Just in Time Hiring Case

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Just in Time Hiring Case
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Zidney, Professor, Philippines

What is your take on the matter?

Mr. Alden Richard, personnel director of a software accessories testing company, just got off the phone with the insurance representative informed him the company’s health and accident premiums would be going up 30 percent the following year. This is alarming news to him since top management is in a state of transition in the firm and decision need to be made.
The president, his newly hired vice president for business services Ms. Maine Mendoza, and Mr. Richard meet and it is clear that two decidedly different points of views are expressed. Ms. Mendoza recommends laying off workers and supplementing just-in-time hiring to meet the increase in benefits premiums. She said that such is the action her previous company took and it makes good financial sense in the long run.
On the other hand, Mr. Richard (who was a founding employee ten years ago) promptly said, “We can’t treat our employees that way – just calling them in when we need them, without any security or benefits. In my opinion, it’s not just right or not the fair thing to do.
Questions:
1. If you were the president, which point of view would you support given the increase in premiums?
2. Describe any other options or compromises that might work.

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