Case Study 2
February 7, 2016
Mrs. Howell will be unable to use the information found within the performance appraisals to decide which employees should be discharged. This is due to the managers failing to complete the appraisals properly. A performance appraisal is defined as “the identification, measurement, and management of human performance in organizations (Luis R. Gomez-Meija, 2016, p. 205) Performance appraisals are generally tools that are used in evaluating an employee’s performance based on the dimensions set by the firm (Luis R. Gomez-Meija, 2016). Performance appraisals supply firms with employee shortcomings once ...view middle of the document...
The first step that should be taken to help Mrs. Howell make the termination decision sis a voluntary separation program should be implemented. A voluntary separation takes place when employees decide for personal and professional reasons to end employment with their current firm (Luis R. Gomez-Meija, 2016). The voluntary separation allows Mrs. Howell the benefit of having some employees decide to no longer work for the firm. This could be caused from lack of interest in their job, disinterest in relocation, or finding a better job elsewhere (Luis R. Gomez-Meija, 2016). There are numerous benefits to voluntary separations. One benefit is employees volunteering to leave their positions will save the firm large amounts of time wasted on decision making (Wilkinson, 2012). Furthermore, the employees are able to leave under good circumstances allowing for rehire if the firm needs them in the future. Under the Voluntary Separation Incentive Payment Authority of the United States government firms that are downsizing and restructuring are allowed to offer employees a lump-sum payment of up to $25,000 as a bonus to voluntarily separate (The United States Department of Personnel Management, 2015). Payment incentives may allow employees who are close to retirement age or those looking to change careers the opportunity to leave their current position to pursue other avenues. Mrs. Howell may have to make fewer layoff choices if more employees choose voluntary separation.
A layoff is different from termination. A layoff causes an employee to lose their position based on the facts that the firm needs to change its strategy or environment; forcing the firm to reduce its labor force (Luis R. Gomez-Meija, 2016). Terminated employees are usually discharged due to their own actions. Layoffs can have a negative effect on the firm. Layoffs can cause employees to be fearful of losing their jobs in the future (Luis R. Gomez-Meija, 2016). Seniority and employee performance are common ways a firm is able to decide who to lay off during downsizing (Luis R. Gomez-Meija, 2016).
A seniority layoff criterion is one way that Mrs. Howell will be able to decide who is subject to layoffs. Seniority means that the last one hired is the first one to be let go. The seniority method is beneficial to Mrs. Howell and the firm because many employees view this method as fair and it reduces manager’s bias in decision making (Luis R. Gomez-Meija, 2016). However, this method has the disadvantage of the firm losing high performance employees simply because another employee has been there longer (Traub, 2013). The law upholds seniority as an acceptable method of laying off employees as long as every employee has equal opportunities to gain seniority in the firm (The United States Department of Personnel Management, 2015).
Performance based criteria for layoffs are decisions that are made based on the employee’s individual performance at their job. This...