Test

Downsizing at United Dynamics

You are a senior management team at United Dynamics (UD). You have just heard an announcement, that the government has selected a competitor to develop a new generation of jet engines for the military. It was no secret that UD had been counting on this contract, and that without it, massive cutbacks will have to be made throughout the organization. This would, by necessity, include laying off not only many of the people who had been brought in to work on the development of the engine prototype, but cutting many who had been with the company for longer periods and in different capacities as well.

You are supervising 10 engineers specializing in cooling and heating systems: You have been instructed to lay off three immediately. You have also been told that further layoffs are likely should other contracts not come through.

Over the past several years, you have been able to build an almost perfectly functioning team. The unit is highly cohesive. The engineers cooperate with one another’s efforts and act as sparks for one another’s creativity. In addition, their friendly and supportive relationships go beyond the limits of the workplace.

You know that the negative effects on morale will be devastating, and you realize that the layoffs are also going to cause work overloads for those who remain.

Following are the names of the engineers in your unit and the things that come to mind about each of them as you contemplate your task. Who will you lay off, and why?

As a team, do the following:

1) Discuss as a team and select the three people who will be laid off. Then, write a memo to upper management explaining the rationale behind the decision.

2) What is your communication plan to the people who will be laid off? Who will communicate the decision and how? Give a detailed explanation for how you will handle the departing employees.

3) How are you going to ensure that the remaining employees remain loyal to the...