Scenario 1.3: HRM Challenges-Staffing Cuts

question 159

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 would be one of the most significant current business challenges faced by these two companies?

• A)demographics and employee concerns
• B)culture changes and environment
• C)business sector survival and globalization
• D)environment and staffing

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Definitions:

Period Cost

Expenses that are incurred to support business operations during a particular period, but are not directly tied to the production of goods or services.

Direct Cost

Expenses that can be directly traced to the production of specific goods or services, like raw materials or labor.

Indirect Cost

Expenses not directly tied to a specific product or service but necessary for the operation of a business, such as utilities and rent.

Current Assets

Current assets are all assets a company expects to convert into cash or use up within one fiscal year or operating cycle.