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Management Case Study.

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Management Case Study
Ken Drake
XMGT/216
October 28, 2011
Dan Mitchell
Axia College of the University of Phoenix
Management Case Study
Mr. Austen:
I am sending you this short response to your request to reduce payroll by 15%. I have begun a study of the problem and wish to describe for you the actions I plan to take to reach this goal.

As you may be aware, the company recently hired some new employee’s, women, and minorities, to remedy a lack of diversity in the workplace. This has presented problems in completing my task because of ethical issues and my own moral beliefs of making these new workers the answer to the problem. It is to this end that I am changing directions and moving away from seniority and job performance and looking for other ways to cut payroll.

I called for a meeting of the employees in my department this morning and described the payroll problem to them, and asked for suggestions. After some silence, several people who have been with the company the longest offered to take a temporary cut in pay to help. Others offered to work three days less during the month, and all have agreed to the changes in schedule to cover the empty spots.
I am working on an incentive program to boost production on the days that all of the employees are together and to give the employees that have opted for pay cuts to get some money coming in to cover the loss. After doing some calculations, I believe we can meet the 15% payroll reduction, plus 1%, with no losses of employees or benefits, and the incentive programs will help with the company’s bottom line.

After reviewing this e-mail, I would appreciate your input on this plan and any words of advice. Thank you.

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