Julianne Danielle S. Ding B.S. B.A.

-Marketing Management

Case Study: Who Goes, Who Stays?

1. Making reasonable assumptions, develop criteria for the layoffs in the sales

department.

When a person is laid off, it means that their employment has been terminated
due to the company's financial situation. Typically, more than one employee is affected.
Companies that consider layoffs typically want to cut costs to get the business out of
problems or increase its profitability. However, keep in mind that layoffs can be quite
expensive in other ways. Depending on how the layoff is handled, the company might
need to pay severance packages, the remaining employees' productivity and morale
may suffer, and a lawsuit might be brought against the corporation. On that point, if I
were in charge of creating the layoff criteria for the sales department, they would be as
follows:

 The employee's poor overall performance grade.

 Whether the employee fell short of their sales target from the prior year.
 The employee's experience (measured in years).

Three of the employees will regrettably have to leave the consultant firm in light
of these requirements. Kelly Andrews, Winfreyn Jones, and Jeff Spirits are destined to
lose their employment in this kind of work climate.

 Kelly Andrews - Kelly, who presently has a one-year employment with the
organization, has one of the employees with the lowest performance ratings
(2 out of 5). Additionally, Kelly's sales target from the previous year was 20%
shy of being met. When all of these factors are considered, Andrews is the
easiest employee to fire when compared to those of the other workers under
consideration for layoffs.
 Winfreyn Jones- Since Winfrey Jones has been an account manager for the
business for four years, we can infer that he has the necessary expertise and
is already considered an expert in his field. However, his total performance
 grade indicates that he is not doing his duties fully, particularly given that he
was unable to meet his sales objectives for the previous year. This leads us
to the conclusion that he is one of the lowest achievers in the organization
and needs to be fired.
 Jeff Spirits- Jeff Spirits is the third-lowest performer in the company; he has
been employed there for the past 5 years, but his overall performance rating
is only 3, which only indicates that he has been a stagnant employee, leading
to the achievement of his goal while also coming close to failing it because it
only exceeded it by 1%.

2. Develop a plan as to how layoffs will be communicated with the individual as well as

within the company.

Announcing a layoff to employees is never an easy task. You could feel stressed
out and guilty about choosing. Consider these feelings to be typical. Making sure you
treat the employee with empathy and humanity will help make this difficult decision
easier for both of you. When planning and carrying out layoffs, effective communication
is crucial. Although the information you must deliver is unpleasant, employees must hear
it from management honestly and directly. The most important thing you can do is
communicate effectively and openly with your workers throughout the planning and
implementation stages of the layoff. The interaction surrounding the layoff will go more
smoothly for both you and the affected employee if there is two-way communication,
which allows for information to be streamed to employees as well as for thoughts and
input to be streamed back to management. These are some of the courses of action on
how the layoff will be communicated:

 Express gratitude for the worker's contributions to the business.

 Speak to the representative in a quiet area.
 Be accessible to discuss the employee's concerns and issues around the
layoff.
 Clearly state the motivations for the layoff.
 Ensure that the employee receives a copy of the layoff letter and the
employment certificate.
  Be an empathetic and supportive ear; listen to the employee without
interrupting.

3. Discuss strategies to motivate those sales employees who stay with the organization.

Layoffs reduce the company's assets, particularly its human resources.

Unfortunately, financial difficulties frequently force firms to control layoffs in order to save
the company. Achievements and recognition are widely regarded as the primary sources
of inspiration for most people in various countries around the world. Some employees
can begin to feel stressed and overworked throughout this transition. This might lead to
tension and unnecessary stress. A far worse outcome is that they might voice their
complaints to other employees and put less effort into their work. The following
strategies need to be regulated in order to prevent these and maintain the motivation of
the sales employees who remained with the company:

 Show gratitude. We should sincerely appreciate everyone's efforts to

comprehend the challenging steps the company has taken, as well as their
attention, care, and willingness to expend additional effort to get through these
challenging circumstances.
 Host an employee meeting. Give a thorough explanation of the organization's
current situation and explain why a change was made.
 Demonstrate genuine empathy. Be truthful and sympathetic to both the
employees who were let go and the remaining employees who had to bear the
weight of the layoff. Allowing children to express their anger and frustration is
crucial in this situation. Encourage them once more to express their feelings and
make an effort to relate to them.
 Let them know that management is always willing to assist. Make it clear that you
and other management-level personnel will be available to discuss work-related
issues, issues, and performances. Tailor your remarks on how to get past
challenges that stand in the way of success.
 Be aware of the effects of your choices. Make it clear that you are aware of the
additional responsibilities some staff will have. Show them how you will assist
them in navigating the changes.