Case: No Coffee Time Shaima is the assistant vice president and office manager for the National Insurance Company (NIC). She is in charge of fifty-eight office employees. The economic downturn has taken its toll on NIC’s bottom line, and as a result, about one-third of the office force has their jobs eliminated. Those that have remained have experienced a substantial increase in their health care allowance but have not received any pay increases in the past two years. Currently, the company has a 'Coffee Room' for the employees. Free coffee, tea, sandwiches, and snacks are provided. Twenty minutes are allowed for morning and afternoon breaks; many employees are away from their workstations for half-hour or more. [Note, NIC working hours are from 8:00 am till 1:00 pm and then 2:00 till 6:00 pm. She is thinking about closing the Coffee Room and replacing the coffee breaks with vending machines and snack carts put into the work areas. Employees will have to pay for their drinks and snacks. She listed the following reasons for her proposal: Reduction in financial costs - As that the company is going through financial difficulties. Increase Efficiency - Reduction in time wasted as employees take breaks beyond the allowed time. On her way to raise the proposal to her manager, she remembered a quote that hangs in her favorite coffee place, “hot drinks are not for the body or belly.” The quote made her pause.! Question: Counter Shaima’s proposal to close the 'Coffee Room' and replace the coffee breaks with vending machines and snack carts by: 1- Explaining the importance of coffee breaks. [Provide two to three well-written and explained points] 2- Recommending an alternative proposal. [Specify what should be done and why your recommendation is good].

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Case: No Coffee Time Shaima is the assistant vice president and office manager for the National Insurance Company (NIC). She is in charge of fifty-eight office employees. The economic downturn has taken its toll on NIC’s bottom line, and as a result, about one-third of the office force has their jobs eliminated. Those that have remained have experienced a substantial increase in their health care allowance but have not received any pay increases in the past two years. Currently, the company has a 'Coffee Room' for the employees. Free coffee, tea, sandwiches, and snacks are provided. Twenty minutes are allowed for morning and afternoon breaks; many employees are away from their workstations for half-hour or more. [Note, NIC working hours are from 8:00 am till 1:00 pm and then 2:00 till 6:00 pm. She is thinking about closing the Coffee Room and replacing the coffee breaks with vending machines and snack carts put into the work areas. Employees will have to pay for their drinks and snacks. She listed the following reasons for her proposal: Reduction in financial costs - As that the company is going through financial difficulties. Increase Efficiency - Reduction in time wasted as employees take breaks beyond the allowed time. On her way to raise the proposal to her manager, she remembered a quote that hangs in her favorite coffee place, “hot drinks are not for the body or belly.” The quote made her pause.! Question: Counter Shaima’s proposal to close the 'Coffee Room' and replace the coffee breaks with vending machines and snack carts by: 1- Explaining the importance of coffee breaks. [Provide two to three well-written and explained points] 2- Recommending an alternative proposal. [Specify what should be done and why your recommendation is good].

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