the layoff case analysis final

1

A Presentation by: Group K1

The Layoff: Group K12

Agenda Case Facts Observations Implications Analysis Recommendations

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Characters

Robin Astrigo – CEO

Morris Meyer – CFO

Lisa Warren – Head, Legal

Marzita Vasquez – Head, HR

Bob Slater – Director of Strategy

Sushil Bhatia – VP Marketing and Strategy

Julie Cox – PR Team


ASTRIGO HOLDINGS

Established in 1962 by Astrigo Sr.Astrigo Home improvement stores


Case Facts "Why aren't layoffs taught as a subject at

business school?" Robin Astrigo – CEO “It’s the best way to get rid of the deadwood.

We have a lot of it around.” Morris Meyer – CFO

“Well, that’s what it’s all about, right? March or die.” Lisa Warren – Head Legal

“We can worry about tomorrow tomorrow.” Bob Slater – Director of Strategy


Case Facts “I understand, but this isn’t just a financial

transaction.” Marzita Vasquez – Head HR “It seems like we should consider something a bit more imaginative.” Sushil Bhatia – VP

Marketing and Strategy “Best to avoid the L-word. Maybe we should

call it ‘Cost Improvement’ or ‘Simplification’.” Julie Cox – PR Team


Strategic Implications of Layoff

Uncertainty affects morale Decreased productivity Future expansion costs Top performers might want to leave Hiring in the future Societal disapproval


In a Nutshell

LayoffsEmployee

MoraleCustomer Service


Assessment of Alternatives Morris Meyer

(CFO) First-in, first-out Leaders influence

over the team members

Organizational commitment

High severance package

Cost of replacement

Employees nearing retirement leave

Lisa Warren (Legal Head)

Performance Based Layoffs

Ambiguity associated with performance

High costs Balanced Scorecard Effective in retaining

the top performers


Assessment of Alternatives… Marzita Vasquez

(Head HR) Against Layoffs Corporate Values Alternative Methods Long term

perspective

Bob Slater (Director-Strategy)

Last-in, first-out Low severance

package Lack of innovative

ideas Problem with

recruitment in future


Assessment of Alternatives… Sushil Bhatia (VP,

Marketing and Strategy)

Across the board pay cut

Convincing senior management

Resonates with the company values

Unbiased Sense of Belonging &

hence increased morale Respect in the market


Recommendations Lead by example Identify the underperforming stores Reinforcement Theory Decreasing the amount of hours each

employee works Furlough your employees Balanced Scorecard Core competencies Avoid any false rumors


The Last Resort Terminating employees in batches V/s

Condensing the layoffs Severance package Criteria for termination Savings from termination V/s Recruitment

costs


References HBR Case Study – by Bronwyn Fryer (March

2009) ENTREPRENEUR: The Layoff and Downsizing

Dilemma - by David Javitch http://www.jiscinfonet.ac.uk/tools/scorecard :

Balanced Scorecards http://en.wikipedia.org/wiki/Layoff

http://www.jiscinfonet.ac.uk/tools/scorecard

http://en.wikipedia.org/wiki/Layoff


Dilbert – By Scott Adams


Thank You

the layoff case analysis final

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