Case Study 2

Submitted By: Mir Ishrat Ereen

ID: 2020362

Answer 1:

In my opinion, P&G can determine labor demand by-

- derived from product/service demanded

- external in nature.

Because it has decentralized HR structure also considering it operates in nearly 80 countries and
has a workforce of almost 98,000 people-

- It is important to plan for various subgroups within a labor force.

- A comparison of the proportion of workers in protected subgroups with the proportion
that each subgroup represents is called a workforce utilization review.
- The steps required to execute an affirmative action plan are identical to the steps in the
generic planning process.

Answer 2:

Given P&G's complex organizational structure with specialized HR teams in various

departments, the strategies the company should employ to reduce an expected labor surplus
without compromising the specialized skills and expertise in each department are-

1. Downsizing: is the planned elimination of large numbers of personnel designed to

enhance organizational competitiveness. Reasons for downsizing include:
- need to reduce labor costs
- technological changes reduce need for labor
- mergers and acquisitions reduce bureaucratic overhead
- organizations choose to change the location of where they do business
2. Early Retirement Programs
- The average age of the U.S. workforce is increasing.
- Baby boomers are not retiring early for several reasons:
  improved health of older people
 a fear that Social Security will be cut
 mandatory retirement is outlawed
- Many employers try to induce voluntary attrition among older workers through early
retirement incentive programs.
3. Employing Temporary Workers: Hiring temporary workers helps eliminate a labor
shortage. Temporary employment affords firms the flexibility needed to operate
efficiently in the face of swings in demand. Other advantages include:
- temporary workers free a firm from many administrative tasks and financial burdens
- temporary workers are often times tested by a temporary agency
- many temporary agencies train employees before sending them to employees.