Commnication and Decision Making Essay Example | Topics and Well Written Essays - 1000 words

Commnication and Decision Making - Essay Example The reason why we have to lay off some of our employees is because the company has been experiencing some slow times over the last three months. This has been caused by the high prices of raw materials as well as high salaries. As a result, there is a need to cut costs since the company is not generating enough revenue as well as cash flow. The affected departments will be in a position to create sharp cost cutbacks for a brief episode of time. It is expected that the affected departments will be faced with more workload and the inventory turnover may be slow for a while. However, the company will suffer a one-time cost to gain subsequent annual recurring savings. Additionally, the affected areas overall output will less than the usual or poor productivity and the departments will need to readjust their work schedules and routines (Gandolf, 2008). The remaining employees are expected to display symptoms anxiety, inadequate commitment to the work, as well as lack of creativity. Staffs in the three departments namely; order processing department, the human resources department and the production department will be expected to be apprehensive of their jobs. It is also expected that people will start to view their colleagues as rivals. This will mostly likely affect the output. To ensure that there is no break of confidentiality, the departments’ managers will need to pay equivalentdevotion to the personnel who will be losing their jobs as well as those who will be remaining. For the employees who are being laid off, the departments’ managers will be required to afford fair severance, providechances for re?training, as well as outplacement resources. Again, for the employees who will be remaining, the departments’ managers will provide numerous two?way communication networks (particularly face?to?face) among leadership and personnel to provide them numerous chances to communicate their worries, ask queriesas well as deepen their comprehension o f the realities of business. The departments’ managers will need to makesure that those employees who will be remaining are conscious of the resources and support afforded by the firm to employees who will be out of work. This willmake a noteworthy difference to upcoming workforce productivity and mitigate the upsurge in the voluntary turnover, which follows each forced lay off (Gandolf, 2008). To aid in the ‘moving of forward’ as well as transition after the layoffs, the managers from theinvolved departments will be required to communicate efficaciously and often with the staff. It is expected that people will begin to reveal signs of fretfulness, lack of dedication, as well as a reduction in creativity and productivity. In the days and weeks to follow the layoff, the departments’ managers will need to come up with strong leadership stratagems to aid employees focus upon the primacies at hand as well as to re-devote themselves to the company. The managers will be required to hold frequent meetings with employees plus generate an agenda;enquire on how individuals are holding up, listen as well as respond empathetically; ask about the ‘rumors’ and either dispel or validate them; set well-defined, realistic, achievable short-term goals. The managers will need to be focused upon the department’s work; institute an open-door policy; as well as let staff be aware that they approach the manager with concern, information and questions. All these stratagems will aid the

Module 4 BHS427 Health Care Finance Cost of Capital (CASE) Essay

Module 4 BHS427 Health Care Finance Cost of Capital (CASE) - Essay Example Despite being highly criticized, CAPM is commonly used by investors and managers, possibly due to its sundry advantages over other models. By using systematic risk only, CAPM tends to be not only more realistic but also simpler by eliminating the unsystematic risk. Remarkably, the relationship between the market risk and expected rate of return is easily shown by the Security Market Line. Secondly, in addition to being empirically testable, CAPM compares the particular investments level of risk to the stock market risk unlike DGM. Moreover, CAPM overcomes WACC’s assumption that investment has no influence on financial risk hence making it better in project appraisal. Conversely, CAPM’s assumptions make it less viable in reality. In project appraisal, the use of a single-period time zone contradicts the nature major real investments, which cut across periods. Moreover, it’s unrealistic to assume a constant beta for the periods as market conditions keep on fluctuating. Again, CAPM faces a problem in assigning values to the variables in the model. None of the variables is constant, with some such as yield on government debt (used to estimate risk free rate of return) changing on daily basis. Dolde et al (2012) research was aimed at determining whether the two factors international CAPM (2F-ICAPM) gives a different cost of capital compared to the domestic CAPM mostly used by US companies. Pre-studies had shown that the single global CAPM generated costs of equity not significantly different from the domestic CAPM despite the former model’s theoretical superiority, hence explaining why managers had not shifted from the domestic CAPM. To formulate the2F-ICAPM, Dolde et al incorporated the world market Index and currency index for chief currencies all expressed in US dollars, making this model theoretically superior to both