In: Operations Management
Who Goes, Who Stays? The consulting firm you have worked for over the last year is having some financial troubles. The large contracts it once had are slowly going away, and as your company struggles to make payroll, it is clear that layoffs must occur. The sales staff has not been meeting the sales goals set for them, resulting in incorrect budgets. It has been decided that at least three people in the sales department should be laid off. You create a spreadsheet with pertinent sales employee data: Name Title Years with the company Last overall rating on performance evaluation (1–5 scale, 5 being highest) Last year’s sales goal met? Deb Waters Sales Manager 1 3 N/A as her position is managerial Jeff Spirits Account Manager 5 3 Yes, 1% over Orlando Chang Account Manager 3 4 Yes, 10% over goal Jake Toolmeyer Account Manager 2 4 No, 2% under goal Audrey Barnes Account Manager 5 5 Yes, 15% over goal Kelly Andrews Account Manager 1 2 No, 20% under goal Amir Saied Account Manager 8 5 Yes, 5% over goal Winfrey Jones Account Manager 4 2 No, 10% under goal Making reasonable assumptions, develop criteria for the layoffs in the sales department. Develop a plan as to how layoffs will be communicated with the individual as well as within the company. Discuss strategies to motivate those sales employees who stay with the organization.
Company decided that at least three people in the sales department should be laid off.Each firm situation is unique, so the criteria used may vary greatly from one organization to another.
Legal criteria:federal law
1. Not discriminatory in any way.example age wise
2. According to WARN Act, large companis’ decision to implement a mass layoff of workers at a particular location are required to provide at least two months of notice to the state where the company is domicile and to the employees at the affected site. If an employer does not comply withthe act provision notice of mass layoff, sometimes it will pay workers a severance of 2 months' pay.
Miscellaneous specific criteria is mixture of experience and performance by considering contribution to sales goals
3. employees hired most recently is most likely to terminated first rather than those who have been with the company the long time
4. Performance and employee contribution is the decision making factor in layoff decisions. Organizations strives to keep those workers who have contributes the highest levels of performance and to lay off the lowest performing employees.
This criteria is not against any law or regulation,not at all discriminatory,it is completely experience and merit base termination.since it was termination of 3 numbers no need to comply WARN act.
Develop a plan
Communicating with survivors never be an easy task as an employee treat the employee humanely and compassionately .as a HR manger or authority Be knowledgeable about the layoff process,employee’s mental condition
Communicating Layoffs to Employees Who Are Remaining at workplace
Let them know the reasons for the termination.
strategies to motivate
employees who survive a discharge will experience varying forms of survivor guilt.as a worker they still have a job, and thus work harder and be more productive.reassure the survivors of their value to you and the organization.stressing their contribution/performance to the overall functioning of the operation. And why they being selected.
Focus on and creates an opportunity for career and professional development and self esteem building techniques
Illinois WARN Act : The WARN act not applied here since A WARN notice must be given if there is a plant closing or a mass layoff but here we are terminating only 3 employees layoff decision is varied to compnaies to companies.but company have to serve certain condition like WARN act,have to formulate startegies to dealt with suvivors etc...