Why is hiring new employees for every labor shortage not preferable?
A) The process will lead to an artificial scarcity in the labor market.
B) It would lead to reduced organizational control over the workers and process.
C) Selecting new employees attracts too many discrimination law suits.
D) If the shortage becomes a surplus, the organization may have to lay off employees.
E) The process may result in reduced quality and may affect standardization.

Question

Quizplus · Accepted Answer

Although downsizing has an immediate effect on costs, much of the evidence suggests that it hurts long-term organizational effectiveness.

Why Is Hiring New Employees for Every Labor Shortage Not