Essay Questions
91. Until recently, Donnelly Inc. manufactured mirrors that were sold exclusively to the "Big Three" automobile makers. In the past year, following the loss of the General Motors account, the company landed substantial accounts (30 percent of current business) with Toyota and Honda. These new clients need somewhat different products, which require a more labor-intensive production process. Also, the new clients have leaner inventory systems than the Big Three. Under these circumstances, what kind of method would be most appropriate to use in forecasting the company's labor demand in the upcoming year: a statistical approach or a judgmental approach? Explain your answer.
92. Describe what occurs at the goal setting and strategic planning step of the human resource planning process.
93. Discuss the major options organizations have for reducing labor surpluses. In doing so, discuss how they vary in terms of speed and the amount of human suffering.
94. Forecasting indicates the need for skilled technical employees in your company will increase dramatically this year. If the company continues on its present course, it will experience a substantial labor shortage by year's end. Something must be done fast, but management is concerned about maintaining its flexibility. Which of the options for avoiding expected labor shortages identified in the text would be most appropriate under these circumstances? Explain your answer.
95. What is downsizing? Discuss the four major reasons why organizations engage in downsizing. In general, are downsizing strategies successful? List reasons why or why not.