Question

Information: Thomas Perdue had built up a successful development company. When he became city commissioner, everyone said it was good to have a businessperson on the commission. They said businesspeople know how to control costs and make sound economic decisions, and Thomas could help the city tighten its belt. One of his first projects was an analysis of the human resources department. He claimed that if the whole function was outsourced, it would save the taxpayers money. A year later, after painful layoffs and a bumpy transition, the new contractor, NewSoft, was in place. Two years later, NewSoft’s billing rates had steadily increased, and there were complaints about service. After five years, the supposed savings had vanished, and Thomas had moved on to state government, his campaigns fueled by “generous” campaign contributions from companies like NewSoft. Requirement: After reading all differential analysis resources and viewing the videos, answer the following question 2 questions in your own words, using complete sentence structure and grammar. Please use citations if applicable. The attached rubric displays grading criteria. For this specific assignment, feedback will be given 24 hours after the due date. There is one attempt on this assignment. This assignment should be submitted based on individual knowledge and is not group based. Questions 1.Although this case differs from “fraud” in the usual sense, describe the conflict of interest in this case. Who benefitted, and who did not?. 2.When making business decisions of this sort, some factors are quantitative, and some are qualitative factors. Discuss some of the qualitative factors related to this case.

Answer 1

Firstly I would like to mention that no video or at least a link for the same has been provided. Hence, basing on the given information I shall answer for the questions given.

In the first question, as it had not actually amounted to fraud but in the usual sense, the conflict of interests raised between the ideas of a businessman and the normal working or employed persons in the organization. The management to a certain extent was able to get benefited by waybof outsourcing its work and could be able to reduce the costs incurred on the permanent employees who were working earlier and the employees who were laid off as per the decision were the persons who have suffered. Later even the company has suffered since there were many uneven things taking place and even the savings have vanished.

While taking these kind of decisions which will show a major impact on the overall organization certain qualitative and quantitative aspects are to be properly considered , which in this case were not paid proper attention. The qualitative factors related to this Case was where the immediate position of company was considered by outsourcing its functions but was unable to assess the future outcomings of such an act where it was able to save financial resources as of now but in long run have faced a situation where it the new contractors rates have not only increased but also the service has fallen down and also in the later years the supposed savings have vanished.

Hence , while taking these sort of decisions, not only the short term benefits but also the long run conditions I.e, possible pros and cons which may arise should be taken into account and by basing on that the decision need to be framed and implemented.