...Persuasive Essay: Layoffs within a Company Prudence Blackman COMM/215 October-13, 2014 Dr. Stephanie Lyncheski Persuasive Essay: Layoffs within a Company The decision to lay off employees cannot be the easiest for companies. There is a variety of different reasons why employers layoff their employees, and the laws in many states allow them to at any time as long as the reason does not contravene state or federal law. Being let go from your job can happen by firing or layoff, and though neither is, usually, desired, the layoff is typically the method that carries less of a stigma. Firing occurs with one worker for any reason that, usually, involves job performance, unethical behavior or personality differences. Meanwhile, a layoff, usually, occurs with more than one worker for more impersonal reasons involving business or economic decisions. Regardless of the reason, companies must take great care in the way they conduct a layoff to avoid legal ramifications. Even though, layoffs can cause low morale amongst employees, companies have to use layoffs, as a way to optimize labor costs, staff reduction, and relocation. In addition, it is also necessary for the event of mergers or buyouts but it is necessary to aid in the restructuring of the company in hopes to regain financial stability. Cutting Costs The most common reason for being laid off is the company needing to cut costs in some way. This need could stem from debts that have to be paid off or lack of profits, because...
Words: 1068 - Pages: 5
...DOWNSIZING – A LITERATURE OVERVIEW 2 WHY DO COMPANIES DOWNSIZING? 2 STAGES OF DOWNSIZING 3 THE IMPACT OF DOWNSIZING PRACTICES ON THE PERFORMANCE 4 ALTERNATIVES TO LAYOFF 5 EARLY RETIREMENT 5 DOWNSIZING AND THE LEGAL ISSUES 6 REFERENCES: 6 INTRODUCTION Over the past decade, corporations have been under economic pressures for a long term. Consequently, some of them were eliminated from the local market, the survivors have been driven to reorganize, redesign and restructure their organization with the intention of maintaining their place in the market. According to the decision maker, downsizing can be a solution to many organizations to reduce their budgeting issues and to increase their productivities. ( Labib & Appelbaum,1994) This essay will focus on organizational downsizing. Part one present the downsizing concept, particular attention is paid to downsizing reasoning and stages, its impact on the performance and the legal issues. Part two focus on the early retirement. ORGANIZATIONAL DOWNSIZING – A LITERATURE OVERVIEW The term downsizing refers to an "elaborate decision to reduce the size of the workforce in an organization" to improve the organization performance and decrease cost. (Kozlowski et al., 1993, p. 267). Layoff and early retirement are methods of downsizing; in fact layoff is an immediate act of discharging an employee due a decline, while the early retirement is a personal decision to leave a job voluntary before the retirement age...
Words: 1666 - Pages: 7
...Company Profile Moulinex S.A Address: 11, rue Jules-Ferry BP 45 93171 Bagnolet Cedex France Telephone: (33): 01.41.99.41.99 Fax: (33) 01.43.34.32.10 Statistics: Public Company Incorporated: 1953 as Société d'Etudes Chimie et Mechanique Légumex Employees: 8,400 Sales: FFr7.69 billion (1996) Stock Exchanges: Paris SICs: 3634 Electric Housewares & Fans; 3631 Household Cooking Equipment; 3635 Household Vacuum Cleaners; 3639 Household Appliances, Not Elsewhere Classified Company Background Moulinex is a French brand of small electrical appliances and kitchen equipment and is owned by Groupe SEB. Moulinex was originally established as a company in 1937, however at the beginning of September 2001, Moulinex declared bankruptcy. Moulinex was the company that originally designed the Mouli grater. It became a household name through its kitchen blenders and appliances - the first of which it launched in 1932. It also enjoyed great success in the US when it...
Words: 826 - Pages: 4
...workforce (RIF) or what is more commonly known as layoffs. Managers have to cope with negative emotions that come with this process as well as the stress that the remaining employees often go through after many of their co-workers or friends have been removed from the workplace. They have to know the human resource approach on how to administer the layoffs correctly and how to determine the eligible time frames for any severance payments to those employees that maybe eligible. Managers are then responsible for being proactive on what opportunities and threats that may affect the organization after the layoffs have been performed as well. With all of these situations at hand, a manager must be very knowledgeable of the company’s ability to continue to move towards a profitable and stable work environment. When managers experience layoffs they must be prepared to deal with the both negative positive emotions and reactions from their staff. It may be very odd to expect positive reactions from those who are being laid off; however, this is not something that does not happen, especially if this is something that has been expected due to employees being aware of reduction of work load and loss on company contracts with huge organizations. Employees often embrace themselves for these inevitable changes in advance by updating their resumes and also being proactive in looking for potential replacement employment if the layoffs take place in their organization. Managers must...
