Question

Under what conditions might layoffs be advantageous to an employer?

Explain the Martin and Bartol matrix for managing turnover. How does this relate to taking an investment approach to HR.

Because workers live and stay healthy longer, the work- force is aging. How might this impact an organization’s competitive position?

Answer 1

ans 1=Layoffs usually lead to negative publicity for the firm in the community. Despite this, firms at times accept the risks to obtain a few tangible advantages which can follow a strategic layoff.

Waste Reduction-

One motive is to eliminate wasteful pay / redundancies in work. Middle-level managers conventionally have been the main target of big-scale layoffs. Firms decide that the company has excessive vertical hierarchy & personnel report to too many superiors. A reduction in managerial ranks may build a closer management to personnel interaction. Few layoffs target personnel doing virtually similar operations as those in other departments. Eliminating redundancies / unproductive pay can save monies.

Demand Matching-

For cyclical sectors, layoffs are periodically required to adjust expenses and production to match declines in consumer demand. Small firms specially cannot afford to have personnel working to produce commodities that only decay in inventory / must be discounted sharply for sale.

Margin Improvements-

From a long run perspective, well-organized layoffs can aid a firm set itself up for optimized profit margins. Some corporate units / employees in a firm may complete work which has little on the profitability. By eliminating these divisions & employees, the firm can utilize the monies from their compensation to ramp up investments in domains which do give the highest returns. You could add new business locales or invest more in marketing endeavors to attract new consumers.

Loss of inefficient performers-

Caution is essential while considering which personnel to lay off. Targeting individual employees can lead to allegations of discrimination if you pick out the oldest ones or members of protected categories. Laying off persons in positions which have underperformed can benefit the complete firm. Eliminating an inefficient department / work group aids in obtaining maximum benefit from the pay reduction. You not only lessen wages, but you also remove inefficient performers who really may be bringing down the productivity of those around them