International Human Resource Management - Assignment Example

 TABLE OF CONTENTS TABLE OF CONTENTS 1 1. Three ways that manager can cope with any negative emotions that may accompany an employee’s layoff: 2 2. Description of step-by-step process of conducting the dismissal meeting: 3 3. Determine the compensation that the fictitious company may provide to the separated employee: 5 4. Timeline of the disbursement of the compensation: 7 5. Ways that this layoff may affect the company: 7 References 9 1. Three ways that manager can cope with any negative emotions that may accompany an employee’s layoff: It is a painful task for a manager to terminate its employee as they form the basis of organizational performance. One way in which the manager can cope up with the pain of an employee’s laid off is to provide them with a number of packages which could provide economic benefit and thereby reflects compensation and understanding of the management team towards the impact of the termination (GHANDI, 1983). Even though, most of the companies tend to offer less in dismissal package, 90% of the employee sign the release letter in order to receive the dismissal pay (Dickmann, 2009). The second way is to smoothenthe effects of lay off for the managers or company to do their best and find out those leaving the company for a new job. This includes calling the candidate before hiring, help them a get better job opportunities in the market. The company should bear all expenses related to the career counselling of the people. In this context, company can provide on-site training for good resume writing and offer an interview session for the employees. The company should bear all the expenses in the hope of better prospects and greater loyalty from their existing employees. The third way to help layoff employee is to offer psychological counselling by the managers or company according to the psychologists, “loosing job is similar to losing someone very close to you” (Richardson, 2001, p. 45-54). Lots of psychologists and employment consultants have said that, people who have lost their jobs in their youth face a critical situation, which creates critical mental trauma. The psychologists (Grigg, 2005) have stated that, in recent days terminated people are going through a wave of emotions and they easily convert these emotions into mental shocks, depression, bargaining, denial to anger, and finally acceptance. Majority of the job councillor says that the key to overcome a job layoff problem is not only strengthening the emotions, but also understanding how to deal with the after effects of termination on the terminated and existing employees. 2. Description of step-by-step process of conducting the dismissal meeting: Dismissing an employee is a very difficult job for a manager and has to be done very carefully. Dismissal meetings that are poorly managed can break the trust and loyalty of the employees for the organization. Just as any management task, the dismissal meetings also need to be done well and in a legitimate way (Haq and Yarbrough, 2006). An employee can be terminated due to several reasons, including legality, redundancy and some substantive issues related to the job. There are basically seven steps that a HR managers needs to follow for conducting a dismissal meeting. The seven steps are described in below: Step 1: Informing the employee who is underperforming and discuss the reason for arranging the termination. A face to face meetings needs to be set up between both the parties to discuss about the expected conducts, performance requirements and dismissal rules. The HR manager should keep patience and do not argue with the employee unnecessarily. Step 2: The manger should focus on the appropriate reason for the dismissal. During the meetings, discuss the reasons for termination, benefits and references. The manager should avoid discussing anything which is not relevant to the reasons for employee’s termination. After discussing all these (for instance review the separation and release agreement), take final decisions on employee termination and give the termination letter as per the company’s practice or state of requirements. Step 3: Following the termination letter, allows the employee to get back their personal evidence. It helps them to mitigate claims and allow them to formulate a respectful gesture. Step 4: Gather property of the company from the employee including employee handbook, credit cards, phones, laptops, keys, autos and so on. Step 5: Give the staff their pay check as quickly possible and clear all the dues. In this context, the HR manager should make sure to pay the employees in full of their salary based on the last day of their work regardless of the time of the day when they will finally leave the office. Step 6: Allow the staff to leave the office premises immediately after the termination meetings and collecting all of their personal belongings from the office. Step 7: Document the termination decisions in the written paper and note down if any comments are made by the employee. 