Budget Cut Issue: Problem Solution Essay

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As part of a problem-solving and decision-making assignment, the organization of work of staff is required to be reallocated due to budget constraints. There are two options for the development of events – a reduction in working hours while retaining all employees or an active redeployment of personnel. In order to keep the motivation of employees, it is necessary to distribute them to other, more free and highly paid vacancies.

The solution to any problem implies the awareness of the presence of stakeholders with their own interests. It is required to find a balance between the interests of the company and the demands of subordinate workers, who can be considered stakeholders (Butterfield, 2013). Considering that when the budget is cut in the department, the volume of work also decreases, it would make sense not to cut the time of all employees but to offer the remaining ones to perform more functions. Through such an operation, the distribution of money and the final salary of each of their remaining employees could slightly but noticeably exceed the previous one, which would be a financial motivation to keep the original job. In parallel, it would be possible to arrange for external jobs for another part of the team, those who are ready to master the new tasks.

Keeping all employees in the same places would hardly be a sufficiently effective and economically sound solution. Firstly, the preservation of the previous working atmosphere with a decrease in the volume of work and wages could be a sign of stagnation in the team. The human potential of workers in the case of saving all vacancies is noticeably reduced since there are no tasks in the quantity that would allow it to open up sufficiently. The negative impact of maintaining the original distribution would also be noticeable due to the individual’s modern perception of himself as a work unit. Modern reality requires a high level of employment and productivity from a person since this is usually the key to financial self-sufficiency. Therefore, a decrease in financial income and the volume of work would hardly have a positive impact on any motivated team. Based on this, the distribution of those wishing for new jobs, along with an increase in workload and wages through the redistribution of a reduced budget, is the most logical solution to the problem.

Reference

Butterfield, J. (2013). Problem solving and decision making. Cengage Learning.

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