Workforce Reduction with Across-the-Board Layoffs Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

To be a successful manager, one must put into place an efficient approach to managing costs. Increased competition, coupled with deregulation of the market in the present business world, has necessitated managers to develop an accurate way of managing a workforce. Some managers opt for across-the-board layoff. Even though this approach of reducing workforce might result in cost reduction, it is not efficient given that it does not consider the productivity of a worker. Secondly, across-the-board layoffs might lead to dumbsizing since a productive worker might be laid off in the process.

Furthermore, labour restructuring has an impact on the value of a company. The value often rises following an announcement to restructure a firm. However, investor confidence diminishes once restructuring starts. It is therefore pertinent for a firm to concentrate on the efficiency of a labour restructuring program.

For labour restructuring to be a success, a firm has to work in line with the efficiency rule of evaluating input into a production process. According to this rule, the production cost can be efficiently reduced by examining the marginal product per dollar wage paid to a worker. It entails ranking employees according to their score in marginal product per dollar wage. This reflects the theory of production, i.e., labour is an input into production. Employees whose score is the least are supposed to be the first ones to be dismissed from employment. Compared with across-the-board layoffs, the efficiency rule has maximum cost saving. Furthermore, across-the-board layoff culminates into dumbsizing.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2021, April 25). Workforce Reduction with Across-the-Board Layoffs. https://ivypanda.com/essays/workforce-reduction-with-across-the-board-layoffs/

Work Cited

"Workforce Reduction with Across-the-Board Layoffs." IvyPanda, 25 Apr. 2021, ivypanda.com/essays/workforce-reduction-with-across-the-board-layoffs/.

References

IvyPanda. (2021) 'Workforce Reduction with Across-the-Board Layoffs'. 25 April.

References

IvyPanda. 2021. "Workforce Reduction with Across-the-Board Layoffs." April 25, 2021. https://ivypanda.com/essays/workforce-reduction-with-across-the-board-layoffs/.

1. IvyPanda. "Workforce Reduction with Across-the-Board Layoffs." April 25, 2021. https://ivypanda.com/essays/workforce-reduction-with-across-the-board-layoffs/.


Bibliography


IvyPanda. "Workforce Reduction with Across-the-Board Layoffs." April 25, 2021. https://ivypanda.com/essays/workforce-reduction-with-across-the-board-layoffs/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
1 / 1