Hector Graphics,Inc.,is laying off a number of its skilled designers because of the loss of some major clients.Priam Designs,Inc.,is Hector Graphics' major competitor.Priam Designs landed a couple of Hector Graphics' old clients,and Priam Designs expects to gain more clients in the next 12 months.As the HR director of Priam Designs,Inc.,you approach the CEO to ___________________.You believe that this will maintain morale at Priam Designs while increasing its numbers of designers.
A) advise terminating 15 percent of Priam Designs' lowest-performing designers and replacing them with high-quality former Hector Graphics designers.
B) discuss freezing designers' salaries at Priam Designs because Priam Designs' designers will have fewer alternative employers in the area now that Hector Graphics has downsized. Then you will hire new Priam Designs employees at the frozen salaries.
C) propose that new designer positions should be created at Priam Designs for designers so that you can hire the best designers Hector Graphics is laying off.
D) outsource design work to laid-off Hector Graphics designers as independent contractors because they will be eager for any work, and they will be willing to work for lower salaries without medical and other benefits.

Question

Quizplus · Accepted Answer

The best choice is to propose creating new designer positions at Priam Designs and hiring the best designers that Hector Graphics is laying off. This option will maintain morale at the company while also increasing its number of skilled designers. It is a win-win situation that will benefit both the company and the laid-off designers. The other options either involve terminating current employees or freezing salaries, which can be detrimental to morale and motivation, or outsourcing work to independent contractors, which may not be as effective as having in-house designers.