Business Studies (9-1) - 0986 CIE

Why Reducing The Size Of The Workforce Might Be Necessary:

Overview

Sometimes a business has more workers than it needs, perhaps because sales have fallen or machines now do the work. Reducing the workforce is painful but sometimes necessary for survival, and there is a crucial difference between sacking a worker for poor behaviour and letting a good worker go because the job no longer exists.

This lesson explains dismissal and redundancy, when downsizing is needed, and how a business decides which employees to keep. By the end you will be able to recommend and justify which workers to make redundant in a given situation.

Objectives

  1. Difference between dismissal and redundancy with examples
  2. Understand situations in which downsizing the workforce might be necessary, e.g. automation or reduced demand for products
  3. Recommend and justify which employees to make redundant in given circumstances

Lesson Note

Getting workforce reductions wrong is costly and can break the law. Confusing dismissal with redundancy, or making the wrong workers redundant, can lead to legal claims and the loss of the firm's best staff. Examiners test whether you can tell the two apart and choose fairly.

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Lesson Evaluation

Congratulations on completing the lesson on Why Reducing The Size Of The Workforce Might Be Necessary:. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.

You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.

Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.

  1. A worker losing their job because it is no longer needed is: A. dismissal B. redundancy C. resignation D. retirement Answer: B
  2. A worker sacked for repeated theft has been: A. made redundant B. dismissed C. retired D. promoted Answer: B
  3. Which can cause a business to reduce its workforce? A. rising sales B. automation C. opening new branches D. more demand Answer: B
  4. A redundancy payment is given because: A. the worker behaved badly B. the job is no longer needed and the worker is not at fault C. the worker was late D. the worker resigned Answer: B
  5. Which factor would usually make a business retain a worker? A. poor attendance record B. essential, transferable skills C. willingness to volunteer to leave D. unsatisfactory work Answer: B

Available on the Green Bridge App

Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.

Full lesson notes with diagrams
AI-powered learning assistant
Study offline, anytime, anywhere
Available on Android, Windows, macOS, and Linux

Available on the Green Bridge App

Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.

Full lesson notes with diagrams
AI-powered learning assistant
Study offline, anytime, anywhere
Available on Android, Windows, macOS, and Linux

Practice Mock Questions

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