Workforce Reduction

Introduction

        The federal government and the states continually impose employment regulations on employers, designed to protect employees from a lengthening list of discriminatory practices.  The Equal Employment Opportunity (EEO) Laws are laws that prohibit discrimination on the basis of race, color, religion, sex, national origin, age, or handicap in any terms, conditions, or privileges of employment.   Employers are facing increasing legal obligations in managing their workforces. With large, high-visibility verdicts and settlements, some employees are encouraged to think of unfair treatment and to sue over employment actions. These lawsuits can lead to time consuming legal fees and litigation expenses, and liability suits for employers (Reed, Shedd, Morehead, and Corley, 2005).

        FastServe Inc., a $25 m sporting apparel company, with 350 employees. To focus exclusively on America’s sport-crazy Generation Y segment, FastServe opened two online marketing and distribution channels. This move proved disastrous and unviable. To increase profitability and decrease costs, FastServe Inc. has to reduce its workforce (UOP, 2007).

Situation Analysis

        FastServe has decided to eliminate the online channels and downsize the team.  Five candidates have been identified, three of whom must be terminated. The senior manager is responsible for the implementation and communication of the decision (UOP, 2007).  The senior manager must take into consideration the various types of dismissals as he ponders his decision.  

        Behavior-related dismissals involve a termination of an employer-worker relationship by the employer as a result of the actions of the employee. Common behaviors that lead to terminations, include: absenteeism and tardiness; unsatisfactory performance; lack of qualifications or ability; changed job requirements; and gross misconduct, which might involve drug abuse, stealing, or other breaches of company or public policy (Reed et al.2005).

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        Trait-related dismissals are based on indisputable characteristics of the employee, such as color of skin or physical disability. Trait-related terminations may be legal if the employer can prove that the trait keeps the employee from performing a job satisfactorily (Reed et al.2005).         In order to ensure no legal ramifications, the senior manager has determined that the decision should be behavior related and take into account the employment laws, the extenuating regulatory circumstances, their performance and significance to FastServe Inc. future.

        The employees in consideration for termination are Brian Carter, Carl Haimes, Jenny Mills, Nora Manson, and Sarah Boyd. They have ...

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