As Director of New Projects,you Have Just Learned That Cash

question 65

Essay

As director of new projects,you have just learned that cash flow problems have forced your organisation to cut back product-development activities.This means that two of the eight projects currently being developed must be terminated,along with the employees working on those projects (about 25 per cent of employees in your unit).You have a good knowledge of these projects as well as the performance and seniority of employees who work in your unit.While some projects clearly have a high chance of success,the long-term potential of a couple of them is unknown.Identify the best level of employee involvement in this situation and describe three factors (contingencies)that support this level of involvement.

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Definitions:

Socialist System of Economy

An economic system where the means of production are owned and controlled by the state or public, aiming for equal distribution of wealth and resources.