1STRATEGIC HUMAN RESOURCE MANAGEMENT
The Layoff Case poses many distinct challenges for the board members. The
situation of Astrigo Holdings is such that it must lay off 10% of its employees ( Fryer
et al. 2009). The first problem that the executives must face is the decision of the
layoff policy that they will adopt for deciding which employees will be retained and
which employees will be let go.
Challenge
The decision has internal problems in it. The executives have their solutions.
Warren believes in first out policy while Lisa suggested a performance-based lay off
policy. Both of them had their own merits and disadvantages. The first in, first out
policy ensure that young talents are retained thus ensuring long-term commitment
from them. This had the danger of the company being accused of Ageism which
might create bad reputation for the company. Moreover, the most experienced
employees will leave the company leaving the company in a vulnerable position.
Lisa’s solution was most fair and ethical, but it demanded a lot of involvement and
time from the executives which they may not be able to give at the time of such crisis
(Štefko 2019).
Bob and Marzita were in a similar conflict. Bob suggested last in first out
method of lay off which ensured least amount of severance pay. Marzita believed
that to be inefficient as that will mean that they will have to let go many competent
employees and assets which will affect the company in the long run. She suggested
a different approach to cost-cutting by selling some company assets or less used
holdings and mergers. On the downside, this too had problems. The company would
lose much of their position if they sold these (Davis, Trevor and Feng 2015). Sushil
suggested another solution which seems to be more sustainable. By reducing pay,

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