Final answer:
The benefits of firing the entire staff include a fresh start and improved talent selection, while the risks include demotivation and potential loss of institutional knowledge.
Step-by-step explanation:
The benefits of a dramatic move such as firing the entire staff and requiring everyone to reapply for their jobs when rejuvenating a failing division or company include:
- A fresh start: By removing the current staff, the company can create a new culture and work environment.
- Improved talent selection: Requiring everyone to reapply for their jobs allows the company to select employees based on their qualifications and fit for the new direction.
- Cost savings: The company can potentially save money by hiring new staff at lower salaries.
- Increased efficiency: The new staff may bring in fresh ideas and approaches, leading to improved efficiency.
The risks of this approach include:
- Demotivation: Firing the entire staff can lead to demotivation among the current employees who may feel undervalued or uncertain about their future.
- Potential loss of institutional knowledge: The company may lose valuable institutional knowledge and expertise by letting go of experienced employees.
- Legal issues: There can be legal consequences if the company doesn't handle the termination process properly or if employees allege discrimination or wrongful termination.
- Decreased productivity: The transition period can lead to a decrease in productivity as new employees get up to speed and the company adjusts to the changes.