Preview

Redundancy Hrm

Better Essays
Open Document
Open Document
19478 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Redundancy Hrm
Abstract Downsizing has been a common cost-cutting activity for organisations in the last 25 years. Literature in this area has focused mainly on the effects that redundancy may have on people leaving the organisation. However, some research has investigated the effect it may have on the employees who were not made redundant, and from this the concept of 'Survivor Syndrome ' was created. It has been established that redundancy processes result in negative emotions being felt by survivors, such as less job satisfaction, mistrust in the organisation, less pride in the organisation and they feel that the organisation is not supporting them as much. These are just a few of the symptoms that have been associated with the syndrome. However, some research has suggested that Survivor syndrome is a myth, or can be prevented. This study presents the findings of a company-based study, in which employees opinions and emotions were investigated prior to and post-redundancies. It argues that symptoms of survivor syndrome are present in employees after the downsizing process has occurred, and that it is more prominent in non-managerial employees than in managers within the organisation. The study suggests that the way in which the organisation rolls out the process of redundancies, and the way in which employees are treated, both those remaining within the company and those leaving, can result in these negative emotions being felt. This suggests that effective management of employees during the process and after can decrease the likelihood that survivor syndrome will be present within the organisation, and Corus and other organisations going through similar situations should utilise methods that are recommended in order to help avoid the syndrome occurring.

1

1. Introduction There has been an increasing amount of research in recent years examining the effect of downsizing and redundancies on those employees who remain within the organisations after redundancies have taken



References: Brockner, J., Wiesenfeld, B. M. and Martin, C. (1995). Decision frame, procedural justice, and survivors ' reactions to job layoffs, Organisational Behaviour and Human Decision Processes, 63, pp. 59 68. – CIPD (2010) – Learnhigher (2008)

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The effect of mismanaged LAYOFFs on the remaining workforce and the effects, lack of management preparation, the human condition, and lack of mitigation strategies. We think that the problem with this article is that not enough managers or HR personal, know how to let a person go from their employment effectively. They sometimes don't realize the impact that it has on the other employees morals. Also, that sometimes companies don't take a closer look to make sure downsizing will be the answer to cutting costs like they think that it will. Every HR or manager should be let go in their lifetime so that they know what it feels like. I believe that this statement holds tremendous merit because the best lessons in life are learned through personal experience. In order to adequately communicate life changing messages of sorts, it should be done by a seasoned manager. I will be very surprised if any company has a potential layoff learning path that will coach and train the management staff for these kinds of things. It is imperative to be sensitive to the individual being laid off as this will impact their livelihood significantly. I do agree that other options much is explored such as relocating or wage cuts before making the decision to lay off people.…

    • 660 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Qantas International

    • 2259 Words
    • 10 Pages

    Litter, C. C. And P. Innes. 2001. Does Downsizing Improve the Skill- base of Organisations? Downsizing: Is it Working in Australia? Australia: The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.…

    • 2259 Words
    • 10 Pages
    Best Essays
  • Satisfactory Essays

    Managing a company’s finances can be very challenging and companies that find it difficult to conquer this challenge, experience a downturn, a decline in business, and when this occurs the need to find solutions to alleviate their financial issues becomes crucial. One solution that companies seem to implement and re-visit is layoffs but employers that are sensitive to the employees needs try to avoid this option by exploring other alternatives such as furloughs or transferring employees into new positions within the company.…

    • 775 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Downsizing, no matter how it is done, creates stress and corporate discontent for employees, and proper human resources planning attempts to limit this negative impact. Employees who are discontent can display negative behaviours and performance issues may begin to arise. With issues in performance within the organization, productivity may begin to decrease, which means that the cost to produce goods once again increases, threatening the benefits that may have come from downsizing.…

    • 1015 Words
    • 5 Pages
    Good Essays
  • Good Essays

    All businesses at one time or another will have to deal with employee layoffs due to a re-organization or changes in the economy. Employee layoffs can have a damaging impact to the remaining employee and management staff. There are several solutions that can be done to alleviate the negative impact and the recommendation is to provide managers with the proper training on how to properly handle a layoff so there is a more positive impact on the remaining staff. Proper training prepares managers for delivering the message to both the employee being laid off and the remaining staff. This type of training has many advantages for the company and the employees.…

    • 759 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The job of a middle manager is not easy, especially during times of extreme change. It requires balancing and maintaining varying personnel within the organization including upper management and a subordinate workforce. An option for many who successfully have not influenced the direction of an organization is to leave the company. However, according to Covey (2004), “A more common but insidious alternative is to remain and become a mindless conveyor of decisions from the top” (p. 47). The middle manager who manages to compete with the pressures from upper management with some degree of success faces alternate challenges from within the organization. According to Armour (2007), “Middle management jobs have become more demanding. Technology means middle managers have to do more multi-tasking and are expected to be accessible to their staffs, a Herculean challenge in the age of globalization. Employees may be spread across the globe, and a manager may have to get up at 3 A.M. to take a call from an employee in another country” (para. 4). The demanding and steady rate of change throughout the structure of an organization fosters the complications that already exist for the middle manager.…

