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When Rashdi was hired as production head, the OneBerjaya Corporation was having losses for five years consecutively. Rashdi spent the first few months examining the situation and identifying the major problem areas. Then, he made a series of critical decisions. He terminated twenty percent (20%) of the production staff and reorganized the company. He believed the ones retained would be able to make up for the loss of production brought about by the work-force reduction. The groups were divided into two - one group was given a twenty-two percent (22%) raise and the other group was given a fourteen percent (14%) raise. These raises were designed to bring these people's pay to be in line with the current market pay rate. The initial reaction to Rashdi's decisions to raise pay was

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