Additional Case 6.1
Central Enterprises is suffering an economic downturn, and the workforce needs to be
reduced. Upper-level managers are debating the costs and benefits of various employee
separations. Brian argues that the company needs to make immediate cuts to both
management and labor. The cuts need to be made in such a way that the scope of the
company and its markets are not affected. The firm needs to do more with fewer people
according to Brian.
Other managers want to take a long-term, less traumatic approach. According to
Natalie, the firm has time to consider the problems and gradually reduce the workforce
rather than making sudden staff cuts. Natalie points out that 35% of the workforce is
over age 62.
The VP of HR, LaTisha, wants the least disruptive reduction process possible. LaTisha
just finished a major labor negotiation with the union and is not ready for another. She
points out that turnover has been fairly high. Along with considering workforce
reductions, LaTisha wants to know why people are leaving the company voluntarily.
Refer to Additional Case 6.1. To answer LaTisha’s question about why people are
leaving, the company should most likely institute:
A) outplacement services.
B) orientation sessions.
C) exit interviews.
D) appraisals.
Impairment benefits, which are granted to workers for temporary or permanent partial
disability, are regulated by OSHA.