Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Maker a textile manufacturing unit located in London with enough infrastructure and a good workforce. The organization is specialized in shirting and suiting particularly the

"Maker" a textile manufacturing unit located in London with enough infrastructure and a good workforce. The organization is specialized in shirting and suiting particularly the supplies that are done in London only. The organization is run by the CEO who is commonly known for well educated, experienced, a businessman with a humane approach. Mr. Brown CEO "Maker" considered the employees as a competitive advantage of his organization and want to keep the workforce always updated to face the challenges from their competitors. Brown the people's leader Mr. Brown, who heads the production himself, developed an efficient top management group which includes Sam Heading marketing, Nancy leading HR and T&D, Mr. Ben leading finance. All these department heads are always been supportive heads for the ideas of Mr. Brown in handling the workforce. Mr. Brown always quotes that "I believe that satisfied, educated, the dedicated workforce will be a key to success at any condition to any organization. Money spent on employees will always be an investment for my organization." Activity of the Organization Training and development become a day to activity in the organization. Employees are been trained by well-versed trainers in that area. The organization also encourages the employees to do further studies as part of the career development program and they get a helping hand from the organization. Happy Employees The employees of Maker are very much satisfied with this kind of support from the organization and they realized that being with Maker their personal growth will be assured. Because of the above- said things Maker had many advantages like highly trained and qualified workforce, highest quality of supplies assured, less rate of attrition, dedicated workforce, meeting the targets on time, satisfied workforce, etc... Announcement by Mr. Brown One day the employees of Maker were in deep Grief when the news hit the office that Mr. Brown CEO made an announcement, " Dear employees. You all are my colleagues rather than my employees. I always feel that I am one of you with more responsibility. Now my age is not allowing me to shoulder that responsibility, I wish to give way to my younger generation. So I have decided to handover the charge to Henry, My only son, who had completed his studies from London School of Economics. I know you all will be with him as a pillar and extend your support, in the same manner, you supported me. Without you people, this organization would not have reached these heights. I am Sure you all will support him. Now it has been three months since Henry take over the charge and from day one he started auditing in almost all the departments with a motto to reduce cost. And he got a strong statistics that the compensation is the highest cost bared by the company compared to any other cost incurred in the organization. Henry's decision: Shocked Nancy Henry called Nancy the head HR and told her " I need an immediate action plan to reduce the labor force by 30% by way of Lay-off" he continued, "I hope you are getting my point and I want it to happen soon". Nancy got shocked by listening to this decision and said to Henry that " Sir it is my responsibility to tell you that the workforce which we have is an excellent, well trained, loyal and self-motivated workforce. In case of lay off such the competitors will take advantage of that. We can think of other options rather than Layoff." Henry was not in a position to listen to her words he said that "Sorry Nancy I am not ready to review my decision and neither wants any alternatives for this I want this work to be done within a week". Finally, with all her regrets Nancy reduced the workforce by 30%. On the other hand, the employees who were waived from Maker joined the competitors with a better package. One day in his office Henry was discussing with Nancy that the cost of labor in the organization has been reduced to a great level which increases the net profit also. After listening to this Nancy said that "it is well-said sir, we have reduced the labor cost and increased the profit but it is more true that we have missed the great opportunity to grow more by losing our wealth to the competitors"

Questions

1) summary of the case (10 to 15 lines).

2) SWOT analysis of the case.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Management

Authors: Timothy W. Koch, S. Scott MacDonald

8th edition

978-1133494683

Students also viewed these Economics questions