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1- Determine three ways that employee layoffs can affect other employees in the

organization. Examine two additional ways that employee layoffs can affect the
organization as a whole.
Layoff or downsizing is the process of discharging employees from a specific company.
In general layoffs occur when the company is experiencing a low profit margin. On the
other side, the company may decide to discharge certain employees due to economic
circumstances associate with maintaining their shareholder obligation and profit margin
at the end of the financial quarter. According to the lecture there are many possible
impact on the other employees which are both advantageous and detrimental, among
these consequences Greg L. Stewart, (2010) mentioned the following :
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The anger at the loss of experience coworkers


The insecurity concerning the future of their own job
The possible increase in motivation and performance level.

On the other side the company tends to spend more when they discharge employees: a
company will spend on training the new employees which may varies based on the
complexity of the job. In addition to such consequence, the company may also spend
more on the extended unemployment insurance which is also a liability for the business
when the employee was in most cases working as with a fulltime schedule with such
benefit. According to Grossman, (2012) employers pay unemployement tax 6.2% on the
first $ 7000 each employees earns.
2- Imagine that you are a manager of the HR department of a company and you are
required to lay off one of your employees. Propose two ways that you can ensure you
are abiding by the laws that govern employment and ethical practices. Respond and
evaluate another learners comment. Ground students will do this through
discussion.
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One of the most important strategy to follow the law is to ensure that the
reason of such layoff, does this action comply with Title VII of the Civil
Rights Act of 1964 which prohibits companies from making employments
decision based on individual, race, religion, sex etc. this method will avoid the
waste of money to response to any lawsuit from a former employee.
Under the WARN act Doleta.gov, (2015) the employer must notify the
employees 60 days before a massive layoffs or plants closing. Failing to do so
may lead to a lot of lawsuits against the company. This law protects certain
employees and their families.
Cited Sources:

Greg L. Stewart, K. G. (2010). Human Resource Management. Wiley


https://strayer.vitalsource.com/#/books/9781118182581/pages/38006996.
Grossman, R. J. (2012, January 2). SHRM. Retrieved August 1, 2015, from Society of the Human
Resource Management :
http://www.shrm.org/publications/hrmagazine/editorialcontent/2012/0212/pages/0212gro
ssman.aspx
Doleta.gov, (2015) The Worker Adjustment and Retraining Notification Act.
http://www.doleta.gov/programs/factsht/warn.htm

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