Farid's Donuts (Scenario) Since the Integration of Two New Stores in Beruit, Lebanon

question 45

Multiple Choice

Farid's Donuts (Scenario)
Since the integration of two new stores in Beruit, Lebanon, Farid's Donuts, Inc., has recognized that there is a need for reengineering the entire organization. The main need is to install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of all old equipment to a salvage dealer at three-fourths of the book value, or a loss of $2,000 per store. This means that employees will have to be trained to operate the new computer programmed equipment. Farid is setting up the main store as a training store. Employees from the other stores will train at the main store for the five days that their respective store's equipment is being converted. The regular employees from the main store have the responsibility of instructing the classes or overseeing the installation of the new equipment and testing its operation before that store's employees return from training. The organization is also implementing teams to replace the old employee reporting system. Ordering materials will now be done by an intranet among the stores and the corporate purchasing function. Farid has promised that no one will lose his or her job because of the reengineering organizational changes. He estimates that when the employees get to the computer programming training, as many as 10 percent of the current employees will resign or retire. The planned opening of a new store in a nearby town will absorb any "excess" employees resulting from to the efficiency of the new equipment.
-Which of the following should Farid and the team leaders practice if they need to overcome employee resistance?

• A) Tell employees that the new system is the best way to make donuts.
• B) Encourage the employees to talk with their coworkers.
• C) Educate employees and communicate with them about the changes.
• D) Assure the employees that they will have a job after training.

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Definitions:

Supply Schedule

A table that shows the quantity of a good or service that producers are willing to supply at various prices.

Equilibrium Price

The price level at which the supply of goods matches the demand for goods.

Equilibrium Price

The price point at which the quantity of goods supplied equals the quantity demanded, resulting in market stability.

Market Price

The current price at which an asset or service can be bought or sold in a given market.