The consulting firm you have worked for over the last year is having some financial troubles. The large contracts it once had are slowly going away, and as your company struggles to make payroll, it is clear that layoffs must occur. The sales staff has not been meeting the sales goals set for them, resulting in incorrect budgets. It has been decided that at least three people in the sales department should be laid off. You create a spreadsheet with pertinent sales employee data: (Kindly see picture) 1. Making reasonable assumptions, develop criteria for the layoffs in the sales department. 2. Develop a plan as to how layoffs will be communicated with the individual as well as within the company. 3. Discuss strategies to motivate those sales employees who stay with the organization.

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter16: Mastering Financial Management
Section: Chapter Questions
Problem 1DQ
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Who Goes, Who Stays?

The consulting firm you have worked for over the last year is having some financial troubles. The large contracts it once had are slowly going away, and as your company struggles to make payroll, it is clear that layoffs must occur. The sales staff has not been meeting the sales goals set for them, resulting in incorrect budgets. It has been decided that at least three people in the sales department should be laid off. You create a spreadsheet with pertinent sales employee data:

(Kindly see picture)

1. Making reasonable assumptions, develop criteria for the layoffs in the sales department.

2. Develop a plan as to how layoffs will be communicated with the individual as well as within the company.

3. Discuss strategies to motivate those sales employees who stay with the organization. 

Years with the
Last overall rating on performance evaluation (1–5
scale, 5 being highest)
Last year's sales goal
met?
Name
Title
company
Sales
N/A as her position is
managerial
Deb
1
3
Waters
Manager
Account
Jeff Spirits
Yes, 1% over
Manager
Orlando
Chang
Account
3
4
Yes, 10% over goal
Manager
Jake
Ассount
2
No, 2% under goal
Toolmeyer Manager
Audrey
Barnes
Ассcount
5
Yes, 15% over goal
Manager
Kelly
Andrews
Ассount
1
No, 20% under goal
Manager
Amir
Account
8.
Yes, 5% over goal
Saied
Manager
Winfrey
Jones
Account
4
No, 10% under goal
Manager
3.
4.
5.
2.
Transcribed Image Text:Years with the Last overall rating on performance evaluation (1–5 scale, 5 being highest) Last year's sales goal met? Name Title company Sales N/A as her position is managerial Deb 1 3 Waters Manager Account Jeff Spirits Yes, 1% over Manager Orlando Chang Account 3 4 Yes, 10% over goal Manager Jake Ассount 2 No, 2% under goal Toolmeyer Manager Audrey Barnes Ассcount 5 Yes, 15% over goal Manager Kelly Andrews Ассount 1 No, 20% under goal Manager Amir Account 8. Yes, 5% over goal Saied Manager Winfrey Jones Account 4 No, 10% under goal Manager 3. 4. 5. 2.
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ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning