HR_Group_Presentation-Case_Study_10.ppt - personal.psu.edu by chenmeixiu

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									Analysis of Case Study 10


    Newell’s Decision to Downsize:
        An Ethical Dilemma
Case Study 10 – Question #1:What is the ethical dilemma faced by
                            management in this case?




Seniority
  -Senior workers will expect job security
Discrimination
  -34 of the 41 new hires are minorities
  - By following seniority rule, minorities will be the ones laid off
Reverse      Discrimination
   -cannot keep all minorities and lay off all the Caucasians
Consequences
   - many federal laws that protect employees
   -Equal Employment Opportunity Act
  Case Study 10 – Question #2: What Specific Problems Might Newell Face in
  its Downsizing Decision?
Decisions
Which employees to lay off?
Does the company take an ethical approach or focus on
      the good of the company?
Protected Classes
Downsizing the most recent new hires will eliminate the
      majority of the protected classes hired.
By keeping the protected class employees they can open
      the company to reverse discrimination.
Equal Employment Opportunity (EEO)
Civil Rights Act    of 1964
Side Effects
Employee     downsizing could lead to panic amungst
existing        employees
Case Study 10 – Question #3: What Options Might Newell Employ in its
Downsizing Decision? Explain.

Job Share   Program


Buy Outs


Performance Appraisals


Early Retirement


Voluntary Lay-off


Relocate Employees


Options Not   Directly Related to the Downsizing Decision
    -Invest in New Equipment
    -Programs for “Survivors” and Former Employees
    -Communication
Case Study 10 – Question #4:
How Would You Downsize the Norwood Facility?

Look for    cost savings everywhere, i.e., supplies, inventory, etc.
Analyze the 273 job positions
 - reviewing the facilities Succession Planning
 - Reviewing the staffing tables (graphic representation of all jobs)
Identify proven “low-performers”
Early Retirement    offers w/proper preretirement counseling, seminars, etc.
 - Severance pay
 - Cash Bonuses
 - Increased Pension Benefits
Voluntary Layoff
 - offer severance
Coordination Flexibility5
 - Over 1 year in the position
 - Transfers in and out of departments
Job Share   possibilities
Lastly, First In, First Out
 - Basically, this is how a union would have to run it.
Overview Analysis
• Newell   Corporation
 - medium-sized manufacturer of navigational systems for airplane
 - high employee moral and loyalty
 - fair and equitable place to work
 - demographics for work labor were predominantly Caucasians
• Newell’s  growth and much needed hiring for that growth
 - Needed to hire 41 employees to fulfill manufacturing lines and
   technical support
 - new demographics for local labor are “protected class”
 - Training $1.7 million on entry-level skills to train minority
    employees (80%)
• Newell’s dilemma
 - Declining sales after several years due to foreign competition
   and outdated equipment
 - Downsizing inevitable

								
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