Action decisions in surplus conditions
When comparison of demand for and supply of employees indicates a surplus,the alternative solutions include attrition,early retirements demotions,layoffs,and terminations. Decisions in surplus conditions are some of the most difficult that managers must make,because the employees who are considered surplus are seldom responsible for the conditions leading to the surplus. A shortage of a raw material such as fuel or a poorly designed or poorly marketed product can cause an organization to have a surplus of employees.