Legal Issues in Reduction of Workforce Simulation
Many companies face a workforce reduction situation at some point. The changing economy, obsolete jobs, competition, declining sales, bankruptcy, or overstaffing can require a company to make cuts in their workforce (Simone, 2004). FastServe, Inc. is about to take on this task. The $25 million company is involved in the direct marketing of sports apparel to the Generation Y segment of the market (University of Phoenix, 2004). The company recently launched a web site to expand sales. Various problems with the web page have caused the company to pull out of online distribution. FastServe now has to downsize this division. How will FastServe decide who to layoff? What regulatory issues will need to be considered? What are the legal risks? These issues will need to be addressed in order to proceed with a layoff that will be in the best interest of the company.
The first step in determining the 3 employees who will be laid-off is to collect information from Humans Resources (HR) on each employee. The Employee Comparison Chart (Table 1) from the Legal Issues in Reduction of Workforce simulation provides important information for each employee for the past two years. “Using objective measures to determine which employees will be laid-off is critical” (Simone, 2004). The employees who are not laid-off from the online division will need to be reassigned to other jobs. This is why it is important to consider education and skills that are still needed by the company. Carl Haimes, Brain Carter, Sara Boyd, Nora Manson and Jenny Mills are all being considered for the layoff. Only 2 of these employees will be offered new jobs in the company.
Carl Haimes is above average in performance and productivity. He has a bachelor’s degree in Information Systems and various skills in computer maintenance and installation. His skills could be used in other areas of the company. Carl has also recently been the target of offensive...