COMMERCE 2BC3 Lecture Notes - Lecture 8: Railways Act 1921, Human Capital
19 Oct 2020
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Dealing with shortage of employees: recalling people from previous layoffs, outsource works to other specialty groups, use overtime with their existing workforce, using contract or part-time workers. Short term costs are cut down, some savings: however, a reduction in productivity results, return on assets falls, this is even worse for companies that are characterized by growth and r&d. Layoffs are common, and sometimes deemed the easiest way to cut costs. It may be beneficial in the short term: however it has significant negative effects on the productivity. Alternatives to layoffs: there are times when layoffs may need to be necessary. Overhiring by accident and needs to be corrected, the industry has experienced falling profits: make layoffs temporary (recalling people when business/economy improves) Fedex- 5% pay cut for employees, 10% for execs, 20% for ceo: standen"s - reduced the work week to 3 or 4 days for employees.
