M: Organizational Behavior 2nd Edition by Steven McShane, Mary Von Glinow

Exercise 81

As director of new projects, you have just learned that cash flow problems have forced your organization to cut back product-development activities. This means that two of the eight projects currently being developed must be terminated along with the employees working on those projects (about 25 percent of employees in your unit). You have a good knowledge of these projects as well as the performance and seniority of employees who work in your unit. While some projects clearly have a high chance of success, the long-term potential of a couple of them is unknown. Identify the best level of employee involvement in this situation and describe three factors (contingencies) that support this level of involvement.