...Re-organization and Layoff: Issue and Problem Identification Team B Damairus Logan PHL/320 In any career aspect, when there are new positions, there is always some type of training involved. Whether it is something simple as cashiering or something more advanced like managing. There will always be something new to learn, most of what you need to know is taught to you through an orientation or the training. There are some things that you will learn along the journey in your new position. For managers they are not specifically trained on how to lay-off or terminate an employee. Terminating or laying off an employee is not as easy as it may seem. The employees that are being let go are human beings and they will have emotions towards the decision that was made. This can be a devastation or even leave the former employee feeling betrayed. These are all real problems, if the manager has not handled this type of situation before, the situation can turn out horribly wrong. If the managers were properly trained it could save time and money on the terminating process. It could also save the company’s reputation. If a layoff or termination goes wrong there can be bitterness towards the company and this could potentially leave both parties on bad terms. And the former employee may have animosity towards the company and their opinion can spread and potential consumers or even employers could be in jeopardy. Not to mention the threat of lawsuits and civil action. Corporates and...
Words: 745 - Pages: 3
...Reorganization and Layoff: Decision Making and Evaluation Paper Reorganization and Layoff: Decision Making and Evaluation Paper “One in seven U.S. families goes bankrupt in the course of a decade, 90% of them are educated, middle-class families, mostly with children (Warren & Tyagi, 2003).” Job loss is one of the major causes. Middle-income jobs are usually impacted most during reorganization and layoffs. To help protect the middle-class consumer, it is important for companies to train its managers about the effects of layoffs, and proper handling of layoffs. The Middle-income A typical family, living a middle-class lifestyle with children, usually requires both parents to work. If one parent loses their job, the family could face a financial crisis (Warren & Tyagi, 2003). It is common that middle-income jobs are the most affected by reorganization and layoff, especially at big factories and companies. Many companies rely on the middle-income consumer, so companies need to be careful with why and how they reduce its workforce. As seen in bankruptcies, many markets hurt when middle-income jobs are lost. Business Decision To help maintain a healthy market and company perception by the public, companies need to avoid layoffs if possible, and when necessary handle the issue with care and professionalism. A good business decision is for a company to invest in training its managers on the effects of layoffs and proper handling of layoffs. When managers have...
Words: 670 - Pages: 3
...will overcome certain difficulties. Implementation of HR practices reflected in amazing financial results and expanded their market share worldwide. The perfect balance of unique ideas along with information technology development were extremely beneficial for the all members of corporative hierarchy. However, a number of obstacles arose and led to the damaged corporate image. How do reorganizations and massive layoffs, for example in the spring of 2003, affect Nokia’s employees in terms of their attitude and behaviour? Layoffs and reorganizations itself are the actions directed to terminate or replace a unit of workforce, in order to reach the highest possible effectiveness or stay efficient in hard conditions. Declining of the entire technological industry and bankruptcies among high-tech start-ups caused mistrust from investors’ perspective that resulted in one-year stagnation of the whole sector in 2001. When Nokia, one of the major growing company, declared that it still has overestimated its revenues, financial specialists had had enough. Nokia has begun aggressive layoff policy that regarded as a visible way of pleasing shareholders and potential investors....
Words: 1604 - Pages: 7
...Re-organization and Layoff- Issue and Problem Identification May 25, 2015 Re-organization and Layoff- Issue and Problem Identification Layoffs can come about in a number of ways, but the form of layoffs that policymakers have shown they are most concerned about occurs when businesses displace employees. Layoffs are the forward and backward movement within the business cycle, but involuntary job loss is ever-present because firms remove workers for reasons other than temporarily weak demand of goods and services. Employers also conduct layoffs for reasons specific to them or their industry (Levine, 2005). According to Linda Levine, a specialist in labor economics, “the term "downsizing" is describing a practice that became prevalent during the 1980s of typically "old economy" manufacturers restructuring their operations through large-scale layoffs to become more competitive in the global marketplace” (2005). Reorganizing work to improve competitive advantage has since spread to "new economy" manufacturers and to firms in the service sector. It also includes more than downsizing, such as sending work to facilities within and outside U.S. borders. By definition, restructuring achieved through downsizing produces a net loss of jobs at companies. (Levine, 2005). The main issues are that employers don't consider an alternative solution to laying off employees, nor do they dismiss employees in an appropriate way. What can be done instead of a lay off? Has the decision making...
