IntroductionIn contemporary business and market environment, corporations and institutions are faced with countless challenges ranging from the cutthroat competition, global economic and financial recessions and the constantly shifting political, social, technological, economical, environmental, financial and legal forces (Nantaporn & Brian, 2003). These challenges are compelling organizations to be more aware of their internal and external environment and more importantly focusing on the legal, ethical and all essential human resource issues in order to ensure the working environment is favourable for all stakeholders as echoed by Bach (2005). This report seeks to address the legal, ethical and all HR issues implied in the case study COSTLY BUSINESS” by Dr Nadine Zacharias, University of Ballarat. What are the HR implications of the CEO’s announcement to lay off 120 staff?
Are any of these implications surprising to you? An organization has varied resources that it utilizes to ensure it is able to operate efficiently and effectively and in so doing achieving its set vision, mission, goals and objectives (Booth & Zoega, 2003). According to the author, these resources include financial resources, material resources, information, capital resources, technology and human resources among others.
The human resources is considered the most important, reliable and valuable asset and resource an organization has since without it, the other resources an organization has cannot operate as anticipated (Cameron, 1994). Therefore, meeting the needs of the human resource, generating a conducive environment and engaging them in critical processes of the organization are crucial to the organizational success. Following the CEO’s announcement to lay off 120 staff, the Implications for the HR manager, Maree was to prepare her team and draw up a comprehensive course of action to ensure that the type employees drawn up for the targeted redundancies deserve in terms of their overall productivity and performance (Stone, 2010).
This was to ensure that the Utilities Company was safe from legal suits filed against them by employees who may feel they do not deserve being terminated based on targeted redundancies. To this end, Maree and her team were in the process of calling for expressions of interests in voluntary redundancies while identifying employees considered incompetent and underperforming (Stone, 2010). This move on Maree’s part was surprising to me since I would have thought she would consult with the workforce as a HR manager and engage them in coming up with more effective, alternative and suitable ways of cost cutting to ensure none of the employees lose their jobs.
If the worse came to worst and it would be necessary to cut off some of them, I would have expected Maree to involve the workforce in identifying appropriate ways of selecting those who would be cut off as supported by Bach (2005). By so doing, it would be unlikely that the staff would feel short changed or feel they were not consulted.
As indicated in the case study, Maree hoped for more time to prepare her team, carryout a comprehensive assessment of the firm’s cost structure and skills profile to ensure there were no critical sections over or understaffed. Therefore, the best course of action I would have expected from Maree other than consulting with the employees was to consult the CEO and inform him of her concerns regarding the need for more time and raising the issue about some of the key areas being understaffed.