Scenario 1.3: HRM Challenges-Staffing Cuts

question 79

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 might SunSystems experience using its approach?

• A)its best employees will stay,feeling their jobs are more secure after under-performing staff were cut
• B)it could take 6-18 months to realize any savings from the job cuts
• C)it can easily rehire employees when the economy picks up
• D)it can easily outsource at reduced staffing costs

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Definitions:

Common Stock

A type of security representing ownership in a corporation, with holders possibly entitled to dividends and voting rights.

Transaction

An agreement or exchange between two parties that involves the selling, buying, or trading of goods, services, or information.

Holiday Turkeys

Generally refers to the practice of giving turkeys to employees during the holiday season, which may have tax implications depending on the value and method of distribution.

Employees' Income

The compensation received by individuals for their services performed for employers, including wages, salaries, bonuses, and commissions.