Almost every organization is faced with the necessity of laying off employees for lack of work. Some layoffs are temporary and are expected by employees because of the nature of the job. These layoff can be planned for and may not be serious. In contrast, a change in operations or decline in business necessitates permanent layoffs. All of these involve employee separation from the organization. Separation may also arise from employee resignations and retirement.
Layoff can be defined as an indefinite separation from the payroll due to factors beyond the control of the individual. The causes of layoff include decline in sales, shortage of raw materials, market fluctuations, delays in production and displacement caused by technology. Layoff is a temporary separation when it is initiated by an employer. But some times, it turns out to be permanent when production never picks up. Layoff is considered to be a serious issue because of the involvement of human sentiments and adjustment problems.
Seniority rule may be followed for layoff, as often demanded by unions. When seniority is explicitly stated as the primary factor, long-service employees know that they will not be the first to go if operations decline, and they have a pretty good idea of what to expect in the future.
Seniority is a highly complex issue. It is perplexing issue to determine what type of seniority should be used during layoff periods. Obviously, the union stresses the company wide seniority system. In cases where this type of seniority is used, the long service employees are bumping the short service employees if they are capable of doing their work. As this process disrupts the efficiency of the company, management usually stresses the departmental or unit seniority. Seniority is also used as a basis of recall when business picks up and the workforce expands. The workers may be reemployed in inverse order of layoff or in terms of their seniority.
Related Articles of Interest :
-
Corporate Incentive Programs
10 August 2010 8:30 PM |
No Comments
After procuring and training employees, maintaining and utilizing them effectively in the organization is the concern of management and personnel administration. In doing this, both the employee and management should be satisfied. The management cannot satisfy and utilize the skill of an employee effectively by...
-
Wellness Incentive Programs
10 August 2010 8:30 PM |
No Comments
When an employee is sick or injured, many times it has a direct affect on an employer’s cost of health care, disability, worker’s compensation, increased absenteeism, lower productivity, reduced safety and morale.The object of an employee incentive wellness program is to improve the health of...
-
Employee Incentive Programs
10 August 2010 8:30 PM |
No Comments
Every employee has certain expectations that he thinks must be fulfilled by the organization. When the organization fails to meet his expectations, he develops a feeling of discontent or dissatisfaction. This feeling is a grievance. Grievances are caused due to the differences between employee expectations...
-
State Employee Incentive Programs
10 August 2010 8:30 PM |
No Comments
Industrial workers are paid compensation for their services in the form of wages. Wages are fixed as the time spent by the worker in the factory or per the production produced. Wage is a matter of great importance as most of the labor problems are...
-
Travel Incentive Programs
10 August 2010 8:30 PM |
No Comments
In order for your company to have a good travel incentive program, you have to have contacts in the travel industry that will enable you to send winners anyway at very little cost to you. What better way to inspire your workers than to put...
-
Incentive Programs
10 August 2010 8:30 PM |
No Comments
According to Dale Yoder, incentive wages relate earnings to productivity and may use premiums, bonuses or a variety of rates to reward for superior performance. The incentive programs involve an attraction of extra payment for efficiency. An efficient program must provide for minimum guaranteed wage...
-
Sales Incentive Programs
10 August 2010 8:30 PM |
No Comments
As more and more markets became buyer markets and the entrepreneurial problem became one of solving the shortage of customers rather than that of goods, the sales concept became the dominant idea guiding marketing. The sales concept maintains that a company cannot expect its products...
-
Corporate Gift Idea Programs
10 August 2010 8:30 PM |
No Comments
In the past few decades, there has been a great revolution in the way the management deals with and treats its employees and staff. Gone are the days when corporate houses considered it a favor to the employees to have them work with their company....
-
Business Health Insurance
10 August 2010 8:30 PM |
No Comments
It is crucial for every business to have some type of health insurance available for its employees. This insurance is typically called ‘group health insurance.’ It refers to ‘securing’ the health of a group of people who are working together for a business or corporation....
-
Small Business Health Insurance
10 August 2010 8:30 PM |
No Comments
All companies and businesses provide their employees ample compensation for their work in the form of wages. Aside from this, most employers also give their employees other benefits like paid vacations, maternity and paternity benefits, the opportunity to obtain loans and health or medical insurance....