Jake, a manager at Wishful Company, is concerned because negotiations with the union are breaking down, and the union is discussing a strike. What would be the major harm from management's perspective?
A) The company would have to hire replacement workers, and they might be more productive.
B) When the company does not have enough workers, production output will fall.
C) Employees will call off the strike if they do not receive pay from their employer.
D) Employees are rarely serious when they threaten to go on strike.
E) Employees will decide they are better off without union representation.

Question

Quizplus · Accepted Answer

If the union goes on strike, the company will not have enough workers to maintain production levels, leading to a drop in production output. This can harm the company's profits and its reputation among customers who may switch to competing companies who can fulfill their needs. Additionally, hiring replacement workers may be challenging as they may not be as efficient or knowledgeable as the existing workforce. Thus, the major harm from management's perspective is the potential loss of production output and revenue.

Jake, a Manager at Wishful Company, Is Concerned Because Negotiations