A Reporting Dilemma: Hiring Freeze Headcount

A Reporting Dilemma: Hiring Freeze Headcount

  • Case
  • Teaching Notes
  • Supplementary Resources
Abstract

The case centres on a fictional company named Big Electronics Company International (BECI), which set up a manufacturing facility in Penang, Singapore in order to enjoy low labour cost and favourable tax treatment. However, during the recession of 2013, the CEO of BECI ordered a pay freeze in order to reduce labour costs during tough financial times. The manager of the Penang facility, Sam, is under pressure to continue hiring in Malaysia to ensure that BECI reap the financial benefits of doing business in Malaysia. Sam must decide if he should disguise the number of employees in Penang in order to hire more workers without letting the CEO know.

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