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2/ The director of new projects for an innovative software company has just learned that cash flow problems are forcing the organization to cut back

2/ The director of new projects for an innovative software company has just learned that cash flow problems are forcing the organization to cut back on product development activities. A management consultant has recommended to abandon two of the eight projects currently being developed and terminate the employees working on those projects (about 25 percent of the employees in the unit). The director has a good understanding of these projects as well as the performance and seniority of employees who work in the unit. While some projects clearly have a high chance of success, the long-term potential of a couple of them is unknown. The director must decide on an optimal course of action. Referring to the course material on decision making, employee involvement and other appropriate content, please identify the factors the director should consider in deciding on a course of action. Should employees be involved in the decision and to what extent? How should the decision be communicated?

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