Dismissal Meeting

Outline One of the most challenging roles of a manager is terminating an employee. Once the decision to terminate an employee has been made, managers find themselves in a rather awkward situation of having to break the bad news to the employee. Terminating an employee is not always a pleasurable activity because it comes with several challenges.Advertising We will write a custom essay sample on Dismissal Meeting specifically for you for only $16.05 $11/page Learn More First, it can be traumatizing to the laid off employee and the other employees who have remained behind. Second, layoffs have emotional effects on the managers who have to plan and conduct the whole process. Finally, termination always comes with issues of compensation and potential threats of lawsuits if it is mishandled. Thus, simply put, terminating an employee is one of the worst things a manager ever has to do. However, if the dismissal meeting is conducted in a professional manner, it can help maintain the employee’s dignity and help minimize any potential eventualities. Introduction One of the most difficult decisions for managers is that of dismissing an employee (Molinsky Margolis, 2006, pp. 145-159). Dismissing an employee often comes with several challenges especially when done in the context of a layoff (Grunberg et al, 2006, pp. 159-178). Yet, dismissal is one of the most common decisions managers must make. It is a usual practice in contemporary business management. Dismissal is usually done as a measure of cutting expenditure to achieve profitability (Gareth George, 2011). First lines managers usually bear the brunt of informing individual employees that they are to be laid off (Armstrong Baron, 2002). To do this successfully requires a lot of tact. Dismissing an employee who is friend is definitely a painful procedure. Such an exercise is bound to leave an indelible mark on the manager implementing the decision. Having to dismiss an employee creates a lot of negative emotions on the manager. Such emotions are sometimes so severe that managers tend to avid or distance themselves from having to undertake the process altogether (Grunberg et al, 2006, pp. 159-178).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Three ways that a manager can cope with any negative emotions that may accompany an employee layoff Layoff can cause negative emotions to a manager who has to implement the directive. Whereas some managers will adjust well after the layoff, some will become aloof and distressed. Still, others are likely to develop insomnia, or become increasingly insensitive (Grunberg et al, 2006, pp. 159-178). In some cases, some managers might become confused as to their actual roles. This creates a sense of guilt, breakdown, and failure. Because these negative emotions can cause heath complications, it is important to cope with them. How a manager copes and behave after the layoff will have a direct effect on employee’s behavior and, consequently, their motivations and effectiveness (Armstrong Baron, 2002). Managers can cope with the above negative emotions in several ways. First, managers can seek guidance from a counselor or a medical practitioner to help them overcome depression and guilt. Second, the manager should get assurance from their superiors that the decisions they implemented were right (Grunberg et al, 2006, pp. 159-178). This validation will help in eliminating feelings of guilt and help assure the manager that after all, they were merely doing their work (Knights Willmott, 2012). Third, a manager should have an open communication with other line managers, the employees and other interested parties. They can also meditate, take some leave, or engage in interesting events such team building, community service, or sports. These can go a long way in helping the manager cope with the above negat ive emotions. A step-by-step process of conducting the dismissal meeting An employee can be dismissed because of several reasons. Once a decision has been arrived at to dismiss an employee for which ever reason, the next challenge is usually how to break the news. The first thing is to organize for a professional dismissal meeting (Stewart Brown, 2012). The dismissal meeting should be arranged only after a well thought out ground work and documentation to validate the decision to dismiss the employee. The dismissal meeting should be done in a manner that maintains the employee’s dignity.Advertising We will write a custom essay sample on Dismissal Meeting specifically for you for only $16.05 $11/page Learn More This is meant to reduce chances of the employee resenting the manager and the organization as a whole (Knights Willmott, 2012). It can also help in minimizing chances of former employees portraying the organization in bad light thereby sa feguarding the reputation of the organization. Communication should told direct i.e. one-on-one not using any other communication method. The dismissal meeting should be conducted by the immediate boss, who is usually the most conversant with the employee and the reasons for the dismissal (Stewart Brown, 2012). Sometimes, there is need to have a third party as a witness. Having a