Question

Since the integration of two new stores, Fred Fryer's Donuts, Inc. has recognized that there is a need for reengineering the entire organization. The main need is to install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of all old equipment to a salvage dealer or else incur a loss. The employees will have to be trained to operate the new computer programmed equipment. Some of the older employees are worried that learning the computerized system may be too difficult. Fred is setting up the main store as a training store. The regular employees from the main store have the responsibility of instructing the classes or overseeing the installation of the new equipment and testing its operation before employees return to their jobs. The organization is also replacing the old employee reporting system. Ordering of materials will now be done by an intranet. Fred has promised that no one will lose his or her job because of the organizational changes. He estimates that when the employees get to the computer programming training, as many as 10 percent of the current employees will resign or retire. He also thinks that opening a new store will absorb the excess employees.

The 10 percent of the employees that are expected to leave during the computerized equipment training, will leave because they ________.
A) cannot pass the final test of how to operate the equipment
B) fear that they are unable to learn the new methods
C) they were going to leave anyway soon
D) are not entrepreneurial enough to survive in the new environment

Answer 1

The employees expected to leave during new technology training likely fear that they are unable to learn the new methods. This fear stems from facing significant changes requiring new skills. Fred Fryer's strategy includes opening a new store to absorb excess employees.

Step-by-step explanation:

Among the changes that Fred Fryer's Donuts, Inc. is making in its organization, the 10 percent of the employees that are expected to leave during the training for new computerized equipment will most likely do so because they fear that they are unable to learn the new methods. This is not an uncommon reaction among employees who face significant technological changes in the workplace, especially among those who may have less experience with technology. The concern of these employees stems from the anticipation of the difficulty of transitioning to new systems and processes, which can lead to a decision to resign or retire. Additionally, Fred Fryer has plans to open a new store to potentially absorb the excess employees, indicating a strategic approach to organizational change and employee retention.