...Running head: LEGAL ISSUES IN REDUCTION OF WORKFORCE Legal Issues in Reduction of Workforce Clotee Lewis University of Phoenix August 25, 2008 Legal Issues in the Reduction of Workforce FastServe Inc. is a $25 million dollar company with a workforce of 350 employees involved in the direct marketing of branded sports apparel. The company has decided to move out of online distribution because the transactions no longer justify the online division. A few employees will be retained based on past performance and skill level, while others must be released. Cutting costs is the primary reason for FastServe's recent reduction of workforce decisions, and legal issues have come into play. Increased competition and rapidly developing technologies are leading companies to make innovations in how they operate, organize work, and manage people. As employers increasingly take advantage of new technology they are finding the need to restructure staff. These changes present legal challenges and risks for human resources; however, with proper planning the potential for incurring charges of discrimination or other employment law issues can be anticipated and avoided. This paper identifies the key concepts of employment law that would affect the five employees; the extenuating regulatory circumstances; the agency principle as it relates to self-interest and the interests of the organization; and balance of legal risk of terminated employees. Table of Employment Law Key Concepts ...
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...(Pavletic and Sokovic, 2002). The case discussed in this part also related to a positive change. The desired results against this change is the reduction in manufacturing time, betterment of quality, increasing efficiency of manufacturing and also reduction in personnel cost. This part will include complete process plan that is going to be followed in order to achieve desired and mentioned results. Lean Six Sigma as Proposed Methodology Lean Six Sigma Methodology is a very effective way to have a significant reduction in the lead time in manufacturing units in a company. Lean basically refers to a methodology that improves a company's process, resulting in faster delivery of services and products, and at the same time keeping the costs lower. Six Sigma refers is a methodology that is again related to process improvement, but is predominantly data driven. Making use of the methodologies offered by Six Sigma such as DMAIC (Define, Measure, Analyze, Improve, Control), process variations are reduced, and incapable processes are taken care of (Pavletic and Sokovic, 2002). Post this achievement, Lean methods need to be used which reduce costs of waste using appropriate tools (Laureani, 2012). Reduction in Manufacturing Time Cycle time is reduced using the Lean Six Sigma process, primarily by reducing waste per cycle, thus leading to a reduction in manufacturing time. A quick turnaround, leads to an improvement in satisfaction of clients of the company. The other benefit that is visible...
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...facilities that will maintain all levels of products and services development within the state, hence the aspect of offshore mergers. Various reasons as (Carmel &Nicholson 2005) identifies are as a result of cost reduction strategies due to easy and cheap transit of information and other related products. Edgell, Meister and Stamp (2008, p. 174) argue that, rise of outsourcing is based on cost benefits since most business operations operate on cutting cost of production to realize mass turnover. More so, the technological advancements that are realized as time progresses enhances the move to collaborate with other companies to offer manpower and skills aligned with corporate policies and standard of quality expected. The approach implemented by management determines the effectiveness of its decisions such that planning the whole initiative inclusive of proper funding and monitoring the business results for success (Willcocks 2010). To realize cost reduction, relationships must be developed and maintained first, since a good business relationship is the root of success for any business client and the partner (Weeks & Feeny 2011); therefore cost instills the urge of outsourcing while relationship development offers a conducive environment for working towards cost reduction and other initiatives to be realized. India is the major outsourcing destination in Asia (Carmel & Nicholson 2005) which has an advantage over other countries, for its incentives are attractive to cost- effectiveness...
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...of employment policies that may be more effective and should be implemented in order to decrease the companies’ turnover rate. This proposal will address the length of service of an employee and why it may affect the decisions for a reduction within the workplace in a non-union organization. Discussed is why management should consider in gender, race, age, and other “protected class” designations when making reductions within the place. The role of ethics and values is conversed. This proposal will conclude with recommendations to the key decision maker about employment policies that should be implemented. As a Financial Analyst for Diversified Investment Advisors, I find that there is an extremely high employment turnover rate. That is, employees are always getting hired than laid off and or fired almost like clockwork, then rehired and laid off again. I do not understand the effectiveness and rationale for such a method. I also notice the number of complaints, lawsuits, and overall issues surrounding this mythology. I would like to formulate recommendations to key decision makers about the type of employment policies that may be more effective and should be implemented. However, in order to apply the most appropriate turnover reduction strategies, management must first determine the cause of turnover behavior. To facilitate this, management needs to establish appropriate turnover categories. For example, turnover can be classified as involuntary or voluntary. Involuntary...
