Re-Organization and Layoff: Issue and Problem Identification

Re-organization and Layoff: Issue and Problem Identification

PHL/320

Re-organization and Layoff: Issue and Problem Identification

Facing financial crisis is seemingly inevitable for every business. The method by which its leaders attempt to remedy this situation should be carefully evaluated based on the organizational structure and priorities. By clearly identifying the root problem, control measures will be developed to specifically target the issue. GE transportation claims that the competitive marketplace "requires us to reduce costs and improve flexibility to maintain our competitiveness." (Martin, 2013)

GE Transportation Business

In order for us to comprehend the underlying problem that GE Transportation explained, we must evaluate the history of the business itself. GE Transportation is a division of the General Electric Company. According to General Electric Company (2013) “was established over a century ago, serving as a pioneer in passenger and freight Diesel-Electric and Electric locomotives.” Furthermore, GE Transportation “is a global technology leader and supplier to the railroad, mining, marine, stationary power, drilling and energy storage industries.” (General Electric Company, 2013). The company is driven to assist and advise its customers in solving complications. GE Transportation delivers advanced manufacturing methods that are innovative to reduce costs and save time while delivering products from the manufacturing plant to the customer. Its proprietary software is leading edge for the Industrial Internet that converges date with machines.

Business Recommendations

To maintain a positive image with its employees and the public, every business should use layoffs as a last resort. Most employees are never prepared for quick layoffs or forced retirements. We recommended steps for GE Transportation to follow, as control measures to maintain a positive image with the public while allowing transparency with its employees throughout the process. A reevaluation that will measure each step’s effectiveness must be completed upon individual completion. First, GE Transportation should evaluate its competition to gain understanding as to how they became more successful in the marketplace. Second, the company should attempt to reorganize its operational strategy based on competition evaluation. Third, benefits reduction should be considered. Fourth, salaries reductions should be considered. Fifth, the company evaluates critical employees to sustain operation without closing its business. Sixth, GE Transportation conducts the layoffs. Finally, the business must consider