When an organisation reduces its workforce because of a sustained decline in business demand, the process is commonly called:

Correct answer: C. Downsizing

  • A. Outsourcing
  • B. Job enlargement
  • C. Downsizing
  • D. Benchmarking

Explanation

Downsizing is a planned reduction in the number of employees, often caused by economic pressure, restructuring or reduced demand. Job enlargement changes the range of tasks, while outsourcing transfers work to an external provider.

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Human resource management deals with acquiring, developing, rewarding and retaining employees within an organisation. It includes job analysis, recruitment, selection, training, performance appraisal, compensation, career planning, labour relations and workplace discipline. Recruitment attracts applicants, while selection evaluates them and chooses the most suitable candidate.

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