Cisco Systems, Hewlett-Packard, American Airlines, and General Motors are examples of companies that have cut employment or
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Cisco Systems, Hewlett-Packard, American Airlines, and General Motors are examples of companies that have cut employment or cut wages and/or benefits to reduce labor costs in hope of becoming more competitive and more profitable. Indeed, American and GM went through bankruptcy in part to gain control over labor costs. In contrast, some companies- Southwest Airlines, Nucor, and Lincoln Electric- have a no-layoff practice and do not appear to have cut wages or benefits even in years when sales have declined significantly (They have also not gone through bankruptcy).
what can an employer do to make labor costs flexible so that profits do not take as much of a beating during difficult economic times and so that fewer employees need to be laid off
Related Book For
Strategic Management Text and Cases
ISBN: 978-1259196553
7th edition
Authors: Gregory Dess, Tom Lumpkin, Alan Eisner, Gerry McNamara
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