Question

Complete the following as your Main Post: Imagine that you are a manager at a consumer products company. Your company is in negotiations for a merger. If and when the two companies merge, it seems probable that some jobs will be lost, but you have no idea how many or who will be gone. You have five subordinates. One is in the process of buying a house while undertaking a large debt. The second just received a relatively lucrative job offer and asked for your opinion as his mentor. You feel that knowing about the possibility of this merger is important to them in making these life choices. At the same time, you fear that once you let them know, everyone in the company will find out and the negotiations are not complete yet. You may end up losing some of your best employees, and the merger may not even happen. What do you do

Answer 1

In this situation, the manager should still go on with the merger if that is the best financial choice for stockholders.

Managers main, and essential goal, is to run the company in a way that maximizes value to stockholders, so, if the merger achieves that, the manager should absolutely carry on with the merger even if some employees end up losing their jobs as a result.

However, this does not mean that the manager should not try to save as many jobs as possible.