1. IB Business & Management
Unit 2.1
Dismissal and Redundancies

2. Learning Outcomes
Common steps in the process of dismissal and redundancy (AO2)
How innovation, ethical considerations and cultural differences may influence dismissal and redundancy practices in an organisation (AO3)

3. Employment Termination
As well as recruiting employees, the HRM department also deals with the termination of employment.
Why might an employee finish working at an organisation?

4. Reasons for termination of employment
Non-renewal of fixed term contract
Dismissal
Redundancy
Retirement
Resignation
What is the difference between these types of employment termination?
Why might employees resign?
How can businesses reduce their turnover of staff due to resignations?

5. DISMISSALS

6. Dismissals
When the employee is sacked due to incompetence, negligence or a breach of contract.
We would also call the being sacked or fired
This has to be done in a fair manner
Why should management think carefully before dismissing an employee?
In what circumstances is an organisation legally allowed to dismiss an employee?

7. Legitimate reasons for Dismissals
Failure to pass trial period
Incompetence – inability to do the job despite appropriate training and support
Misconduct – unacceptable behaviour such as persistent lateness, harrassment, behaving in an unprofessional manner. A series of warnings will be given
Gross Misconduct – Major misdemeanors such as theft, fraud, dangerous behaviour. Dismissal will be instant
Legal requirements – If an employee does not have the necessary skills, qualifications or licenses to do their job
How can a business reduce the number of dismissals it has to make?

8. When dismissal is considered wrong……
Unfair Dismissal – When an employee is dismissed without a valid reason
Wrongful dismissal – When the employee has been dismissed in a way that does not follow the correct procedures
Constructive dismissal – When a worker has not been dismissed but has been forced to resign

9. REDUNDANCIES

10. What is a redundancy?
Occurs when the employees job ceases to exist. Why might this be necessary?
The company can no longer afford to pay the employee
The company is relocating
The company is downsizing
Technology has replaced the worker
The company is changing its operations
A merger or takeover
Often referred to as retrenchments or lay-offs.
What are the negative impacts on a firm of having to make redundancies?
How does an organisation decide which workers to make redundant?

11. Who gets laid off?
What methods could a company use to decide who gets laid off?
By Job Role
Voluntary redundancies
LIFO
Retention by merit- what factors could be considered?
Are there any alternatives to making redundancies?

12. Alternatives to redundancies
Recruitment freezes
Pay freeze or pay cut
Short time working
Flexible working
Secondments
Redeployment

13. Task Read the newpaper articles. For each article summarise:
Which business is involved
How many redundancies are being made?
What are the main reasons for these redundancies?
Which jobs are going to be affected
How are the redundancies going to be made?
You will have 4 minutes for each article and then pass it on to the next pair

14. Dismissal and Redundancy and the key concepts....
How might the following factors and influence dismissal and redundancy in an organisation?
Innovation
ethical considerations
cultural differences