A manufacturing company, hit by a slump in demand, is experiencing a labor surplus. The company expects the market to improve in six months, and it does not want to lay off any of its employees. Which strategy is an equitable way to handle this issue and spread the burden more fairly?
A) demotions
B) outsourcing
C) reduced work hours
D) overtime
E) employing temporary workers

Question

Quizplus · Accepted Answer

Reducing work hours allows the company to continue employing all of its workers while also spreading the burden more fairly. This strategy avoids lay-offs and maintains employee morale, while also adjusting to the current demand for the company's products. Demotions may lower employee morale, outsourcing and temporary workers may not be cost-effective, and overtime may not be sustainable for the company.

A Manufacturing Company, Hit by a Slump in Demand, Is