Jennings, the VP of the company is asked by the CEO to recommend the board, an appropriate suggestion till Monday on the 20% layoff plan of the managers. Now Jennings is in a difficult
Situation as he has to decide the possible way of employee reduction while keeping the balance between the company and the employees.
WeaveTech is planning to go through a strategic change by moving towards the high-end performance market for clothing in contrast to the military customer base. This new strategic change in the direction requires the company to bring in people, having the skill sets that are in an alignment with the company’s plan for growth as the company feels that the current employees do not have the skills that are requiredfor the high end clothing market.
The managers that are currently working in the company are all highly efficient in terms of performance and competitiveness and laying off such employees will affect the morale and motivation of all the employees. The employees would feel demotivated because they will have a feeling that despite of working hard and performing efficiently, the company does not value their efforts and is only concerned about their future growth,avoiding the well-being of their employees. (Nisen, 2014)
Firing 20% employees all of a sudden will raise a question mark on the company’s image as all the employees are highly talented. It will also raise an ethical issue, the company can face legal challenges and if the company gets through those challenges; the question here arises is that even though it’s legal but does that makes the reduction of employees ethical.
The fact can’t be denied that the change in the clothing market definitely requires people with different skill sets to achieve its defined goals, but it is not necessary that the company has to go through a brutal phaseof firing 20% of its managers. The right steps taken by the company can resolve the issue without harming the company’s image while keeping the morale and the motivation level of theemployees on track.
Company can face the risk of law suits from the employees that would be laid off unethically. Therefore there is a checklist that should be considered by the HR before firing the employees from the company and the key points of that checklist are as follows:
- It should be checked that whether the firm has provided their employees with any job security or not, in any form of written contract or orally. This should be done to make sureif the company is free from any sort of contract and free to terminate any employee or not.
- The companies, sometimes offer shares to the valuable employees to make them stay in the company so before firing employees it should be considered that how many shares do the employees hold.(Domijan)
- Before carrying out the procedures of layoff, the company should compare and evaluate the performance of all the employees and rank it accordingly, to eliminate the chances of any discrimination…………
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