You are the HR manager for a company that has approximately 2,000 employees. While there is not a profit sharing
plan, there are matching funds to a 401k, as well as health benefits, for which employees must pay a portion of
the insurance premiums. The employees are divided into three divisions, with division two and three doing similar
tasks.

The first division operates relatively lean, and is the core of the operations of the company. The second and
third divisions are collectively lean, and have employees that are all necessary in fulfilling the mission of the
organization. Both the second and third divisions hired personnel as the company was growing.

Unfortunately, over-hiring was done in the second division, as the second division became stagnant and the third
division had stronger growth. The third division has significantly more personnel; however, the number is not
proportionate with the second division, nor with the workload required. More personnel are needed in the third
division, due to the growth it is experiencing. Fewer are consequently needed in the second division. Not
everyone in the second division can perform the duties necessary in the third division. Everyone in the third
division can perform the duties of those in the second division.

Senior management will be making a decision as to what to do about the over-hiring in the second division and the
under-staffing in the third division. They have sought your advice as to a potential solution, and will meet with
the Board of Directors to determine the appropriate action. What is the plan that you propose to senior
management?

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