Management Problems with Perot Systems

Essay by kalton001University, Master'sA+, May 2004

download word file, 12 pages 3.0


In an attempt to attain a preliminary insight of Perot Systems, we were fortunate enough to interview one of its employees. However, for reasons of confidentiality and privacy, we are unable to disclose any information identifying this individual as he was our only inside source; therefore we will refer to our interviewee as Bob. Despite these restrictions, we acquired valuable information from Bob and implemented this information into our research of the company. From the abundant information we extracted from him, we analyzed what we learned to identify some focus points for the causes upstream and effects downstream, followed by possible solutions.

Bob has been employed by Perot systems since 1992. He was first employed as an entry-level worker and worked his way up the management chain to his current management status. Perot Systems is undergoing a large scale restructuring process as many companies in the same industry are doing.

Throughout the process, there are many ethical and business dilemmas that managers must confront. Some of these restructuring issues include layoffs and transfers of employees. It is important to note that Perot Systems is in the early stages of the restructuring process therefore nothing concrete can be determined at this point.

Off-shoring is becoming more commonplace in today's competitive business environment, more companies are going global, and more companies are looking for ways to save money. By off-shoring jobs to less developed countries, companies can pay much lower wages to comparable workers. Perot Systems is in the early stages of off-shoring a large amount of administrative and other positions to India.

Throughout the interview we identified several problems. While the restructuring process has not been publicly announced, many employees are aware of such facts because of current off-shoring industry trends. In other words, the workers are going to lose...