Recruitment, Selection And Training Of Employees: Why Reducing The Size Of The Workforce Might Be Necessary (Copy)
Cheat Sheet: 2.3.3 Reducing Workforce Size
Dismissal vs. Redundancy
| Term | Definition | Example | Key Point |
|---|---|---|---|
| Dismissal | Employee is removed due to poor performance, misconduct, or breaking contract | Worker fired for repeated lateness | Based on fault of employee |
| Redundancy | Job position no longer needed; employee loses job not due to fault | Factory closing = staff laid off | Based on business needs |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Reasons for Downsizing Workforce
| Reason | Explanation | Example |
|---|---|---|
| Automation | Machines replace human labour | Self-checkout tills in supermarkets |
| Reduced demand | Less need for products = fewer workers | Print newspaper demand falls |
| Relocation | Business moves operations | Factory shifts overseas |
| Cost cutting | Reduce expenses to survive | Airline cuts staff during recession |
| Merger/Restructuring | Roles duplicated, less staff needed | Two banks merge, cut admin staff |
Recommending Who to Make Redundant
| Factor | Explanation | Example |
|---|---|---|
| Skills & Performance | Keep most skilled, remove low performers | Retain top engineers |
| Experience | More experienced staff often retained | Senior nurse over new trainee |
| Cost | High-salary roles may be cut to save money | Senior managers laid off |
| Department Needs | Redundant roles in shrinking areas | Closing IT support centre |
| Legal/Fairness | Must follow laws, avoid discrimination | Equal treatment across workforce |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Quick Revision Bullets
- Dismissal = employee fault; Redundancy = job no longer needed
- Downsizing reasons: automation, lower demand, relocation, mergers, cost cuts
- Redundancy decisions should consider skills, performance, cost, fairness
- Mismanaged downsizing = low morale + legal issues
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course