Mason & Lynch Case Study
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M&L is faced with the problem of how to reduce its workforce by 170 due to a downturn in business. The workforce reduction is due to productivity gains made by a plant where new attitudes have been instilled in recent months, and because the company is shifting some of its work to a more modern plant where there is greater flexibility.The workforce reduction is necessary because there are surplus employees. One hundred of the surplus employees resulted from changes within the plant which improved productivity. These changes included shifting to a teamoriented culture and requiring that employees broaden their skill base. The company assured its workforce that layoffs would not be necessary when it brought about changes to the plant, but a downturn in the market, coupled with the plant's productivity, means that the company cannot stand by this agreement. This makes the problem particularly difficult to resolve. When management "sold" the idea of reorganizing the plant to workers, it did so by bypassing the employees organization, which largely was against the changes. The employee organization felt that employees would lose their seniority and flexibility, but management was successful in taking its plan directly to employees and letting them decide. The realization that their own productivity gains is resulting in 100 colleagues losing their jobs is not likely to sit well with the employees. This bears out
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the company is currently considering have different merits to recommend them, and have different appeal to various members of the company. Early retirement has a particular appeal to those who are already nearing retirement age; if the company can retire all of the 146 employees eligible for early retirement it will not have the supplement for many more years. This option would have less appeal to younger workers since the total monthly income rapidly drops based on the age at which the workers retire.
By offering early retirement, the company would also be able to essentially call for "volunteers" for the layoff and would help keep morale higher for those workers who remain with the organization. Older workers may welcome the opportunity to retire without facing a severe financial hardship; this is something that this particular option offers. This option also helps the company maintain a good relationship with its employees. However, it is unlikely that all 146 employees who are eligible for this option would select it and, even if they did, the company would still need to find other ways to reduce its workforce.
The leave of absence programs are attractive to younger workers since they would essentially pay the younger w
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Some common words found in the essay are:
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Approximate Word count = 1517
Approximate Pages = 6 (250 words per page)
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