CASE STUDY: MANAGEMENT ANALYSIS & DECISION MAKING

SITUATION

You are the HR Director for XY Company.

Times are slow for your company right now and with the rising costs of materials and wages, your profits are at an all-time low. Because of this unfortunate situation, and as we are adapting a competitive strategy, you will need to let some employees go. The senior management team has already compiled the list of people whose employment will be terminated two weeks from today. However, the people on the list will not know until the day of the termination.

You have called a meeting of your department managers and supervisors. The managers and supervisors do not know that a list has been created, so you will need to let them know this at some point in the conversation. Also, they will not be able to see the list until the day of the terminations. Obviously, this is a very confidential topic and should not be shared with anybody outside of this meeting.

The purpose of your meeting today is to confide in this group and assure them that none of them are on the list. You also want to get their feedback on how the general employee base will react to the news and event in two weeks. Next, youd like to understand and anticipate any questions that they believe will arise so that appropriate answers can be prepared. Finally, you would like to devise an action plan/transition plan for the day after the event.

What you can tell the managers the number of people they will each be losing, if you find that information important to share. Here is the breakdown:

• Order Processing will lose 4 of its 12 people
• Human Resources will lose2 of its five people
• Production will lose 8 of its 40 people

After introductions, you should begin discussing this upcoming event with your managers. Spend as much time on each of the following questions as your group feels is necessary:

Answers

1. Why is this happening?

Answer :

This is happening because of increase in the the wages & material cost . Out of 3 M resources Man ,Machine , Materials , Man & Materials prices have been increased. Thats why the management decided to terminate the employees.

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2. How will this impact the areas?

Answer :

Yes this will impact . This is very strategic decision. To terminate 14 employee out of 57 means the percentage is 24.56 . The percentage is very high.

1 ) If 24.56 % employees are terminating from different ares then this will leads to negative message in the organization.

2) This will affect on productivity of the system. Production may reduced.

3) The employees other than termination will screwed for more work which will lead to demoralization.

4) Because of the over stretching of employees , this may be possible that defective products are produced.

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3. How will the department managers plan for this without breaking confidentiality?

Answer :

See here needs managers soft skills .How he / she conveys the message. Its clear that the list will not be informed to people . What manager can do ,

1) Managers can explain what is reality

2) What are the current challenges faced by organization

3) What can be upcoming hurdles

4)How this present situation of increasing cost (Material & Wages ) are related with future hurdles

5) What employees to do in this situation

6) How they can give their best

etc

Without communicating the list if mangers speak softly on above points that will pass the message to employees.

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4. How will the departments transition after the event?

Answer :

After termination its very difficult for the receptive department to work.

Order Processing : 4 out of 12 (33.33%)

Human Resources : 2 out of 5 (40%)

Production : 8 out of 40 (20%)

If we see above statistics then in above statistic the % more is in HR department .But still that can be manageable by 3 other people.But in production 8 people have been terminated that will be drastic work load increased on other employees.

Its difficult for departments after translations:

1) Increased work load

2) Fear of termination

3) Disturbance in organization culture

4) Defective products may produce

5) Process may hamper

6) May be Over time cost increased

7) Difficult to plan the activities fro respective managers of the department.

5. Anything else you feel your managers and supervisors would want to know or need to know

Answer :

Yes when the Head of the organization is communicating a serious message on general note . Then that sure that there can be some hidden part in his message & its not possible that can not be understood by employees.(Managers & Supervisors) .These people are very clever.They will pick up the correct meaning from the message.

So it may be possible that they may ask you in details

1) What is the consequences or negative effect on employees service

2) What about continuity of services

3) Whats the real problem

4) If any decision has taken whether that decision is taken on performance basis or on some other factors

etc

These may be points asked by supervisors & Managers.

please answer for below 2 questions only :

1. Make the decision. What should you do?

2. Evaluate your decision. Why do you think this is the best decision possible?