As director of new projects, you have just learned that cash flow problems have forced your organization to cut back product development activities. This means that two of the eight projects currently being developed must be terminated along with the employees working on those projects (about 25 per cent of employees in your unit). You have a good knowledge of these projects as well as the performance and seniority of employees who work in your unit. While some projects clearly have a high chance of success, the long-term potential of a couple of them is unknown. Identify the best level of employee involvement in this situation and describe three factors (contingencies) that support this level of involvement.
What will be an ideal response?
This question requires students to consider any three of the four contingencies of employee
involvement described in the textbook. One contingency (risk of conflict) has two elements that can be considered separate factors.
Decision structure: This problem is unique, so it lacks structure. As a non-programmed
decision, this problem has the potential need for employee involvement.
Source of decision knowledge: It seems that you have sufficient information about most
aspects of this situation. You don't know the feasibility of some projects, but neither do
employees. Thus, a low level of involvement is possible. The brief description suggests that
employees have no more information than you do. Thus, a low level of involvement is
possible.
Decision commitment: There is a high probability that if you make the decision yourself,
employees will follow the decision because you would have legitimate power to lay off
redundant employees. Thus, a low level of involvement is possible.
Risk of conflict: (1) Given that some employees will be laid off, it is unlikely that employee
goals are compatible with organizational goals here. Thus, a low level of involvement is
preferred. (2) Given the threat of layoff, subordinate conflict among the alternatives is high.
Thus, a low level of involvement is preferred.
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