Human Resources Management and Decision Making

Human Resources Management and Decision Making

Leadership is a combination of a variety of things; however, the effectiveness of a leader will be reflected in the decisions he/she makes. Letting the workers go is one of the toughest tasks managers face in a management position. The action involves emotional and stressful stakes, and most likely the company can land in legal trouble (Boselie, 2014). It is advisable that companies should consider consulting legal counsel before downsizing and particularly in protected categories such as nationality, age, disability, gender, and race. Most companies consider layoffs to cut costs and make it more profitable. Therefore, the management needs to consider carefully the decision and use effective criteria to make the best of the bad situation. I am a human resource manager for a 500 member technology company. I have been directed to make a permanent layoff of two employees, and the following is the criteria I will use to make the decision.

However, before outlining the criteria, the company will base its selection on the objective and measurable criteria that go hand to hand with the business needs of reducing the cost and improve the productivity. As the human resource manager, I will first consider the seniority factor when making a layoff decision. It is a criterion that is based on downsizing workers by considering the length of service they have provided for the company (Boselie, 2014). The company will first let go the most recently hired employees. Basing a layoff decision on seniority is perceived as fair, and also it is easy to implement.

Similarly, in our company policy, we have considered seniority as the primary factor in determining layoffs. Although the company focuses on the length of service, it might face the following challenges. The company might lose employees with expertise and leadership quality. Such group of workers might be of greatest potential for the future success of the company. Also, seniority-based layoff system will have an impact on the minority groups or recently hired women hence defeating efforts of the company to create a diverse workforce.

The second criterion I will use in making the layoff decision is the performance or productivity of the employee. The staff should know that individuals who have been chosen for layoffs are not all poor performers but the company is looking at retaining those employees who are versatile and have the ability to offer productive output. The best and versatile performers will always be retained to offer services to the smaller team (Boselie, 2014). Therefore, the company will decide to lay off unproductive employees and also those who cause problems. I will consider and implement the evaluation system to ensure consistency and fairness that will reflect the employee’s job performance. My decisions will ensure that the minority or legally protected classes of individuals are not discriminated.

However, there are other alternatives to layoffs that I might use as a human resource manager to meet the requirement of downsizing the two chosen employees. The company can employ an option of swapping or exchanging worker with another company. The move will help the employees get skills, tricks and experience in targeting consumers. The host company will pay the salaries, and the mutual benefit is that the companies will have temporary wage relief and cross-pollination of knowledge and expertise.

The company can also, ask its employees for ideas. The staff can provide the company with suggestions on how it can improve productivity and cut the cost. Therefore, engaging employees in generating ideas will ease insecurity and promote solidarity among the team. Similarly, the company can decide to use a comprehensive workweek. It will involve a short-term reduction in the number of hours in a workweek. The company will implement a 35-hour schedule, and this will reduce the payroll expenditures. Lastly, the company can cut out the extra expenses. It will involve freezing additional hiring, promotions, unnecessary travel and pay rise (Ford, Notestine, Hill, & American Bar Association, 2000). Such actions will help the company reduce its expenses to reasonable amounts.

In my selection, I chose Donovan Taylor, African American and aged 44 for a permanent layoff. The employee was chosen based on the seniority factor. Although Donovan has been in the company for some years, he has worked in my department for only five months. Therefore, based on the length of service, Donovan Taylor is an ideal person to layoff. The second employee to be chosen for a permanent layoff is Gabriella Santana. She is a Hispanic female age 60. Gabriella’s selection was based on productivity and performance. The company realized that Gabriella is actively pursuing another job; therefore, her performance towards improving the productivity of the company will reduce. She will concentrate much on finding a new job and dedicate less to the company.

The two individuals who have been let go should be assisted in the following ways. First, the employees will be given career counseling. Most of the laid-off employees end up being overwhelmed and unsure of the steps to take. As the company’s human resource manager, I will ensure that they are provided with a career counseling that will mitigate their fears and help them figure out their best moves. The counseling will also help them create resumes that are appealing to other employers and handle their jobs interview well (Rodríguez-Planas, 2014).

Second, the company will help the laid-off employees with networking. The company will reach out to its competitors and clients in their network and see if they would like to recruit workers. Similarly, the laid off employees will be offered advice on how to network by setting up LinkedIn pages. It will help them connect with potential employers. Lastly, the company will provide the displaced employees with financial assistance and advice them to invest in opportunities. The financial assistance will be short term, however, if they invest in opportunities, they will benefit in their job search.

The company will assist the remaining three employees in the following ways. First, the company will try to boost the morale of the remaining employees by giving them vivid explanations as to why the company decided to lay off some of the employees. The management will be in a position to provide answers to the various questions raised. Also, the management will find ways of building trust by demonstrating empathetic concern and emphasize on the proven skills and contributions of the employees. Second, the company will find ways to avoid employee burnout. The company will redistribute the work, schedule break, create socialization and provide proper tools to the team (The Balser Group, 2013). Also, it will maintain open communication with the employees so that they can provide their views about the workload. Lastly, the company will provide extensive training to the remaining employees so that they can handle the sections that were used to be done by the displaced workers well. It will also help them cope with the frustration and anxiety of the new work.

Boselie, P. (2014). Strategic human resource management: A balanced approach. Tata McGraw-Hill Education.

Ford, K. E., Notestine, K. E., Hill, R. N., & American Bar Association. (2000). Fundamentals of employment law. Chicago, Ill: Tort and Insurance Practice, American Bar Association.

The Balser Group. (2013). Mandated Benefits: 2014 Compliance Guide. Wolters Kluwer Law and Business.

Rodríguez-Planas, N. (2014). Playing Hard to Get: Theory and Evidence on Layoffs, Recalls, and Unemployment. New Analyses of Worker Well-Being (Research in Labor Economics, Volume 38) Emerald Group Publishing Limited, 38, 211-258.