Scenario 1.3: HRM Challenges-Staffing Cuts

question 107

Multiple Choice

Scenario 1.3: HRM Challenges-Staffing Cuts
Artic Learning Systems was under pressure to reduce staffing costs and improve productivity.They took advantage of a Canadian federal program involving work-sharing and encouraged people to use any banked overtime.In some cases,employees were working 50% less.SunSystems Learning,in the same industry,was under the same pressures and decided to do an across the board reduction and laid off 50% of their employees based on performance.Both companies' organizational strategic plans indicated significant growth within a year due to new communication technologies and the ability to provide their learning systems globally.They both assess the best practices of other organizations looking for ways to enhance their performance.
-Please refer to Scenario 1.3.What are these two companies' approaches to reduce staffing costs called?

• A)restructuring
• B)outplacement
• C)downsizing
• D)re-engineering

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Definitions:

AFC

Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

MC

Marginal Cost, the change in total cost that arises when the quantity produced is incremented by one unit.

ATC

Average Total Cost refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.

Fixed Costs

Expenses that do not change in relation to the level of goods or services produced within a certain period, such as rent or salaries.