Lay Off
1. Major Issues
What is the best strategy for Astrigo Holdings (Chicago)?
2. Stakeholder
Robin Astrigo , CEO
Morries Meyers, CFO
Lisa Warren, Head of Legal
Bob Slater – Executive director of Strategy
Marzita Vasquez – Head of Human Resources
Julie Cox - member of Astrigo PR team, handling the Internal communication
Sushil Bhatia – Vice President of marketing and strategy.
3. Course of Action
The worldwide economy is currently recovering from the global economic crisis. A crisis that “layoff” employees of the different company. Mostly affected is the United States of America. Lay-Off means - When a company eliminates jobs regardless of how good the employees' performance. This is usually because the company is facing financial difficulties.
(1)This case study starts off with Morris Meyers who is the CFO and Lisa Warren who is the head of legal. They both realize that if Astrigo is to remain competitive, 10% of its workforce must be cut. So they both face a dilemma: who goes and who stays, and so they suggest several policies or systems to solve the conflict:
First in, first out policy: to get rid of the “deadwood” as these folks are so close to retirement that they no longer have anything to contribute to the company, and offer them not expensive retirement packages because they have done so well with the company that they must have a good stash, Morris points out. That is unethical as these folks “deadwood” are the ones who built the company to its current position so they should be compensated for all the hard work they put into Astrigo.
Rank and yank system: Lisa comes out with the idea about cutting the bottom 10% based on performance evaluations. This is the worse idea as we have discussed throughout the entire class that performance evaluations systems just don’t work because companies do them badly, “ratings often vary wildly depending on the effort put into the process, whether the evaluator likes or
What is the best strategy for Astrigo Holdings (Chicago)?
2. Stakeholder
Robin Astrigo , CEO
Morries Meyers, CFO
Lisa Warren, Head of Legal
Bob Slater – Executive director of Strategy
Marzita Vasquez – Head of Human Resources
Julie Cox - member of Astrigo PR team, handling the Internal communication
Sushil Bhatia – Vice President of marketing and strategy.
3. Course of Action
The worldwide economy is currently recovering from the global economic crisis. A crisis that “layoff” employees of the different company. Mostly affected is the United States of America. Lay-Off means - When a company eliminates jobs regardless of how good the employees' performance. This is usually because the company is facing financial difficulties.
(1)This case study starts off with Morris Meyers who is the CFO and Lisa Warren who is the head of legal. They both realize that if Astrigo is to remain competitive, 10% of its workforce must be cut. So they both face a dilemma: who goes and who stays, and so they suggest several policies or systems to solve the conflict:
First in, first out policy: to get rid of the “deadwood” as these folks are so close to retirement that they no longer have anything to contribute to the company, and offer them not expensive retirement packages because they have done so well with the company that they must have a good stash, Morris points out. That is unethical as these folks “deadwood” are the ones who built the company to its current position so they should be compensated for all the hard work they put into Astrigo.
Rank and yank system: Lisa comes out with the idea about cutting the bottom 10% based on performance evaluations. This is the worse idea as we have discussed throughout the entire class that performance evaluations systems just don’t work because companies do them badly, “ratings often vary wildly depending on the effort put into the process, whether the evaluator likes or