Decision Making

2. CASE STUDY

3. FEATURES OF CASE STUDY
• Introduction about ApTech and its
performance.
• About growing industry
• Management decision
• Alternatives
• Evaluation
• Final Decision

4. INTRODUCTION
• Provide technical support 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 growth and 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 Seniority Qualification 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/Problem Personal 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 to lay off Paul Dougherty

11. QUESTIONS
1. What Criteria should 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 personal problems
• 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 we are 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