witness helps reduce the feeling of unfair treatment on the part of the employee being terminated. However, the manager must state categorically the role of the witness; that of observation and not to represent or speak on behalf of the employee. The meeting should be conducted in a quiet, private setting with no interruptions. According to Armstrong Baron (2002), the dismissal meeting should be held in a neutral place. It should neither be conducted in the managers’ officer nor in the office of the employee being dismissed. Although finding a private and neutral place can be a challenge in some ca ses, it is integral that the meeting be held where it is possible to manage any emotional involvements and where the meeting can easily be ended once the bombshell has been dropped. Good HR practice requires that a dismissal meeting be held earlier in the day and earlier in the week (Stewart Brown, 2012). Employees should not be dismissed on Fridays or on the eve of holidays. Dismissing an employee on a Friday might give them time to organize some retaliatory attack on the company. Dismissing an employee earlier in the week is a blessing in disguise to the employee since they are likely to have more time to begin another job search immediately. Similarly dismissals should be conducted in the morning hours when employees are fresher and relaxed. Later in the day, the employees will most likely have developed some work related stress (Quick Nelson, 2009) which might bring undesirable reactions to the dismissal.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In the actual termination meeting, the employee must be given an adequate reason why they are being terminated (Gareth George, 2011). The termination meeting should last between ten and fifteen minutes. This is because its purpose is to communicate to the employee in a simple and clear message that the employee is being terminated and the reason as to why. The reasons for dismissing an employee must be adequate and reasonable (Stewart Brown, 2012). The manager should probe the employee to gauge if they have understood and if they have any concerns to raise. By giving the employee a chance to respond and clearing any misunderstandings thereof, the manager will in essence, be minimizing any potential chances of lawsuits for wrongful dismissal. In clear and in no uncertain terms, the employee must be made to understand that that the termination decision is final. The employee needs to understand that the position has already been taken, all options have been explored, and that even o ther interested parties have agreed to the dismissal (Stewart Brown, 2012) and that the manager is merely acting as an informer. This will enable the manager to maintain their composure in the whole process. It can also help in avoiding any potential physical aggression from the employee. During the meeting, the manager must explain the company’s policy on reference checks (Armstrong Baron, 2002). The employee should be told how the company handles reference information. If the company has a policy on providing job designations, employment history, and salary information to prospective persons who request for it, this information should be communicated to the employee during the dismissal meeting. Upon request, the manager should provide a letter of service (Stewart Brown, 2012). The manager should collect company items from the employee. Such items could include job identification cards, company vehicles, keys, cell phones, or any other such materials. Granted, the manage r might opt to collect the items during the termination meeting. Alternatively, the manager might want to avoid embarrassing the employee and allow them to return the things at a future specified date. According to Stewart Brown (2012), these items can be collected later when the employee is formally handing over. Armstrong Baron (2002) have argued that the manager should also take some time to brief the employee on the issue of benefits in the course of the termination meeting. The compensation that the company may provide to the separated employee A number of compensation and benefits packages are available to the employee being terminated. Such compensation includes vacation compensation, severance compensation, and continuation of health insurance compensation (Stewart Brown, 2012). Others include unemployment insurance compensation and retirement benefits as provided for under the Consolidated Omnibus Budget Reconciliation Act (CORA) of 1985. Employers are obliged by these s tate and federal legislation to continue providing separated employees with such compensation. However, there are no legal provisions compelling employers to provide severance compensation or any other benefits to the separated employees. Because layoffs are usually rare, the employee can be paid in full, the last drawn salary in lieu of the notice period. If the employee if being terminated because of performance, the employee will be compensated their last drawn salary. If the employee is being dismissed for disciplinary reasons, the employee will not be paid for the notice period (Armstrong Baron, 2002). Such employees do not enjoy insurance