During downsizing, the HRM function must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. What is a reason for this being difficult to achieve?

Question

Business

Ari Cameron

27 July, 19:21

During downsizing, the HRM function must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. What is a reason for this being difficult to achieve?

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Answers (1)

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Milagros Stark · Answer 1

C) the best workers may leave before the organization lays off anyone

Explanation:

Downsizing is something very challenging and specially difficult to perform. Many times, downsizing may reduce costs, but it also reduces total revenue and profits due to a loss in productivity and efficiency.

For example, once the company announces that it will start to downsize their workforce, many of the most efficient and productive workers may simply decide to leave the company and search for new jobs. When a company starts to lay off employees, no one is really 100% that they will not be fired, therefore most of the employees will start to actively seek other jobs. The most efficient and productive employees are also the most likely to find new jobs and they may decide to leave the company before getting fired.