III.

Formulation and Evaluation of Alternatives

A. Decision Criteria
The criteria considered in determining the decision regarding the
issue are the Employees Morale, Internal Effect for the Company,
External Effect for the Company and the Cost of these actions for the
company. The criteria also have different weights to signify the
percentage of importance in making the decision. The most important is
the Internal Effect for the Company, with forty percent, as coming up
with the decision will affect the current employees and will probably
serve as an example if ever other employees consider committing such
offense like Henrys. The External Effect for the Company is given thirty
percent as the image and reputation of the company is at stake
whatever the result of the decision is. President Hennings pride in his
companys culture centers in the individual employee, so the
Employees Morale is heavily considered with twenty percent. Lastly,
the Cost of the action for the company is given a ten percent
importance. The criteria is then rated from one to five, with five being
the highest and one the lowest, for each alternative.

Internal Effect for External Effect for Employees Morale Cost

the Company the Company
(40%) (30%) (20%) (10%)

Suspend
4 3 3 4

Demote
4 3 3 3

Fire
5 3 5 5
 B. SWOT Analysis

External Opportunities Threat

Environment
The company can dedicate a new If not handled correctly, the fired
Analysis
Internal department for security and filtering rank-and-file employee can take
within the companys network. This legal action against the company,
Environment
opens up job opportunities for others. also it could create a rift inside the
Analysis
company.

Strength SO Strategies ST Strategies

The respect and trust given to
the employees encourages
them to be productive in their
own pace, as long as theyre
accomplishing their
requirements.
Weakness
Internal Development Maintain the respect for the
employees and give proper
Increase in productivity for the investigation/due-process for the
employees. violators. Confidentiality must be
strictly implemented.
WO Strategies WT Strategies

As much as the trust and
respect given to the
employees are strengths, it
can also be a weakness for
the company once the
employees abuse and take it
for granted.
Personal and Internal Development
Discipline will be instilled in the
employees
Cases like Henrys will be
avoided in the future.
Avoidance of hastily making
decisions for the higher ranked
employees and also proper
approach in dealing with cases such
as Henrys.

C. Evaluation of Alternatives
The three alternatives chosen were either to Suspend, Demote or
Fire the employees. Based from the weighted average from the Decision
Criteria, the alternative with highest weighted average of 4.4 is to fire
the employee. Firing the employee will have a huge blow to the persons
morale but this decision will serve as a reminder and a warning for the
employees to think twice about their actions whenever they are using
the companys network. Externally, this action could go either way,
people outside of the company might see it as something harsh but it
could also mean that the company is showing importance to its
principles which may be a good thing for others. Firing an employee,
especially if it is a high position, may prove costly for the company as
they will have to source out someone who is as competent or as
effective as the fired employee. The second alternative is suspending
the employee for a certain period. Suspension will not have that effect
on the persons morale as firing, but when the employee comes back
from the suspension, he/she will have to deal with insecurity and
scrutiny from the co-workers. Also, employees will be aware of their
actions knowing that similar offense can lead to a consequence. The
good thing about suspension is that the employee has a chance to
redeem and restore his image within the company. The cost of
suspension is not as significant as firing, as the employee will still be
within the company therefore not losing an asset in the long run. Lastly,
the alternative with the lowest weighted average is to demote, with an
average of 3.4. Demoting an employee definitely affects his/her morale,
the person will have to deal with insecurities and peer scrutiny just like
in suspension. The upside in demotion is that the employee will still be
employed and will still be receiving salaries and benefits, although not
the same with the previous position, that will not be available in
suspension and especially in firing.