Webster Business Model
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Webster Industries: The problems with the group and network processes the Carter group faced when formulating a workforce reduction strategy.
The Webster Industries case is as a prime example of how the consequences of poor decisions and immoral judgment can damage a companys reputation. In the case, the many shortcomings of a mismanaged team paralyzed the company.
The teams insensitivity toward applying the layoff process equitably shows that the team had little accountability for the accuracy and ethos of the teams decision. The apparel production manager summarized the situation well when he said, “too many people had to pay for the mistakes of their managers.too many instances of individuals having been retained long after they had ceased to be effective (Webster Industries-B)”. Team members also showed little competence in performing their tasks by failing to incorporate any alternatives (such as a hiring freeze, voluntary exit incentive program, or reducing salaries) into a workforce reduction proposal. Consequently, the teams decision-making process became handicapped as the team fell victim to the allure of simplicity, lack of accountability, and ignorance of plausible alternatives. Before the actual selection process began, management should have provided detailed training to managers who were involved in the process including an overview of the reasons and business justification for the reduction in force and careful instruction on the selection procedures and schedule.
Although Brown clearly had more experience than Stevens, Carter did not include Brown in his discussions. The team thus lost Browns experience, which could have benefitted the process with more diversity and disconfirming information. Because he was demoted by his boss, Brown likely had much less fear of presenting disconfirming information than did Stevens, whom Carter had just promoted to take up Browns position.