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Carlos, the HR director of a large paper manufacturing company, is studying the financial costs of turnover of plant personnel at all levels. The easily calculable costs are sobering, but Carlos is also concerned about the hidden costs of turnover that generally include:


A) missed project deadlines.
B) co-worker coaching and salaries.
C) the cost of pre-employment medical tests.
D) the overtime paid to employees covering the separated employees' jobs.

E) C) and D)
F) A) and D)

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Which of the following is considered to be an outcome by the equity theory?


A) Age
B) Prestige
C) Experience
D) Productivity

E) A) and C)
F) B) and C)

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What is meant by job satisfaction and organizational commitment? What are the advantages of a satisfied and committed workforce?

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Job satisfaction is a positive emotional...

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Which of the following is the first step in the process of managing retention?


A) Measurement and assessment
B) Management intervention
C) Evaluation and follow up
D) Tracking of intervention results

E) All of the above
F) A) and B)

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Churn refers to the practice of hiring:


A) new employees while laying off others.
B) only those employees who have more than five years of prior experience in a similar industry.
C) through realistic job previews.
D) employees on a short-term contract basis.

E) B) and C)
F) B) and D)

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Discuss a few strategies to improve retention in organizations.

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An organization can use various methods ...

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Which of the following theorists developed the need theory?


A) Frederick Herzberg
B) Lyman Porter
C) Abraham Maslow
D) Carl Jung

E) A) and C)
F) A) and B)

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Which of the following is a direct cost of absenteeism?


A) Replacement for absent worker
B) Lower productivity
C) Replacement training
D) Slower work pace

E) B) and D)
F) B) and C)

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According to the equity theory, the outcomes described in equity theory are always tangible.

A) True
B) False

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Lumina Corporation began operations in 2011 with 4900 employees. During the first half of that year, the company did not see any attrition. Profits were high, and the training and orientation programs were efficient. New hiring continued at a healthy pace and by mid-year, the employee strength of the company was 5000. However, in the second half of that year, 200 employees were laid off, and no new hiring took place. The turnover rate at Lumina Corporation in 2011 was _____.


A) 50%
B) 25%
C) 4%
D) 2%

E) B) and C)
F) A) and D)

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Which of the following is a replacement cost that is caused by turnover in a company?


A) Cost of training materials
B) Employee referral fees
C) Overtime paid to existing employees
D) Time spent in an exit interview

E) All of the above
F) B) and C)

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According to Maslow, once a person has fulfilled his or her safety needs, he would immediately proceed to fulfill his:


A) physiological needs.
B) belonging needs.
C) actualization needs.
D) esteem needs.

E) All of the above
F) B) and C)

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Which of the following cases exemplifies involuntary turnover?


A) Jane worked hard on a project for four months, but when the project got shelved, she felt demotivated and quit the company.
B) Lisa loved her job, but quit when she noticed that a lot of employees were being laid off.
C) Mary announced her retirement a day after her 40th birthday.
D) Pauline was asked to leave the company due to poor performance on a project that incurred huge losses for her firm.

E) B) and C)
F) A) and C)

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Describe a few causes of voluntary turnover.

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Common causes for voluntary turnover inc...

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WesternBioLabs Inc. is in the process of laying off 10% of its shipping and receiving employees. At the same time, it is hiring new hourly staff for night shifts. Which of the following terms best describes this process?


A) Churn
B) Licensing
C) Takeover
D) Franchising

E) A) and B)
F) A) and C)

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Older employees tend to have lower job satisfaction than younger employees.

A) True
B) False

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According to the two-factor theory, interpersonal relationships are considered to be motivators.

A) True
B) False

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Mark was terminated by his company because of his poor client relations skills that resulted in a major client leaving the firm for a competitor. This is an example of:


A) involuntary turnover.
B) positive turnover.
C) uncontrollable turnover.
D) dysfunctional turnover.

E) A) and D)
F) A) and C)

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_____ is defined as the percentage of employees at the beginning of a period who remain at the end.


A) Retention rate
B) Turnover rate
C) Absenteeism ratio
D) Productivity rate

E) B) and C)
F) A) and B)

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At Piaffe Products 15 employees had quit and an additional 10 were fired for poor performance in the year during 2010. The mid-year employee count was 50 for that year. Piaffe's turnover rate for the year 2010 was _____.


A) 10%
B) 20%
C) 30%
D) 50%

E) C) and D)
F) A) and D)

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