Words: 1952 - Pages: 8
...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
...Impact on Employee Morale during Company Restructuring The worldwide economic crisis has caused too many companies to restructure their corporate setting in order to survive and meet their financial challenges. If you turn on the TV or browse internet these days, it is almost impossible to avoid the bad news of more and more massive layoffs in United States as well as the rest of the world. As this financial crisis deepens, one can’t help asking “Is downsizing or more job cuts our only way out? What is the long term effect of these massive job cuts to our corporation employees? Will we need even longer time to recover from this emotional and morale crisis if the downsizing wasn’t done right?” In this paper, impacts of corporate restructuring on employees’ morale have been explored by reviewing several research papers. Figures were illustrated, strategies were suggested. It is not the question why companies have to downsize or cut jobs, it is how they should do it strategically right to reach the expected goal of benefit and continue to retain the trust and loyalty of the surviving workers. “Trust is one of the most valuable yet brittle assets in any enterprise. So over the long term, it’s far better for companies to downsize in a humane way.” - Robert Reich (Mishra and Spreizer, 1998) During the economic recession, many companies started to restructure their legal, ownership or operation structure in order to be more profitable, competitive and...
Words: 1971 - Pages: 8
...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
...Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS Problem Solution: Global Communications Amanda Rodriguez University of Phoenix Problem Solution: Global Communications Global Communications is a telecommunications provider that is facing economical pressure. They are encountering competition with other local, long distance and international markets for the same business. With profitability at a low, Global communications must step it up to increase revenues and profits. Global Communications has prepared a plan to an effort enhance the companies performance, and profit locally and globally. This plan is targeted at an international level with a goal of becoming an accurately global resource for small business and consumer customers. In this paper, a solution will be proposed for Global Communications to expedite the companies plan to improve profitability and continue to treat its employees well, “happy employees make happy costumers” (Kinicki &Kreitner, 2003, p. 125). Global Communications having a strong background of loyal employees will help the company pursue their strategic plan improvements. Situation Analysis Issue and Opportunity Identification The telecommunication industry are competing for the same business, there is too much competition with local and international markets. Competitors are offering new features that costumers and consumers want, this makes jobs more proactive and affective. Global communication needs to offer innovative packages...
Words: 3695 - Pages: 15
...to keep. However, the company has to consider discrimination when conducting layoffs. What may seem like a good reason for laying someone off may be a reason for an employee to file a lawsuit against the company. During my initial view of the candidates selected for potential layoff, I looked at the skill sets. Although my father works with computers specializing in Linux, networking, and Oracle, I have no knowledge in it myself. I felt like laying-off Carl Haimes or Brian Carter would be a mistake because I do not have skills that can match their skills. Sarah Boyd, Nora Manson, and Jenny Mills each have jobs that I could perform. Even though I may not excel in each job as I would prefer, I felt like it would be easier to cover those positions within the company than those of Carl and Brian. I also considered absenteeism and special achievements as well as overall productivity. Before I made my final selection, however, I considered discrimination. If I were to layoff Sarah, Nora, and Jenny at the same time, I could have a potential lawsuit regarding gender discrimination to consider. I decided to rethink my options. Carl’s sexual orientation makes him a risk for a discrimination lawsuit. Carl is above average on his overall track record. He has great productivity, and he does not have an absenteeism issue. Although Carl has had no special achievements, I would have no specific reason for a layoff. As a result, a discrimination charge could be made by Carl, especially because...
Words: 1401 - Pages: 6
...Re-Organization and Layoff: Decision Making SAMANTHA STINSON PHL/320 March 14, 2016 Jason Miller Re-Organization and Layoff: Decision Making Introduction When a company chooses to conduct a mass layoff, the employees are not the only ones affected, the ethical business environment and economy are also at threat. Handling a company’s finances can be very puzzling and companies that find it difficult to overcome this task, experience a downturn, weakening business, and when this occurs, the need to find solutions to relieve their financial issues become critical. The purpose of this paper is to provide a recommendation from the two solutions provided in Week 4, how this solution benefits the middle-income customer, business decisions involved in the process, and what resources a company would need to implement that decision. Employee Buyout When a company is enduring extreme financial hardships, they may be able to encourage their workers to resign or retire voluntarily. “A buyout typically includes an offer of severance pay for a particular length of time and the continuance of other fringe benefits.” (D. Sullivan, 2016). The employer is entitled to negotiate the terms so they are not only favorable to the company but the employee too. A positive side effect the company gains from offering buyouts instead of laying off or firing employees can minimize possible lawsuits and bad press. There are several laws and regulations that must be followed when pursuing the employee...
