Section Twoareas) will be provided more resources. These resources would
come from areas in which industry opportunities are expected
to decline in the future, but in which the company now has
strength and is making money (cash cows). Resources also
would come from those areas characterized by both
unattractive industry opportunities and low company strength
(dogs). As resources are taken away from the cash cows and
dogs, the manner in which employees from these areas are
treated is critical to successful implementation of the strategy.
For example, will those in areas facing eventual elimination be
allowed to transfer out to the star areas? How will
retrenchment or downsizing be handled?^67
Lead Time for Dealing with Labor Shortages
and Surpluses
Another potential contribution of human resource management
comes from the lead time produced by human resource
planning. The greater lead time provides alternatives for
dealing with shortages or surpluses of labor. Additionally, if the
organization has included the use of temporary and contingent
employees in its staffing strategy, such employees provide a
mechanism for strategic maneuvering, because this type of
labor can sometimes be considered as a variable cost. As a
result, employers have more degrees of freedom and flexibility
to exercise options.^68 Unfortunately, human resource