Question

(Business Management)

Using this assignment prompt below, you will determine what two action to take as a team. Choose people to lay off and save money so that you are on budget.

A brief background about the situation. You each are members of the executive team. Recently, your organization has been experiencing no growth. As a matter of fact, you've been losing money. You have 20 employees. Your team is currently on track to post a negative gain for the 3rd quarter of the year. Your team of 20 employees does not include the executive team (which makes $450,000). You have 1 receptionist ($35,000), 1 office manager ($65,000), 5 consultants (averaging about $78,000), 3 sales consultants (averaging $90,000), 1 marketer ($55,000), 1 web designer ($84,000), a graphic designer ($72,000), 1 accounts payable (38,000), 1 accounts receivable (37,000), 2 IT specialist ( averaging $62,000) and an IT manager ($92,000), an HR manager ($75,000), and a facilities manager ($65,000). You have enough money in the budget ($1,250,000)to pay only 12-15 of those employees based off of your current projects. You may get another project but you won't know if you won the contract for 2 months. If you do get the project, it would start a month after that date and you would have to hire additional staff.

Answer 1

-> Total Budget Ceiling - $1,250,000.

-> Total Current Cost Allocation among 20 Employees amounts to $1,558,000

-> Since Employees from each department are important and takes key part in Project (assuming Construction Project), must have at-least minimum required count

-> Since 5 Consultants as said above were not involved in any core activities as given in the case, we can eliminate for the time being.

-> Lest have one Sales consultant and pay 30,000 more to the same consultant. Thereby can Get extra services services required from the same consultant.

-> Lets manage with one IT Manager and one IT Specialist and take out one IT Specialist.

Revised Budget for 15 Employees;-

Executives - 450,000

1 Receptionist - 35,000

1 Office manager - 65,000

1 Sales Consultants - 120,000

1 Marketer - 55,000

1 Web Designer - 84,000

1 Graphic Designer - 72,000

1 Accounts payable - 38,000

1 Accounts Receivable - 37,000

1 IT Specialists - 62,000

IT Manager - 92,000

HR Manager - 75,000

Facilities Manager - 65,000.

Total of Above Budget amount to $ 1,250,000. Effective and Maximum utilisation Man power is required.