and unemployment benefits. Finally, federal legislation provides that terminated employees are eligible for pension or profit sharing according to the terms of the plan. HR experts believe that as a good practice, the manager should prepare the final paycheck and have it ready at the meeting (Stewart Brown, 2012). This is a positive thing t o do and might help reduce feelings of resentment by the separated employee. A chart that depicts the timeline of the disbursement of the compensation Three ways that layoff may affect a company Layoffs may affect a company in several ways. First, the message might not be communicated well to the victims being terminated. This can infuriate employees and breed in them the feeling that management is insensitive to their needs. This might eventually damage the reputation of the company (Quick Nelson, 2009). Secondly, depending on the manner in which it is handled, layoff can push the sacked employees to seek redress though such acts as lawsuits for wrongful dismissal, vandalizing company assets, or theft (Molinsky Margolis, 2006, pp. 145-159). Thirdly, layoff can reduce the morale of the existing employees. Finally, witnessing an employee being laid off can create a sense of job insecurity and fear in the remaining employees. Thus, it is imperative that managers treat the affected victims in a dignified, respectful, and compassionate manner in order to minimize the above negative effects. Conclusion This paper has established that dismissal is a very challenging role that managers have to undertake (Molinsky Margolis, 2006, pp. 145-159). Managers who spearhead and implement the dismissal of employees usually undergo a lot of negative emotional and psychological stress. Layoff are painful experiences which are sometimes characterized by indelible memories which, if not well managed can lead to distress. Managers have been known to develop insomnia, become aloof or have little feelings (Grunberg et al, 2006, pp. 159-178). In order to cope with these negative emotions, the manager should see a counselor or a medical practitioner. Alternatively, the manager can have a candid communication with their superior and other line managers. Managers can equally meditate, take leave, or engage in team building exercises. When conducting a dismissal meeting, the manager m ust maintain the employee’s dignity and ensure that the meeting is done in a private place (Stewart Brown, 2012). Dismissals should be done in the morning hours, with employees being given adequate reasons why they are being terminated. Termination decisions are usually final implying that any relevant compensation like health insurance, unemployment insurance and retirement benefits should be clearly highlighted (Armstrong Baron, 2002). Layoffs have several effects on a company. If it is not well-handled, the company can find itself dogged with many law suits for wrongful termination. References Armstrong, M., Baron, A. (2002). Strategic HRM: The route to improved business  Performance. London: CIPD. Gareth, J. R., George, J. M. (2011). Contemporary management (7th ed.). New York: McGraw-Hill/Irwin. Grunberg, L., Moore, S., Greenberg, E. S. (2006). Managers’ reactions to implementing layoffs: Relationship to health problems and withdrawal behaviors. Human Resou rce Management, 5(2), 159-178. doi: 10.1002/hrm. Knights, D., Willmott, H., (2012). Introducing organizational behavior and  management (2nd ed.) London: Thompson Learning. Molinsky, A., Margolis, J. (2006). The emotional tightrope of downsizing: hidden challenges for leaders and their organizations. Organizational Dynamics, 35(2), 145-159. doi:10.1016/j.orgdyn.2006.03.005 Stewart, G. L., Brown, K. G. (2012). Human resource management (2nd ed.). Danvers, MA: John Wiley Sons, Inc. Quick, J. C., Nelson, D. L., (2009). Principals of organizational behavior: Realities  and challenges (6th ed.) China: South Western, Cengage Learning. This essay on Dismissal Meeting was written and submitted by user The Watchers to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Dismissal Meeting Develop a fictitious company and write a brief description about the company Guild-ford is a company that specializes in processing and packaging yoghurt, cheese, and fresh milk. The company has its headquarters in California valley, United States. Guild-ford’s main competitor is the pacific gold producers. Guild-ford has 56 employees. They are all driven by their commitment to quality and high standards of service (Mathis Jackson, 2003).Advertising We will write a custom case study sample on Dismissal Meeting specifically for you for only $16.05 $11/page Learn More Guild-ford had previously faced an economic downturn because the market was becoming highly competitive. This challenge would only be solved by restructuring the company, a process that saw nine employees laid-off. This step was an absolute managerial tool rather than a first resort. Research shows that layoffs cause severe human consequences because they are costly for the individual s, their families as well as the entire community. It was inevitable to deal with emotions that the various affected employees had depicted. The