Describe three options an organization could use when faced with a labor surplus.
What will be an ideal response?
Varies but should include three of the following options: A layoff is the process of terminating a group of employees to improve organizational efficiency and effectiveness. A pay reduction lowers the rate of pay for groups of employees within the organization. Work sharing occurs when we cut the hours available to each worker on a per-week or per-month basis, because fewer hours of work are available in the company. The option to allow natural attrition may also occur. In this case, we lower employee numbers by not refilling jobs when turnover occurs. In a hiring freeze, we allow natural attrition, but in addition, we don’t create any new jobs, even if they are needed. We stop all hiring-not just rehiring for existing positions. Retraining and transferring workers from one job to another may allow us to lower the number of workers in a particular part of our business, but it will only work if we have too many employees in one type of job and too few in another. Early retirement can be a valuable option in some cases. In an early retirement offer, employees are given the choice of leaving the company before they would normally retire, and in exchange, the employee will receive some benefits from the organization.
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The rise of social media and social networking use in recent years has given rise to the evolution of ________.
What will be an ideal response?
The costs of nonconformance are made up of
A) prevention costs and appraisal costs. B) internal failure costs and external failure costs. C) vendor performance and customer satisfaction. D) product design and production performance.
Innovation is a strategic goal in organizations because it
A. does not come from people. B. exists in a vacuum. C. comes from people. D. does not give a competitive advantage. E. cannot be managed properly.
The average propensity to consume refers to:
A. the dollars of income spent on luxury goods. B. the dollars of income saved by an individual. C. expenditures on the basic necessities of life. D. the percentage of income spent for current consumption. E. the fact that people with higher propensity to consume earn lower income.