    • 1660 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Throughout corporate America, downsizing is a common practice. The concept of downsizing as a strategic tool wasn 't introduced until the 1980 's, and today it is a well known system. This has been caused by the accelerated growth of international and global competition throughout the past two decades. Increasing competition is forcing companies to drive their costs as low as possible, and the quickest, easiest way to cut costs is to cut jobs. Top management within corporations is most worried about the impact downsizing will have on their costs, and they are usually less apprehensive about the influence on the employees affected. Two views on this topic are presented in Marc Street 's Taking Sides. The first will argue against downsizing for…

    • 1409 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Dismissal Meeting

    • 2365 Words
    • 8 Pages

    Following are some proven ways for management to reduce the negative effects on staff of cutbacks, reorganizations and layoffs:…

    • 2365 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    References: Dr.John Sullivan, Not All Employee Turnover Is Bad — Celebrate “Losing the Losers” retried from…

    • 2241 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Academic Advisor

    • 1566 Words
    • 7 Pages

    There are two terms of downsizing: downsizing by need and downsizing by preference. On the first case the company is obliged to reduce number of its employee without previous planning due sudden challenges like financial crisis, new technology revelation and market changes, In this case employees can lose there jobs permanently. On the second case, organizations have a stable situation in the market and there is no…

    • 1566 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    Summarise the key stages to be followed in making redundancies and explain what impacts redundancies have on the whole organisation…

    • 3383 Words
    • 14 Pages
    Best Essays
  • Best Essays

    Skarlicki, D. (1998). Third-party perceptions of a layoff: Procedural, derogation, and retributive aspects of justice. Journal of Applied Psychology, (83), 119-127.…

    • 2097 Words
    • 9 Pages
    Best Essays
  • Better Essays

    NOTE: Downsizing in today’s job market is quite common so it’s important to recognize the personal values and attributes employers want to improve your chances of job security should a layoff occur.…

    • 1400 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Nike Brand Equity

    • 1022 Words
    • 5 Pages

    To answer question one it’s important to not that Nike has created a very powerful image in the minds of consumers in America. Nike wanted consumers to see it as an innovative brand that produces top of the line performance gear that was associated with very powerful and important athletes (mostly males). Their profile users are represented as famous athletes such as Michael Jordan or Tiger Woods. The athletes reflected the brand personalities such as competitive, winners, strong, and better than the rest. This also is a way for Nike to obtain credibility and quality. With the Air Jordan line, Nike sold over $100 million shoes in the first year (129).…

    • 1022 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Law Exam Notes

    • 1340 Words
    • 6 Pages

    Redundancy- Section 139 (1) ERA 1996- Employer does not have to prove why. Relocation of task, pool formation, bumping, selection of criteria (matrix). Carefully select to avoid claims. unfair criteria - trade union membership, sex (or maternity) discrimination, race. Consultation to discuss all possibilities of redundancy- short time working, voluntary redundancy packages, freezes on pay rises. Real consultation must be evidenced no matter what. 1= 3 meetings one week apart, under 20= in good time (2 weeks?), 20+ = 30 days, 100+ 45days(was 90). Sections 188 - 198 Trade Union and Labour Relations (Consolidation) Act 1992. Collective Redundancies and Transfer of Undertakings Regulations 1995- no trade union representation, then elect employee representatives. ‘Reasonable alternative’ yes=4week trial period. Decline=no redundancy payment. Suitable travel distance (mobility clause)? Others- partners job, number of children, child’s schooling. Redundancy Matrix- LIFO ‘last in first out’ only used amongst others. Ie- adaptability, capability, type of work, sickness, performance, appraisals, qualifications, skills, disciplinary record. Volunteer redundancy- Be careful what you ask for! Obliged to consultation, don’t have to agree. Case law suggests three stage test: was the employee dismissed? if so, had the employer’s requirement for employees to carry out work of a particular kind ceased or diminished, or was it expected to cease or diminish? if yes, was the dismissal caused wholly or mainly by this reason? During consultation period, 40% of the working time can be taken and is paid leave to find alternative job. Redundancy calculation- at least 2years service and capped to £450 per week from 1st Feb 2013 before 430, Agexweeklypayxyearsserved. Employment Tribunal can make a Protective Award 20+ employees at one establishment within a period of 90 days or less without consultation of appropriate representatives- 1 weeks pay for every week.…

    • 1340 Words
    • 6 Pages
    Good Essays