GAMA Ltd.

, specialized in manufacturing and trading of chemical products, with a total of

five directors and nine heads of departments, with 1,300 employees is faced with market
problems and as a consequence, with financial and human resources issues. Therefore a
total of 300 employees are to be dismissed from all categories and from all departments.
Heads of departments are asked to give the list of those persons who are going to be
dismissed. There are problems with three departments. 15 workers from the department
led by Vlad Popescu must be fired. Analyzing the situation, he sets layoffs, based on
equipment and less important jobs to the production process, without consulting anyone, as
he actually proceeds in general. The employees complained to the director of production for
their head of department not taking into consideration any professional training or their
family situation. The department headed by Ilie Ionescu is responsible to dismiss 20
workers. The head of the department calls for, as in other similar situations, a session in
which he explains to workers the reason of that meeting and asks for solutions. They agreed
upon the criteria for selection and the chief completes the list. Three of the nominees do
not agree with the list and make a complaint to the management. The department headed
by Victor Georgescu should dismiss 12 workers. The head makes a list of people who
created problems over time and tries to convince them through individual talks to
voluntarily register on the list. Four of them refused to sign; Victor sent the list to top
management, not forgetting to mention this fact. Listening to the plaintiffs' arguments and
those of the heads of department, the Board decided to approve the lists in the form sent
by the heads of department. Eventually, everybody calmed down and got along with the
fate.

QUESTIONS FOR DISCUSSION:

1. Which of the three heads of department managed the situation in a right way, in
your opinion? Justify your point of view?
2. What would you have done if you were a member of the board?