integrative case assignment

CASE 11

Someone Has to Go: A Tough Layoff Decision

Located in the Los Angeles area, Aero Performance, with 27 employees, is a sales and maintenance company that provides equipment upgrades and general aircraft maintenance to regional airlines, corporate aircraft, and small international carriers. When Aero Performance was created 12 years ago, the company faced little competition, and a robust airline market seemed to present an unlimited potential for growth. Unfortunately, industry economics coupled with cost-cutting measures by airlines and new competition from similar airline service companies means that Aero’s business performance has stabilized, and the company has actually experienced losses in certain specialized areas. One of these areas is the sales of the company’s technologically advanced equipment. Airline companies as well as the owners of corporate jets have delayed the purchase and installation of Aero’s advanced electronic equipment.

Mike Martinez, manager of the technology upgrade unit, faces a tough decision. With a significant downturn in his unit’s work, he must lay off one employee. The decision is made particularly difficult because all employees of the unit are qualified employees with average or better work records. Additionally, each employee has a unique personal background directly affecting his or her work life. A summary of the background and work record of each of the four employees follows. No question, Martinez faces a difficult decision.

Gary Meadors is married and has two children in high school. He lives modestly in order to send his kids to college. His wife works evenings at a convenience store to assist with family expenses. Meadors has worked nine years with Aero Performance, six years in airline maintenance and three years in the technology upgrade unit. He has learned airline technology largely through technical articles, trade journals, and on-the-job experience. His performance evaluations are average, and he is considered a consistent and reliable employee. His attendance and company loyalty are exceptional.

Brenda Baldwin is the only woman in the technology upgrade unit. She is a single mother with a child in elementary school. Brenda has three years of service with Aero Performance, all in Martinez’s unit. She joined the company after obtaining an airline technology degree from a well-respected four-year university. Brenda continues to take evening classes in her field and seems to have, according to Martinez, “the most potential for growth in the company.” However, her performance has slipped the past year, and she has been counseled for an attendance problem. She has felt somewhat resented as a female in a traditionally male-dominated industry.

Udit Chopra is a dedicated employee. In fact, everyone says he is “married to his job.” He will work long hours to complete technical installations and is regarded as a perfectionist. Udit has a college degree in marketing but has found his home in airline technology. He possesses an excellent ability to persuade Aero Performance customers to upgrade their technology systems. Udit drives a new BMW and is believed to come from a wealthy family.

Craig Cottrell joined Aero Performance three years ago, having been hired away from a competitor. He has a total of 12 years of experience in the airline service industry. Craig has a complete understanding of airline technology. Cottrell’s work performance the first two years with Aero Performance was barely average; however, his work record the past year was evaluated as very high. Currently, he is the top performer in the unit. There has been work friction between him, Baldwin, and Chopra over the selection and installation of cockpit instruments.

Mike Martinez must make his decision by this Friday. Aero Performance will grant the laid-off employee a severance package to assist transition to other employment. Martinez is committed to aiding his employee in finding another job in the airline service industry.

Follow the Rubric and respond to all questions.