Words: 1181 - Pages: 5
...Mismanaged Layoffs April Auld Cheryl Oaks John Curtis Phillip Bradshaw PHL/320 November 23, 2015 Mathew Hazlett Mismanaged Layoffs To summarize our teams discussion this week. We narrowed the discussion down to the way layoffs are executed within any company for the most part. We already agree that there are far too many layoffs in today’s economy. Therefore, the traumatic effects this will cause on the company. Including the individual’s and the workers that are left behind, is the real issue at hand. The aggressiveness or empathy levels of the situation never help. Larger companies have a better finesse about the separations from the company it is well planned with severance packages for the employees. No Matter how well planned it is still a shock to the system. Including all that is involved families and so forth. The fact is that there is no great way to separate anyone from their position. However, we all had our opinions on the solutions for this, using fewer contract workers, transferring staff from one department to another, hiring temp staff seasonally, offering pay cuts over termination. Setting up an alternative plan of employment, job fairs, offer classes in the severance...
Words: 427 - Pages: 2
...history of TWU at AA, legal issues, and obstacles that AA has encountered with TWU. AMR Corporation, the parent company of American Airlines, Inc. and AMR Eagle Holding Corporation filed in November 2011 a voluntary petition for Chapter 11 reorganization. To achieve a cost and debt structure that was industry competitive for long-term viability. There are various unions associated with the airline industry, the one chosen to discuss in this paper is the transportation workers union. TWU has 114 autonomous locals representing more than 200,000 members in 22 states around the country. As part of the Chapter 11 reorganization of AA the initial announcement that as many as 11,000 workers may be let go at the Fort Worth-based airline. The most recent announcement from AA is that approximately 4,400 mechanics, store clerks, and ground crew members of TWU will be part of a lay off. There are seven TWU workgroups representing approximately 24,000 employees at American Airlines. As part of the strategic and collective bargaining between the Transportation Workers Union and American Airlines the number of job cuts decreased drastically by development of an early retirement option negotiated between the two groups. It is clear that the reorganization of American Airlines is not complete; more negotiations will occur between the two groups, the facts show that the airline has the upper hand over the workers...
Words: 977 - Pages: 4
...AT&T: Becoming a Leader in Network Expansion Introduction The American Telephone and Telegraph Company’s (AT&T) history goes back to the year of 1875 when Alexander Graham Bell invented the telephone. In the 19th century, AT&T became the owner of the Bell system company. The bell system was well known for the best telephone service in the country. The first telephone exchange, operating under license from Bell Telephone, opened in New Haven, CT in 1878. Within three years, telephone exchanges existed in most major cities and towns in the United States, operating under licenses from what was now the American Bell Telephone Company. In 1882, American Bell acquired a controlling interest in the Western Electric Company, which became its manufacturing unit (The History of AT&T, 2010). In 1984, bell systems decided to break into eight companies by agreement with U.S. Department of Justice and AT&T. The fundamental principle, formulated by AT&T president Theodore Vail in 1907, that the telephone by the foundation of the new technology of nature and that will operate mainly on the efficiency as a monopoly by providing universal service in the United States. AT& T began restructuring and downsizing in 1995, more than a decade after breaking up the Bell System to settle a Federal antitrust suit (Lander, 1995). Robert Allen aggressively sought to undertake a turnaround of the organization by, among other things...
