Kevin, the CEO of MedImpact Inc., finds that the company needs to eliminate a labor surplus to avoid financial difficulties. To deal with this problem, he chooses a strategy that gives him fast results. However, the amount of suffering caused to employees is high. Kevin is most likely using the ________ strategy to reduce the labor surplus.

Question

Quizplus · Accepted Answer

Downsizing is a strategy that involves reducing the size of the workforce to lower the company's costs. This strategy is often implemented to deal with a labor surplus or to improve profitability. Although downsizing can provide quick results, it often involves significant employee layoffs and can cause a great deal of suffering to those affected. The other strategies listed, such as early retirement, natural attrition, retraining, and hiring freeze, may also be used to reduce a labor surplus, but are generally less drastic and may take longer to yield results.