Words: 883 - Pages: 4
...with the expertise of HR managers to develop and utilize the talents of employees to their greatest potential. Line managers are non-HR managers who are responsible for overseeing the work of other employees.There are different types of human resources managers who specialize in different HR functions. Q2.Employees surplus planning steps. 6 steps:Mission, Vision, and Values/Environmental Analysis/Internal Analysis/Formulating Strategy/Strategy Implementation/Evaluation and Assessment (1) Implement a hiring freeze. Some workers will leave for the position or retiring. Managers can let other workers fill the position, don’t need to layoffs. (2) Begin a mandatory furlough system. By requiring all employees to schedule an unpaid week into their upcoming long-range schedule, you reduce the burden of labor costs while providing employees with a tangible benefit – time off (3) Offer early retirement or buyout plans for workers with seniority. (4) Reduce workers’ hours or pay across the board. this strategies typically...
Words: 816 - Pages: 4
...Comcast Unexpected Layoffs in 2011 Terrica L. Brown COMM 215 May 10, 2013 Charlotte McInnisd Curtis, PhD Comcast Unexpected Lay-offs in 2011 Comcast unexpected layoffs in 2011 were a bad impact on several of my co-works. Imagine coming to work on a Monday morning not knowing that your life would be changed without any prior notice from that day forward. We were not aware of this layoffs and it caught us all by surprise. The layoff left over 30 of my co-workers without a job in 2011. Comcast unexpected lay-offs in 2011 impacted all of their employees lives. We learn about the unexpected layoff two weeks before the company transition from billing and repair to retention. At the beginning of the unexpected layoff, we were all scheduled a meeting with management. Each employee was e-mailed a certain date, time frame, and location to meet with management. When we all sat down to discuss the guidelines, procedures, and the process of the new department, we were all advised that we all had to submit a resume and an application to apply for the new position. The company decided to change our department from Billing and Repair to Retention. The management advised us to prepare an updated resume and to go online internally to apply for the new position. If there were any employees who were currently on a corrective action, that employee would not be eligible to apply for the position, unless the corrective action was about to expire. We were all devastated...
Words: 918 - Pages: 4
...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
...Re-organization and Layoff: Issue and Problem Identification April 3, 2016 According to Bouw’s article (2013), she discusses the issues of improper managing and administration in the event of a company layoff. Mismanaged cutbacks begin with the Human Resources Department themselves. The article states their lack of education, training, and company knowledge, is the reasoning for these incidents. When a manager isn’t properly prepared for a cutback, it can possibly affect the company as a whole. "It's traumatic to the remaining staff - the survivors - and can create fear and resentment"- Mr. Swartz. The company needs to look at all options before they decide to do layoffs or terminate employment. The cut backs can be done in different ways other than treating an employee like they are commodities. The business problem starts with the lack of training the managers receive on how to handle a layoff in the company or termination of an employee. Termination of employees can cause negative results for the company if the management team does not handle the situation properly. Businesses do not focus on how to approach different scenarios and emotions in the event of a termination. Managers often times let their personal emotions get in the way when terminating an employee. They tend to ramble on, and sugar coat the reasoning why their decision was so hard to let them go. Managers are not being straightforward and honest with the employee. Employees that do not understand...
Words: 1380 - Pages: 6
...Worldwide Downsizing as a management tool was first introduced in the US during the mid-20th century. It refers to the process of reducing the number of employees on the operating payroll by way of terminations, retirements or spin-offs. The process essentially involves the dismissal of a large portion of a company's workforce within a very short span of time. From the management's point of view, downsizing can be defined as 'a set of organizational activities undertaken by the management, designed to improve organizational efficiency, productivity, and/or competitiveness.' This definition places downsizing in the category of management tools such as reengineering and rightsizing. Downsizing is not the same as traditional layoffs. In traditional layoffs, employees are asked to leave temporarily and return when the market situation improves. But in downsizing, employees are asked to leave permanently. Both strategies share one common feature: employees are dismissed not for incompetence but because management decided to reduce the overall work force. In late 1990s and early 2000s, different organizations adopted different kinds of downsizing techniques and strategies (Refer Table II). TABLE II MAJOR TECHNIQUES AND STRATEGIES OF DOWNSIZING |- Attrition: Natural reduction of workforce that occurs when employees leave the organization due to retirement, death or resignation. | |It is a normal Human Resources (HR) practice of a downsizing company to freeze hiring totally/partially...
Words: 2561 - Pages: 11