IGCSE Business 2.3.3 - Reducing the size of the workforce

Which of the following is NOT a reason why a business might reduce its workforce?

• Increased demand for products

• Automation replacing human workers

• Economic downturn

• Relocation of the business

Which situation is most likely to lead to a business reducing its workforce?

• Business expansion

• Increased competition

• Introduction of new production technology

• Higher employee wages

If a business faces financial difficulties, which is a likely strategy?

• Hiring more employees

• Increasing wages

• Reducing staff through redundancy

• Expanding into new markets

Which industry is most likely to reduce its workforce due to automation?

• Retail stores

• Car manufacturing

• Hotels

• Restaurants

Which of the following external factors can force a business to reduce its workforce?

• Higher employee motivation

• Economic recession

• Increased product demand

• Improved employee training

What is the key difference between dismissal and redundancy?

• Dismissal is voluntary, while redundancy is compulsory

• Redundancy is due to an employee’s actions, while dismissal is due to business conditions

• Dismissal is due to an employee’s misconduct or poor performance, while redundancy happens when the job is no longer needed

• Dismissal provides severance pay, but redundancy does not

Which of these is an example of dismissal?

• A worker is laid off because a factory is closing down

• An employee is fired for stealing company property

• A business downsizes due to reduced demand

• A company automates its production line

Which of these is an example of redundancy?

• A worker is dismissed for arriving late regularly

• A company introduces new machinery, replacing some workers

• An employee is promoted to a new role

• A worker receives a warning for poor performance

Which employee is most likely to be dismissed rather than made redundant?

• A worker whose job role is no longer required

• An employee who frequently misses work without a valid reason

• A staff member affected by company downsizing

• A worker affected by relocation of the business

Which of the following would likely lead to redundancy rather than dismissal?

• Employee theft

• A new automated system replacing jobs

• Poor job performance

• Breach of company policy