Laying Off Boeing Workers For A Company 's Ills

Layoffs are not always the best solution for a decline in company profits. A business must resolve the conflict that exists between their responsibility to meet economic targets and the ethical responsibility of non-maleficence. Furthermore, it must be determined if the layoffs would even maximize stakeholder welfare from a utilitarian perspective (Arce & Xin Li, 2011).

Downsizing refers to the voluntary actions on the part of organizations to reduce the overall size of their workforce, generally to reduce costs. The disadvantages of downsizing in a survey by the American Society of

The layoffs are at the heart of the problem affecting the hospital. From the CEO’s perspective, the layoffs are a response to decreased revenues where the facility has to reduce its expenses to stay in operation. In the case of the operations director, the layoffs are a cost-cutting measure and an appropriate response to reduced activity in the hospital. However, the employees are likely to interpret the situation as a lack of proper management or concern for their welfare (Sobieralski & Nordstrom, 2012).

Swatridge realizes the company is not being as efficient as they could be and downsizing is a strategy to keep costs down. Employees throughout the company are aware of this possibility and are constantly concerned about their job security. The uneasiness about not knowing whether layoffs are coming or not has younger employees worried about losing their jobs, older employees wanting to take early retirement, and skilled employees thinking about switching jobs. With the threat of downsizing looming throughout the company, employees are worried about job security, especially ones who have no other skills and would be hard for them to find a new job. There is a lack of communication between managers and workers which is affecting employee morale.

All businesses at one time or another will have to deal with employee layoffs due to a re-organization or changes in the economy. Employee layoffs can have a damaging impact to the remaining employee and management staff. There are several solutions that can be done to alleviate the negative impact and the recommendation is to provide managers with the proper training on how to properly handle a layoff so there is a more positive impact on the remaining staff. Proper training prepares managers for

Housing prices will rise and many people are left without a roof over their heads.

Mass lay-offs could potentially allow for the maintaining of the current wages but for fewer workers. When dealing with lay-offs opens up a whole new slew of problems including, how to select the people who get laid off, and those who get laid off lose their livelihood.

With an abundance of complexities to consider, the size of a firm is one decision factor into whether to downsize without changing wages or to keep all workers but reduce wages. Accordingly, a large organization may have the capacity within the workforce to alleviate the need to downsize by offering early retirement or buy-outs (van Dalen & Henkens, 2013). Therefore, the implementation of an attrition program may be an appropriate response for a large organization in addition to reducing wages for the remaining employees to return to a state of wage equilibrium. On the contrary, losing a critical “go-to” employee in a small firm may adversely affect the ability of the business to stay productive and profitable in the long-term (van Dalen & Henkens, 2013). Consequently, an appropriate decision in this case may be to cut the less talented employees and retain workers that are more

As a result, fewer families will be ready to purchase a home thereby making most of them to stay in rental places because of the high-interest rates on mortgages. Most of them wishing to start a business using loans will fail to do so because of the rising interest rates on the loans.

The skills and capabilities of the more highly qualified workers affected by the automotive closures may be transferable to other sectors. Others may need, or prefer, to undertake training to access alternative employment. A proportion of the workforce has low literacy and numeracy skills and many do not have formal qualifications recognising skills gained over years working in the industry. The diversity of skills, maturity of the automotive workforce, and the shift from traditional ‘heavy’ manufacturing presents a challenge in preparing some employees for their next job.

A corporation needs to have a strategic plan in place in order for them to be able to implement a downsizing. There are many pros and cons to downsizing and it has a ripple effect on everyone in the corporation. Depending on the planning of the downsizing, one of the big issues to decide on is how to choose who will be terminated. For example, do you go by seniority, a percentage from all departments, an entire department, or by job level or position? These are major options that need to be addressed before anything happens. Most corporations today exist less for the well being of employees than they

Downsizing has become a commonplace strategy for organizations to adopt in an effort to cut costs, eliminate redundancies, and streamline organizational systems. Over the last 15 years, many organizations have engaged in downsizing more than once. Most companies have learned from the mistakes of the past, but some companies are still trying to use the same tactics today that were used in the mid 1980s, that leave employees reeling.

Many companies look to salaries and benefits as the first places to cut back when looking to make changes that involve cost-saving. When this happens, it is inevitable that some employees will leave the company to seek employment elsewhere. The employees that remain, whether they stay voluntarily or because they could not find employment elsewhere, are often resentful. Motivation decreases, taking job performance along with it. Employees lose their company loyalty and may even become angry enough to purposefully sabotage the company.

Martin, Bartol and Kehoe (2000) relay that the rapidly changing business environment, which includes reorganization, acquisitions and mergers between companies, has been the impetus for many layoffs of employees due to downsizing, which in turn can cause legal issues for the company if not handled appropriately. The recent merger between Davis Manufacturing and Bartlund Technologies present such a scenario when the necessity for more efficient operations calls for the closing of a facility in San Jose, CA along with the reduction of that facilities staff by 20%, before relocating the rest. Karen Howell, the division manager, will work with the area managers to determine the employees designated to be dismissed using performance appraisals as the basis for terminations.

Downsizing, restructuring, rightsizing, even a term as obscure as census readjustment has been used to describe the plague that has been affecting corporate America for years and has left many of its hardest working employees without work. In the year 2001 we had nearly 1.8 million jub cuts, that’s almost three times as much as the year 2000(Matthew Benz). In the 1990's, one million managers of American corporations with salaries over $40,000 also lost their jobs. In total, Fortune 500 companies have eliminated 4.4 million positions since 1979 including the 65,000 positions cut in February of 2002 (Ellen Florian). Although this downsizing of companies can have many reasons behind it and cannot be