Downsize or Bonus Allocation Decisions

Downsize or Bonus Allocation Decisions

Assume that you have just been placed in charge of the Claims Investigation Unit of a small insurance company based in Minneapolis. Your personnel department has provided the following details on your personnel. However, because your insurance company is in the midst of takeover discussions, you have been asked to decide whom you would terminate if you were called on to downsize by one person and, alternatively, how you would allocate a bonus of $20,000 if no one were to be dismissed. You really want your team to function well after the decision is made because your future depends on it.

Question

1. What would your answers be, and what would your reasoning be for each?

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