Group – 5

Sayan Mitra
Arghyadeep Basu
Anupam Chattopadhyay
Harshita Tewary
Mainak Banerjee
Tushar Jain
Manas Saha
 Dennis a member of a
management team of a
company that is facing tuff
times in vogue of the
recession.
 The organization has 196
employees who are not
perfect for the job but has
all been around for more
than 3 years.
 The company has treated
all its employees justly till
now.
 Employee retention is top
most priority for Dennis.
 Having 100
workers seems to
be the best deal for
the company.
 Profit is maximum
here.
 But it will mean a
job loss for 96 of
the 196 employees.
 DENNIS HAS TO
RATIONALIZE HIS
POINT OF VIEW OF
KEEPING ALL THE 196
EMPLOYEES EVEN
WHEN IT WILL MEAN
A MUCH LESS PROFIT

 WHY KEEP A EXTRA

WORK FORCE THAN
WHICH IS REQUIED
 Dennis
 The organization
 The employees
 DENNIS-
 His morale, his values of
employee retention, at the
same time his job also
 ORGANIZATION-
 The profit, higher cost of
keeping more employees than
required and also the social
image
 EMPLOYEES-
 Their job, their and most
probably their families
livelihood in a situation when
it will be very hard to find a
new engagement
 The company has done well in the past with these
employees only, so it will not be very ethical to
lay them off in face of a recession.
 The recession is a temporary thing in the business
cycle, as its effect will wear off demand will again
grow and so will the profitability and marginal
profitability of labor.
 If they layoff now it will be difficult to find such
good and loyal employees once the recession is
over and demand rises again.
 The dip in profit is
temporary is it is because of
a macro-economic factor i.e.
recession and nothing
specific to the business.
 It is expected that the
recession will end soon and
demand will again rise and
then the company will again
need quality employees who
are at present with the
organization and so it is
better to keep them rather
firing them out.