Discussion Board 4

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Feb 20, 2024

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Running head: Discussion Board 4 1 Discussion Board 4 Jack Gochenour Liberty University February 8, 2024
Discussion Board 1 2 This is one of the hardest decisions a manager has to make and one that cannot be made lightly due to the ramifications it can have on the company as a whole (Serfling, 2016, p. 2240). One possible benefit of terminating a small number of employees can be the reduction of labor costs which can ease some of the burden felt during an economic downturn (p. 2240). This in turn can also benefit the remaining employees as the company does better financially with fewer employees to pay (2016). However, the termination of that same small group of employees can negatively impact the morale and stability of the remaining workforce and cause strife and uncertainty within a company (p. 2245). Option number two, keeping everyone while paying everyone less, has its advantages and disadvantages as well (Chahrour, Chugh, & Potter, 2023, p. 927). Chahrour, Chugh, and Potter (923) write that lowering wages can increase the profitability of a company but, business leaders have to be careful on how the reduced wages impact employee job satisfaction (p. 927). Employees who have been happy and productive with their current salary might not be on board with less pay and their production could dip (p. 920). Serfling (2016) adds to this by saying that in uncertain environments, such as recessions, employees tend to demand more stable or even high wages as a form of protection (p. 2244). After considering both of these options and analyzing the impacts that each choice can have on a business, I would go with option one. This option, while potentially harmful to those laid off, keeps the rest of my employees financially happier and more secure during the recession (Serfling, 2016, p. 2244). This feeling of assuredness is important to quell the fear that is felt by a company and its employees during hard times and this option provides the best of both worlds (Mehta, 2023, p. 10).
Discussion Board 1 3 References Chahrour, R., Chugh, S. K., & Potter, T. (2023). Anticipated productivity and the labor market. Quantitative Economics, 14(3), 897-934. https://doi.org/10.3982/QE2029 Mehta, M. (2023). Rebounding from recession. Steel Times International, 47(3), 9-10. https://go.openathens.net/redirector/liberty.edu?url=https://www.proquest.com/scholarly- journals/rebounding-recession/docview/2827313358/se-2 Serfling, M. (2016). Firing Costs and Capital Structure Decisions. The Journal of Finance, 71(5), 2239–2285. http://www.jstor.org/stable/44155390
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