Several alternatives to downsizing are available to organizations faced with the challenge of cutting costs.Which of the following is a medium-term cost adjustment alternative?
A)reducing salaries
B)voluntary sabbaticals
C)short-term facility shutdowns
D)obtaining cost-reduction ideas from employees

Question

Quizplus · Accepted Answer

Voluntary sabbaticals are a medium-term cost adjustment alternative as they involve employees taking a temporary leave of absence from work, typically for 6-12 months, and can result in cost savings without the need for immediate layoffs. This alternative provides flexibility to the organization in managing their workforce, while also offering employees the opportunity for personal and professional development. Reducing salaries, obtaining cost-reduction ideas from employees, and short-term facility shutdowns are all short-term cost adjustment alternatives.

Several Alternatives to Downsizing Are Available to Organizations Faced with the Challenge