Question

Dennis is a member of the management team of a company that, until recently, was extremely profitable. As a result of a continuing recession; however, there has been a significant drop in profits, although the company is still making profits. The 196 non-permanent employees are low-skilled, but all of them have been with the company for at least 3 years. The lowest-paid worker earns at least double the minimum wage and the company provides all its employees the benefits required by law.

Dennis will soon be attending a meeting of the management team to decide how many employees to retain. Dennis feels that the firm’s value lies in its employees, regardless of rank. Indeed, it was this culture of inclusiveness that led Dennis to join the firm in the first place. Dennis believes that employee retention is more than an issue of short-term profit maximization.

Required:
How can he give voice to his values in the upcoming meeting?

Answer 1

Dennis can give voice to his values in the upcoming meeting by suggesting that management does not retrench any of the low-skilled staff since employee retention is valued more than short-term profits. Again, he can suggest that instead of retrenching some employees, all employees can have their salaries reduced minimally after due consultations.

Step-by-step explanation:

Since the company is still making profits, employees can be consulted and an agreement reached with management to reduce or remove some benefits during the recession. This move ensures that no employee is laid out. Retrenching employees during periods of recession always exacerbates the recessionary problems instead of resolving them.