Mismanaged Layoffs
Summary of the issue: The articles raise the problem of layoffs and issues involved in the process. The authors discuss how companies that downsize or cease operations dismiss their employees. Since a job loss is a very sensitive issue for many people, this subject merits particular attention. Bouw (2013) recognizes that mismanaged employee dismissal can turn out to be extremely wrong when done without good preparation.
According to the arguments raised in the articles, termination or layoffs have far-reaching consequences not only to those leaving the company but also to the retained staff. They live in fear of sudden and uncaring dismissal. However, managers of these enterprises with teething problems consider firing workers or layoffs as a justified step to get around the increasingly exigent market environment. The atrocious, mismanaged displacement of employees has become a prevalent issue in many struggling companies thus; the issue should be dealt with soon or later to reduce its ramifications on potential victims.Identify the problem:The problem of mismanaged layoffs has two serious concerns. Firstly, layoffs create emotional disturbance among employees, which is associated with job loss, and this may be a serious cause of stress. This process is embarrassing and mentally destructive (Bouw, 2013). Besides, people depend on their jobs because the jobs give them a constant and reliable source of income. Thus, losing your job enhances the feeling of insecurity. Secondly, dismissing personnel is always a challenge for an organization, which claims to be socially responsible. Mismanaged layoffs create a negative image of the company both internally and externally. Clients and other stakeholders may change their view about the company, which will have an impact on sales and future contracts. Consequently, the company may lose its market share and face a drop in its revenues. Besides, massively mismanaged layoffs jeopardize the duty of the company to serve the society within which it operates. Essentially, companies and for-profit organizations owe the society what is called corporate social responsibility and hiring people from within is part this shared value.
This many make individuals and institutions to ruin the reputation of the company. The survivors who work in fear of lacking job security may orchestrate some internal damage. Explain why this is the underlying problem:The marketplace within which these companies operate has increasingly become challenging regarding both operations and production. For downsized companies or firms planning to cease operating in the industry, layoffs and premature termination of contracts is inevitable and perhaps the best and only solution to this monstrous economic problem. "GE Transportation alleged that it was necessary for it to proceed with the cutbacks due to a slowdown in demand and productivity (Martin, 2013). However, the top management initiates a plan to displace a good number of workers to save the returns paid out through payroll and may or may not inform the staff of the planned sacking. GE Transportation had planned the layoffs a few months earlier (Martin, 2013). As discussed in the articles, untimely termination …
