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Case Study: Downsizing: Anathema to Corporate Loyalty?

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Case Study: Downsizing: Anathema To Corporate Loyalty, Chapter 6 Recruiting and Retraining Qualified Engineers, in Managing Human Resources, Susan E. Jackson, Randall S. Schuler, Steve Werner, 2011

1. Why is Daniels sensitive to DSI's recruitment efforts?

2. How could the use of temporaries, student interns, or subcontractors potentially help DSI?

3. What are some of the potential problems for the current class of engineers recruited to DSI?

4. Evaluate Daniel's alternatives for reducing DSI's labor surplus. What do you recommend? Why?

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The response provides you a structured explanation of Downsizing It also gives you the relevant references.

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1. Daniels is sensitive to DSI's recruitment effort because discharging the new employees would mean DSI would lose reputation and future DSI recruitment efforts would be harmed. It would not be able to recruit in those universities in future. Also, if the new recruits were underutilized, there would be dissatisfaction among the new recruits. Terminating the new recruits will improve the short term balance sheet but will dent corporate loyalty.

2. The use of temporaries, student interns, or subcontractors can help DSI because these are potential areas where the new recruits could be absorbed. The temporaries could ...

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Hatim Baxamusa, MBA
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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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