If labor is running over budget at mid-month, should the manager make up for this by running on a short staff during the final week?

• A. This is unwise because quality issues impact customer satisfaction.
• B. This strategy is feasible if the manager fills in for absent hourly employees.
• C. This is a common industry practice and should be used when needed.
• D. A better strategy is to schedule the lowest-paid employees and hope they will rally.

Answer: (A)

Protecting service quality and customer satisfaction guides staffing decisions when labor costs run over budget. Cutting staff in the final week to “make up” the overspend undermines performance: fewer workers means rushed work, more mistakes, longer wait times, and poorer service. That hit to quality often translates into unhappy customers and lost business, which harms the organization more than the mid-month savings from fewer hours. A wiser approach is to adjust plans earlier, seek non-labor cost reductions, or use approved overtime or temporary help if needed while maintaining adequate frontline coverage. Having the manager fill in for hourly staff pulls leadership away from supervising and delivering quality, and relying on the lowest-paid workers or labeling it as an industry norm isn’t a reliable or ethical solution. The core idea is to protect quality and customer satisfaction, even when tightening the budget.