len Downsizing at Site Box 10.9 Case Study Les representatives at Simtek a led by President and CEO John blicly held Corpo ion employees and for employe fourth of the industry. The employee company was not committed to inorities represent less than is the only female ved very hard to be tog on. Karen has just been for her that Simtek is reengine e will be a moderate severence She has both flexibility and responsibility for Karen Jacobs McKinney is the manager of a group of 10 sales ren computer components manufacturer. The company was a small privately held start-up company to a publich mons and has grown from a small, privately held sta Simtek has been known for fair treatment of its nonunion emn average, Pay and benefits are in the top fourth of tions policies that are above average. Pay and benefits only maior criticism leveled at Simtek was a charge that the compa stated pro diversity policy. Of its 400 employees, women and minorities Jacobs McKinney was the first woman of color hired by Simtekande in the company. She has been employed for five years and has worked very aca fair and capable manager in a white, male dominated organization. Karen with an extremely difficult task. Her immediate supervisor has told her that ina and her unit will have to downsize by two or three people. There will be package, Karen has to decide who will be released. She has both flexibility and rese selecting among employees who have roughly equal work histories, skills, and potentia The employees in Ms. Jacobs-McKinney's unit consist of seven white males, one white one African American male, and one. Asian American female. When she compares the work formance of the 10, she finds that all have performed equally well. All have similar knowled the products, and their sales levels are also very similar. The white female, the African American male, and the Asian American female have all been hired in the past two years in an effort to increase diversity within the organization. The white males have all been employed there at least five years. If Karen relies on seniority to determine who should be laid off, then the department will lose all of the diversity that the company has tried to increase in the past two years. Howere she also knows that if she decides to keep any of the new employees, then most likely new involved with the company in a reverse discrimination suit. White males have the action, complaining that Simtek now hires almost exclusively women and minorities The personnel manager has lust called Karen requesting the names of the emp be terminated. She has one week to decide what to do. S of the employees who w y employees are terminated? yees are terminated? Discussion Questions 1. What will be the likely impact if the three minority employees are 2. What will be the likely impact if more senior employees are tem 3. What criteria should Karen use in making her decision! 4. Who should Karen terminate? Why? 5. How should Karen announce her decision to those who explain her decision to others in the department? 6. Can you think of other leaders and organizations that has did they respond? What hapnened as a result of their choic ose who are laid off? How should that have faced similar decisions a result of their choices? added value, all perform hell