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...million dollar company of branded sports apparel, recently opened two online marketing venues geared toward sports enthusiastic youth. With 350 employees, FastServe directed 10% of its workforce to the online distribution project. Using today’s technology, three D ‘Drape-n-see’ mannequins, attracted the attention of the intended audience, but the graphics were difficult to download and sales made didn’t cover the operating expenses of the new project. Management weighed all options and without an increase in revenue, decided to pull the plug on the project. In doing so, a reduction in the workforce was imminent. This would mean layoffs for three out of five employees. Of the five, two will be absorbed into the company. The metrics for the layoffs are based on new job definitions, skill sets, accountability, past performance, and productivity. Potential Conflict Identifications As a senior manager in human resources (HR) reporting to the vice president of HR, and given one-week to decide which employees to let go. For the company’s protection, a meeting with legal counsel before any employment discharge decisions can be made is a policy of FastServe Inc. Out of this meeting, three employees, Sarah Boyd, Jenny Mills and Brian Carter were given notice. A chart listing the possible legal concerns based on the firing of these employees is available. One employee under contract, Brian Carter with an average performance track record, and who developed the ‘3D mannequins’ was...
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...facilities that will maintain all levels of products and services development within the state, hence the aspect of offshore mergers. Various reasons as (Carmel &Nicholson 2005) identifies are as a result of cost reduction strategies due to easy and cheap transit of information and other related products. Edgell, Meister and Stamp (2008, p. 174) argue that, rise of outsourcing is based on cost benefits since most business operations operate on cutting cost of production to realize mass turnover. More so, the technological advancements that are realized as time progresses enhances the move to collaborate with other companies to offer manpower and skills aligned with corporate policies and standard of quality expected. The approach implemented by management determines the effectiveness of its decisions such that planning the whole initiative inclusive of proper funding and monitoring the business results for success (Willcocks 2010). To realize cost reduction, relationships must be developed and maintained first, since a good business relationship is the root of success for any business client and the partner (Weeks & Feeny 2011); therefore cost instills the urge of outsourcing while relationship development offers a conducive environment for working towards cost reduction and other initiatives to be realized. India is the major outsourcing destination in Asia (Carmel & Nicholson 2005) which has an advantage over other countries, for its incentives are attractive to cost- effectiveness...
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...Gourmet Blends of the Nation BUS335 Staffing Organizations Strayer University May 23, 2013 1. Identify the type of employment relationship you would establish between the coffee shop and employees from a legal perspective. Explain your reasoning. At Gourmet Blends we will establish an Employer-Employee relationship. The Employer-Employee is the most prevalent form of the employment relationship. (Heneman III, Judge, & Kammeyer-Mueller, 2012, p.48) One aspect of an employer-employee relationship allows the management of Gourmet Blends to have all employees sign a written contract with all details related to the employment relationship basically set in stone. Thus, allowing no room for adaptability as clientele changes, economy changes, and/or the workforce changes. On the other hand, Gourmet Blends management can establish a relationship under the common-law principle of employment-at-will. Thereby, allowing each party to end the relationship at any time without notification. The first type of relationship mentioned is not feasible for job types as most college students working part-time are not going to sign a contract; however, a contract between management and a store manager is beneficial to both parties. The store manager would work with upper management of Gourmet Blends to ensure he/she were provided ample compensation, benefits, and rewards for maintaining employment for a certain amount of time and Gourmet Blends upper management would know that for...
