IB Business & Management Unit 2.1 Dismissal and Redundancies

Learning Outcomes Common steps in the process of dismissal and redundancy (AO2) How innovation, ethical considerations and cultural differences may influence dismissal and redundancy practices in an organisation (AO3)

Employment Termination As well as recruiting employees, the HRM department also deals with the termination of employment. Why might an employee finish working at an organisation?

Reasons for termination of employment Non-renewal of fixed term contract Dismissal Redundancy Retirement Resignation What is the difference between these types of employment termination? Why might employees resign? How can businesses reduce their turnover of staff due to resignations?

DISMISSALS

Dismissals When the employee is sacked due to incompetence, negligence or a breach of contract. We would also call the being sacked or fired This has to be done in a fair manner Why should management think carefully before dismissing an employee? In what circumstances is an organisation legally allowed to dismiss an employee?

Legitimate reasons for Dismissals Failure to pass trial period Incompetence – inability to do the job despite appropriate training and support Misconduct – unacceptable behaviour such as persistent lateness, harrassment, behaving in an unprofessional manner. A series of warnings will be given Gross Misconduct – Major misdemeanors such as theft, fraud, dangerous behaviour. Dismissal will be instant Legal requirements – If an employee does not have the necessary skills, qualifications or licenses to do their job How can a business reduce the number of dismissals it has to make?

When dismissal is considered wrong…… Unfair Dismissal – When an employee is dismissed without a valid reason Wrongful dismissal – When the employee has been dismissed in a way that does not follow the correct procedures Constructive dismissal – When a worker has not been dismissed but has been forced to resign

REDUNDANCIES

What is a redundancy? Occurs when the employees job ceases to exist. Why might this be necessary? The company can no longer afford to pay the employee The company is relocating The company is downsizing Technology has replaced the worker The company is changing its operations A merger or takeover Often referred to as retrenchments or lay-offs. What are the negative impacts on a firm of having to make redundancies? How does an organisation decide which workers to make redundant?

Who gets laid off? What methods could a company use to decide who gets laid off? By Job Role Voluntary redundancies LIFO Retention by merit- what factors could be considered? Are there any alternatives to making redundancies?

Alternatives to redundancies Recruitment freezes Pay freeze or pay cut Short time working Flexible working Secondments Redeployment

Task Read the newpaper articles. For each article summarise: Which business is involved How many redundancies are being made? What are the main reasons for these redundancies? Which jobs are going to be affected How are the redundancies going to be made? You will have 4 minutes for each article and then pass it on to the next pair

Dismissal and Redundancy and the key concepts.... How might the following factors and influence dismissal and redundancy in an organisation? Innovation ethical considerations cultural differences