Question

Please write answers of a paragraph for each question.

CHAPTER 5 of the book Strategic management in action

Case: To layoff or Not to layoff

Do some research on employee layoffs. What are companies doing to make it easier for those being laid off? What about for the survivors?

Answer 1

The primary objective of a business sorganization is to generate the maximum possible revenue and incur the maximum profit from the same and there are various related parameters which will ensure that the organization has the potential to make profit and grow or not. Each and every organization experiences a difficult ohase in their business as well and this phase is generally the phase in which the organization may resort to laying off employees in order to just sustain in the industry and this is a measure of cost cutting. Employees at times may lay off employees without any reason given to them by the employees but just to fulfill their personal interest in the process. The organizations in order to make it easier for the employees to pursue their career, generally do not terminate the employees rather they make them resign so that it becomes at least a bit easy for them to get a new job and again in addition they also provide them with a certain amount of compensation so that they can at least manage their expenses for few months and the amount of compensation depends on the role and designation of the employees as well.

The employees who survive lay offs for the time being needs to keep themselves enable and also be ready to understand that at any time situations may change and even they may get laid off so the task becomes even tough for them in this context.