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...11 1. Introduction This study concerns ethical dilemma that is occurring in Muartoto Pvt Ltd. In addition the dilemma will be analyzed using all the relevant theories of moral reasoning and ethics. Moreover, a solution statement will be recommended by analyzing the problem in the perspective of economic, legal and ethical. Reduction in workforce due to economic downturn has become a biggest concern for the employee in today’s organizations. The matter has become the forefront of the legal and policy agendas in several countries of employment context. Downsizing the workforce is critically challenging for human resource (HR) professionals. HR professionals must be a concerned about designing and executing a workforce reduction strategy that is ethically balanced. (Ronald, 2007) 2. Identification of Ethical dilemma Muartoto Pvt Ltd is expanded into wide range of service which includes designing printing in large format, advertizing and etc. In 2007 they started as a small company with few staffs. As the sales of the company started to grow and the company saw the demanding for their service they increased the workforce in order to generate the profit and to become the number one advertizing company in the market. The word economic crisis in 2008 was...
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...alcohol, or use drugs. Many of that is based on personal relationships, society, and sometimes the need to feel like a person is part of the “in crowd”. It not only affects the person that is doing the drugs but also the family and friends of the loved ones. Substance abuse is a disorder that is characterized by a pattern of continued use of medications or controlled substances. The portion of substance abuse that I chose would be marijuana or a legal name would be cannabis. Cannabis is often consumed for its psychoactive and physiological effects which can include heightened mood or euphoria, relaxation, and increase in appetite. Unwanted side-effects can sometimes include a decrease in short-term memory, dry mouth, impaired motor skills, reddening of the eyes, and feelings of paranoia or anxiety. Contemporary uses of cannabis are as a recreational or medicinal drug, and as part of religious or spiritual rites; the earliest recorded uses date from the 3rd millennium BC. Since the early 20th century cannabis has been subject to legal restrictions with the possession, use, and sale of cannabis preparations containing psychoactive cannabinoids currently illegal in most countries of the world; the United Nations has said that cannabis is the most-used illicit drug in the world. In 2004, the United Nations estimated that global consumption of cannabis indicated that approximately 4% of the adult world population (162 million people) used cannabis annually, and that approximately...
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...In the last few years more business are saying that they had to create some type of strategic plan to reduce the workforce in there company. The cause of reduction can be because of overstaff, slow sales, slow production which leads to lay off or termination. When this type of decisions is made if effect the Human Resource at the company. When making a decision to have a reduction in the workforce by terminating employees you have to be mindful you do not violate employment laws. The Civil Rights Act of 1964 is the reason why the Equal Employment Opportunities Commission was passed. The reason for the EEOC is to help employees with a legal recourse and to make sure that they are treated fair and have an equal consideration with respect to employment and termination. Employees sometimes feel that employers engage in unfair practices. On rare occasion this may be true, there is something an employee can do. However, if the employee feels they have been treated unfairly because they are in a protected class, the employee has the ability to file a claim with the Equal Opportunity Employment Commission (EEOC). After the EEOC has followed their procedure, the employee may still file a claim in court to get a resolution. The EEOC is responsible for ensuring employers with more than fifteen employees are complying with federal laws of protection for protected individuals. They protect people that are based on race, color, religion, sex, national origin, age, and disability. The...
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...Week 9 Assignment 3: Cybersecurity The National Initiative for Cyber Security Education Initiative. Released in 2009, the Cyberspace Policy Review: Assuring a Trusted and Resilient Information and Communications Infrastructure acknowledged the need for cybersecurity public awareness and an advanced cybersecurity workforce. To address these needs, the Comprehensive National Cybersecurity Initiative (CNCI) developed 11 initiatives to help secure the United States in cyberspace. The National Initiative for Cybersecurity Education (NICE) was established to lead the work on the goals outlined in Initiative 8, which addresses the Nation’s cybersecurity needs related to public awareness, education, professional development, and talent management. (McDuffie, 2009) In the past 20 years, the innovative use of cyberspace has transformed the day-to-day operations of the Nation. These advances have enhanced the lives of individuals, business, and government in profound ways. From eCommerce, to mobile communications and complex networked systems, the rapidly growing dependence on cyberspace is evident. In the years to come, the Nation’s dependence on cyberspace will only increase as technology advances and will further integrate into our daily lives. Great advances in technology comes with great risks. The Cyberspace Policy Review identified vulnerabilities in cybersecurity as systemic risks introduced into infrastructure, defense, and personal property due to the widespread adoption...
