Operations Management: Processes and Supply Chains, 12th Edition

Discussion Questions

1. List the types of costs incurred when employees are laid off. What costs are difficult to estimate in monetary terms? Suppose that a firm is facing a downturn in business, each employee has skills valued at $40,000 per year, and it costs $100,000 to lay off an employee. If business is expected to improve in 1 year, are layoffs financially justified? What is the “payback” period for the layoff decision?

2. In your community, some employers maintain stable workforces at all costs, and others furlough and recall workers seemingly at the drop of a hat. What are the differences in markets, management, products, financial position, skills, costs, and competition that could explain these two extremes in personnel policy?

3. Consider ...