Reference no: EM132841385

Scenario: The productivity dividend decision

As head of the transmission/distribution group (TD group) in the city's water agency (a government corporation), you have been asked to reduce costs over the next year by a minimum of 3% without undermining service. Your department employs about 300 people, who are responsible for constructing and maintaining water lines throughout the city. Although you have an engineering background, the work is complex and involves several professions and trades. Even the TD group's first line supervisors (one or two levels below you in the hierarchy) are not fully knowledgeable of all aspects of the business.

You believe that most employees support or at least accept the city's recent mandate to reduce costs (called the 'productivity dividend initiative'). The city leaders have stated that this initiative will not result in any layoffs this year. However, the labour union representing most nonmanagement staff in the water agency (including most of your employees) is concerned that the productivity dividend initiative will reduce employment numbers over time and increase employee workloads. Although the TD group is a separate department within the city water agency, it affects most other work units in the agency. It is possible, for example, that ideas that reduce costs in the TD group might increase costs elsewhere. The TD group employees may be unaware of or care about these repercussions because there is limited interaction with or social bonding with employees in the departments.

Can anyone help me in answering these questions related to this scenario:

What is the issue/ what decision has to be made?

What level of employee involvement should be used and why?