You Are the Head of an HR Department for a Large

question 100

Multiple Choice

You are the head of an HR department for a large department store.The general manager,Frank,comes to you claiming that a pay freeze is needed in order to reduce costs to the store.Frank wants to freeze pay for the retail staff but not for department line managers.What would be your most appropriate response?

• A) The strategy will encourage the retail staff to advance towards higher positions.
• B) The pay freeze should be the same across the board.
• C) A layoff would be a much better solution.
• D) The firm should institute a ring of defense.

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Definitions:

Contract Changes

Modifications or adjustments made to the terms, conditions, obligations, or rights within a contract between parties.

Behavior

The actions or reactions of an entity, often in response to its environment.

Moral Hazard

The situation in which an individual or entity is more likely to take risks because the potential costs will not be borne by them but by another party.

Efficient Behavior

Efficient behavior refers to actions that maximize the desired outputs or results with the least amount of wasted effort or resources.