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Re Organization And Layoff: Decision Making Evaluation Paper

855 words - 4 pages

Re-organization and Layoff: Decision Making Evaluation Paper

PHL/320-Critical Thinking and Decision Making
July 20, 2015

Re-organization and Layoff: Decision Making Evaluation Paper
The term “working poor” aptly describes most employees in the middle income tax bracket. Middle class Americans typically live paycheck to paycheck. These workers face difficulty saving money as incomes barely cover living expenses. The financial struggles of middle class employees greatly intensifies when a facing a layoff. The laid off employees not only deal with the loss of income after a layoff; they also encounter barriers in finding a new job. During the past three ...view middle of the document...

This will further maintain a positive image with the company’s customers and vendors. During the transition period, it is equally important to assist the displaced employee with unemployment benefits and training for new opportunities.
The Business Decision
The severance package is the most important part of the layoff process. However, how the company makes the decision for the severance is a different story. This process is difficult and includes more than just handing a check to the employee. The company has to consider where it stands legally and maintain its position with the employee. The decision to terminate the employee should be free from personal bias and the employee's tenure with the company should be considered along with supporting facts as to why this employee was chosen to be displaced. 
The cost of terminating the employee will need to be considered along with legal counsel as the severance package is a binding contract. Depending on the state that you live in will determine if the employee can receive vacation time. This should be taken up with the Human Resources Department. At this time, the severance package should reviewed by legal counsel. After being reviewed by legal counsel, the severance agreement is ready for distribution. It should have a clause in it that discusses age discrimination and relinquishing the employee's right to sue the company. 
The final business decision regarding the severance package should be held in a face to face meeting with the employee. This is especially important because it allows the employee to review his severance package and ask questions. At this point, the employee should be advised of any stipulations or policies regarding the severance pay.

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