Fictional Case Study: Company Located In The United States

Organizational Change
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Institution
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Case Analysis Company XY
XY is a limited liability company located in the United States. The company has been in operation for the past 20 years, and since the year 2015, the company has been having issues with a majority of their employees applying for transfers. Since the beginning of the recession, most employees are uncertain about the stability of their jobs and have been looking for alternatives. The majority of the staff at the junior levels are employed on a contract basis and are therefore making a move to find a landing ground rather than being caught unaware. The transfer demands if approved will lead to a shortage of staff, and XY Limited will be unable to sustain production. The managing director is at a deadlock with the head of the human resource on the next course of action. The main point of conflict being that the general manager wants to retain his managers. He wants their jobs secured due to their experience and skills. The human resource manager, however, is of a different opinion. He claims that those top notch managers should be retrenched as their salaries and remuneration packages cost the company more than the rest of the staff. Defending his claim, he says that it is easier to lay off a smaller group with a higher pay than a large number of employees whose total wages are not significant. XY has recorded double losses in both the half-year financial report and the annual audit. Shareholders are beginning to complain as the share prices have dropped since the beginning of the year. The company is therefore under pressure to make a decision fast before they run into bankruptcy and the shareholders demand a reshuffle in the management. The management needs to come up with a solution quickly. In times of economic recession, loggerheads at management are one of the most common issues as is the case with XY Limited.
Case Analysis
The situation seen by XY limited is no different from what major companies experience. Retrenchment is sometimes inevitable. In XY Limited, it is clear that it is time to retrench some of its employees. There are factors that the managers have to consider before laying off people. In this case, they need first to establish;
What do they want to achieve by retrenching? This is the most important thing. The sole purpose of economizing in XY Limited is to cut down on the operational costs brought about by the recession. Before determining who to lay off, they should consider the implication of the workers. This will be guided into making sure they do not get rid of people whose skills cannot be replaced (Gandolfi, 2013).
 What is the best plan to get there? They need to ascertain if their plan is in line with what they want to achieve. XY Limited wants to achieve lower production costs. They need to consider whether it is the only viable option. Some alternatives are salary reductions to be paid back and backdated after the recession is over. They need to look at all the available options before settling on the retrenchment. There are various options available which include:
Limitation on the recruitment of new employees unless for critical positions. Excellent management skills ensure that right ...