Backroads Merchandise, a manufacturer of outdoors and sports products, is facing a pronounced downturn in business due to lower priced goods from foreign competitors. Top management believes that this problem will be permanent or long-term, and it has decided to reduce the number of employees. The CEO has conferred with the director of HR to learn which method of reducing the workforce both the employees leaving and the employees remaining behind will receive better. The CEO also wishes to minimize the cost of the reduction process. Which of these methods has the director of HR probably suggested?

Question

Quizplus · Accepted Answer

Attrition and a hiring freeze allow for a natural reduction in workforce without the immediate negative impacts of layoffs, severance costs, or the expense of early retirement packages. This method is often viewed more favorably by remaining employees as it does not involve forced departures and can be less costly for the company.

Backroads Merchandise, a Manufacturer of Outdoors and Sports Products, Is