knowledge. The challenge is finding the time to train remaining employees as they are oftentimes busy completing the workload left by terminated employees.)
A: It requires the remaining employees to attend additional training events.

Q: Since conducting company-wide layoffs, ABC Construction notices a negative change in their remaining employees’ attitudes. Which of the following is most likely NOT the reason for the change in company attitudes and morale?
- Loss of trust in job security (Incorrect. Loss of trust in job security is a common reaction of many remaining employees after a company downsize. Since their coworkers were recently laid off, many remaining employees may wonder if they’ll be next.)
- Increased workloads (Incorrect. Increased workloads are to be expected after a company downsizes since there are fewer employees to complete the required work. This may create frustration and stress amongst the remaining employees.)
- Loss of coworker knowledge and expertise (Incorrect. Whenever a company downsizes, they are losing the knowledge and expertise of each individual they let go. Therefore, they create a knowledge gap that their remaining employees will need to fill. This may create confusion and frustration.)
- Less work available (Correct. After a downsize, there are typically less employees, not less work. Therefore, employees are most likely more concerned about the influx of work, not the lack of.)
A: Less work available

Q: Which of the following is the best way for a company to effectively communicate their impending downsize?
- Announce layoffs the day terminations begin to avoid backlash. (Incorrect. If a company announces layoffs the day they begin terminations, they are going to get more backlash. Catching employees off guard with something that will greatly impact their livelihood will result in anger, fear, confusion, frustration, and other intense emotions and thoughts.)
- Focus on one-on-one communication, not communicating with large groups. (Incorrect. While one-on-one communication is important, so is communication with larger groups. This is a great way to provide a clear and concise message about the layoffs to ensure everyone receives the same message.)
- Provide little detail about the layoffs to avoid creating confusion. (Incorrect. Too little communication can make it appear as though management is trying to hide something or that the plan is not well thought out and executed.)
- Be transparent about the reasoning for the downsize. (Correct. When there is clear communication around the downsizing plan and the reasonings for downsize, employees are more likely to be receptive to the message. There is no real way to sugarcoat a downsize or a termination, however, clear communication throughout the process is a respectful way for organizations to handle the situation.)
A: Be transparent about the reasoning for the downsize.

Q: Which of the following is an ineffective way to communicate with the remaining employees after conducting mass layoffs?
- Share the company’s vision for the future to get employee buy in (Incorrect. It is important to keep open lines of communication with the remaining employees and share the company’s vision for the future. This will help the remaining employees to see the big picture and have a better understanding of where the company is heading.)
- Acknowledge the changes and address questions surrounding them (Incorrect. Acknowledging the layoffs and the changes they bring is important to moving past them. When management acts like nothing happened, it can create additional distrust and uneasiness amongst the remaining employees.)
- Clearly outline and explain how the workload is being redistributed (Incorrect. Having clear and open communication about the redistribution of workloads will help to avoid confusion and give remaining employees the opportunity to better plan for their additional responsibilities.)
- Do not discuss or address the layoffs so everyone can move past them. (Correct. Acknowledging change is necessary to move past the downsize and forward into the next chapter for the company. When management acts like nothing happened, it can create additional distrust and uneasiness amongst the remaining employees.)
A: Do not discuss or address the layoffs so everyone can move past them.

Q: What can a company do to promote a fun and engaged work environment after a company downsizes?
- Ensure management does not discuss recent layoffs (Incorrect. Acknowledging change is necessary to move past the downsize and forward into the next chapter for the company. When management acts like nothing happened, it can create additional distrust and uneasiness amongst the remaining employees.)
- Provide free food to distract from recent layoffs (Incorrect. When companies use things like free food and incentives as a distraction, it appears disingenuous to the employees. It is important not to overcompensate to distract from recent layoffs but instead provide genuine events and activities to encourage team building and engagement.)
- Offer fun employee activities everyday (Incorrect. It is impractical to provide daily fun activities for employees. Not only is it a lot for companies to organize, it will lose value amongst employees if it is a daily occurrence.)
- Host regular scheduled team building events (Correct. Team building events provide opportunities for employees to get to know their coworkers. A stronger team helps to promote engagement and fosters collaboration.)
A: Host regular scheduled team building events

