Job Losses Case Study Example | Topics and Well Written Essays - 1250 words

Job losings - Case Study ExampleTo give the senior management a feel of the new working(a) scenario, they were asked to work in these combination stores. M each forthlets were closed down as a consolidation drive. Reasons for the higher up actions The company felt that their present staff bearing in the oblige function areas was enough to bind up the consolidated workload. Mrs Fields always believed in the philosophy that keeping high employee strength diverts the attention of the employees from processes and operations to employee management which causes inefficiencies to creep into the system. Hence, only indispensable employees of the previous organization were kept. This makes a pellucid sense as the support functions usually add to the administrative cost and hence reduce operational margins. R&D and operations of the acquired company are the functions where Mrs Fields employees would not have any expertise. Hence, it is imperative to keep the experts of these functions so as to understand the technicalities of operations and products and carry out a unperturbed uniting of the two entities. New store designs were also required because the company plans to sell both products from the aforesaid(prenominal) outlets as this merger is considered to be a logical extension of the previous business. Using the same preparedness for both the products will also provide economies of scale to the company as Mrs Fields already has a store structure which has the baking area just behind the service area. Some modifications (if required) clear be made for baking the new products within the same facilities. The facilities added from LPB act as outlets to reach out to the new market segment of LPB. Thus, there will be a synergistic effect from the merger of outlets. Asking senior management to work on the shop floor will help them acclimate themselves with the new environment which will further help them in under stand up the pros and cons of the new situation for rectify future planning. Views as an LPB store manager at this time As an LPB store manager I would be very much worried about my job security. Looking at the way support functions of LPB were integrated, with just 5.67% of the staff retained, the situation does not look very promising. However, one positive aspect of this keeping policy is the fact that employees with expertise in areas not known to Mrs Fields employees have been retained. Since at present both operations at the store level have to be merged, inputs of LPB store managers would in spades be required as the acquiring companys managers would not understand the nuances of the business. Thus, in the devout future, there is some amount of job security depending on ones performance standing before the merger. It is understood that only the best performing store managers, who are perceived to be come up acquainted with the business, will be retained. But after that, it depends on how well the LPB managers are able to jelly with the new work culture and create a niche for themselves.