• When a company converts from one system to another, many areas within the organization are affected. Explain how conversion to a new system will affect the following groups, both individually and collectively.

1. 1. Personnel
   2. Data storage
   3. Operations
   4. Policies and procedures
   5. Physically facilities
2. The following notice was posted in the employee cafeteria on Monday morning:

To: All accounting and Clerical employees

From: I.M. Krewel, President

Subject: Termination of Employee Positions

Effective this Friday, all accounting and clerical employees not otherwise contacted will be terminated. Our new computer system eliminates the need for most of these jobs. Were grateful for the loyal service youve rendered as employees and wish you success. You may wish to pick up your final checks on Friday before you go.

Discuss the presidents approach to human resource management. What are the possible repercussions of this episode? Assuming that job termination is the best alternative available, how should management approach the situation?