DECA Human Resources Management Practice Exam

When an employee is given the option to relocate within the company before layoffs, this is known as?

1. Bumping

2. COBRA

3. Buyout

4. Collective Bargaining

The correct answer is: Bumping

The scenario described involves an employee being offered the chance to relocate within the company as a way to avoid layoffs. This process is known as "bumping." In layoff situations, bumping allows employees whose positions are being eliminated to take the place of another employee whose role is of lesser seniority or who is in a position that is also subject to layoffs. This practice helps retain experienced employees and provides them with a chance to continue their employment within the company, rather than facing immediate termination. In contrast, the other terms relate to different contexts: COBRA refers to a health insurance program that allows employees to continue their health coverage after leaving employment. Buyouts typically involve financial incentives offered to employees to voluntarily resign or retire, thus reducing the workforce. Collective bargaining is a negotiation process between employers and a group of employees aimed at establishing the terms of employment, such as wages and working conditions. Each of these terms serves distinct functions in the realm of human resources and employment relations, but they do not directly describe the option for employees to relocate within the company to avoid layoffs.