Surplus

By comparing forecasts for labor supply and demand for specific jobs, HR planners can determine whether there will be a lavol

surplus or a labor shortage for certain categories. The second step in human resource planning is to define specific goals regarding a

desired outcome and provide benchmarks for determining the relative success of a program aimed at addressing labor surpluses or

shortages. There are a number of strategies for addressing the issue of a labor surplus that vary according to expense, speed,

effectiveness, and the amount of human suffering.

Each statement below describes an option for reducing an expected labor surplus. For each question, select the correct answer based

on the speed of the proposed reduction in labor and the amount of human suffering incurred.

Argo$-$Tech recently purchased the power accessories division of TRW Incorporated. All employees eligible to retire were

encouraged and sometimes forced to do so$.$

In September, Progressive Insurance announced a company reorganization to increase efficiencies and reduce costs. Two

months later, the company announced a reduction$-$in$-$force of $350$ people.

When GM downsized its Janesville assembly plant in Wisconsin, some employees were offered an opportunity to stay on board

and share job responsibilities with other workers.

When a restaurant chain has an employee surplus as one of its locations, it may allow the extra employees to work at another