Page 641 - Business Principles and Management

Unit 7

the employee turnover was 15 percent (150/1,000). According to the second
formula, it was 12 percent (120/1,000). To make it easier to study employee
turnover trends, the company should use the same formula from year to year.

EXIT INTERVIEWS
Whenever an employee leaves the company, interviewing the person can gain some
important feedback. An exit interview is a formal interview with an employee who
is leaving the company to determine his or her attitudes about the company and
suggestions for improvement. The exit interview provides an opportunity to learn
about the causes of employee turnover and gain feedback about the company’s
policies and procedures, management, and operations. The interview procedure
should be carefully planned to get important information in a way that is comfort-
able for the person being interviewed and to accurately record the information
so it can be used to improve operations and employment procedures.

CHECKPOINT
What are the differences between promotion, transfer, and
discharge?

23.2 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. The first step in the employment process is
a. preparing a job description and job specifications
b. recruiting a pool of applicants
c. asking applicants to take a drug test
d. reviewing applications that are on file
2. A ____ is a temporary or permanent reduction in the number of
employees because of a change in business conditions.
a. transfer
b. discharge
c. layoff
d. promotion

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Why should the human resources department take most of the
responsibility for the steps in the application process rather than
allowing the employing department to complete them?
4. What are the advantages and disadvantages of having managers
identify specific employees for promotions and transfers rather
than opening up the process to all company
employees?

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