Staffing Case

Staffing is affected a great deal during a downsizing in a company. Human resources will need to make sure that there are enough employees to cover shifts and perform the duties essential for the company to meet product demand. A company does not want employees to be over-scheduled and managers would monitor overtime. If employees are union, HR must keep any job and safety requirements preferred by the union.

The number of unemployment claims could affect employee and labor restrictions. Businesses are required by law to recognize and negotiate with unions. They also have to maintain accurate records of unemployment claims when departing employees are eligible for state unemployment benefits.

Compensation is another element that may be affected by salary freezes when downsizing. Salary reductions could also be ordered, as well as some employees being asked to take an early retirement.

Another element that will be affected is safety and health by the decrease in morale. HR would be tasked with keeping morale up. Workers will need to be reassured of job security when they see others leaving the company.

There are 3 main elements that affect Scott’s plan for downsizing. They are the shareholders interest, how the union will react, and how it would impact the community.

The most legitimate interest of these would be the shareholder’s interest. Most company’s put their needs and wants above all others. They want to see a return on their investment. If they are not making a profit, they will lose money and pull their donations from the organization.

The next concern would be how the union would react. The union would try to protect as many jobs as possible. Workers would need to be let go in seniority, meaning the last hire is the first to go.

The last would be the impact on the community. IFP employs 10% of the local workforce. Layoffs would depress the local