Wednesday, August 20, 2014

Management Case Study: Getting Out of the Army


FACTS:
The case is about Jay Abbot who is contemplating on what would be best for him and his family taking into consideration the advantages and the disadvantages of his two identified options.  The said options are:

 1.      To remain working in the army.

 Advantages: 
He is currently being considered for promotion to major. He was already earning $27,000 a year, with his near-certain promotion, this would be raised to $31,000.  He was being recommended for the Army’s Command and General Staff College.  If he stayed, he’d be able to retire in just 10 more years (at age 41) with a permanent retirement income of half of his final salary plus free medical and dental coverage.  At age 41, there would be plenty of time to devote to a second career should he so desire. 

 Disadvantages:
The army has intruded into his personal life extending to the behavior of his wife and children.  His job required long hours of work, including weekend duty – which left little time for his life and two daughters.  Salaries in the armed services had not kept pace with the rising rate of inflation.  He had read several newspaper articles indicating that Congress was considering reducing benefits for the armed services – the 20 year retirement specifically.
 

2.      To quit working in the army.

 Advantage:
He knew that large organizations were currently hiring young ex-military officers at salaries of $5,000 higher than recent college graduates.

 
QUESTIONS AND ANSWERS:
 
Q:
What should Jay do?
 
A:   The best thing that Jay should do is to determine first his priorities then confer with his wife regarding his concern because after all, they are working on a partnership for life.  In deciding something, they should involve each other in order to nurture good and harmonious relationship. 
 
Q:
What factors should be considered in Jay’s decision?
 
A:   The factors to be considered are his priority, family, self, financial capability, job stability, time and risk.
1.      Priority – what are his priorities?
2.      Family – will his decision beneficial to his family?
3.      Self – will his decision satisfy him in the long-run?
4.      Financial Capability – will his decision sustain him financially in the long-run?
5.      Job stability – will his decision assure him of job stability?
6.      Time – will his decision benefit the time lost from himself and his family?
7.      Risk – what are the risks of his decision?
 
Q:
 
What role would values play in Jay’s decision?
 
A: Value in setting his priorities.  If he knows his priorities then he knows what is best for him and his family.

 

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