Inadequate human resources planning within an organization can result in direct costs when labour demand decreases significantly for an extended period of time. Which of the following provides an accurate reason for this?
A) There is a link to privacy laws.
B) It would cause hiring more HR staff.
C) It would cause costs associated with hiring part-time workers.
D) There are project management costs.
E) Severance pay is required for a large number of staff.

Question

Quizplus · Accepted Answer

Inadequate human resources planning can lead to overstaffing, which means the organization has more employees than necessary. When labour demand decreases significantly for an extended period of time, the organization will be forced to lay off a large number of staff, which requires severance pay. This results in direct costs for the organization. Choices A, B, C, and D do not provide an accurate reason for this.

Inadequate Human Resources Planning Within an Organization Can Result in Direct