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 might SunSystems experience using its approach?
A)its best employees will stay,feeling their jobs are more secure after under-performing staff were cut
B)it could take 6-18 months to realize any savings from the job cuts
C)it can easily rehire employees when the economy picks up
D)it can easily outsource at reduced staffing costs

Question

Quizplus · Accepted Answer

Across the board reduction and layoff based on performance is a drastic step that can have a negative impact on employee morale, productivity, and company culture. SunSystems may face challenges in maintaining its organizational strategic plans due to the loss of experienced employees and the time it takes to train and onboard new employees. Additionally, the savings from job cuts may take 6-18 months to realize due to severance packages, unemployment claims, and reduced productivity during the transition period. While outsourcing may be an option, it may not necessarily be easy or effective in the long run.