please do a concise description of the situation find out the problem facing this company and the individual involved. please answer the question correctly.

The Situation behaviours). to a pay cut Aerospace Inc. has lost two large manufacturing contracts that affect two of the three plants. Auburn has been forced to reduce the payroll. He considered two options for the two affected manufacturing plants, namely, a layoff of employees or a pay cut of 15%. Auburn decided that he would not lay off employees, because he wanted to implement a solution that would have the least devastating effects on the employees. He felt that if he lays off some employees, it will profoundly affect them and their families. This means that he must cut employee pay. He fears the employees will perceive the pay cuts as extremely unfair and might "get back" at the company by, among other things, stealing inventory, tools, and supplies. He also fears they could withdraw their efforts in other ways that could hurt the company and its culture of helping one another. In his two-decades as a manager and senior executive, this is the first time that he has faced a situation where he has to reduce employees' pay. He's not sure how to go about it, but he expects that employees will not be happy. He decided to seek advice from Prof. Gallant and her students to execute the pay cuts and assess the impact of pay cuts on key metrics, including employee theft. The accounting department, which is located at the company headquarters, has kept records for computing plant-level "shrinkage" (i.e., the percentage of inventory, tools, and supplies unaccounted for by known waste, sales, use in the conduct of business, or normal depreciation). In other words, Auburn views shrinkage as an indicator of employee theft. a The