the layoff case analysis final
TRANSCRIPT
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A Presentation by: Group K1
The Layoff: Group K12
Agenda Case Facts Observations Implications Analysis Recommendations
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Characters
Robin Astrigo – CEO
Morris Meyer – CFO
Lisa Warren – Head, Legal
Marzita Vasquez – Head, HR
Bob Slater – Director of Strategy
Sushil Bhatia – VP Marketing and Strategy
Julie Cox – PR Team
The Layoff: Group K1
ASTRIGO HOLDINGS
Established in 1962 by Astrigo Sr.Astrigo Home improvement stores
The Layoff: Group K14
Case Facts "Why aren't layoffs taught as a subject at
business school?" Robin Astrigo – CEO “It’s the best way to get rid of the deadwood.
We have a lot of it around.” Morris Meyer – CFO
“Well, that’s what it’s all about, right? March or die.” Lisa Warren – Head Legal
“We can worry about tomorrow tomorrow.” Bob Slater – Director of Strategy
The Layoff: Group K15
Case Facts “I understand, but this isn’t just a financial
transaction.” Marzita Vasquez – Head HR “It seems like we should consider something a bit more imaginative.” Sushil Bhatia – VP
Marketing and Strategy “Best to avoid the L-word. Maybe we should
call it ‘Cost Improvement’ or ‘Simplification’.” Julie Cox – PR Team
The Layoff: Group K16
Strategic Implications of Layoff
Uncertainty affects morale Decreased productivity Future expansion costs Top performers might want to leave Hiring in the future Societal disapproval
The Layoff: Group K17
In a Nutshell
LayoffsEmployee
MoraleCustomer Service
The Layoff: Group K18
Assessment of Alternatives Morris Meyer
(CFO) First-in, first-out Leaders influence
over the team members
Organizational commitment
High severance package
Cost of replacement
Employees nearing retirement leave
Lisa Warren (Legal Head)
Performance Based Layoffs
Ambiguity associated with performance
High costs Balanced Scorecard Effective in retaining
the top performers
The Layoff: Group K19
Assessment of Alternatives… Marzita Vasquez
(Head HR) Against Layoffs Corporate Values Alternative Methods Long term
perspective
Bob Slater (Director-Strategy)
Last-in, first-out Low severance
package Lack of innovative
ideas Problem with
recruitment in future
The Layoff: Group K110
Assessment of Alternatives… Sushil Bhatia (VP,
Marketing and Strategy)
Across the board pay cut
Convincing senior management
Resonates with the company values
Unbiased Sense of Belonging &
hence increased morale Respect in the market
The Layoff: Group K111
Recommendations Lead by example Identify the underperforming stores Reinforcement Theory Decreasing the amount of hours each
employee works Furlough your employees Balanced Scorecard Core competencies Avoid any false rumors
The Layoff: Group K112
The Last Resort Terminating employees in batches V/s
Condensing the layoffs Severance package Criteria for termination Savings from termination V/s Recruitment
costs
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References HBR Case Study – by Bronwyn Fryer (March
2009) ENTREPRENEUR: The Layoff and Downsizing
Dilemma - by David Javitch http://www.jiscinfonet.ac.uk/tools/scorecard :
Balanced Scorecards http://en.wikipedia.org/wiki/Layoff
The Layoff: Group K114
Dilbert – By Scott Adams
The Layoff: Group K115
Thank You