Legal Issues in Reduction of Workforce Simulation - Essay Example

Legal Issues in Reduction of Workforce Simulation One of the best ways for an observer to obtain a vivid understanding of real life issues that occur in the business world is through viewing a simulation such as this one. The company that was represented in this particular simulation was Fast Serve, Inc., a direct marketer of branded sports apparel. Fast Serve is considering downsizing due to their recent decision to leave the online distribution market. In order to downsize, the company has decided to terminate three of its employees based on their work evaluations. The observer in this case is a senior manager from the Human Resources Department at Fast Serve. His objective is to determine which three out of five potential employees are to be terminated. This may sound easy enough, but it gets tricky due to certain laws that protect employees from unfair treatment, including termination, in the workplace. The observer has two weeks to make a decision that is in the best interest of Fast Serve and that does not violate any laws. The following table shows the key concepts of employment law that would affect his or her employment status for each of the five candidates for dismissal. The table also includes reasons why the selected individuals are being considered for termination. The text has been cited as appropriate. Carl Haimes Brian Carter Sarah Boyd Nora Manson Jenny Mills Male, Age 34 Homosexual, Contractor, Good Attendance, Above Average Production, No Special Achievements, Bachelor of Science in Information Systems, Maintenance of Computer Systems (2007, University of Phoenix). If terminated, the Civil Rights Act of 1965 in Sexual Harrassment could be called out (2005, Reed, O.L., Shedd, P.J., Morehead, J.W., & Corley, R.N.). Male, Age 32 Contractor, Poor Attendance (Wrist Injury) Average Production, Responsible for Internet Sales and Programming, Certified in VC++ & ASP (2007, University of Phoenix). If terminated, the Americans with Disabilities Act, Chapter 14 could be called out (2005, Reed, O.L., Shedd, P.J., Morehead, J.W., & Corley, R.N.). Female, Age 53 Full-Time, Average Production, No Special Achievements, No College Education, Understands Administrative Duties Thoroughly (Mail Sorting, Dispatching, etc.) (2007, University of Phoenix). If terminated, the Age Discrimination and Employment Act (ADEA) could be called out, as well as Employment at Will (Reed, O.L., Shedd, P.J., Morehead, J.W., & Corley, R.N.). Female, Age 28 Contractor, Good Attendance, Below Average Production, Rescued Two Major Accounts, College Dropout, Public Relations Skills, Customer Service, Telemarketing, Sales, Good Listener (2007, University of Phoenix). If terminated, the Civil Rights Act of 1964, Chapter 14 could be called out (2005, Reed, O.L., Shedd, P.J., Morehead, J.W., & Corley, R.N.). Female, Age 30 Pregnant, Contractor, Poor Attendance, Average Production, Contractor, No Special Achievements, Bachelor of Science in Public Relations, Troubleshooting, (2007, University of Phoenix). If terminated, the Pregnancy Discrimination Act could be called out (2005, Reed, O.L., Shedd, P.J., Morehead, J.W., & Corley, R.N.). There are certain extenuating regulatory circumstances (e.g., exceptions to employment at will, or a collective bargaining agreement) that would affect the decision to terminate these people. Simulations such as these help business managers and those with a vested interest in an organization or in learning the trade a good perspective on a real-world situation. Each of these is represented in the above table in the form of a law or act as listed. Under the agency principle, it is your obligation that you act in the best interest of the organization as opposed to self interest. Therefore, your decision on which three people to lay off must align with the best interests of the organization. The above table shows both flaws and strengths of certain individuals that are being considered for termination. The final decisions were determined based upon the best interest of Fast Serve, and the simulation was invaluable in helping to identify whether or not the decision to terminate a particular employee was in the best interest of the organization, as well as fully legal. The performance of the five employees in the table was carefully evaluated. In addition, their individual achievements were taken into consideration. All five of the employees had a certain challenge that acted against the best interest of the company, but that may have been covered under a law that was designed to protect them against termination in an instance such as this, and each of those were listed in the table. The legal risk of terminating individuals from a protected class against the business risk of losing valuable talent must be balanced. Since Fast Serve is wishing to downsize, yet be highly profitable and productive in the future based on the decisions that they are making now, the importance of this decision is critical. The three employees that were selected to be terminated were Brian Carter, Sarah Boyd, and Nora Manson. Brian Carter was a large technological investment for the organization, but Fast Serve did not have enough in the way of Internet transactions to support the expense of keeping him on the payroll. He has carpal tunnel syndrome, so he is protected against being terminated because of his disability, but that is not the reason he is being chosen for termination. The company simply does not need his services anymore and they are downsizing (University of Phoenix, 2007). Sarah Boyd was also chosen for termination although she has been with the company for over 15 years. Her experience puts her in a positive light within the organization, but she has yet to make any major achievements in their best interest despite the many years she has spent with them. Although she understands administrative duties quite thoroughly, many of those she has a good grasp on are soon to become automated, so she will no longer be needed. That was the sole reason why she was chosen for termination. She was given a severance package to ease the burden that her termination caused her, as well as to reduce the possibility that she would claim unfair termination under the Age Discrimination Act (University of Phoenix, 2007). Nora Manson was the final employee chosen for termination. This decision was made due to her lack of productivity. The decision was shocking since she is quite popular within the organization due to some of her past achievements in public relations, but still her overall productivity suffers (University of Phoenix, 2007). Interestingly, the simulation holds that choosing Manson for termination was not a good decision in this case. Following a complaint she made after being terminated, she was instead placed on probation under the terms that her productivity must increase. She was also required to maintain open communication with her supervisor. In this case, giving her a warning and placing her on probation was in the best interest of the organization (University of Phoenix, 2007) . Through understanding the decisions that were made in this exercise, the viewer gains a better understanding of regulatory requirements that govern the termination of employees. The laws that were considered in this case were those that protect a company's employees against unfair treatment or wrongful termination. As was learned in the case with Manson, sometimes it is in a company's best interest to assist an employee rather than terminate him or her (University of Phoenix, 2007) In conclusion, decisions of this nature must be made in light of what is legal and what is ethical. A company must make decisions that are in their own best interest without losing valuable talent or risking a lawsuit. References Reed, O.L., Shedd, P.J., Morehead, J.W., & Corley, R.N. (2005) The Legal and Regulatory Environment of Business, (13e) The McGraw-Hill Companies, New York, New York University of Phoenix. (2007). Course Syllabus for MBA 560/Risk Enterprise and Legal Issues in Reduction of Workforce Simulation, Retrieved February 21st, 2007, from University of Phoenix, Student Resource Web site: https://www.phoenix.edu Read More