Pg. 21: Incident 2 – Downsizing Andpg. 37: Incident 1 – an Ethical Flaw
Pg. 21: Incident 2 – Downsizing
1. Staffing is effected by a great degree during a downsize in a organization. HR will need to make sure there are enough employees to cover shifts and perform the tasks necessary for the company to function. One does not want employees to be overscheduled and overtime would be monitored. If employees are union, HR must maintain any job and safety requirements desired by the union.
Employee and labor restrictions could be effected by the number of unemployment claims and in a rise in union representation. Businesses are required by law to recognize and bargain with unions. They also have to maintain accurate records of unemployment claims when departing employees are eligible for state unemployment benefits.
Compensation may be effected by salary freezes when downsizing. Salary reductions could also be ordered, as well as some employees being asked to take an early retirement.
Safety and health would be affected by the decrease in morale. HR would be tasked with keeping morale up. Workers will need to be reassured of job security when they see others leaving the company.
2. There are 3 main elements that affect Scott’s plan for downsizing. They are the shareholders interest, how the union will react, and how it would impact the community.
The most legitimate interest of these would be the shareholder’s interest. Most company’s put their needs and wants above all others. They want to see a return on their investment. If they are not making a profit, they will lose money and pull their donations from the organization.
The next concern would be how the union would react. The union would try to protect as many jobs as possible. Workers would need to be let go in seniority, meaning the last hire is the first to go.
The last would be the impact on the community. IFP employs 10% of the local workforce. Layoffs would depress the local economy a little more then it already is. They could be questioned by the
1. Staffing is effected by a great degree during a downsize in a organization. HR will need to make sure there are enough employees to cover shifts and perform the tasks necessary for the company to function. One does not want employees to be overscheduled and overtime would be monitored. If employees are union, HR must maintain any job and safety requirements desired by the union.
Employee and labor restrictions could be effected by the number of unemployment claims and in a rise in union representation. Businesses are required by law to recognize and bargain with unions. They also have to maintain accurate records of unemployment claims when departing employees are eligible for state unemployment benefits.
Compensation may be effected by salary freezes when downsizing. Salary reductions could also be ordered, as well as some employees being asked to take an early retirement.
Safety and health would be affected by the decrease in morale. HR would be tasked with keeping morale up. Workers will need to be reassured of job security when they see others leaving the company.
2. There are 3 main elements that affect Scott’s plan for downsizing. They are the shareholders interest, how the union will react, and how it would impact the community.
The most legitimate interest of these would be the shareholder’s interest. Most company’s put their needs and wants above all others. They want to see a return on their investment. If they are not making a profit, they will lose money and pull their donations from the organization.
The next concern would be how the union would react. The union would try to protect as many jobs as possible. Workers would need to be let go in seniority, meaning the last hire is the first to go.
The last would be the impact on the community. IFP employs 10% of the local workforce. Layoffs would depress the local economy a little more then it already is. They could be questioned by the