PHR practice question 22 of 25

Which of the following is a process that occurs due to mergers, outsourcing or changing business needs?

Full set: 165 questions
Answer options
A: Involuntary exit Correct answer
B: Plant closing
C: Voluntarily exit
D: Outplacement
Correct Answer:
A. Involuntary exit
Explanation

An involuntary exit, or involuntary turnover, is an employer-initiated separation from employment. This process is often triggered by organizational restructuring events such as mergers, acquisitions, outsourcing, or other strategic shifts in business needs that result in downsizing or reductions in force (RIFs). These events necessitate the elimination of certain positions, leading to the termination of the employees holding them. The decision rests with the employer, not the employee, distinguishing it from voluntary separation.

Why Incorrect

B. Plant closing is a specific type of event that leads to involuntary exits, not the general process itself.
C. Voluntarily exit is initiated by the employee, such as through resignation or retirement, not by the employer due to business needs.
D. Outplacement refers to support services provided to terminated employees, which is a consequence of involuntary exit, not the exit process.

References

1. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2019). Human Resource Management: Gaining a Competitive Advantage (11th ed.). McGraw-Hill Education. Chapter 11, "Separating and Retaining Employees," discusses involuntary turnover due to organizational restructuring.

2. Cascio, W. F. (2015). Managing Human Resources: Productivity, Quality of Work Life, Profits (10th ed.). McGraw-Hill Education. Chapter 8, "Downsizing and Restructuring," details the causes and processes of involuntary separations like layoffs.

3. Cornell University Law School, Legal Information Institute. (n.d.). Involuntary termination. Wex Legal Dictionary. Retrieved from https://www.law.cornell.edu/wex/involuntarytermination (Defines the term in the context of employer-initiated actions).

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