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).
Layoffs are tough for both the employee being laid off and the company for which he/she worked. The situation causes so much uncertainty amongst the remaining employees. The feeling among the employees is; if this happened to them this could happen to me as well. According to Johnson (n.d.), “There is a major disruption in the status quo; relationships are severed, work is redistributed with a probable increase in everyone’s
The effect of mismanaged LAYOFFs on the remaining workforce and the effects, lack of management preparation, the human condition, and lack of mitigation strategies. We think that the problem with this article is that not enough managers or HR personal, know how to let a person go from their employment effectively. They sometimes don't realize the impact that it has on the other employees morals. Also, that sometimes companies don't take a closer look to make sure downsizing will be the answer to cutting costs like they think that it will. Every HR or manager should be let go in their lifetime so
When an organization experiences a downturn in the economy, they may be force to perform employee layoffs. Organizations such as the Boeing Company announced in September 2001, that they will be
During the time that an organization is downsizing the supervisor and the managers has to be compassionate, respectful, and honest. They also have to be organized and continue to talk about the progress they are making (Quast, 2014). The regulatory guideline states that if there would be more than 50 employees that were being laid off all at the same time, the Federal Worker Adjustment and Retraining Notification (WARN) Act has to be performed. Under the WARN Act, it “protects workers, their families, and communities by requiring employers to provide notification 60 calendar days in advance of plant closings and mass layoffs”(United States Department of Labor, 2009). If the organization does not give the workers the 60 days notice then
The models of change that I have chosen to describe are the ADKAR model and Kotter’s 8 step change model. The ADKAR model is mainly used to help identify and drive change as well as a tool to understand any gaps that are needed to strengthen along the change process. It is also a useful framework for planning change within an organization, before implementation, and in the execution phase of the change management process. This process begins with five key goals that are the basis of the model; awareness of the need to change, desire to participate and support the change, knowledge of how to change, ability to implement the change on a daily basis, and reinforcement to keep the change in place. Each step in the ADKAR model
The downsizing of a company can affect employees before, during and after it occurs. Employees usually know of a possible downsizing, care of the almighty grapevine, months before it is supposed to happen. Thus, employees may become paranoid and self-absorbed, and their top priority is their own career rather than the bottom line of their employer. This causes them to be unfocused and prevents them from performing their jobs efficiently. Many workers would also be perfectly willing to stab their peers in the back in hopes of keeping their job. Usually when a downsizing is complete, the company is at an all-time low. This is due to the fact that in almost every merger, acquisition or downsize, employees are faced with uncertainty about their jobs before and after the restructure. After a large percentage of downsizes, ten percent of the remaining workforce will easily adapt to the change, while another ten percent will never adapt. Workers who survive the downsize often have feelings of anger, fear or distrust. Further internal problems result from employees who survive with the company, but cannot adapt to their new settings and expectations, and eventually quit their job.
One way that a manager can help ease the pain of an employee that’s been laid off is to let them know that a layoff may occur as soon as the manager receives word that there may be one in works. This will give the employee a jump start on looking and preparing for their finances and job skills and resume updates. Also if possible grant the employee a generous severance package which could provide economic benefits that reflects management’s
Fast Serve Inc. is a 25 million company, which employs more than 350 people involved in the direct marketing of branded sports apparel. The company decided to open two online marketing and 10% of the workplace was moved to manage the online distribution. After several months, the company noted that they were being affected by this last measure and was going to have to take steps to ensure that the Company is not affected. I am the senior manager in human resources department and was given the task of having to choose three of six employees for layoffs. As responsible leaders and
Staff cutbacks can leave the surviving employees feeling demoralized, bitter, angry, and in shock. One role of Human Resource Management is to act as an employee advocate. In a time of workforce reduction, communicating with employees as well
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).
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.
The job market today is difficult for both employees and employers. It hurts emotionally and financially to lose a job, and it is equally painful to have to terminate someone. Both sides struggle. If you work for an organization that may be facing layoffs, being prepared helps. Below are some tips
To ease the stress of having to lay people off, managers should not think about it too much. In the case it says that some managers stress out thinking about how it’s going to affect those people’s lives. HR managers should think of it as they’re job, something they must do. Some employees get fired because they’re not performing very well, and knowing that the employee wasn’t exactly putting much effort can help get rid of the sadness of letting them go. It’s another case if it’s a good employee who has to be laid off due to some circumstances. In this situation, managers can give them good recommendation letters so they can find new jobs more easily. It could relieve some of the guilt and sadness over firing someone who has been doing an honest