Selecting a Manager for a Nigerian Facility

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CASE STUDY

Thanks for 24 years of services. Now here is the door!

Summary
Thanks for 24 years of services. Now here is the door!

Russ McDonald, an MBA, began his career at GM as a cost analyst at the company’s Fisher Body division in Detroit. GM was then, the world’s no. one car manufacturer. By his twentieth anniversary with the company he had risen to the position of assistant vice president of finance in the corporate treasury department. Increased foreign competition has declined GM’s profitability throughout the 1980’. It was closing inefficient plants, reorganizing divisions, introducing new production technologies, and making huge cuts in staff.

Mc Donald being 49 and with 24 years of experience with GM, he was given an opportunity to take early retirement with offer of nine’s months pay plus lifetime health benefits. Otherwise, it would be only a matter of time-maybe a year or two at best and he would be pushed off. After taking the company’s offer Russ has been out of job for nearly 30 months.

Assumptions

Profitability has declined through out 1980’s. We assume that GM already well acquainted with the situation. By end of 1990 till 1995 before planning layoffs; the company had taken required remedial steps for e.g. Introduction of new technologies, cost cutting strategies in production, reaching new markets and other marketing strategies.

Evaluation

Was the decision of McDonald right?
Problems:
Russ opted for the company’s offering rather than staying in the company for next 2-3 years before being pushed out. •His experience wasn’t relevant to today’s work place, there were no opportunities in large companies, small companies wanted people who are flexible, and they considered corporate types like Russ as mentally rigid. •Either he would have to take at least 50percent cut in pay, moreover employers were very uncomfortable offering such relatively low salary; they figured Russ would be demotivated and likely to “jump...
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