S. Roger’s company had been battered by competition from Asian firms. Not only were Asian products selling for less money, but their quality was substantially higher. By investing in some high technology equipment and fostering better union-management relations, Roger was relatively certain that the quality gap could be overcome. But his overhead rate was more than 40 percent above that of the competitor firms. He reasoned that the most efficient way to luwt‘r costs would be to close one of his older plants, lay off the employees, and increase production in the newer plants. He knew ju51 which plant would he the one to close. The trouble was, the community was dependent on that plant as its major employer and had recently invested a great deal of money lor highway repair and streetlight construction around the plant. Most of lltc work force were older people who had lived in the area most of their lives it was improbable that they could obtain alternative employment in the same area. Should Roger close the plant or not? Close the plant Do n0t close
DISCUSS/ON QUESTIONS Form a small group and discuss the following questions regarding these five scenarios: 55”.“? Why did you make the choices you did in each case? Justify each answer. What principles or basic values for decision making did you use in each case? What additional information would you need in order to be certain about your choices? What circumstances might arise to make you change your mind about your decision? Could there be a different answer to each case in a different circumstance? What do your answers tell you about your own values, cognitive style, attitude toward change, and interpersonal orientation?
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