Organizations Must Sometimes Make Hard Decisions ✓ Solved

Organizations From Time To Time Must Make Hard Decisions Expand Lay

Organizations from time to time must make hard decisions (expand, layoff 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 (layoff one of your two employees) in your unit. Sales within the company have declined due to the downward spiral of the economy 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 other factors can be used to decide who gets laid off in organizations? How should an organization choose between a decision that is legal and in the best financial interests of the organization, but which could be viewed as unethical?

Sample Paper For Above instruction

Making difficult layoffs is a challenging aspect of management, especially in a context where economic downturns force organizations to reduce their workforce. When faced with such a decision, managers must rely on a combination of organizational culture, employee performance, ethics, and legal considerations to determine the most appropriate course of action.

Understanding Organizational Culture and Decision-Making

Organizational culture encompasses shared values and beliefs that influence employee behavior and decision-making patterns. It provides a framework within which managers evaluate employees' contributions and potential impacts of layoffs. A culture that emphasizes fairness, transparency, and employee development might guide a manager to consider more holistic criteria beyond performance alone.

Analyzing Employee Profiles and Performance

In the scenario presented, two employees, Mary and Alice, demonstrate different strengths and limitations. Mary, a young high performer, has consistently achieved top ratings and demonstrates dedication through her willingness to work evenings and travel. Nevertheless, her political beliefs may conflict with organizational values or policies, raising ethical questions about her fit within the company's culture.

Conversely, Alice, with her moderate but steady performance and family commitments, offers reliability but limited flexibility due to her volunteer activities. Her limitations in travel and work hours might impact her ability to meet organizational needs during critical periods.

Factors to Consider Beyond Performance

While performance ratings form a critical part of decision making, other factors are equally essential:

• Legal Compliance: Ensuring layoffs do not violate anti-discrimination laws or infringe on employee rights.
• Ethical Considerations: The morality of decisions and their impact on employee morale and organizational reputation.
• Role Criticality: The importance of the employee’s role in organizational operations.
• Potential for Future Contribution: Employees’ potential to adapt and contribute to the organization’s growth.
• Cost-Benefit Analysis: Financial implications and long-term organizational sustainability.

Balancing Legal and Ethical Concerns in Layoffs

Organizations often face the dilemma of balancing legal obligations, financial interests, and ethical standards. Legal compliance is non-negotiable, but ethical decision-making promotes organizational integrity. A decision that may be legally permissible but ethically questionable—such as laying off an employee based on personal beliefs—could harm the organization's reputation and employee trust.

Thus, organizations should establish clear, fair policies and procedures for layoffs that align with ethical standards and legal requirements. Transparent communication, fairness, and consistency are vital to maintain organizational credibility and employee morale.

Conclusion

Deciding whom to lay off involves complex considerations that extend beyond performance metrics. Managers must integrate organizational culture, legal standards, ethical principles, and strategic organizational needs. When facing such decisions, prioritizing fairness, transparency, and adherence to ethical standards helps organizations navigate tough choices while maintaining trust and integrity.

References

• Cascio, W. F. (2018). Managing Human Resources. McGraw-Hill Education.
• Greenberg, J. (2019). Managing Behavior in Organizations. Pearson.
• Byars, L. L., & Rue, L. W. (2017). Human Resource Management. McGraw-Hill Education.
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• De Cremer, D., & Van Dijke, M. (2019). Ethical Decision-Making in Organizations. Routledge.
• Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine.
• Resnik, D. B. (2021). Ethical Decision-Making in Organizational Contexts. Routledge.
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