25. Oman started experiencing employee retention policy in last few years. Board of directors proposed increase of salaries in the revised retention policy. In this tenure, they found that the company's human resource cost was too high and is a major cause for declining financial position of the company. Profit maximization is the sole objective 5 of Financial Management of the firms. But there are firms spending more than 70% of the income for salary and other monetary benefits. Company X and Y are in the same risk class due to high demand in material supplies to their business from last one year. In this situation company X uses loan with 10% rate of interest borrowed from bank to providing salary to its employees since last six months. But company Y using its capital to managing with the employees' salaries. (1) In your view, which company is wise and which is not ideal. In connection with their financial stability, at this scenario, is it advisable to downsize the workforce? How do they deal ideally? Give detailed six justifications. (6 Marks) (ii) In this critical situation, the company is strictly advised to control and monitor business HR Demands. Explain any two concepts to them. (2+2 = 4 Marks)