Case Study $5$: Downsizing or Development

This community based organization has been providing a variety of services to new immigrants in a working class community for more than $20$ years. Since $1994,$ they grew steadily into a respected service provider. Their funding comes primarily from government grants but they also operate a few services for which they can earn billable revenue. The billable component of their operations currently accounts for about $20\%$ of their revenue but has potential for growth with the appropriate focus.

In recent months the agency has experienced a significant reduction in grant funding and a corresponding reduction in revenue. The need to reduce costs has led the Executive Director to take the unfortunate step of laying off one employee. Five candidates have been selected as possible targets. Each possibility is profiled below. In no instance are any of these candidates the only employee in their department.

Research and Development Department $$ a grant writer with a $4-$year degree and $1\mathrm{.}5$ years of service. Performance appraisals $=$ average to above average; has secured no funded grant projects yet but is making good progress on several; well$-$liked by coworkers; average technical abilities; moderate leadership potential.

Community Affairs $$ a government affairs representative with a MBA and $2$ years of service. Before joining the CBO, worked as a legislative aid for a local congressperson who has since retired. Continues to maintain good contacts with locally elected officials that have proven useful to the organization. Has good technical abilities and moderate leadership potential. Excellent performance reviews but is disorganized and often late for work. Spends time every week $$networking with politicos.$$ When in the office, tends to socialize a little too much.

Client Services $$ coordinating manager, a high school graduate, and very good performer with $7$ years$$ seniority$.$ Low leadership potential, steady and dependable worker, serves on committees like customer appreciation committee and employee event committee. Keeps service area neat and organized, is very customer$-$oriented, and rarely encounters something he cannot diagnose and fix.

Human Resources $$ HR assistant with $2-$year degree and $4$ years with the organization. Average to above average performer, leadership potential, easy$-$going and well$-$respected. Low in technical abilities. Works long hours. Has played important role in redesign of performance appraisal system.

Accounting $$ Accounting Manager with $4-$year degree and $3\mathrm{.}5$ years of service. Has average appraisals, average technical ability and average leadership potential. Works long hours, frequently checks the work of others. Often has disagreements with others.

Rank$-$order your preferences for who should be laid off from most$-$expendable to least. You may wish to rate each candidate on education, seniority$,$ performance, leadership potential, and other items of significance you may have noticed in the profiles. What kind of leadership development activities would you assign to each to improve their profile? What are the human behavior implications and influences impacting your decision$($s$)?$

Copilot

In addressing the difficult task of downsizing, it$$s important to consider multiple factors such as education, seniority$,$ performance, leadership potential, and overall contribution to the organization. Here$$s a rank$-$order based on the provided profiles, from most expendable to least:

Community Affairs: Despite excellent performance reviews, the disorganization and tendency to socialize excessively could be detrimental to productivity. The networking aspect, while valuable, may not outweigh the daily responsibilities that are being compromised.

Accounting: The average appraisals and frequent disagreements with others suggest potential for conflict, which can affect team dynamics. However, the commitment to long hours indicates a strong work ethic.

Research and Development: Although no funded grants have been secured yet, the progress and positive rapport with coworkers are promising signs. The moderate leadership potential is also a plus.

Human Resources: The HR assistant$$s role in redesigning the performance appraisal system shows initiative and impact. Leadership potential and being well$-$respected are significant assets.

Client Services: With the highest seniority and a record of very good performance, this employee seems integral to daily operations and customer satisfaction, which are crucial for the organization$$s success.

For leadership development activities, I would suggest:

Community Affairs: Time management and organizational skills workshops to improve efficiency and punctuality.

Accounting: Conflict resolution training and team$-$building exercises to enhance collaboration.

Research and Development: Advanced grant writing courses and project management certification to bolster grant acquisition skills.

Human Resources: Leadership training progra