What Would You Base Your Decision?

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

High employee turnover, where workers frequently leave and must be replaced, leads to increased spending on recruitment and training and can indicate management problems. Employees often have good reasons for moving on but if too many are leaving an organisation, can be very disruptive.

If Avie is required to lay off some employees hired for the third shift, the best way to determine who should be laid off is based on seniority and/or ability. The ability of employees to change jobs and learn new skills, along with their performance is heavily weighed when making layoff decisions. Since Avie is not unionized, layoffs to senior employees can still occur. The practice of using seniority as the basis for layoffs may have an impact on women and minority groups who often have less seniority than others.

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).

Massive layoffs will definitely affect the unemployment rate and a higher unemployment affects the economy because this means more people are on unemployment so there salaries are down so what they are spending is down. Massive layoffs has a vicious cycle and globally in 2012, 200 million people are without employment and this shows the slowdown in employment growth, which means companies aren't hiring and people aren't spending like the where. Massive layoffs affect the economy dramatically because it has a huge impact on consumer spending which in my opinion makes the world go around. If no one is buying then production is down and that's how layoffs happen, and this affects households, businesses, and the government.

The company has the right to terminate an employee as long as the termination does not discriminate or

2. How to ensure that the dismissals are fair and the importance of this to both the employer and employee.

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

In this paper Team C has discussed the issue of poor employee retention concluding in a high employee turnover rate. This is an issue that can be common among some companies and that is a great example of

Challenges faced by HR management when significant staff cutbacks occur and how they should be addressed

The unemployment level is at an all-time low. The economy is strong. The stock market is breaking new records. Investors are buying stocks by the handful. Corporations are making extremely

The main primary stakeholder in this ethical decision is the employee. The employee is effected by this decision because they are the one whose job is at stake in the end. The benefits of an employee being terminated are that if they have an issue in their life that is permitting them from performing their best, it may give the employee time to find a solution to the problem. It also may give them a chance to start work with a new employer and get off on a better foot. In the employee’s case, the harms outweigh the benefits. A harm of a person being terminated is that they lose an income. If the employee is terminated they no longer have any money to be supported by. This would cause a great financial harm to the employee. This may also cause a harm to a person’s identity. Some people find their identity in their job. If a person is let go, they may think they didn’t perform right or something is wrong with besides the idea of their non-work issues interfering with their

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.

Each employee’s moral rights should be respected. By cutting their hours, we are giving them false hope that the company will return to a profitable status. The future for every company is uncertain. A company should not drag its employees through the mud just to have them be employed when the business goes bankrupt. Management should let them know the plan of action. Tell them “layoffs are impending.” Give them a choice to choose different employment before losing their current job. During the recent recession, many companies reduced employee’s pay as a means to save a job. Barbara Kiviat makes an interesting point in her article Pay cuts instead of layoffs: something insidious this way comes? She states that many companies “temporary” pay cuts became permanent, keeping workforce costs down while boosting profit as demand rebounds. Doing so greatly lowers employee morale by showing that they are number that can be

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.