To cut costs, Wray Enterprises laid off 30 employees. Thereafter, the existing employees were given cross-training to perform additional job duties. This led to increased productivity, but it also increased the instances of errors. This scenario illustrates _____.

Question

Quizplus · Accepted Answer

The scenario illustrates suboptimization because cutting costs by laying off employees led to increased productivity, but it also resulted in increased errors. This means that the focus was on optimizing one aspect (costs), while neglecting other important factors such as quality and employee workload.

To Cut Costs, Wray Enterprises Laid Off 30 Employees