American Gadgets is a major manufacturer of gadgets, but has not been spared by the Great Recession.

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American Gadgets is a major manufacturer of gadgets, but has not been spared by the Great Recession. The CEO has to make some tough decisions regarding the company’s budget. The VP of Finance says that whatever doesn’t help productivity is a luxury the company can’t afford. The most expensive luxury is human resources. The CEO already knows how the VP of HR will respond: We have to be kind to the workers and take care of their quality of work life, no matter what. The CEO also knows that without enhancing productivity there won’t be any work life at the company for those who will have to be laid off. The CEO calls you for advice. What evidence is there that HR practices affect productivity? Hint: Evidence is quantifiable and not just what sounds good. Page limit: ½ page to ¾ page, double-spaced.

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