Additional Case 6.4

question 20

Multiple Choice

Additional Case 6.4
Organizers, Inc. has implemented new business technologies that require fewer employees. Paul, the firm's CEO, sees the need to eliminate some middle managers and institute work teams to eliminate ineffective or unnecessary work processes. He believes that such changes won't be costly to the business. Most of the middle managers have been with the company anywhere from 10-15 years but are a long way from retirement.

One specific problem that Paul recognizes involves Zena, an upper-level manager. Zena has been coming to work late, missing deadlines on assignments, and refusing to complete an important assignment. Paul has warned Zena personally about the consequences for further actions and has even meted out several proscribed disciplinary actions against Zena. Her work habits have not improved, and Paul feels he may have to take further action

-Refer to Additional Case 6.4.Paul believes strongly in trying to provide lifetime employment and will use a layoff only as a last resort.What would be the best strategy to reduce middle management?

• A) Offering early retirement to employees in middle management.
• B) Instituting a pay freeze only for employees in middle management.
• C) Encouraging employees in middle management to take voluntary time off for at least 60 days.
• D) Developing HR policies regarding the use of pay incentives to encourage middle managers to quit.

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Definitions:

Balancing

The act of ensuring that financial records or accounts are correct by making the total amounts of debits and credits equal.

Stockholders' Equity Account

represents the equity stake that shareholders have in a company, calculated as the company's total assets minus its total liabilities.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and capital appreciation.

Stockholders' Equity

The net value of a corporation's assets after paying off all debts, showcasing the share of ownership belonging to shareholders.