Case Study: Airline company
Topic : Deepti is a CEO of an airline company and has to cut downthe overhead costs.She has the following options to be presented to the finance department of the company.
1) Lay off 10% of the lower performers
2) Reduce Retirement Benefits by 30%
3) Increase the shifts of employees by an hour
4) Cut Salary of employees by 10%
Q1 Which option would Deepti choose ?
Q2 Which option would draw the most -ve feedback ?
-----------------My points----------------
Costs that are not directly related directly to the type and quantity of products produced. A type of fixed cost.
Number of employees can be directly proptional to productivity,
Depends on overheads,if they have excess employees
Then 1.If just costs thenReduce Retirement Benefits by 30% is the best option as it affects the morale of employees the least.
Most -ve feedback is Lay off 10% of the lower performers
3 comments:
IMO, Increasing the shifts of employees by an hour should be the solution with minimum disruption.I think this would be taken till the time the reason for the cut-down has been made up for.
Laying off 10% of the lower performers will prove to be most negative for the morale of all the employees.
I agree Parag
i think laying off 10% lower performer is suitable ,b coz other ll do their work promptly and hence efficiency ll increase.
Post a Comment