Additional Case 6.1
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.
-Refer to Additional Case 6.1.What relatively quick,but less traumatic,reduction strategy is suggested by the make-up of the workforce?
A) Rightsizing
B) Employee training
C) A job redesign program
D) An early retirement program

Question

Quizplus · Accepted Answer

The fact that 35% of the workforce is over age 62 suggests that an early retirement program could be a relatively quick but less traumatic reduction strategy. This would allow older employees to retire voluntarily and potentially receive incentives, while avoiding the need for sudden staff cuts or layoffs. However, the company would need to carefully consider how this program would affect the overall skill and experience level of the workforce.

Additional Case 6.1 Central Enterprises Is Suffering an Economic Downturn, and the Workforce