MD Solution Case

Which FWA approach to choose?

by GROUP 13
▪ Ambuj Priyadarshi -064
▪ Akanksha Patel -061
▪ Chandana Sairam Charan -070
▪ Timmasarthi Goutam -106
▪ Hrishikesh Nikam -084

3 days/ Week 15 days/ month

Cost Analysis Increased HR Increased HR
expenditure expenditure
=0.028105/3.73 =0.019305/3.73
=0.89 % =0.51 %

Reduction in profit Reduction in net profit

=28.105/370 =19.305/370
=7.6% =5.2%
Difference of Reduction in profit in % = 7.6 % - 5.2%
=2.4%
Assessment:
1. The company has an estimated profit of about 370,000 euro from exhibit
4 and HR expenditure of 3.73 million euro from exhibit 9. HR
expenditure increases by less than 1% in both the case. There is 2.4%
more reduction in profit in 3day/week FWA. Although cost wise
15day/month FWA is better but the increase in the expense of company
for Ashwani is only about 1%, while he is going to handle a project
which is 60% of the income. So, the extra expenditure is not
unjustifiable.

2. 15 days/month will create problem as team are not used to work in that
setup as conveyed by Sanjay, one of the team leads.
 3. Working in Noida for only 15 days at a stretch would pose problem for
managing the project overall as conveyed by the Subhash, the second
team lead.

4. MD solution was not fully capable of handling weekly or fortnightly

virtual work settings. So, 3 day a week FWA is a better alternative.

5. Also, Ashwani had earlier proposed for 3 days/week FWA to Manish and
not 15day/month. So Ashwani would agree to it without any hiccup.
Proposed Solution
• 3 day/week FWA should be allowed for Ashwani based on the above
assessment
Possible alternative FWA
3 day/week FWA can be allowed for initial months, followed by 15 day/month
FWA after the initial project handholding are done, virtual setting work issue is
addressed and the team gets comfortable working and communicating in this
new setup. This will save: (28,105-19,305) euros /12 month
= 733.33 euros per month, in travel cost for MD
solutions .