a. morals, productivity, loosing long-serving senior management

a.   
Stereotypes

According to the copy attached to the email “Charles is one of the
faceless men from corporate”. It shows that the person written the email
thought that many people in the company were irresponsible, untrustworthy and
ruthless. Therefore, this message can be categorised as the stereotype because
the person spread email around offending people recklessly without seen the detail information and
situation that happened in the company. Even though the email just mentioned Charles,
the sentence “one of the faceless” is
also accused some other people in the company.

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b.   
Halo Effect

As described in the
email of Mary to Andrew. “Charles
is a wonderful choice of chairman, although not everyone knows it yet. He’s
thoughtful, well informed, completely trustworthy and honourable, and he is
damn smart. As head of technology, he has shown that he knows how to help”. Mary was generalising characteristic based on Charles information
without any consistent relationship among them. This message has strong moral
implication even though she has a positive effect on the Charles.

c.    
Selective perception (confirmation bias)

When Charles wrote to Andrew, said “I promised you and your
colleagues that I would think over our discussions at the executive operations
Committee meeting this morning. Having done so, I want to confirm my decision
to carry out a deep across-the board-reduction of UPC staffs”

In this situation, Charles was selecting the choice that supports his
belief and filters out information that does not confirm the belief. He thought
that the decision was correct and completely overlooking the other viewpoints
to convince Andrew to proceed with the downsizing. The negative could be company
morals, productivity, loosing long-serving senior management personals.

d.   
Projection

In the email, Charles says that.” I understand completely how
difficult this is. As you know, I’ve been in similar situation before, and it
is a manager’s worst task. But I feel we have very little choice, and the board
of directors agree fully”. In
this case, Charles assigns his feeling which possesses himself to Andrew
without thinking about the different level of capacity and possesses his
characteristic managerial. This can be a more implicate to Andrew decision, as
he also aware that Charles decision is agreed by the board of directors,
therefore, Andrew has not much choice on executing his task. In this situation,
Charles was creating more frustration and disappointment.

e.   
Expectancy

In the letter,
Charles pointed that, “But I feel we have
very little choice, and the board of directors agree fully. What’s more,
across-the-board cuts are the only way to accomplish this necessary downsizing
quickly and fairly. This is a case of “the sooner, the better.”
Dragging it out is in no one’s interest”. The idea shows that Charles being
convinced by the decision to consider a reduction in the company rather than
thinking of another option which is worthier and responsiveness.

1.    Identify the potentially influential
stakeholders in this decision scenario and examine the present situation from
the viewpoint of each of the stakeholders or stakeholder groups you have
identified. (25%)

a.   
Chairman and CEO, Charles Rampart.

As the new CEO, Charles
wants to solve UPC’s problems as soon as possible, by saying “I feel we have very little choice” rather than honestly
suggesting what he has certainly to do. From the meeting with
executive operation committee, Charles decided to cut the number of employees
by 11%. He feels that this is very hard and difficult to implement because of
the amount to be incurred will feel very painful because it takes a lot of time
to get a new job, also, the company has invested much to these people. This
also hard as of the promise made by the previous CEO, that the reduction of the
number of employees in August is the last and will not happen again. However,
with the company’s unclear financial situation and always experiencing a profit
declined, therefore, Charles concluded that there is no other way than to
reduce employees in the short run. He said the decision should be done in a
period of two months because it has been approved by the board of directors. So,
he wrote an email to Andrew, as general manager of Connector Division to ask
for support and good cooperation in the staff reduction. Those people that will
be reduced are from the managerial and professional rank in Connector Division.
To restore the company’s situation, he wants a reduction from 6720 to no more
than 6000.

b.   
SVP and GM, Andrew
Jordan

In this scenario, Andrew is
a stakeholder who has not responded to the decision to reduce staff at the
Connector Division. Since the employee reduction target is at Andrew’s
management, therefore, he will consider some of the inputs provided by Charles,
Vice President for Finance (Mary Wyatt) and Samuel Godwyn (Vice President for
Marketing and Sales) which will ultimately to be the best possible decision for
the company, the employee to be let go and for those who are will stay.

c.    
Vice President for
Finance, Mary Wyatt

Mary Wyatt argued that the
take the company issue as a whole. For instance, Connector might be performed
better, however, other division such as Wire & Cable still needs to
modernise to recover company financial health.

