IntroductionThe Utilities Co. case highlights the manner in which the changing external environment and the economy moving into a downward recession have been affected. Businesses all around the world has to continuously face the changing and evolving external environment and has to mould the manner they work so that the best results can be achieved. Recession is an economic condition which results in job losses and companies looking for alternatives through which they are able to reduce their cost. Utilities Co. presents an example in this direction where due to recessionary conditions the management had to decide slashing off 120 jobs.
The management previously looked towards voluntary redundancies but when it didn’t work the company had to resort towards slashing jobs. This resulted in resistance from all quarters including the unions and created a situation where the human resource manager Maree had to resign. This report thereby looks into the issues that Utilities Co. were presented with and looks towards identifying the manner better decisions could have been taken and the manner in which it could have been communicated so that a basic framework regarding the manner in which the task was executed and the manner in which it could have been executed looked into.
Issues in Utilities CoUtilities Co. faces a major problem which is to deal with the changing business environment which has made the economy move into recession. This has increased the cost burden and has made the management look towards taking decision where they look towards laying off the employees so that the organization is able to ensure cost reduction techniques and survive in the difficult times. Utilities Co.
has a mix of staff where certain departments have more staff than required and certain department has less staff then required. This has resulted in a problem for the management as certain section of the employees are showing efficiency while dealing with things whereas the other section is looking just to work and not looking towards innovation to improve the quality of work. This has made the management look towards laying off the under performing employees so that the organization is able to cut off cost (Tang, 2003). The management has looked towards voluntary redundancies as the first step during which the organization looks towards ensuring that employees who are new and underperforming leave the organization.
Instead, the management has found that employees who are experienced and contribute towards the organization are leaving. This has multiplied the problems as the organization instead of laying of employees who are not contributing are laying off employees who are working. Also, the fact that the planned number of 120 employees are not looking towards voluntary redundancies has made the company is slashing jobs. The overall effect has been severe and has raised resistance from unions and others people associated with the company.
The management also didn’t provide the required time to the human resource manager to plan the lay off and just pushing it o the human resource manager Maree has also resulted in her resigning from the job which has further aggravated the matter for the organization.