GS4 · UPSC Mains

You are a CEO-founder of an edTech company. You are under tremendous pressure from the investors in your company to increase the profitability of the company and undertake downsizing. After making a few bad acquisitions, the company's finances have taken a huge hit in the last couple of years. The downsizing is suggested with the hope that the company's profitability would rise, as it often does when mass layoff or downsizing decisions are carried out. Moreover, the investors have hinted that such measures would attract further investment from them, which has come as a ray of hope considering the ongoing volatile market conditions and slowdown in big-ticket fundings. Given the situation, rumors of unscrupulous firing have started doing the rounds among employees. It has increased apprehensiveness and reduced cohesiveness among them. You have informed the investors that the cost cutting exercise can affect the output as well as reputation of the company in the long-run. However, they are adamant to pursue the same. (a) Identify the stakeholders and ethical issues involved in the case. (b) You and the HR team have identified some options and are deliberating to put them across to the investors for consideration. Discuss the merits and demerits of each of these: (i) Identifying key high performers and offering them suitable positions before implementing the layoff decision. (ii) Putting the terminated employees on retainer to work part-time. (iii) Executing the lay off order in the same spirit as it was asked by the investors and letting them deal with the long-term consequences. (iv) Improving the perception of fairness among the existing and terminated employees and moving ahead with the layoffs. (c) Without restricting yourself to the above options, discuss the course of action you will take, and provide adequate reasons for the same.

20 marks · 11 toppers answered this

GS4 · Case studies on the above issues

See this question on Topper's Copy by Hashin →

More GS4 questions →