MHR 523 Lecture Notes - Lecture 12: Punitive Damages, Job Satisfaction, Employee Retention
11 Apr 2017
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Temporary workers, overtime, loss of sales due to vacancy. Separation interview, administration, separation or severance pay. Should be fair, after all reasonable steps taken to rehabilitate employment relationship. Pay reduction, use of vacation time, contingent workers, work sharing. Investors generally respond negatively to the announcement of a layoff. A recent study showed that downsizing has a negative impact on stock market returns. The negative effects were reduced or eliminated if the firm adopted a relocation strategy or downsizing incentives. Most common criteria applied to lay off employees used by both union and non-union firms is seniority. Advantages: perceived as fair by employees because it is easy to measure and apply and protects the jobs of those who have the largest human and social capital investments in the firm. Other criteria include employee performance and having transferable skills for other jobs. The push strategy is more direct in its approach to dismiss employees that are considered redundant.