remaining employees were also faced by severe emotions that if not handled properly, the company’s production level would have declined by 75% because of reputation decline (Mathis Jackson, 2003). Propose three (3) ways that a manager can cope with any negative emotions that may accompany an employee layoff It is possible that after retrenching some employees, the remaining employees will experience fear and insecurity. The main reason behind this is the uncertainty that is likely to be accompanied by this change. For instance, the left employees are uncertain about their job security. They cannot predict how the company will go on or even what roles they will be playing in the restructured company. The remaining employees live with the fear that the next lay-off might affect them, thus they become unstable in their performance. Ang er can particularly affect the management itself. The manager can feel guilty of laying-off its employees. The manager also has to cope with anger; an emotion that may affect the company’s performance. Moreover, the laid-off employee’s anger can lead to the filing of lawsuits. There is also a possibility that the left employees could engage in gossips that may ultimately affect the company’s reputation. This may go to the extent that the emotionally affected staff get physically sick and quit their job or start looking for other companies where they feel more secure. All the above emotions contribute to a decline in human capital and can be detrimental to the company’s performance (Miller Kahn, 2008). In a restructuring company, such emotions cannot be avoided. When they accumulate to high levels, they become more harmful and translate to serious negative impacts on the firm. The manager has to be keen on the above emotions and must be ready to reduce th eir effects as much as possible. In order to handle the challenges, the following solutions are recommended.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More First, the manager must understand the emotional side and handle it with appropriate sensitivity. The manager has the duty of communicating the importance of these emotions to the middle managers who in turn implement the restructuring decisions. If they fail to respect the emotions, the management might fail to control the anxiety and the fear of employees in the restructured company. The employees might be unable to perform well and to learn new skills. The manager must deal with this by being sensitive to emotions and creating management personnel that pays necessary attention to employees’ emotional problems (Miller Kahn, 2008). Second, enough mourning time must be accorded to the remaining employees. In this case, the employees are given time to share and talk about their emotions. Research has proved that creation of emotional zones can be a very powerful tool-for the obvious reason that if people share their problems with colleagues, they feel somehow relieved. Third, a manager who clearly understands the emotions that may accompany an employee’s lay-off has a better position of reducing the effect of these emotions. For example, the company should do the entire process in a humane way. The way a company handles the lay-off process determines the impact the process will have on the remaining employees. The manager can achieve this by offering the dismissed employees a severance pay and clearly elucidating why the process had to happen. Siemens and Cisco companies are relevant case examples given the way they treated their dismissed employees at one particular time. The companies gave their dismissed employees a fair compensation in form of money. This alone signaled the remaining employe es that the companies cared about their employee’s emotional welfare. An honest and open passage of a massage from the top management is highly appreciated. The laid-off employees get firsthand information on the reason behind the restructuring process, and their eventual lay-off (Miller Kahn, 2008). Describe a step-by-step process of conducting the dismissal meeting The following is a systematic process of conducting such a meeting. It is important to follow the acceptable criterion that does not interfere with the reputation of a company to the valued customers and employees.Advertising We will write a custom case study sample on Dismissal Meeting specifically for you for only $16.05 $11/page Learn More The dismissal meeting should be scheduled early in the week. This permits the dismissed employees an adequate time to apply for employment insurance benefits, connect with the outplacement counselor and review severance arrangements with legal advisors. If possible, the meeting should be convened at the end of a workday. This allows the dismissed to leave in privacy and meet with their families or friends for an emotional support. A third party has to be involved in the meeting who keeps a clear record of what both the employer and the employee say. The third party also confirms that a termination package or letter has been presented to the employee. A letter of reference should be presented to the employee at the dismissal meeting as well. The letter should depict honesty, truthfulness, and