Sparkling

In: Business and Management

Submitted By squaremackerel
Words 1054
Pages 5
Background
Sparkling Glass Limited (SGL) is a medium scale glass container manufacturing unit. For the last two years SGL has made losses because of increasing cost of production. But this year it is expected to make profits. The reasons for high cost of production have been government policies, wage agreements and sales cartels which control the inputs.
This report serves as the decision support document for the selection committee appointed to find the replacement of Mr. Ashok, the General-shift-in-charge who is slated to retire in few months.
Purpose
Mr. Prasad, the Plant Superintendent wants to find the replacement for Mr. Ashok. Four shift-in-charges, viz. Mr. Khanna, Mr. Punjabi, Mr. Gupta and Mr. Gulati are in contention for the job. The other options available are recruitment of a new person and extension of Mr. Ashok’s tenure. The decision tree for the given case is as follows:
Options Available
Among the possible options, the recruitment of a new person from another company might infuse new unbiased ideas. However, the following risks outweigh the benefit of recruiting a new person:
• Possibility of friction with the existing shift-in-charges: The incumbent shift-in-charges may take some time to accept the newcomer to the company and vice versa and the difference in opinions of both the parties may create some conflict.
• High cost implication: SGL has suffered losses for the last two years and wants to earn profits this year. In such a situation, hiring someone new from another company may add to the financial woes of the company. Also the time taken by the new person to learn the nitty-gritty of SGL’s business will be more which can eventually be a costly affair.
• Demotivating influence on the existing staff: Some of the shift-in-charges have years of experience and might be looking forward to be promoted as the General-shift-in-charge.…...

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