Downsizing-related Layoffs
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What short-run, long-run, and policy options are available to managers in lieu of laying off employees? Give the pros and cons of each.
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The short-run option for managers to avoid discharge of employees is to redeploy them in areas where there is unused capacity. For example, those workers that are found redundant in a forging department can be redeployed in the machining department if extra capacity is available. The pros are that employees are productively used and the production increases. The cons are that these workers are likely to be poorly trained and not suitable for areas where excess ...
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