the business makes hand-made watches
(business studies work)
2007-11-25 21:51:10 · 3 answers · asked by baynhamr 1 in Business & Finance ➔ Corporations
(need to know the drawbacks)
2007-11-26 03:18:24 · update #1
Budget means total costs for personnel ..
Often the Budget can be cut without actually making people redundant .. 'Optional' benefits (such as training, annual Bonus payments, staff parties etc) can all be cut.
The cost of other Benefits (such as Company cars, Health Insurance, travel costs etc.) can all be reduced (by switching suppliers, choosing a cheaper 'brand' etc)
A recruitment freeze will also reduce the Budget ... and the least productive and least skilled individuals can be encouraged to depart (after an adverse appraisal by freezing their pay) and not be replaced.
HOWEVER the main problem with the 'cuts by a thousand slices' suggested above will be one of staff morale ..
In a 'hand-made' businesses production quality usually depends on a few highly skilled individuals .. if you p*ss them off quality will suffer and eventually those with the highest level of skills (and thus those in most demand) will leave for your competitors ...
By far the best approach would be to re-organise (perhaps by introducing some level of automation in the less skilled areas) and make Redundancies ..
2007-11-26 22:33:45 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
Less direct costs, wages plus benefits in addition to less taxes.
2007-11-26 06:16:20 · answer #2 · answered by Squat1 5 · 0⤊ 0⤋
reduced head-count=redundancy costs, but long term wages savings. also, those left behind have to cover for those sacked, so they could be overstretched and leave anyway. try to get voluntary redundancy or early retirement
2007-11-26 05:55:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