Justifying already poor morale of the employees and

Justifying his support, Charles
now has authority which he needed to revitalize UPC and build his political
credibility. He wanted all his top management team to agree together on UPC’s


In response to Andrew’s decision, Samuel thinks laying
off people is a foolish and a short-term solution to the problem which is much
more deeply rooted. UPC was in the same situation in the past which turned out
to be failure. If downsize is to
be successful, it must succeed the first time in order to gain creditability
with customers, suppliers, investors and most importantly the stayers. More
layoffs the second time will destroy the already poor morale of the employees
and UPC’s directions and priorities.Employee segmentation which Andrew has recommended will have a serious
impact on the efficiency of the entire workforce in UPC and not just Convertors,
leaving or staying. Taking on more responsibilities to the one who survive in
order to make up for the work done will be more stressful. Convertors is the
most profitable division of UPC and each member of the division is a Star
Performer. Taking 11% cut across the board means letting go our Star Performers
will seriously damage Convertors and loss in revenue.  As a company, we should look at proving job
enrichment opportunities to increase depth and not quantity. Offering voluntary
exits will result in bringing in some temporary workers to fill in the
positions left vacant by laid off highly skilled personnel which means in no
time Andrew will be fighting once again with excess workforce if these
replacements become permanent. The aim for effective Performance Management to
enable employees to reach their full potential but implementing performance
management at this stage will be a clear sign of targeting under-performing
workforce and sending a message across that we don’t need them. Another
critical aspect will be to remain unbiased during this whole process. This is compassionless
empathy on our part and we may also lose our star performers during a
performance misunderstanding. We should allow people to leave or remain with

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Biggest challenge for Andrew will be to neutralize Samuel’s reaction. If
he is to implement the strategies suggested, he has to ensure positive outcomes


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