CASE STUDY

FEATURES OF CASE STUDY

• Introduction about ApTech and its performance.

• About growing industry• Management decision• Alternatives• Evaluation• Final Decision

INTRODUCTION

• Provide technical support to larger firms• Having 55 employees• Founded 12 years ago• Faced almost no competition• Growth possibilities seemed limitless• Slow growth in past five years • Profitability diminishes

ABOUT GROWING INDUSTRY

• More companies entered to the market• Competition increased• Advancement in computer and software technology• Fewer companies requesting technical support from

contractors (especially in computer graphics area)• 20% decline in requests for traditional graphics

support services.

MANAGEMENT DECISION

Problem

“Slow growth and diminishing profitability”

Decision

Beverly Meyers (manager for computer graphics)

Mike Peterson (Company’s founder and owner)

“Meyers unit must shift its emphasis”

(Not only provide computer graphic support also customer service and basic computer support)

“Meyers must restructure her unit and lay off one of her four employees.”

ALTERNATIVES

• Paul Dougherty• Shannon Wall• Teresa Livingstone• Greg Stevens

EVALUATION Employee name Seniority Qualification Compensation Competitive Skills

Paul Dougherty 8 - $36,500 Consistent and never complain

Shannon Wall 7 Graphic design specialist (graduation and Masters degree)

$40,500 Specialist in computer graphics among 4Most potential among 4

Teresa Livingstone 3 Degree in Marketing, minor in graphics

$34,000 Capable of bringing in customersComprehensive understanding of marketingDedicated workerMarried to her job Meets performance expectations

Greg Stevens 2 Undergraduate degree in computer graphics

$32,500 Top performer for past 1.5yearsPerformance is exceptional

EVALUATION (Cont.)Employee name

Performance Weakness/Problem Personal Info.

1995 1996 1997 1998

Paul Dougherty

Average Average Good Average Performance is not best among four

married,2 children in high schoolWife-assistant manager at local departmental storeHired in growth period of ApTech

Shannon Wall

High good Average

Low Performance slipped in past 2 yearsRumor about divorce Counseling to deal with problems

Single MotherChild in Elementary schoolDepressed-performance decline

Teresa Livingstone

- Poor Average

Average Computer graphic skills are not strong

-

Greg Stevens

- - Good High Doesn’t take marketing side seriouslyPotential is not strong as his ability

-

MEYER’S DECISION

Decided to lay off Paul Dougherty

QUESTIONS

1. What Criteria should be used to determine whom to lay off? What emphasis, if any, should be given to factors that aren’t job related, such as personal problems or a spouse’s need to work ? Explain

2. Do you Agree with Meyer’s decision to lay off Paul Dougherty? Whom would you have laid off in this situation? Explain your position.

Answer#1Criteria to determine

• Seniority• Qualification• Compensation• Previous performance/record• Disciplinary record (letters of warning, suspension and

demotions) • Competitive skills of employees• Relevant skills to the required job• Weakness (can be overcome or not?)• Consider trade secrets an employee might have • unique skill that cannot be easily replace

Emphasis to personal problems

• Emphasis should be given• As It has an impact on behavior or employee’s attitude

(employee's work ethics, moral, flexibility, team playing skills, job motivation, etc.)

• If the employee is very beneficial for the organization so company consider the some of his/her problem and trying to solve out in order to retain employee performance as before.

• Determine personal problems can b remove through different techniques or not?

• If can be handled by training, counseling or different techniques then keep the employee.

Answer#2• Yes we are agree with Meyer’s decision• We laid off Paul Dougherty

Reason to Lay off:• Paul had joined the Aptech when there was growth period of computer

graphic • No competitor exist in market now the competition is increased • we need the specialized and well educated employee and Paul is not

standing in this criteria.• He has less competitive skills than others• Aged, not very much potential