A Firm Attempting to Reduce the Size of Its Workforce

question 68

Multiple Choice

A firm attempting to reduce the size of its workforce may use several approaches. The approach most likely to be saved as a last resort is

• A) attrition.
• B) early retirement.
• C) firing.
• D) hiring freeze.
• E) layoff.

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Definitions:

Organizational Behavior

The study of how people interact within groups, often used to improve organizational efficiency and effectiveness.

Limited Information-Processing

The constraint in cognitive capabilities that limits an individual's ability to process and make decisions based on all available information.

Rational Choice Paradigm

A theory positing that individuals make decisions by considering the available alternatives and selecting the most rational or advantageous option.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution, due to constraints such as time or information.