The definition of human resource management (HRM) has evolved from the mere hiring and firing of employees. However, the two remain critical functions of the HR department which is tasked with ensuring that the organization meets its staffing needs at all times. It can never be easy to fire someone from their job. Therefore, it is important to consider crucial aspects surrounding the decision with the aim of ensuring that it does not cause a lot of disruption.
Coping with the Negative Emotions
Undoubtedly, the process of separating an employee from an organization can never be easy and will likely involve a lot of emotion. Usually, the manager that makes the call will feel guilty and may be left wondering if they made the right call (Härtel and Ashkanasy, 2013). It can be hard to let an employee go regardless of the reason and whether there was enough justification for the decision. However, several things can be done to help the manager cope with the resultant guilt. First, it helps to communicate with individual who will be affected by the decision (Kiely, 2015). Communication is important as it shows the affected employee that the organization values him or her and that makes it easier to make peace with the decision.
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Dismissal is not something easy and is also not an occurrence that should be seen as the norm in an organization. In any case, it would take a lot of consideration and careful thought before making the call. In many instances, the employer would have tried other options before dismissing somebody (Ivancevich and Konopaske, 2013). For example, someone who arrives late for work would be warned and made to understand that repeating the offence could lead to dismissal. Sometimes the entity may be going through a rough patch which would force it to dismiss some of its people. Most organizations would explore other areas where they can cut costs and only dismiss people as a last option.
Communicating with the person who is being fired is something that is of much importance in the separation process. The person handling the matter should ensure that elaborate to the employee all the considerations made and every step leading to the decision (Kiely, 2015). For example, the manager should cite any wrongdoings committed by the employee as well as any attempts on the part of the employer to deal with the issue using alternative measures. The communication should also include an explanation of how the action that is leading to the dismissal goes against the organization’s code of conduct or any other statutes by which the entity operates (Ivancevich and Konopaske, 2013). On the other the hand, a dismissal necessitated by the need to downsize should also be accompanied by the same level of care on the part of the manager. The person must explain to the employee of the circumstances leading to the dismissal and why that particular person had to be the one to go (Kiely, 2015). Ultimately, communicating clearly will help the manager to minimize the guilt and the doubt that may be the aftermath of such a decision.
Allowing Time to Process the Emotions
The manner in which a dismissal is handled will undoubtedly have huge implications for both the employee and the manager communicating the decision. Part of the communication should include an allowance for the dismissed employee to come to terms with the happenings and the subsequent emotions (Kiely, 2015). The manger would need to allow for the affected individual to vent and to deal with the news as they deem fit. Allowing this space will not only benefit the employee but also help the manager to cope with any guilt and emotions that come with making such a decision.
Further, a manager ought to show compassion when dismissing someone. While it might just be a routine undertaking for the organization, it could potentially have life- changing ramifications for the employee. Therefore, it is only right to show a compassion and remorse towards the dismissed employee (Ivancevich & Konopaske, 2013). It would be wrong to do it in a callous manner or without showing a human side regardless of what the employee did. It is all about sharing in the pain felt by the employee and showing them that they matter even at their last moments in the organization.
Conducting the Dismissal Meeting
Ultimately, the manner in which the dismissal is handled matters a lot and would determine the impact that the decision will have on the organization and the employees that are left. Therefore, the entity has to be methodical about the whole issue and to plan meticulously on how the affected employee is informed about the decision (Bach and Edwards, 2013). There is perhaps no single agreed way of conducting the meeting but there are some considerations that should be put in place when executing the meeting. For starters, it is critical to have a face to face meeting when informing an employee of their dismissal from the organization (Ivancevich and Konopaske, 2013). While one may receive a letter beforehand, it is crucial to meet them in person and explain the decision.
A dismissal has to be done in a humane manner and one that considers the plight of the affected person. It is for this reason that the meeting should take place in private and not in the presence of other employees (Kiely, 2015). Another observation is that a dismissal should not be done on Friday which is the last day of the working week. Carrying it our earlier in the week would have the advantage of affording the fired employee the opportunity to look for alternative employment instead of spending the weekend just thinking of what just happened to them.
As earlier explained, the manage handling the dismissal would need to thoroughly explain the grounds for making the decision. Doing so will ensure that there is no doubt or confusion on the employee’s mind as to why the dismissal took place. The manager would also need to explain the severance or termination package which the employee is to receive and the accompanying details (Ivancevich and Konopaske, 2013). Apart from that, the manager would also need to collect company property that is in the possession of the employee at the time of the dismissal.
Calculating the Severance Package
The determination of the severance package is another important step in the dismissal process. Several things would be put into consideration here including the legal provisions that are applicable, the length of service for the employee and the reason for dismissal. One of the things to look at is the employment contract that the employee signed on joining the organization (Kiely, 2015). For example, a worker who is paid per hour is likely to have a provision that states that his severance would be equated to a week’s pay for all the years worked at the firm. In another instance, a person who is salaried may be entitled to an equivalent of two weeks’ pay for each of the years that they worked there (Bach and Edwards, 2013). Some organizations may include a lump sum amount that is paid at the point of dismissal. They may also include health insurance to be provided to the employee for an extended period following the separation (Kiely, 2015). Further, one may also receive a salary for a reasonable period with the hope that they will be able to find work during that time.
Timeline for the Disbursement of the Compensation
The process of determining the final compensation for a dismissed employee is one that requires careful consideration. The table below depicts some of the steps that may be followed before arriving at the figure to be paid to an individual;
Step | Description |
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Appraisal of employee performance in the preceding 6 months including a merit raise |
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Appraising 1 year performance to include promotion and merit increase |
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Determination of legal requirements related to severance pay |
|
How the Layoff May Affect the Company
Ultimately, people come into and leave the organization all the time. Dismissing an individual might appear minor on paper but could have major implications for the entity once the employee leaves. First of all, there are costs involved with the decision. An organization must remain aware of all the relevant costs involved and to ensure that the decision is not to the entity’s detriment. One of the reasons why an employer may decide to dismiss employees is to cut on business expenses. However, that comes with the costs of the severance compensation that is awarded to those leaving the organization. Apart from that, the firm could face litigation as a result of dismissing an employee and that could prove quite costly. Therefore, it is important to ensure that the decision to dismiss an employee does not expose the firm to legal action which could result in financial loss. Effect on Employee Morale
One of the main worries with dismissing an employee is the possible effect that move could have on the morale of those that remain. One must remember the fact that labor is human and has the capacity to have feelings and emotions. Losing one of their colleagues especially through dismissal can have a negative impact on employees. They may take the decision personally and that could result in their motivation reducing significantly. It is important for the organization to communicate the dismissal decision to the rest of the employees to avoid such an effect.
Possible Effect on Turnover
Cases of staff dismissal can often prove to be quite complicated. Many more people can follow on out of the organization following the departure of one of their own. Such a situation is likely if the rest of the people in the entity feel that one or more of their colleagues was unfairly targeted for dismissal. Therefore, it is important to ensure that there is a legitimate reason for the separation to avoid opening a can of worms.
References
Bach, S. and Edwards, M. (2013). Managing human resources Hoboken, N.J.: Wiley.
HÃrtel, C. and Ashkanasy, N. (2013). Emotions in organizational behavior Ney York: Routledge.
Ivancevich, J. and Konopaske, R. (2013). Human resource management New York, NY: McGraw-Hill Irwin.
Kiely, P. (2015). Termination of employment Auckland, N.Z.: CCH New Zealand.