Downsizing/rightsizing

Correct Answer: Creating specialized retention programs for high-performing employees.

Creating specialized retention programs for high-performing employees is crucial for effectively rightsizing and retaining top performers. This approach ensures that valuable talent is recognized and provided with tailored incentives to stay. On the other hand, reducing the workforce without assessing individual contributions can lead to the loss of key employees, offering the same benefits to all employees regardless of performance may not address the specific needs of top performers, and enhancing communication about the company's strategic direction, while important, does not directly focus on retention strategies for high performers.

Correct Answer: Clearly communicating the reasons and selection criteria for the downsizing.

Clearly communicating the reasons and selection criteria for the downsizing is the most effective action to maintain morale among remaining employees. This transparency helps employees understand the rationale behind the decision, reduces uncertainty, and fosters trust in management. Providing financial incentives for voluntary departures may alleviate the downsizing impact but doesn't directly address morale among those who stay. Enforcing strict non-disclosure agreements can create an atmosphere of secrecy and distrust. Increasing the workload of remaining employees is likely to lead to burnout and decrease morale.

Correct Answer: Apply consistent, measurable performance standards to guide layoff decisions.

Applying consistent, measurable performance standards ensures that layoff decisions are fair and based on objective criteria. This approach promotes transparency and reduces the risk of bias or discrimination. Other options, such as allowing managers to choose based on personal preferences, first-come, first-served approaches, or using seniority as the primary factor, may not adequately address fairness or compliance concerns.