Central Enterprises is suffering an economic downturn, and the workforce needs to be reduced. Upper-level managers are debating the costs and benefits of various employee separations. Brian argues that the company needs to make immediate cuts to both management and labor. The cuts need to be made in such a way that the scope of the company and its markets are not affected. The firm needs to do more with fewer people according to Brian.
Other managers want to take a long-term, less traumatic approach. According to Natalie, the firm has time to consider the problems and gradually reduce the workforce rather than making sudden staff cuts. Natalie points out that 35% of the workforce is over age 62.
The VP of HR, LaTisha, wants the least disruptive reduction process possible. LaTisha just finished a major labor negotiation with the union and is not ready for another. She points out that turnover has been fairly high. Along with considering workforce reductions, LaTisha wants to know why people are leaving the company voluntarily.
52) Refer to Additional Case 6.1. Brian would most likely advocate a strategy of:
D) early retirements.
Additional Case 6.4
Organizers, Inc. has implemented new business technologies that require fewer employees. Paul, the firm's CEO, sees the need to eliminate some middle managers and institute work teams to eliminate ineffective or unnecessary work processes. He believes that such changes won't be costly to the business. Most of the middle managers have been with the company anywhere from 10-15 years but are a long way from retirement.
One specific problem that Paul recognizes involves Zena, an upper-level manager. Zena has been coming to work late, missing deadlines on assignments, and refusing to complete an important assignment. Paul has warned Zena personally about the consequences for further actions and has even meted out several proscribed disciplinary actions against Zena. Her work habits have not improved, and Paul feels he may have to take further action.
53) Refer to Additional Case 6.4. By Paul's estimation, Organizers, Inc. most likely needs to do which of the following to improve efficiency?
A) Implement internship opportunities
B) Perform a large-scale layoff
54) Recent studies have shown that 80% of voluntary separations are unavoidable.
55) A quit and a retirement are similar types of employee separations since both are initiated by the employee.
56) Employers can force an employee to retire if the employee is 65 years of age or older.
57) Involuntary separation results from one of two conditions: 1) economic necessity or 2) a poor fit between the employee and the organization.
58) Rightsizing is synonymous with downsizing.
59) ________ is a separation that occurs when an employee decides, for personal or professional reasons, to end the relationship with the employer.
60) A separation that occurs when an employer decides to terminate its relationship with an employee due to economic necessity or a poor fit between the employee and the organization is called ________.
61) ________ is a company strategy to reduce the scale and scope of its business in order to improve the company's financial performance.
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