Southern Recreational Vehicle Company is considering relocating to Ridgecrest, Mississippi where community leaders are offering financial inducements. Relocating executives from an urban area to a small town could cause problems with lack of amenities and services. Mr. O'Brian cited economic reasons for relocation, but union demands would need to be carefully considered and negotiated. When ceasing operations, a firm has responsibilities to help employees find new jobs through recommendations and contacts, provide notice of closure, and compensate those unable to find work within a specified period.

1. SOUTHERN RECREATIONAL VEHICLE
COMPANY
Evaluate the inducements offered Southern Vehicle Company by
community leaders in Ridgecrest, Mississippi.
Offering of inducements in Southern Recreational Vehicle Company is not unexpected
because such offerings are use to be given due to relocation decisions which results on
the basis of enthusiasm. Financial inducements are basically arranged for the
development of a community so that firm can purchase a plant and lease this plant to
the community for long terms. Every time when financial inducements are unexpected
that means there is something unusual about its placement in community and
management should be quick to know about the mystery behind it.
What problems would a company experience in relocating its
executives from a heavily populated industrialized area to a small,
rural town?
Relocation decision has different obstacles due to lack of enthusiasm of supervisory
board to move towards small and rural areas from intense inhibited and developed
places and usually because they are having less instructive, leisure, recreational and
cultural prospects. Relocating decisions are usually because of high captive inhabited
accommodation, facilitation for shopping, health care facilitation, and ample law
enforcement and fire defense system which plays a significant role.
Evaluate the reasons cited by Mr. O’Brian for relocation. Are they
justifiable?
Relocation decisions are backed by economics substance which gives a reason to
move towards relocation decision if an organization can produce more and more
revenue and can function competently with low cost at a different sites. Yet discomfited
demands claim from unions must be inquired critically and their compromises and
requirements must be negotiated so that both company and union can mutually work
together.
What responsibilities does a firm have to its employees when a
decision to cease operations is made?
Responsibility of organizational management is to assist employees to search for
appropriate emplacement in community after their decision to stop operations in
particular site. These assistances can be added-up with employer’s personal contacts
and recommendations. And every management has responsibility to aware its
employees of such serious and critical decisions so that they could find new job as soon
as possible during their currents work and if they couldn’t find new job during the
specified period they must be compensated in their financial hardships but closing
company while they are having excess of employees would be considered illegal.