the layoff case analysis final

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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

The Layoff: Group K113

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