Disadvantages of using the option of hiring additional personnel during periods of increasing demand and conducting layoffs during lower-demand periods for managing operating costs?

The critical analysis of temporary staff hiring & firing, depending on demand is given below :

Explanation:

Hiring & firing personnel, during periods of peak demand & periods of lower demand respectively - can have many undermentioned advantages & disadvantages :

Advantages :

Fulfilment of consumer's demand in high demand periods. Cost saving during low demand periods Highly suitable for seasonal industries, with highly fluctuating demand. Temporary staff is cheaper for companies, it is to be availed with less perks, social security etc

Disadvantages :

Incurring high temporary recruitment cost again & againConsistency & Quality of product or service might be compromised, as the labour indulged is fluctuating so muchEmployees might feel lack of job security & hence not associate belongingness with their job, company. It can reduce their incentive to work hard towards organisation objectives Prospective employees & hiring intermediaries might build a bad image of the company as an employer. It might create staff finding difficulties, when needed later.

Answer gross private domestic investment (gpdi);

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