Question

If you are the Chief Executive Officer of a successful organization and the shareholders tell you in order increase the profits by another $260M over forecast, you need to layoffs 9 people. What will you do? Explain the pros and cons of your actions for a. yourself, b. employees, and c. shareholders.

Write (typed) 2-3 good paragraphs about it and it should be in favor of layoffs. Thank you

Answer 1

                                                  LAYOFFS OF PEOPLE

As to be a CEO (Chief Executive Officer)of the successful organization on shareholders demand for increase the profits by another $260M over forecast I will do layoffs according to the ACT, of the 9 people who are not meeting their work efficiency and not good as compared to the other employees. Layoffs are also favourable as with the help of layoffs we can eliminate the people who are not performing well. There are many favourable effects of the layoffs as follow:

Laying off workers on the basis of seniority allows us to keep our most experienced workers. This should help our company maintain productivity of work on workplace. Laying off also increases the speed of work and responsiveness other people in organization. Laying off of the non productive employees give the opportunity and open doors to the other people who are more talented. and also help in ensuring that we have best employees in our team in the organization.

As when employees are not working well the employers ask them to leave in layoffs this Causes other employees to pull up their socks as they know that they need to secure their job by performing well with better efficiency. Which help in improving profits for the organization. And layoffs is also a cost effective option for the employers to cut the cost of the organization.

                                 

                                        PROS AND CONS OF LAYOFFS

A. Chief Executive Officer:

Pros: As layoffs reduce the cost this would lead to better control over its finances and improve the viability of the company over the long term.

As CEO consider this layoffs on shareholders demand this will create good image of CEO in their shareholders.

Cons: Legal issues can be accurse if the layoffs are not done properly under the ACT.

Lay off employees can create an environment of uncertainty for remaining employees which will affect the overall environment which is not at all good for a CEO of successful organisation.

B. Employees

Pros: Other employees will start working more effectively as employees know that if they do not pull their weight then it will not be long before the company will have to shut their doors permanently.

Healthy competitions between employees as only those who are doing good work are kept on.

Cons: They work under pressure as they feel insecurity which affects their work efficiency.

Layoffs lead to unemployment which is definitely unfavourable for the employees and lowers the morale of all the employees.

A major disadvantage of an employee layoff is that it increases the work load of the other employees in the office.

C. Shareholders:

Pros: Laying off employees helps the company save a great deal of money instantly and helps them to keep the company from sinking, which results in retaining more dividend for the shareholders.

Cons: By layoffs employers lose talented workers whose skill levels they might not replace in the coming weeks or months which results in overall loss for the organisation which will definitely affect the dividend of the shareholders.