The Northrop Grumman Corporation is an American global company that develops aerospace, electronic and information systems and also delivers technical services. The corporation was formed by the purchase of Grumman by Northrop in 1994 and in 2010 was the fourth largest military contractor (SIPRI, 2010). Northrop Grumman is a very large corporation that globally employs 120,000 people who provide solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide and in 2011 was named the 37th most diverse company in terms of workforce (DiversityInc, 2011). With reported total assets of 2.115 Billion dollars by the end of 2011, Northrop Grumman comfortably rests in position 104 of the Fortune 500 companies, which gives reasonable proof that the corporation is a large one (CNN, 2012). The corporation’s statement for their vision is: “Our vision is to be the most trusted provider of systems and technologies that ensure the security and freedom of our nation and its allies. As the technology leader, we will define the future of defense—from undersea to outer space, and in cyberspace. We will —
* Conduct ourselves with integrity and live our Company Values * Deliver superior program performance
* Foster an internal environment of innovation, collaboration, and trust In so doing, Northrop Grumman will become our customers' partner of choice, our industry's employer of choice, and our shareholders' investment of choice.” (Northrop Grumman, 2012) Looking at its vision statement, it is interesting to note who each of the three points affects. The first one truly affects both the company internally and who they deal with externally given that both employees and customers want to be treated with integrity. The second point deals more with people externally, since having a superior program performance ensures that costumers receive the best product available. The third and final point the corporation’s vision statement deals mostly with employees and the company’s internal structure given that it promises its workforce opportunities to express itself and gives it a voice to practice any ideas it might have, be they conforming to the norm or entirely the opposite. Since Northrop Grumman Corp. is so large, it is an expensive company to keep running and thus must set a higher value to its services. This is seen across all of the products it provides, be they in the aerospace systems or in the technical services, their expertise has to be costly. This is a problem when, for a number of years, the Department of Defense has asked companies to be affordable; considering the Department of Defense is one of the largest customers for the Northrop Grumman Corporation. Since the economy is still recovering from the recession, and the government needs to cut costs any way they can, the threat of losing the Department of Defense contract has become a lot more real. This means that the Northrop Grumman Corporation needs to cut costs wherever possible. After cutting 1200 jobs in 2011, there is some fear that the Department of Defense budget cuts will lead to a loss of jobs that would leave tens of thousands out of jobs. For now however, they believe cutting 350 jobs will take care of the problem. To alleviate the problem the company has offered voluntary layoffs but it plans to move into involuntary ones next year. In response to the necessary involuntary layoffs, the corporation has another option; they could potentially offer voluntary relocation programs. These would involve taking people who are willing from the Electronic Systems division and retraining them to work in other open positions in the corporation. If this route is taken then the company will not save all the money that they would if they just separated the person they would otherwise retrain and the company would have to spend money on training each individual that chooses this path....
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