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Casestudy - Case Study Example

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For this reason, Lauren ought to communicate the full criteria it uses to pay its employees the severance package, and extend the…
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Download file to see previous pages We at Lauren sincerely regret the unavoidable employee lay-off situation that followed our acquisition of Western Company. We have received complaints by former Western employees who feel aggrieved by the amount of severance package we have stepped forward to offer our unfortunate brothers whose esteemed services were cut short at the firm for sustainability reasons. For demonstration we shall pick the case of Bill Smith, a recently laid off Western employee, who we understand is concerned that Lauren is not genuine in the severance package offered to him. To clarify our stand, Lauren has hired the services of a statistician who worked out the figures contained in the analysis below regarding our severance packages policy.
The output above shows the coefficients generated when the data from the randomly picked former Lauren employees is executed. We use the table values to construct a linear model that can be used to determine the amount of severance pay for any employee at the firm and emerging subsidiaries. The model is supposed to acquire the form:
y = β0 + β1x1 + β2x2 + β3x3 since we have got three independent variables; employees age at the time of termination of the contract, the length of time the employee has worked with us, and the annual pay of the employee. We have also one dependent variable, weeks of severance pay.
From the figure obtained above (-2228.2 weeks), it is clear that the model does not exactly obey the assumption that the pay period is directly related to any linear combination of the factors listed by Lauren as the determining factors of pay period. This is a serious fact because it exposes Lauren as a company that does not honour or follow any pre-set procedures in administration of the severance package.
The negative value indicates that Mr. Smith is supposed to work for firm for another over 2220 weeks, a situation that depicts him as ...Download file to see next pagesRead More
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