Memo
To: Killawatt Executive and Managers
From: Maria Rodriguez, Junior Manager
Date: September 22, 2010
Subject: Cost-cutting proposal
Your recent proposal to cost-cut sources, to identify its most and least productive employees, and lastly to plug all security leaks will lead to a disaster! My management team foresees that your proposal will cause low morale, low productivity, and a possible increase in renouncement of employment. According to a survey done by Challenger, Gray and Christmas, Inc, 92% of companies have initiated some sort of cost-cutting action, but their cost-cutting seem more rational. My suggestion would be to cut travel expenses, cancel holiday parties to avoid expenses, and use direct deposit as a replacement for paper pay-checks expenses. These changes have proved to have a more positive reaction from employee and minimal employment cuts. Finally, securing Killawatts server would be an ultimate solution to solve any security leaks? Employees want to work for employers who demonstrate concern for their personal and professional need. When they feel that their employers care, hey’re more productive and responsive. Great attitude also spreads throughout the company and keeps the overall morale high. On the other hand, if you implement your proposal in cutting cost, identifying its most and least productive employees, and plugging all security leaks, employees will react negatively and will feel threatened. No one wants to work for an employer who doesn’t trust their employees. No employee wants to feel smothered or micromanaged. Their reaction will be nonproductive and nonresponsive. It could also lead to walkouts! If employee resignation rises the company will have no choice but to hire new employees. That means that Killawatt would have to spend money for training, but will lose production while the newcomers are getting trained. How exactly will that help Killawatt?
Take these alternatives for cost-cutting: placing a cap on reimbursement for travel expenses, cancelling holiday parties, and using direct deposit instead of paper paychecks. For example, Cisco systems recently stated in press release that they plan on incorporating the following cuts such as, “travel expenses by 65% by investing in new video and teleconferencing technologies that allow its engineers to meet with clients remotely Take Cisco Systems for example it “cut travel expenses by 65% by investing in new video and teleconferencing technologies that allow its engineers to meet with clients remotely.” Cancelling holiday party will save the company from having to pay thousands of dollars on dinner and drinks for employees and their family members, decorations, prize giveaways (that normally include high priced electronics), and entertainment fees, such as a band or dj. Using direct deposit instead of paper paycheck saved The Dallas City government $150,000 a year. It’s popular and safe. In addition, it would save Killawatt’s employeestime and the company money, but the bonus of electronic payroll is that it’s earth friendly. That demonstrates our concern for the environment. These few alternatives will save money and eliminate the need to identify the most and least productive employees. To prevent security leaks, executive and managers should only share need to know information with their employees. Shared drives should be secured and only designated employees should have passwords to access the drives that contain company’s fiscal reports and recent product technology breakthroughs. If you have control of who has access to your server drives, it’s easier to catch the person leaking the information without making anyone feel they’re being watched.
I understand the concern of Killawatt, and no one wants to see such a huge loss, but your cost-cutting, identifying most and least productive employee, and plug all security leaks proposal will do more bad than good. Cutting travel expenses, holiday party expenses and paper paycheck expenses are only a few alternatives that will drastically cut cost without taking risk of losing employee. Securing your servers will decrease the security leaks yet keeping an open trust between the company and its employee. Reorganizing a company doesn’t always have to mean stepping away from caring for your employees.
