Decruitment Options at National Corporation (Scenario)

question 11

Multiple Choice

Decruitment Options at National Corporation (Scenario)
Mike has just been promoted to human resources manager at National Corporation. His boss, the vice-president of human resources, has asked him to prepare an employment plan to address a major restructuring in one of the divisions at National. The restructuring plans call for the elimination of 500 jobs, and Mike must determine the best way to achieve this target. He is hoping that some of the affected employees who are older will accept incentives to terminate their employment before their normal retirement date. Other employees may be qualified for job openings in other divisions; however, Mike needs to compile a list of each employee's skills, training, and education in order to assess their talents. Some job vacancies will occur naturally as employees voluntarily resign from the company to pursue new career plans or employment opportunities. Still other employees may choose to accept part-time work or share jobs with their coworkers. Despite these decruitment options, Mike is concerned that some involuntary terminations will inevitably be required in order to achieve the restructuring plan. He will recommend that some of these terminations be classified as "temporary" so that qualified employees can still be recalled to fill future job vacancies in the coming weeks and months.
-Mike is considering the decruitment option of ________ for those employees who choose to accept part-time work.

• A)transfers
• B)layoffs
• C)reduced workweeks
• D)attrition

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Definitions:

Effective Yield

A measure of the return on an investment, accounting for the effect of compounding interest more accurately than nominal yield.

Interest Revenue

Income earned by a company for lending money or allowing another entity to use its funds, reported on the income statement.

Temporary Decline

A short-term decrease in the value of an asset or market without indication of a prolonged downturn.

Available-For-Sale

A classification of securities that are not classified as held-to-maturity or trading securities, marked to market periodically, with changes in value reported in other comprehensive income.