Suzie Desouza, the Manager of Industrial Relations at Zeta Manufacturing

question 121

Essay

Suzie Desouza, the Manager of Industrial Relations at Zeta Manufacturing, has just come from a ten-hour marathon meeting with the union negotiators who represent the workers in the assembly plant.The union leaders have tabled their final offer and are threatening to call a strike if management does not accept it.Suzie now has to meet with her boss, Gordon Wong, and brief him on the union's final offer.Suzie is hopeful that Gordon will accept the union's terms, but she is not sure how to frame the cost arguments in order to achieve this objective.In her meeting with Gordon the next morning she summarizes the impact of the union's offer as follows: "If we accept their offer, it will cost us an extra $10 million over the next three years.However, if we reject their offer, there's a 50 percent chance that it will cost us more than $10 million, perhaps as much as $20 million; but also a 50 percent chance that it will cost us less, perhaps much less." Do you think Gordon will accept or reject the union's offer? Use your knowledge of framing bias to explain why.

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Definitions:

Information Technology Utilization

The process of deploying and using information and communication technologies effectively in various operations and activities.

Network Structures

A pattern of connections and relationships between individuals, groups, or entities, often visualized in organizational or communication contexts.

Overhead

The ongoing administrative and operational costs not directly tied to the production of goods or services in a business.

Operating Efficiency

The ability of an organization to minimize its input costs while maximizing its output without compromising quality.