Running head: CASE INCIDENT STUDY
Case Incident Study
Dilyara Underhill
Kaplan University
CASE INCIDENT STUDY 2
Abstract
The 21st century is characterized by globalization of the business world. Companies are
constantly searching for options to cut operational costs, while trying to maintain their
reputation, product quality and preserve their employees’ loyalty throughout the hard time of
economic crisis and performance variations. The leadership and management faces tough
decisions of laying off personnel, reducing hours, taking away benefits. Nowadays, employees
cannot solely rely on their employers for safety and security of their position. Cheaper labor
costs, tax cuts and the availability of non-stop virtual interaction have produced a myriad of new
issues that the management has to solve and mitigate between the demands of the leadership and
the expectations of the employees. Managers must find ways to balance the strive to cut
operational costs and the decrease in the morale and productivity of their employees.
CASE INCIDENT STUDY 3
Case Incident Study
The present case incident study takes a deeper look into problems arising from the
booming trend of various companies to reduce their operational costs by reforming the
employment options. Cheaper labor costs, elimination of additional fringe benefits, exploitation
of the current personnel allows firms to achieve their ultimate goal of short-term cost cuts and
survival in the critical conditions of international competitiveness accompanied by unfavorable
economic slowdown.
1. To what extent can individual business decisions (as opposed to economic forces)
explain deterioration in working conditions for many workers?
Businesses and companies are created for one reason – to make money, to bring in as
much revenue as possible. Some companies concentrate on producing high quality products and
