Question

BioMd is a manufacturer of high-end medical diagnostic equipment. The company's revenues and profit margins have come under pressure during the last two years because of decline in product demand. Daisy Howell, the CEO of the company, calls for a senior management meeting to finalize the strategies to be adopted to tackle the dip in profit margins. In the meeting, most managers argue in favor of using downsizing as a means to reducing costs and improving margins. However, Daisy strongly argued for the use of layoffs instead of downsizing. Which of the following, if true, would most strengthen Daisy's argument? A) The organization has a business-based target for reducing the number of employees.B) Major hospital chains have announced plans to open up more facilities in the coming year.C) An internal demographics review has shown that about ten percent of the firm's employees would retire within three years.D) Worker Adjustment and Retraining Notification Act applies to the organization as it has more than hundred employees.

Answer 1

C. An internal demographics review has shown that about ten percent of the firm's employees would retire within three years.

Explanations:

The fact that a worker knows that retiring would come with benefits will make them put in their best as regards work tasks and productivity. Daisy's argument against downsizing is shown in the internal demographics review.