Ernie, a manager at a large decoration store, is expecting increased sales during the upcoming holiday season. He knows that his current workforce will not be able to meet demand, putting him at risk of a labor shortage. Which strategy would be the best option to help Ernie avoid a labor shortage?
A) Ernie should hire new employees because he will most likely need additional workers after the holiday season to deal with an increasing sales trend.
B) Ernie should increase his current employees' pay during the holiday season so they will work harder to achieve sales targets.
C) Ernie should keep his store closed during non-peak hours to compensate for labor shortages. This will ensure his current employees work harder during peak hours.
D) Ernie should hire temporary employees because he can let them go once the holiday season is over.
E) Ernie should consider increasing the prices of toys so he can make higher profits with fewer sales, thereby reducing the number of customers and consequently solving the labor shortage issue.

Question

Quizplus · Accepted Answer

Hiring temporary employees would be the best strategy for Ernie to avoid labor shortages during the holiday season. This option would provide additional workers to help meet the demand while also alleviating concerns about what to do with excess employees once the holiday season is over. Option A may lead to excess employees after the holiday season, while option B may not incentivize existing employees enough to meet the increased demand. Option C would limit the store's operating hours, potentially reducing overall sales, while option E would not address the labor shortage issue and may even decrease sales further.

Ernie, a Manager at a Large Decoration Store, Is Expecting