must not necessarily have the qualitative assessments of the employee. Similarly, an employee’s duly completed record of employment (ROE) should be ready to be given to the client during the meeting. This allows the employee to apply for employment insurance benefits immediately. A neutral location such as a boardroom or the employee’s own office should be used to hold the meeting. This reduces the level of intimidation of the affected employee. These are some of the valued humane and legal considerations. During the meeting, it is the role of the employer to act in good faith. If an employer for example proceeds in a manner that causes unnecessary embarrassment, then courts may argue that the duty to act in good faith was breached. During the meeting, the employer needs to be direct and to the point. Alternatives may include the use of an employment lawyer. It is also important to avoid debates during these meetings. â€Å"The employee should be told clearly the decision must be final† (Milkovich, Newman, Milkovich, 2005, p. 66). The representatives of the employer must avoid arguments regarding the reasons for the dismissal. In the event of a dismissal without cause situation, the employer should not disclose the reasons. On the other hand, if the dismissal was for cause, the employer has the obligation of reviewing the reasons for the decision. This eliminates the probability of the emp loyees claiming that they were dismissed for cause without being informed. After covering the above steps, the meeting should be brought to a conclusion. The employees have to return any company property they possess. The employee should be given an opportunity to collect personal belongings. Determine the compensation that the fictitious company may provide to the separated employee Guild-ford offered a number of benefits to the laid-off employees. These included the severance pay and unused annual leave. Severance pay was made available to any laid-off employee provided he or she did not decline an offer of a position that is in the same agency, in the same commuting area or that is two grades lower than the employees grade level. The employee, however, had to have worked with the company for one year. The separated workers can also redeem unused annual leave. This involves giving the separated employee a lump sum payment equivalent to the accrued annual leave (Bratton Gold, 200 0). Using Microsoft Word, a graph or an equivalent, create a chart that depicts the timeline of the disbursement of the compensation â€Å"Severance pay can be issued biweekly at the current employee’s rate before separation† (Milkovich, Newman, Milkovich, 2005.67). The total severance pay is carried out for the next 52 weeks. All the nine laid off employees were eligible for this pay. For the Annual leave, only the employees with over 12 months of service to the company were eligible to receiving an amount for their unused annual leaves (Milkovich, Newman, Milkovich, 2005). Only four employees had not received their leave. These were hence eligible for the annual leave compensation by the Guild-ford Company. It took 10 days (from May 1st to 10th) to provide these payments to the employees as follows. Employee’s Name Severance hours Current minimum wage Total amount 1 80 $7.25 580 2 90 $7.25 652 3 100 $7.25 725 4 50 $7.25 725 5 20 $7.25 725 6 10 0 $7.25 725 7 100 $7.25 725 8 90 $7.25 652 9 90 $7.25 652 The four employees eligible for the annual leave were compensated as follows. Employee’s name Annual leave amount Date issued 6 $1500 30th June 2013 7 $1800 30th June 2013 8 $1798 31st July 2013 9 $2000 30th August 2013 Predict three (3) ways that this layoff may affect the company As discussed in the above assay, the lay-offs are accompanied by many emotional stresses from the laid-off employees, the management, and the remaining employees. This can be detrimental to the general output of the company as most of the workers lack the morale to continue working.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The fact that the company was undergoing restructuring was a direct implication that it was operating on a loss as elucidated in the essay. The amount of capital required to pay for the lay-offs is pretty a large sum that can cause another pressure on the company’s available funds for restructuring. However, Failure of the company to observe the law during the layoff process can lead to a poor image and reputation of the company from its internal and external stakeholders. This can affect its sales in future. References Bratton, J., Gold, J. (2000). Human resource management theory and practice (2nd ed.). Mahwah, N.J.: Lawrence Erlbaum. Mathis, R. L., Jackson, J. H. (2003). Human resource management (10th ed.). Mason, Ohio: Thomson/South-western. Milkovich, G. T., Newman, J. M., Milkovich, C. (2005). Compensation (8th ed.). New York: McGraw-Hill/Irwin. Miller, E.G., Kahn, B.E. (2008). Consumer wait management strategies for negative service events: a coping approach. Jour nal of consumer research, 34(5), 635 – 648. This case study on Dismissal Meeting was written and submitted by user Edith J. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.