Words: 4547 - Pages: 19
... Downsizing refers to the permanent reduction of a company's workforce and is generally associated with corporate reorganization, or creating a "leaner, meaner" company. Downsizings such as these are also commonly called reorganizing, reengineering, restructuring, or rightsizing. Regardless of the label applied, however, downsizing essentially refers to layoffs that may or may not be accompanied by systematic restructuring programs, such as staff reductions, departmental consolidations, plant or office closings, or other forms of reducing payroll expenses. In essence, restructuring efforts attempt to increase the amount of work output relative to the amount of work input. Downsizings such as these are also commonly called reorganizing, reengineering, restructuring, or rightsizing. Regardless of the label applied, however, downsizing essentially refers to layoffs that may or may not be accompanied by systematic restructuring programs, such as staff...
Words: 1200 - Pages: 5
...off employees is not a fun detail in the job description for human resource departments. Many HR departments today have had to completely change their usual focus. On top of dealing with employee issues, company policies and training they are now having to deal with layoffs and some companies large masses of layoffs. When determining the layoffs, HR departments need to make sure the flow of productivity is not interrupted. An article titled, HR Challenges in 2009 mentions, “Rather than conducting blanket downsizing, human resources management strategies must preserve essential functions and high-performing employees. Downsizing must be blended with employee retention plans.” (par.6) HR departments need to think about the business now but they must also take into consideration what is going to happen once the business is back in its normal state. HR departments have to determine who they need to keep and whey they are going to keep certain individuals over others. Dooney and Esen’s (2009) article mentioned, “To support their organizations, HR specialists went into high gear-doing more with fewer resources. While carrying out regular responsibilities, HR professionals have integral roles in reorganizations and...
Words: 549 - Pages: 3
...Downsizing- modern cost cutting art Abstract Though generally referring to an overall reduction in the size of a firm’s work force, downsizing is a term that has come to have an almost generic meaning. Accordingly, a wide range of actions, such as rightsizing, resizing, restructuring, delaying, and reengineering, have been addressed under the general rubric of downsizing. Regardless of the terminology used, however, the desire to be leaner, more flexible, and more responsive has made downsizing the most pervasive form of organizational change. There are many reasons why a company might need to downsize. In today's corporate America, it is a plain fact that far fewer employees are necessary to maintain a successful operation. Many times, it is the case where a technological advance or breakthrough makes it possible to replace a previously human job. It is also an all-too-common scenario that outside influences such as sudden shifts in the market or changed government policies force corporate executives to make coinciding decisions regarding their staff and these external changes. Downsizing began as the strategy of sickly corporations shedding workers in the face of weak demand, but soon strong firms looking to boost shareholder value even further adopted the policy. Downsizing- modern cost cutting art Why do corporations downsize so abruptly and discharge so many employees all at once? That might at first seem like a silly question, but it is justified by the...
Words: 1282 - Pages: 6
...U.S. Postal Service Case 1 1. Why is it important for the U.S. Postal Service (USPS) to have a high volume of mail to process? The United States Postal Service (USPS) has grown to become the largest provider of mail service in the world during one of the peaks of its economic lifetime. As the company grew bigger and bigger to accommodate the increased demand for its services, the USPS increased its productive capacity through expansion by acquiring the necessary equipment and other technological tools. These different types of machinery are designed to handle high volumes of workload and fast-paced processes. Unfortunately, the equipment that USPS uses require that they process a high volume of mail in order for them to be cost-effective. The concept at hand in this scenario is the economies of scale whereby there is a certain minimum productivity level that must be met to be able to save on the cost of operations. In the situation of USPS, processing high volumes of mail is a necessity for financial reasons to distribute the cost of electricity and other overhead costs per mail processed. 2. What caused productivity to increase? Productivity became one of the most important factors in the operations of the USPS. Increasing the use of automation and introducing zip codes were the major causes of increased productivity.Automation started in the mechanization of mail processing in the 1950s and 1960s that allowed better and faster operations. Most mail had word-processed...
