Question 1.

Question1: In mature organizations, there is quite often a need to reduce labor surpluses. What would you suggest as other means by which to accomplish this objective rather than with layoffs?

One particular strategy we employ in our Mikes Bikes simulation, and I would think in some cases it would work in the real work, is to modify product or service pricing in the market place to increase volume. For instance when we adjust our pricing downward in the simulation, we see more sales requiring more labor to produce.
The adjustments made in labor within mature organizations, is one method of reducing expenses; are there other places to reduce costs? Our company scaled back areas like benefits in favor of keeping jobs. Monthly premiums were increased and the company portion reduced to cut expenses. Company cars were eliminated at certain levels and a car allowance paid to the employee; this reduced the company liability exposure while reducing expenses. Reducing headcount should be a last resort for corporations because of the effects it typically has on the remaining organization.