NATIONAL INSTITUTE OF FASHION TECHNOLOGY, BENGALURU

MASTER OF FASHION MANAGEMENT BATCH 2023-2025

Exercise- 9

SUBMITTED BY:

Naman Somani (MFM/23/76)

Pavi Shetty (MFM/23/73)

Saumya Udayan (MFM/23/79)

Snigdha Ranjan(MFM/23/187)

Tushita Mitra (MFM/23/307)

Vidhi Agrawal (MFM/23/63)

Vinal Sharma (MFM/23/54)

SUBMITTED TO:

Prof. Sanjeev Malage

You have built a career for yourself by working hard and on a strong ethical system. Your rapport
with your seniors and juniors in your private enterprise has been appreciated. You have
supported your juniors when they needed your assistance and objectively provided your views to
your seniors when they called for your opinion.

The private company you work for has been doing considerably well in business. However, due
to the pandemic situation, your company has suffered huge losses and the board has approved
cost cuts across the organization. Though the board approved the cost cuts; it has delegated the
responsibility of creating a roadmap to one of your seniors. This senior though talented and hard
working does not enjoy the rapport with the office colleagues like you do. Also, the senior is
respected less because he is considered too proud of himself. He has come up with a plan
to cut costs by laying off some of the employees across many departments of the organization.
The job losses would render many employees financially vulnerable during these tough times.

The employees approach you to talk to your senior on their behalf and convince him about not
laying off people. Though you understand the request made by the employees to you; you are not
sure whether it is right to approach your senior and provide your suggestion on the matter when
not asked for it explicitly. However, your consciousness would also not be at peace if you did not
approach and request him. You also realize if you approach your senior and he does not
appreciate it; it may cause problems in your career.

In this context, answer the given questions:

1. Identify the ethical issues involved for you in the present case.
2. What are the options available to you in the present case? Analyze each of their pros and cons
3. What course of action will you take based on the options available to you? Justify the reason
behind it
4. Discuss what roadmap you would prepare if the cost-cutting responsibility was entrusted to
you.

ANSWER:

1. Empathizing with the employees is a moral choice. The first ethical dilemma concerns
the decision to let go of certain employees knowing that the job market is down due to an
ongoing pandemic. But the other side of the ethical dilemma deals with moral
responsibility towards the organization, intervening in a situation like this where you
have no position to comment or advice would look like you’re questioning your senior’s
decision and would implicate that you are undermining your senior’s authority. Aligning
 with the cost-cutting strategy protects the company, yet inaction contradicts your belief in
employee well-being.
2. i. Direct Approach (Pros): Expresses concern for colleagues, opens a dialogue for
exploring alternatives. (Cons): Risks confrontation with senior, might be perceived as
insubordination.
ii. Indirect Approach (Pros): Voice concerns anonymously through suggestion boxes or
surveys, avoids direct conflict. (Cons): Lacks personal touch, possibility of the message
not reaching the decision-makers.
iii. Seek Clarification (Pros): Discuss the situation with your senior to understand the
rationale behind the layoffs and explore potential solutions. (Cons): Senior might be
unwilling to share details or may not be receptive to suggestions.
3. A combined strategy incorporating elements from Option i and iii as course of action:
Schedule a one-on-one meeting with your senior: Frame your request as seeking
information and offering support. Express your understanding of the financial strain.
Voice your concern: Highlight the potential impact of layoffs on employees' lives.
Offer Alternative Solutions: Brainstorm together for cost-cutting measures that minimize
job losses. Suggest measures like temporary pay cuts, salary freezes, or a voluntary early
retirement program. Emphasize how retaining experienced employees benefits the
company in the long run.
Justification:
This approach directly addresses the ethical concerns. It demonstrates your loyalty to the
company while advocating for your colleagues. By offering solutions, you position
yourself as a team player seeking the best outcome for all parties involved. This approach
embodies ethical conduct, loyalty, advocacy, and teamwork. It demonstrates a holistic
approach to addressing challenges within the organization, emphasizing the importance
of integrity, compassion, and collaboration in achieving positive outcomes for both the
company and its employees.
4. If we were in-charge of the cost-cutting roadmap it would still involve some lay-offs but
would not be entirely based on lay-offs. The lay-offs would be done only by making a
performance evaluation test and then evaluating the employees on the basis of the same.
The employees who have been inefficient constantly would be layed off and the number
would be really small. This would not increase the company’s employee turnover and
might serve as a negative motivation for other employees as well. Along with this, certain
cost cutting things can be done like shifting to place with lesser rent, or aiming at
reducing other fixed costs of the company like costs of amenities given to employees,
instead of reducing the salaries or the fixed package of the employees the company could
silently cut costs by reducing the amenities provided like the costs of coffee or other
benefits given to the employees. Making efficient use of resources like electricity, etc.,
above all of this instead of thinking too much about cutting cost, a committee with no
incentive should be set up to help the organization improve performance and generate
revenue, in the meanwhile time the costs can be covered by liquidating assets the
company holds or taking a debt against the same (if it is a viable option). The company
can also offer lower salaries to employees by giving them ESOPs and talking about the
same to them and giving them the confidence to be in the company.