CheckPoint: Management Case Study
Dear Mr. Austen,
In response to last week’s meeting regarding the company’s financial difficulties, I have come to a conclusion about the best plan of action to decrease payroll by 15%. As you know, my team is made up of 50 employees. These employees are average to above average. My team is also comprised of several new employees; mainly woman and minorities. While the simple answer may be to lay off the weak performers I would like to make that a last resort. If possible, I would like to try to remedy this dilemma without letting go of employees. My recommendation is that we cut everyone’s pay. I think we should make pay cuts based on the employee’s pay bracket so that those making the most money with the company are cut slightly more than those entry level employees. I also feel that we must incentivize employees to increase production based on a percentage of profits that is acceptable for the company. This will be extra enticing to these employees because they their pay has been cut. They will work extra hard to make up the lost wages and will help pull the company out of this difficult time. We will reorganize the pay structure so that it will not seem as if the employee is losing money; but instead, simply having to work harder to earn it. I believe this is the fair and most beneficial to both the company, as well as to the well-being of all of my employees. Please let me know your thoughts on this suggestion.
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