Question

Julie has worked in the laundry of a large hospital for 34 years. One Friday afternoon she and her co-workers are brought in and told that the hospital is firing them because it has decided that the laundry will close and this function will be performed by a company that does laundry for large institutions. Julie's situation is best considered to be an example of:

a) outsourcing
b) union-busting
c) right-sizing
d) downsizing

Answer 1

Julie's situation is best considered to be an example of outsourcing.

Step-by-step explanation:

Julie's situation is best considered to be an example of outsourcing.

Outsourcing refers to the practice of contracting with another company to perform a specific job or function that would otherwise be done by the company's own employees. In this case, the hospital has decided to close its laundry and hire an external company to handle the laundry services. This is a common strategy employed by organizations to reduce costs and focus on their core operations.

By outsourcing the laundry function, the hospital aims to benefit from the expertise and efficiency of a specialized laundry company, which often serves large institutions. While this decision may lead to job loss for Julie and her co-workers, it is important to note that outsourcing is a strategic business decision aimed at improving overall efficiency and reducing costs.