Question

Scenario You have worked at your current employer for 5 years. Recently your company merged with a much larger Boston accounting firm to improve efficiencies, increase revenues, cut costs and adopt best practices in the industry. After the merger, you find yourself on a team with four other individuals that you have never met. Each individual is from a different department: auditing, tax, corporate governance, legal and insurance. The purpose of your team is to reduce the number of employees in your department. Why is the change needed?

Answer 1

Answer:

In order to restructure the organization under the new Management.

Explanation:

Remember, we are told that a merger had occurred with a larger company with the sole aim of improving efficiencies, increasing revenues, cut costs and adopt best practices in the industry.

Thus, as at part of achieving the merger objectives of cutting cost, such change in the number of employees in each of those departments are necessary. For example, if the company spends $50,000 on employee remuneration prior to the merger, by reducing the amount of employees they are more likely to reduce cost.