Q: Which of the following must an employee provide when terminating an employee?
- Severance package (Incorrect. While some companies may provide severance packages during a downsize, it is not required for all employees to provide severance packages for all employees they terminate.)
- Extended healthcare coverage (Incorrect. Although some companies may provide the option for terminated employees to temporarily extended their coverage, some companies do not even provide healthcare options. Therefore, extended healthcare coverage is not a universal requirement for employers.)
- Two weeks (Incorrect. The phrase “two weeks notice” refers to employees providing two weeks of work before resigning or quitting a job. Employers are not required to provide a two week notice to employees they are terminating.)
- Justification (Correct. It is important to have a justified reason for terminating an employee. If an employer does not have justification for their termination decisions, they are at a greater risk of legal repercussions.)
A: Justification

Q: During a downsize, which of the following is not an ethically and legally sound way to determine which employees to layoff?
- Terminate the employees hired most recently (Incorrect. This is a last in, first out policy. If done consistently across the company, this is a strong way to legally justify terminations.)
- Terminate the employees with the lowest sales (Incorrect. Having a monetary number attached to termination decisions is a great way to legally justify layoff decisions.)
- Terminate the employees with the least seniority (Incorrect. Layoffs based on seniority can be justified as a fair and legal way to determine who to terminate.)
- Terminate the employees who are the oldest (Correct. Terminating employees based on their age is illegal.)
A: Terminate the employees who are the oldest

Q: Which of the following is an example of an unethical, but not illegal, way to conduct a termination?
- terminating an employee based on their age (Incorrect. It is illegal to fire someone based on their age and is considered discrimination. Someone who is fired for their age has strong justification for a lawsuit.)
- terminating an employee without justification (Incorrect. Justification for a termination should always be documented. Documentation is important in justifying a termination. Without it, companies may face legal repercussions.)
- terminating an employee for whistleblowing (Incorrect. If a company fires someone strictly for whistleblowing, they may face legal consequences.)
- terminating an employee through a letter (Correct. Employees should be notified in person that they are being terminated. Finding out about getting fired through a letter or from a third party is completely unprofessional. Although most people do not enjoy firing someone, it is important to show the employee enough respect to sit down and have the conversation face-to-face.)
A: terminating an employee through a letter

Q: Which of the following is an example of an unethical, but not illegal, way to conduct a termination?
- terminating an employee based on their parental status
- terminating an employee without justification
- terminating an employee for reporting illegal internal actions
- terminating an employee through an email
A: terminating an employee through an email

Q: Which of the following is an example of an ethical way to conduct a termination?
- terminating an employee through a letter (Incorrect. Employees should be notified in person that they are being terminated. Finding out about getting fired through a letter or from a third party is completely unprofessional. Although most people do not enjoy firing someone, it is important to show the employee enough respect to sit down and have the conversation face-to-face.)
- terminating an employee without any warning (Incorrect. You should have conversations with an employee prior to termination. Employees should be given time to correct any behaviors that are causing an issue. Although most people do not enjoy giving blunt feedback, it is important to show the employee enough respect to sit down and have a conversation.)
- terminating an employee you don’t like, whose performance is good (Incorrect. Personal feelings shouldn’t impact hiring decisions. If an employee is behaving in a way that is impacting others (threatening or talking bad about others), you should intervene, but if you simply don’t get along with someone, this is not a reason to let them go.)
- terminating an employee for failing to meet performance standards (Correct. While you should have conversations with an employee prior to termination, if performance doesn’t improve after intervention, this is an ethical reason to let them go. It is important to stay consistent with your performance standards and ensure unbiased treatment.)
A: terminating an employee for failing to meet performance standards

Q: Which of the following is a law intended to protect employees from termination for missing work?
- Equal Employment Opportunity Laws (Incorrect. Equal Employment Opportunity Laws or the EEO Laws, are intended to protect applicants and employees from discrimination.)
- Whistleblower Protection Program (Incorrect. The Whistleblower Protection legislation is intended to protect whistleblowers from retaliation from their employers after exposing information about a company’s unlawful acts.)
- The 14th Amendment (Incorrect. The 14th Amendment to the Constitution was created to ensure states provided equal protection for all citizens. This protection helps to ensure fair employment practices and eliminate unfair treatment based on an individual’s race, religion, sex, etc.)
- Family and Medical Leave Act (Correct. The Family and Medical Leave Act (FMLA) is intended to protect an employee from losing their job if they miss work for medical reasons or to assist a family member with their medical needs. Employees need to apply for FMLA and get it approved through proper channels. FMLA protects employees for up to 12 weeks.)
A: Family and Medical Leave Act

