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

  • 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
  • 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
  • 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
  • Satisfactory Essays

    This week in class our learning team took a look at how managers often mismanage layoffs. We took a look at what the problem at hand was, why it was a problem, and what some possible solutions could be. We identified that the problem presented in this article is often times managers mismanage the process of laying off staff. Whether it be from a lack of training or not knowing how to deal with people and their different reactions, managers do not always consider the layoff process in its entirety. If not handled well, this process can traumatize the staff that is losing their job as well as the remaining staff. It is important that employers consider the affected employee, the remaining staff, and alternatives to layoffs before the process occurs.…

    • 333 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    The problem presented in article by Bouw, Mismanaged Layoffs can go 'Horribly Wrong, is the lack of proper and well-managed policy around employee lay-offs. Most managers are trained to handle a corporate crisis. Employers should approach any job losses with caution and always be respectful. Companies should consider whether job losses are necessary and the impact on operations internally, and how clients and contractors view it externally. Companies need to make sure they are following the law when it comes to laying off staff, including paying out severance as required by each province based on an employee's years of service. (2013)…

    • 1014 Words
    • 3 Pages
    Better 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
  • 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

    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
  • Powerful Essays

    Brockner, J. (1992) stated that “if the layoffs are mismanaged, thereby hampering survivors ' productivity and morale, then the organization stands to lose a sizeable portion of the savings it hoped to achieve by introducing layoffs.” Even though employee layoffs may allow organizations to cut jobs and safeguard relationships with the existing employee this can be create a challenge to the remaining employees in that, they may experience excessive stress of increase workload, lack of motivation and they may consider searching for a new place of employment to reduce redundancy. Heathfield, S, M (2010) stated that “employees experience an increased level of…

    • 1388 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Motivational Methods

    • 1119 Words
    • 5 Pages

    References: Cascio, W. F., & Wynn, P. (2004). MANAGING A DOWNSIZING PROCESS. Human Resource Management, 43(4), 425-436.…

    • 1119 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Are Moral Emotions Adaptive?

    • 3225 Words
    • 13 Pages

    Brockner, J. et al. (1985). Layoffs, self-esteem, and survivor guilt: Motivational, affective and attitudinal consequences . Organizational Behavior and Human Decision Processes, 36 pp.229- 244.…

    • 3225 Words
    • 13 Pages
    Powerful 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
  • Satisfactory Essays

    Layoffs are challenging for both the company and the employees involved. Companies should do everything they can to minimize the effects of layoffs if not avoid them altogether. Layoffs should only be a last result if there is no other possible solution in sight. When layoffs are the only answer, the company should handle them with the utmost respect and consideration for their employees.…

    • 404 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    When my colleagues and I were faced with redundancy we were placed in a unique position. Or perhaps it wasn 't quite so unique, just unspoken; ‘experts ' are not renowned for publicly applying their own theories to themselves. After years working as labour researchers or workplace change consultants we found ourselves in the position of having the stories we told other workers and their managements about why change was happening being reflected back to us by our managers and the people employed to facilitate our departures. We shifted from being purveyors of the discourses and narratives about why change was necessary to sitting in judgement of whether these very discourses and narratives applied to us, made sense to us, or were believable.…

    • 5172 Words
    • 21 Pages
    Better 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