Jonathan,the CEO of Maxofan 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.Jonathan is most likely using the _____ strategy to reduce the labor surplus.
A) early retirement
B) downsizing
C) natural attrition
D) retraining
E) hiring freeze

Question

Quizplus · Accepted Answer

Downsizing is a strategy where the organization reduces the workforce to cut costs and remain financially stable. It usually involves layoffs or termination of employment. While it may lead to fast results, downsizing causes high levels of suffering and financial insecurity for employees. The other options, such as early retirement, natural attrition, retraining, and hiring freeze, may not produce quick and significant results in reducing labor surplus.