Q: Which of the following is not protected under The Civil Rights Act of 1964?
- Age (Incorrect. Discrimination based on age is illegal and protected by The Civil Rights Act of 1964.)
- Race (Incorrect. Discrimination based on race is illegal and protected by The Civil Rights Act of 1964.)
- Religion (Incorrect. Discrimination based on religion is illegal and protected by The Civil Rights Act of 1964.)
- Experience (Correct. Experience is a valid category to consider when making hiring and termination decisions. Experience is not protected by The Civil Rights Act of 1964 because it speaks to an employee’s level of expertise, not to their demographics or lifestyle.)
A: Experience

Q: How does OSHA’s Whistleblower Protection Program help to ensure whistleblowers are protected?
- It provides whistleblowers with a comparable job with another company or organization. (Incorrect. Legislation does not help to provide new employment opportunities for the whistleblower.)
- When an employee comes forward as a whistleblower they are automatically guaranteed to keep their job for three years after making their claims. (Incorrect. Although the program does help to protect the employee from unfair termination, their job is not guaranteed for any length of time. If an employer has other justifications for ending the whistleblower’s employment, they are legally able to act on it.)
- It guarantees the identity of the whistleblower will remain anonymous. (Incorrect. Although the protection program may attempt to help the whistleblower hide their identity, there is no guarantee that the whistleblower will remain anonymous.)
- It protects whistleblowers from facing termination for coming forward with information about their company’s unlawful acts. (Correct. The Whistleblower Protection Program helps to ensure an employee is not fired for coming forward about the illegal actions of their company.)
A: It protects whistleblowers from facing termination for coming forward with information about their company’s unlawful acts.

Q: What is the primary benefit of conducting company layoffs?
- a streamlined workforce (Incorrect. Layoffs result in a smaller workforce and therefore remaining employees are required to pick up the work of their terminated coworkers.)
- better employee relations (Incorrect. Although managers will now have a smaller, more intimate team, they may be left with frustrated and anxious employees. After layoffs, managers need to make a conscious effort to improve and maintain relationships with their team.)
- a more evenly distributed workload (Incorrect. When a large number of employees are laid off, their work will need to be redistributed to their former coworkers. These remaining employees will then have to determine how to balance their original job expectations with their newly assigned workload.)
- reduced company expenses (Correct. The primary reason most companies decide to downsize and layoff a large number of their employees is to cut company costs.)
A: reduced company expenses

Q: Which of the following best explains the benefits of firing an employee?
- reducing overhead costs (Incorrect. Conducting layoffs is a strategy some companies use to reduce overhead costs. However, firing an employee requires a company to rehire someone to fill the position which requires additional time and resources.)
- creating a smaller workforce (Incorrect. An employee should be fired for their own shortcomings, not in an effort to reduce a company’s workforce. If a company wishes to reduce their workforce, they should do so through downsizing or rightsizing.)
- hiring new employees to fill the void (Incorrect. Hiring a new employee to fill an employment gap costs the company a lot of time and resources. Therefore, having to hire in order to fill a fired employee’s position is not an ideal situation for a company to be in.)
- removing a poor performer (Correct. When an employee is fired, it should be for a justified reason. Poor performance, undesirable behaviors, or a breach of contract are all reasons for firing an employee. Removing underperformers from the team can help to increase morale and performance.)
A: removing a poor performer

Q: Select the option that does not describe a disadvantage of laying off an employee.
- There is a reduction in employee engagement and morale. (Incorrect. Layoffs do create uncertainty amongst the remaining employees which can minimize employee engagement and overall company morale.)
- More work is required of the remaining employees. (Incorrect. After downsizing, companies need to find a way to redistribute the workload of the employees who were laid off. This creates additional work for the remaining employees which may cause additional workplace stress and anxiety.)
- The remaining employees may feel uneasy and stressed. (Incorrect. Although some employees may feel relieved that their employment was spared, others may feel uneasy about their future with the company. In addition, remaining employees are expected to take on heavier workloads which creates a more stressful situation.)
- Hiring to fill an open position costs time and money. (Correct. The goal of company layoffs is to reduce their overhead costs. Therefore, companies that choose to downsize do not plan to fill the vacant positions.)
A: Hiring to fill an open position costs time and money.