Question

In: Operations Management

Many organizations are engaging in mass layoffs (or reductions in force) due to the effects of...

Many organizations are engaging in mass layoffs (or reductions in force) due to the effects of physical distancing measures.

What are the effects such a decision can have on employees and employers?

What are the alternative options that organizations might consider?

What are the advantages and disadvantages of layoffs versus any alternative options that might be available?

Solutions

Expert Solution

Layoffs would mean an increase in unemployment and the employees would be severely effected due to the lack of earning . Employees would not even be able to meet their normal expenditures . Employers would also be severely impacted by the layoffs as the work would be impacted and the manpower might not be sufficient to handle the work load. Instead of layoffs ,organizations can go for work from home . They can provide resources for employees who can do their work from home. This would enable them to maintain social distance and at the same time work can be completed. With layoffs the cost for company gets reduced which would mean the economy will not be effected but the major disadvantage is that employees would be losing their jobs and the employers would be losing manpower. Work from home would help the employees to save themselves from the problem and also not lose their jobs and employers also can get their work done with maintaining social distance but it is difficult to monitor the work of each and every employee which is a major disadvantage.


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