3. Determine the compensation that the fictitious company may provide to the separated employee: The term compensation refers to a combination of wage, salaries, provident fund and other benefits that employee generally receives in exchange of their work from the company. When a manager decides to dismiss its employee, he or she should disburse all the compensation to the employee (Bjorkman and Stahl, 2010). It ensures that the remaining employees will stay connected with the organization for a longer period of time and feel secured with their job. A fictitious company generally provides a number of compensation to the separated employees, for instance, remaining salaries; encashment of leaves, provident fund, retirement savings, remaining incentives and bonuses, health benefits etc. Remaining salaries – There are no legal terms that can force the employer to pay the salary of the employee after the period of disbursement. However, to protect the image of the company and ensure loyalty from the remaining employees, employer of any fractious company generally takes the responsibility to pay out all the salaries and unpaid salary up to their work period (Rightsatwork, 2014). The HR manager provides the employee full salary up to their work period. Encashment of leaves – an employee receives payments instead of their contractual leaves. Before terminating, the employer should check employment report of their employees and find out whether there is any leave leftover during his or her employment period. Thus, if the leave of the terminated employee are left then the employer should en-cash out the leaves. Retirement savings – Generally, fractious companies keep a percentage of the gross salary of its employees and invest it on the retirement plans (Dickmann, 2009). The basis of the plan is to give the entire fund to the employee as a retirement benefit. But, when the employee gets terminated, there is no meaning of retirement plan. Thus, if the employee leaves his job before completing the contract period, the company generally pay out all the non-vested employer’s contributions that he had made during his employment period. Remaining incentives – Employers in the fractious companies pay a compensation plan with an increment in the salary to motivate its employee towards their jobs. For example, a performance appraisal conducted by the company results 5% increase in their salary and paid the amount over a certain period of time (Contract Standards, 2014). Therefore, in middle time if an employee gets terminated, they should clear all the incentives that the employee has earned during his/her employment period. It can be payable at three months or four month instalment. Health benefits – The total compensation plan of fractious companies also may include the provision of health care benefits. Many employers keep a certain amount of total monthly premium and deduct it from the employee’s monthly pay. Employees deposit a certain amount of their total income as a short term health insurance contracts. Thus, the employer should pay out all the money that was kept by the employer as an employee’s total compensation. 4. Timeline of the disbursement of the compensation: Disbursement of compensation 1st Week 2nd Week 3rd Week 4th Week 5th Week 6th Week Remaining salaries   Encashment of leaves   Retirement savings     Remaining incentives   Health benefits     5. Ways that this layoff may affect the company: A layoff or employee dismissal may appear as a minor incident for an individual or employee, but it imposes a numerous impacts in a company, where many other employees work together as a team member to achieve a common objectives. A layoff minimise links among the team member and as a result provide negative impact on the organizational productivity. Several challenges that a company faces when layoffs occurs are analysed in below: Direct Cost: When the financial condition of the company is not much healthy, the management team in a company generally anticipates to saving money on payroll and employee benefits. For example, if a employee layoffs, the company has to bear additional cost of issuing severance pay to the outgoing employee, increase salaries for the existing employees and arrange placement service for hiring a new one (Employmentlawhandbook, 2014). Thus, layoffs incurred huge cost on the organization in terms of minimising savings. Increased Turnover: Business organizers, who execute employee layoffs, are often seen that the remaining employees have also a tendency to resign from their jobs (FindLaw UK, 2014). Layoff also can create disillusion among the top class employee and encourage them to leave the company. Watching a colleague dismissal can make the remaining employees to feel that the job offer provided by the other companies are more attractive and thus they actively seeks for new job opportunities. Emotional Distress: The employee, who has been terminated, suffers from depression while the other employees within the company also undergo emotional downfall. It affects the productivity level of the employee as they works in a fear to be terminated. Thus, layoff disturbs the status quo. The situation could damage the company’s status when the person who has lost his/her job and have to serve the company until the date of termination. References Bjorkman, I.,and Stahl, G. (2010) Handbook of Research in International Human Resource Management. 6th ed. Oxford: Blackwell Publishing. Contract Standards. (2014). Termination Benifits, Retrieved from http://www.contractstandards.com/document-checklists/severance-agreement/severance-benefits. Dickmann, M. (2009) International Human Resource Management: A European Perspective, 3rd ed. London: Thomson Employmentlawhandbook (2014). 8 Tips for Handling a Dismissal Meetings , Retrieved from http://www.employmentlawhandbook.com.au/8-tips-for-handling-a-dismissal-meeting/. FindLaw UK.(2014). Compensation and other remedies for constructive dismissal , Retrieved from http://www.findlaw.co.uk/law/employment/constructive_dismissal/500233.html. GHANDI, S. (1983). UNFAIR DISMISSAL: State immunity and unfair dismissal. Ind Law J, 12(1), 109-111. Grigg, J. (2005). Jonathan Edwards's Life of David Brainerd and the Northampton Dismissal. History Compass, 3(1),342-432. Haq, S. and Yarbrough, W. (2006). Dismissal of Patients from Chronic Opioid Therapy; Reasons for Dismissal and Potential Interventions. Southern Medical Journal, 99(9),1035. Richardson, B. (2001). Constructive dismissal: pursuing a claim for unfair dismissal. Nurs Residential Care, 3(12), 590-592. Rightsatwork. (2014). Unfair Dismissal, Retrieved from http://www.rightsatwork.co.uk/employment-law/unfair-dismissal-capability.html. Read More