Analyze the influence of investors on the strategic decisions of the company.

Human Resource Management

Analyze the influence of investors on the strategic decisions of the company.

CASE STUDY (20 Marks)

In October 2014, US based technology company Yahoo! Inc. (Yahoo) announced that it planned to layoff around 400 engineers from its India office. These engineers were part of its Software Development Center (SDC) at Bangalore in south India, the second largest engineering development center of Yahoo. US based Yahoo Inc. (Yahoo) used layoff and downsizing as a restructuring strategy to control its bloated cost structure and trim its workforce. In one such restructuring effort in October 2014 when Yahoo laid off around 400 software engineers from its R&D office in Bangalore, India. There were various speculations on the number of employees laid off and the rationale behind this decision. Along with this, it also highlights the influence of investors on the human resource planning (HRP) of the company. The strategic move of its competitors to exploit such massive layoff is also to be taken into consideration.

Answer the following question.

Q1. Explain the reasons for downsizing and layoff as a restructuring tool of human resource planning.

Q2. Discuss how downsizing is used by the companies to reign in expenses.

Q3. Analyze the influence of investors on the strategic decisions of the company.

Q4. Give an overview of the case.

Analyze the influence of investors on the strategic decisions of the company.

 

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