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Time Context Gladstone Community School is operating since the year 1988.

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Viewpoint In solving the problem, were taking the viewpoint of Jane Goodall, the chairman of the board of the governors of Gladstone Community School.

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Statement of the Problem How to reduce the operating expenses of the school, primarily staff salaries

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Objectives 1. Short Range Objective to reduce expenses by at least 5% 2. Long Range Objective to reduce expenses by 10% Areas of Consideration the effect of reduction of the expenses to the operation of the school the identification of necessary and unnecessary expenses Alternative Courses of Action Institute a Hiring Freeze or the Hiring of Temporary Workers In a hiring freeze, an employer decides to stop hiring employees for all nonessential positions. It can help restrain managers from adding additional staff costs. It can put filling positions that are vacated during the hiring freeze on hold if they are not deemed essential to carrying out the core business. It allows the management to consolidate current employees and potentially restructure departments, to complete the work that is essential for serving the customers of the business. But, on the other hand, it can result to lack of motivation and loyalty to the company due to the short time spent assisting with operations. They may lack the drive needed to go beyond in the firm's name; since they lack incentives like bonuses and promotions, some may not give 100-percent effort. The training would also be wasted because some temps dont return for more than one placement. Current employees may also resent temps' lack of experience and knowledge of the business' operations. Incentivize Employees to Leave: Voluntary Layoffs, Buyouts, Early Retirement Ask employees to take voluntary layoffs, offer a sum of money to end the employment relationship, or offer early retirement to eligible employees. All three of these actions give employees options and are viewed less negatively by the remaining employees. These options, while effective in cutting costs in the long term are expensive in the short term. A substantial sum of money is necessary to encourage employees to walk away from their jobs. In a voluntary layoff, no employee will volunteer without a substantial severance package or guaranteed return-to-work rights, usually within a specified time frame.

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Take Advantage of Normal Employee Attrition In every organization, employees leave. In this alternative, employees voluntarily leave the company. This can help in saving some costs without leaving a negative view to the remaining employees. Reasons range from a significant other's job change, to family matters and new career opportunities. It may allow the management to restructure the work flow and may be able to transfer employees to different jobs. Only critical, essential positions should be filled. But in tough economic times, the attrition rate will likely be slow. Recommendation We recommend the second alternative. Conclusion After some considerations, we came up with a conclusion. This is to choose the second alternative, which is to give incentives to employees to leave the school. This may be costly at first but it would be effective in time.