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As a manager, you have a number of tactics to choose from to cope with a labor shortage or surplus. Relying on overtime; hiring contingent labor; focusing on employee retention; using promotions, transfers and demotions; and hiring new full-time employees are tactics you can use to remedy a labor shortage. When faced with a labor surplus, you might consider implementing layoffs, focusing on attrition and hiring freezes, developing early retirement programs, or using promotions, transfers and demotions to move employees to other areas of the company. 1. What are the advantages of each of these tactics? 2. What are the disadvantages of each of these tactics? 3. Considering the advantages and disadvantages of each tactic, develop a strategy for when each of the tactics should be used and should not be used. Which organizational demands and environmental considerations are particularly important in your strategy?
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