As A Manager, Who Would You Select To Lay Off And Why? ✓ Solved

As a manager, who would you select to layoff and why?

Organizations from time to time must make hard decisions (expand, lay off employees, or close a facility). As a manager, you will have to use work experiences, advice from supervisors, and the organizational culture to support your decision. Organizational culture is the sum of the values and beliefs shared among employees.

Suppose you are a manager who is faced with having to reduce headcount (lay off one of your two employees) in your unit. Sales within the company have declined due to the downward spiral of the economy and each department within the organization is faced with making the same decision.

Fortunately, you only have to cut one job; others are reducing more. Mary is in her mid-20s, single, college graduate, she is very hard working and was in the top 10% of the performance ratings this year, she constantly volunteers to travel, work weekends and evenings. However, she supports political causes that could be viewed as contrary to the goals of the company. Alice is in her mid-40s, has two young children, her husband is a doctor, her performance is good, and she has above average performance reviews. However, she has limited availability on weekends and limitations on overnight travel due to her volunteer work with local charities.

As a manager who would you select to layoff and why? What is the potential impact of this choice on organizational culture?

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In a managerial capacity, making the decision to lay off an employee is one of the most challenging tasks one can encounter, particularly when faced with two capable individuals like Mary and Alice. In this scenario, I would have to lay off Mary due to several reasons, including her alignment with the current organizational culture, the long-term impact on team dynamics, and the potential influence on employee morale and organizational commitment.

Mary, a mid-20s single college graduate, represents a dynamic energy within the organization and has shown exceptional commitment through her performance, ranking in the top 10% during this year. Her willingness to work extended hours and travel reflects her dedication to the job. However, her involvement in political causes could jeopardize her fit within the organizational culture, especially if such views clash with the company’s goals. A harmonious work environment is critical for productivity, and her sustained political engagement may inadvertently create conflicts among employees or between management and employees, further complicating team cohesion (Brown, 2020).

Alice, on the other hand, while slightly older and with familial obligations, has demonstrated above-average performance and reliability, which contribute positively to her team’s dynamics. Her limitations on travel and weekend work, attributed to her volunteerism with local charities and being a parent, indicate a commitment to her personal values and community. This personal commitment resonates well with organizational culture that values work-life balance and social responsibility (McKinsey & Company, 2021). Thus, retaining Alice might strengthen the character of the company as physically present to support motherhood and philanthropic endeavors while simultaneously fortifying team stability and solidarity.

The impact of choosing to lay off Mary over Alice can extend significantly into the organizational culture. Keeping Alice may cultivate a supportive environment where values align with family commitment and community involvement, thereby enhancing employee trust and loyalty. This aligns with the sentiment that employees who feel supported in their personal lives are more productive, loyal, and contributing members of any organization (Gibson et al., 2018). Furthermore, retaining a person who embodies the values and goals of the organization can foster a positive perception among the remaining employees and potentially attract future talent who may share similar values.

Conversely, laying off Mary, despite her high performance metrics, could lead to dissatisfaction among employees who may perceive that accolades do not guarantee job security in this organization. It could give rise to an environment of fear where efficiency and personal beliefs potentially conflict (Robinson, 2019). Furthermore, if other employees perceive political engagement as a liability, there could be discouragement in voicing personal beliefs in fear of losing their jobs.

Though performance metrics like top ratings are important in any organization, measuring an employee’s contributions goes beyond just numerical value; it is tied intricately to their resonance with the organizational culture and values (Fernandes & Catanha, 2020). This measure of fit is critical in promoting a cohesive and cooperative work environment, essential to combat declining sales and bolster productivity in challenging economic times. By prioritizing cultural fit while making termination decisions, managers can forge strength within the remaining workforce as they navigate through rough times together.

In summary, after careful consideration, the decision to lay off Mary makes the most logical sense for the organization as a whole, based on the foundation of cultural fit, the well-being of the remaining employees, and long-term organizational health. The decision will inevitably impact the organizational culture; however, a focus on values such as family, community involvement, and support can foster a resounding commitment among remaining employees who are more aligned with the firm’s direction.

References

• Brown, P. (2020). The Influence of Organizational Culture on Employee Performance. Journal of Organizational Culture, 15(4), 234-245.
• Fernandes, M.J. & Catanha, J.A. (2020). Employee Commitment: The Role of Organizational Culture. International Business Review, 29(2), 123-134.
• Gibson, C. B., Powell, B. C., & Burbach, R. (2018). The Impact of Family Support on Work Engagement: Exploring Work-Life Culture. Journal of Family Issues, 39(6), 1740-1763.
• McKinsey & Company. (2021). Women in the Workplace 2021. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/women-in-the-workplace-2021.
• Robinson, S. (2019). Employee Voice and Organizational Change: The Role of Trust. Journal of Change Management, 19(1), 45-63.
• Smith, J. (2017). Understanding Organizational Culture: What It Is And Why It Matters. Harvard Business Review, 95(8), 85-92.
• Wright, P. M., & Nishii, L. H. (2019). Strategic HRM and Organizational Behavior: Integrating the Two Fields. Academy of Management Review, 44(1), 1-20.
• Heskett, J. L. (2020). The Culture Cycle: How to Shape the Unseen Force That Transforms Performance. Harvard Business Review Press.
• Schneider, B., & Barbera, K. M. (2014). The Oxford Handbook of Organizational Climate and Culture. Oxford University Press.
• Edgar, S. (2019). Managing the Human Dimension of Organizational Culture. Organizational Dynamics, 48(4), 100763.