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Aptech (Computer Education)
This case study examines management's decision to lay off one of four employees in ApTech's computer graphics unit due to slow growth and declining profits. The manager evaluated each employee based on their seniority, qualifications, compensation, performance history, skills, and personal issues. Ultimately, the manager decided to lay off Paul Dougherty, who had average performance and was not as specialized as the other candidates, despite his longer tenure. Most criteria supported this decision, though personal factors should only be considered if they impact work.
Aptech (Computer Education)
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- 3. FEATURES OF CASESTUDY • Introduction about ApTech and its performance. • About growing industry • Management decision • Alternatives • Evaluation • Final Decision
- 4. INTRODUCTION • Provide technicalsupport to larger firms • Having 55 employees • Founded 12 years ago • Faced almost no competition • Growth possibilities seemed limitless • Slow growth in past five years • Profitability diminishes
- 5. ABOUT GROWING INDUSTRY •More companies entered to the market • Competition increased • Advancement in computer and software technology • Fewer companies requesting technical support from contractors (especially in computer graphics area) • 20% decline in requests for traditional graphics support services.
- 6. MANAGEMENT DECISION Problem “Slow growthand diminishing profitability” Decision Beverly Meyers (manager for computer graphics) Mike Peterson (Company’s founder and owner) “Meyers unit must shift its emphasis” (Not only provide computer graphic support also customer service and basic computer support) “Meyers must restructure her unit and lay off one of her four employees.”
- 7. ALTERNATIVES • Paul Dougherty •Shannon Wall • Teresa Livingstone • Greg Stevens
- 8. EVALUATION Employee name SeniorityQualification Compensation Competitive Skills Paul Dougherty 8 - $36,500 Consistent and never complain Shannon Wall 7 Graphic design specialist (graduation and Masters degree) $40,500 Specialist in computer graphics among 4 Most potential among 4 Teresa Livingstone 3 Degree in Marketing, minor in graphics $34,000 Capable of bringing in customers Comprehensive understanding of marketing Dedicated worker Married to her job Meets performance expectations Greg Stevens 2 Undergraduate degree in computer graphics $32,500 Top performer for past 1.5years Performance is exceptional
- 9. EVALUATION (Cont.) Employee name Performance Weakness/ProblemPersonal Info. 1995 1996 1997 1998 Paul Doughert y Average Average Good Average Performance is not best among four married, 2 children in high school Wife-assistant manager at local departmental store Hired in growth period of ApTech Shannon Wall High good Avera ge Low Performance slipped in past 2 years Rumor about divorce Counseling to deal with problems Single Mother Child in Elementary school Depressed-performance decline Teresa Livingston e - Poor Avera ge Average Computer graphic skills are not strong - Greg Stevens - - Good High Doesn’t take marketing side seriously Potential is not strong as his ability -
- 10. MEYER’S DECISION Decided tolay off Paul Dougherty
- 11. QUESTIONS 1. What Criteriashould be used to determine whom to lay off? What emphasis, if any, should be given to factors that aren’t job related, such as personal problems or a spouse’s need to work ? Explain 2. Do you Agree with Meyer’s decision to lay off Paul Dougherty? Whom would you have laid off in this situation? Explain your position.
- 12. Answer#1 Criteria to determine •Seniority • Qualification • Compensation • Previous performance/record • Disciplinary record (letters of warning, suspension and demotions) • Competitive skills of employees • Relevant skills to the required job • Weakness (can be overcome or not?) • Consider trade secrets an employee might have • unique skill that cannot be easily replace
- 13. Emphasis to personalproblems • Emphasis should be given • As It has an impact on behavior or employee’s attitude (employee's work ethics, moral, flexibility, team playing skills, job motivation, etc.) • If the employee is very beneficial for the organization so company consider the some of his/her problem and trying to solve out in order to retain employee performance as before. • Determine personal problems can b remove through different techniques or not? • If can be handled by training, counseling or different techniques then keep the employee.
- 14. Answer#2 • Yes weare agree with Meyer’s decision • We laid off Paul Dougherty Reason to Lay off: • Paul had joined the Aptech when there was growth period of computer graphic • No competitor exist in market now the competition is increased • we need the specialized and well educated employee and Paul is not standing in this criteria. • He has less competitive skills than others • Aged, not very much potential