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...proactive restructuring strategy for a multitude of organizations. Furthermore, since then, organizational downsizing has now transformed the corporate landscape and changed the lives of hundreds of millions of individuals around the world (Gandolfi, 2006). There are several definitions that have been developed to effectively define the phenomenon of organizational downsizing. To sum it up in one sentence, organizational downsizing refers to a set of activities, taken on by the core management of an organization, designed to improve organizational efficiency, productivity, and competitiveness. It represents a management strategy that affects three components: (a) the size of the firm’s workforce, (b) the costs, and (c) the work processes. On the surface, downsizing can be interpreted as merely a reduction in organizational size, and the process is a chaotic and uncertain experience at best. However, recent trends indicate this phenomenon to be a necessary part of business, particularly during times of an economic recession, like we’ve had in 2008, to place an organization in a position to increase levels of sustainability and competitiveness. History In order to fully understand the concept of downsizing and why it is now so prevalent, the history of...
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...Performance Management System and Total Rewards Plan for WeaverTech Southern New Hampshire University OL 600 Strategic Human Resource Management INTRODUCTION Due to the acquisition of WeaverTech formally known as Johnson-Ware an apparel company by CVX Partners, a private equity firm, there arose a need for the company to change its line of business to high-end segment of the apparel industry (Beer & Swier, 2015). Before the acquisition of the company by the new owners, WeaverTech was a closely owned family entity that had been formed in 1905. Before the proposal to change the company customer base, the company exclusively relied on the military (70%) and security (30%) as the only customers for the company products. The need to change the company customer base from military and security to high-end performance clothing market apparently arose from the allure of the later market segment and the dwindling growth of the military and security market (Beer & Swier, 2015). In fact, at the end of the 2012 WeaverTech fiscal year, the company had dropped 12 places among the top 30 privately owned American entities. In addition, the departure of Jack Davidson a retired US Navy rear admiral, WeaverTech CEO from 1983 to 2012 as well as the end of the Afghanistan and Iraq wars meant that the traditional, market was no longer going to be reliable. Consequently, there was need to redesign the company customer base and take advantage of the high-end market...
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...The workplace today has changed from previous time periods. Today there are at least four generations, which work together in the workforce. There is the silent generation, where almost all of them are retired. The baby boomer generation are now one of the oldest generation in the workforce. Generation X is in their best days to climb up the career ladder, whereas generation Y is entering the job market. The coincidence of all these generations can create issues in the workforce, which have to be solved. Currently the workforce is shrinking, because the silent generation and the baby boomer generation is almost going to retire. For every two workers who exits the market, only one worker is entering the market. This fact will create a leadership...
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...Assignment 1: Staffing Organizations–Part 1 Bus 335 September 14, 2013 Professor Mayfield 1. Identify the type of employment relationship you would establish between the coffee shop and employees from a legal perspective. Explain your reasoning. From a legal perspective my coffee shop will be a friendly environment for all. In regards to my employees, they will be treated fairly and with respect. I want to have a work environment in which my servers are happy to come to work every day; however because it is a business, I would ensure all legal HR practices are used to the best of my ability. 2. Suggest ways that you could avoid claims of disparate treatment. In order to alleviate my company of having claims of disparate treatment, I will ensure that none of my current and potential employees are subject to any type of discrimination. My hiring practices would be legal and ethical, and I would make sure everyone is treated equally. I would definitely have both volunteered and paid position for the handicap. I would include both managers and servers into an open forum, to discuss what we can do as a team to better ourselves as employees and managers. This open forum would make the servers feel important because, we value their opinions 3. Identify the type of external influences that could hinder staffing and how you would address them “According to the "Institutional Assessment," Charles Lusthaus, Gary Anderson and Elaine Murphy contend that social forces...
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