Words: 1048 - Pages: 5
...Recommendations for Changes in the Nature of the Workforce “As the economy becomes increasingly global, our workforce becomes increasingly diverse” (Greenberg, 2009, pg. 1). Diversity is an internal force of change within almost every organization (Robbins & Judge, 2011). It includes categories like ethnicity, gender, age, and others. Businesses experience outsourcing and demographic changes as the world becomes more connected. The aging population means a higher percentage of older workers. Organizational development techniques help ease the transition of the changing nature of the workforce. Diversity training is an organizational development technique focusing on values like respecting people, power equalization, confronting problems, and participation in decision-making (Robbins & Judge, 2011). A behavioral specialist creates an open environment in which people learn about each other through expressing ideas and observation. This change method is appropriate for enhancing interaction in a culturally diverse group. A second organizational development technique that improves employee well-being and effectiveness is team building (Robbins & Judge, 2011). This exercise focuses on values like building trust and role clarification. Team members participate in highly interactive group efforts, helping them learn how to accomplish goals, coordinate with each other, and build relationships in a diverse setting. Survey feedback is a change approach in which employees fill out...
Words: 690 - Pages: 3
...Employment Termination What Every Manager Should Know Introduction Termination is one of the most difficult tasks a manager will have to perform. A manager needs to have a good understand of everything that is involved in an employee exiting the company. This paper is designed to do just that by giving a broad overview of the topic and highlighting the most important parts. By reading this paper a manager should be much more prepared and less likely to commit a mistake during the termination of an employee. The manager should also be able to make the termination a smoother transition and therefore an easier task to complete. Definitions Definitions of some of the important terms are given to give a manager a better understanding of some of the main ideas involved in employment termination. There are basic ideas that go along with each definition to give a better idea of why the term is important to the topic. Termination from Employment Termination from employment occurs when an employee’s job ends. Termination can be voluntary or involuntary. Voluntary Termination Voluntary termination is when an employee voluntarily ends his or her employment at an organization. This would include resignation or retirement. Another common reason for voluntary termination is a new or better job, typically one that offers higher remuneration or improved career prospects [ (Heathfield, Termination) ]. Involuntary Termination Employment can also be involuntary, meaning that the employee...
Words: 2782 - Pages: 12
...certain employee might have to work. That keeps them safe on the job, so they do not have to get laid off. They will see a pay decrease also but as long as they still have a job. It avoids them from getting laid off and searching for another job. Communication and honesty are very important to any organization to keep their employees informed about any changes. Exit Programs The early retirement plan is a broad topic. It is a good option if you do not have another resource. The early pension to which employees could aspire, the employer would provide the board, it is important to know that only people who are 55 years or more can acquire this benefit. Many employers try to make early retirement seem more attractive for those who are on the layoff list, by constructing some incentives. The incentives offered depend on the type of pension of work you acquired. There are two types: defined contribution and defined benefit. Incentives come to include: a single payment of the defined contribution pension to increase the value of the fund or pension benefits that work as if he had worked for the normal retirement age (if you are in a defined benefit plan). There are two problems: those who do not participate are recognized as being fired and access to severance pay, the other negative point is that people under 55 cannot access early pension, are left to be compensated. It is important to understand that early retirement may not be before 60 years from the state, but this involves not...
Words: 784 - Pages: 4
...Business and Management Evolution of Strategy at Procter & Gamble In: Business and Management Evolution of Strategy at Procter & Gamble Global Issues in Business Week 5 Case Analysis DeVry University Federal Way, Washington Summary In the case study “,” it discusses the history of Procter & Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’s summarized with a detailed discussion regarding P & G reorganization and complete restructuring of the company to control its costs by having European plant closures and layoffs. Questions 3 a, b, c a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s? Procter & Gamble clearly used an international strategy for their expansion into foreign markets throughout a large portion of the 20th century. Not until they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. (2) b. Why do you think this strategy became less viable in the 1990s? I feel there are several defendable...
Words: 370 - Pages: 2
