When faced with a labor deficit, an organization is mostly likely to
A) make use of attrition to reduce the surplus.
B) outsource work to contractors.
C) offer outplacement to its employees.
D) begin downsizing.
E) lay off people for poor performance.

Question

Quizplus · Accepted Answer

When faced with a labor deficit, outsourcing work to contractors can be a good option for organizations as they can get the work done without having to hire new employees. This can be a temporary solution until the organization is able to hire and train new employees. The other options (attrition, outplacement, downsizing, and laying off people for poor performance) are more suitable for a labor surplus situation, where there are more employees than necessary.

When Faced with a Labor Deficit, an Organization Is Mostly