How would you advise management to communicate this decision to the affected employees? To the entire staff?

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  The communication should be direct, so that the employees are the first to find out and are not subject to the whims of rumors and uncertainty.
  

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  The communication should be prompt so the employees have sufficient time to seek other jobs.
  

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  Management should offer as much employee assistance as possible to help them find new jobs. This includes recommendations from supervisors, priority consideration for other jobs in the firm, opportunities for positions in the new system, time off to search for a new job, and severance pay.
  

While these actions may be costly, they will provide benefits (cooperation, improved morale in the remaining employees, etc.) that will likely exceed the costs.

The item cannot be properly interpreted without further information from the computer vendor, such as what decisions, made by which managers, are they referring to? How will the decisions be improved by the system? Unless you get very specific answers that support the calculations, the item should be ignored when making the computer acquisition decision.

Usually, a computer system will help management make better decisions. However, these decisions do not always result in a direct cost savings. The economic feasibility study should only include costs that can be directly determined. In addition to an economic feasibility study, qualitative factors, like better decision-making, should be considered. In many instances, these non-quantifiable benefits may be the most important or the majority of the benefits. Even though they are subjective and are surrounded by uncertainty, they must be considered.

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