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Category: Business and Industry
Date Submitted: 12/05/2013 06:28 PM
Business 707
MBA Business Case Study
Ethics Execution Exercise
Submitted by: Ujjal Baruah
September 30, 2013
Section A, 2. Recommended plan to “ethically and with dignity” accomplish the layoffs in the spirit and within the Clemenceau’s and AVS culture.
Layoff is one of the hardest decisions and is the last resort for any organization that is going through turmoil. As Assemblage Vacuum Systems (AVS) is left out with no other option but to lay off 40% of its employees, there are several necessary steps that need to be taken into consideration for outlining the plan for the layoff. Below is the outline for AVS layoff plan.
1. Planning for layoff: Few of the crucial factors that we need to keep in mind during layoff are respecting employee dignity, business planning and ethical conscience.
i) First of all we need to identify the positions, with the help of HR department, that need to be eliminated based on the business needs and following the code of ethics of AVS. Cost should not be a deciding factor for elimination as he/she may be an asset to the company for future business. The decision to eliminate a position should be based on legitimate business concerns rather than on personal judgment. To achieve this HR department can co-ordinate with respective management of each department. AVS should maintain equality in code of conduct and remain virtuous in its decisions.
ii) Once the positions are identified, the effective date needs to be decided upon. Ideally one should be given as much notice as possible. Depending on the business impact, HR department, with consultation with the respective managers of the laid-off employee, should decide on the release dates of the employees. Maintaining the culture, values and caring nature of AVS towards its employees, it can be flexible by giving 2 -3 optional dates to employees to choose from (if possible after keeping the cost and limited timeframe) or a minimum notice period, at the least,...