The idea of ??Mary Wyatt
was to support the new chairman, Charles, even though this is very difficult
and painful. However, she argued that reducing staff in Connector Division the
best way to recover company financial health. Therefore, she proposed to Andrew
to support Charles to make his decision. She says that the new chairman is
trustworthy, respectable and intelligent, although not yet known by many
others. She also said that currently there is no best way to solve UPC problems
in addition to supporting Charles to perform his duties. She said that that the
main problem of UPC is systematic action and investment and it can be solved by
Charles. Wyatt proposed to Andrew to support Charles as this not only saved the
company but also their future investment.

d.   
Vice President for Marketing and Sales,
Samuel Godwyn.

Godwyn’s idea was
suggesting Jordan bring the alternative plan to the board because he knows
Charles is weak. However, he was not confident in their own authority,
therefore, he was seeking a power outside shareholders and investor through
leaking the news to the financial press.

According to Samuel Godwyn,
the policy to reduce staff in Connector Division is a disaster because this
will affect the performance of the company for a long term. He believes that,
if all divisions perform the same performance as Connector then there will be
no such problem at this time. However, he is aware that staff reductions are
also necessary but not across the board because this is like taking a blunt of
axe to the company when a surgeon’s scalpel is called for. He assumes that all
divisions are working hard to create a profit so not necessarily all divisions
are sacrificed, some need additional investment. As a Marketing vice president,
he assumes that staff cuts not only have an impact on the company but also the
customer as well as the project planned.

2.    As Andrew / Andrea Jordan state and
justify/support the course or courses of action you will take in response to
this situation. (You are meeting your managers in one hour!) (25%)

The key issue in the UPC
was not downsizing but how the management works on restoring financial health
to create a business strategy for the future. The consequence of the late
decision making will be tougher than reducing the 11% of staff. It should
determine the changes based on the logic behind the company situation.
Otherwise, the company will cease as an independent entity.

In response this
situation, there are three possibilities that can be considered; support
Charles decision to maintain the survival of the company, prepare a plan for
the implementation of reducing staff, revise a business strategy to maintain
the business financial health and find out the way to minimise the impact on
the morale of those remaining staff and for those being let go.

Jordan needs to
gain support from his subordinate in order to pursue his plan to start reducing
staff by 11% as the company commitment. Then review business priorities
focusing on the business trends among customers and competition. Then, propose
for business change from the divisions and the relationship to the whole
company. Lastly, the redundancy strategy by preparing the payment and
counselling.

In the meeting,
Jordan can be questioning the autonomy of the divisions, to evaluate overstaff
in the administrative work in each division. This is necessarily communicated
to Charles. It can be more effective if the company carefully evaluate its
unnecessary administrative work and reduce it. Finally, the CEO and all senior
management need to review the business strategy in order to pursue new
management system. However, this needs to be coordinated with all entities and
specifically the plan of Charles.

Jordan can reduce
headcount in the Connection in a manner way; voluntary retirement and create
programs that allow people stay connected with the company. Management must
begin to remove away everything in the company that is not adding value.

3.    For each stakeholder or stakeholder group
that you have identified in 2 above, discuss their possible reactions to the
course or courses of action which you will take. (25%)

As a CEO, Charles
will communicate to all middle managers not to take power and responsibility
and reducing the bureaucracy in all division. Reduce the workload and which is
more efficient and responsive. In fact, the corporation will be free of the
communication obstructions endemic to overstaffing and middle management.

CEO will plan for
the cost and not personnel target. Regularly with the idea of distributing
responsibility lower and lower in the organisation. Moreover, reducing the cost
the way they see fit and preparing a timetable for these changes. While this is
to be done, that management can organise the concern to its customers

Furthermore, the
other stakeholders will be following the instruction from CEO and implemented
based on the new business strategy.