MD Solution Case

Which FWA approach to choose?

By Group-13
3 days/ Week 15 days/ month
Cost Analysis Increased HR Increased HR
expenditure expenditure
=0.0281/3.73 =0.019305/3.73
=0.89 % =0.51 %

Reduction in profit Reduction in net profit

=28.105/370 =19.305/370
=7.6% =5.2%
Difference of Reduction in profit in % = 7.6 % - 5.2%
=2.4%
Assessment:
1. The company has an estimated profit of about 370,000 euro from exhibit
4 and HR expenditure of 3.73 million euro from exhibit 9. HR
expenditure increases by less than 1% in both the case. There is 2.4%
more reduction in profit in 3day/week FWA. Although cost wise
15day/month FWA is better but the increase in the expense of company
for Ashwani is only about 1%, while he is going to handle a project which
is 60% of the income. So, the extra expenditure is not unjustifiable.
2. 15 days/month will create problem as team are not used to work in that
setup as conveyed by Sanjay, one of the team leads.
3. Working in Noida for only 15 days at a stretch would pose problem
for managing the project overall as conveyed by the Subhash, the
second team lead.
4. MD solution was not fully capable of handling weekly or fortnightly
virtual work settings. So, 3 day a week FWA is a better alternative.
5. Also, Manish and Ashwani already had a discussion for 3 days/week FWA
proposal. So Ashwani would agree to it without any hiccup.
Proposed Solution
 3day/week FWA should be allowed for Ashwani