ZIMSEC O Level Business Studies Notes: Managing Human Resources: Human Resources Management:Dismissal, retrenchment and redundancy of employees
- All employees eventually leave the employ of the organisation
- This can be due to:
- Separation as a result of management action:
- Disciplinary action
- Dismissal due to dissatisfaction with performance
- Redundancy
- It could also be due to other factors that are unavoidable such as:
- Death this is quite common with soldiers for example although it can happen in any occupation
- Retirement
- Ill health
- Pregnancy
- Marriage
- Voluntary or avoidable separations:
- Dissatisfaction with the job,pay, working conditions leading to resignation
Terms used in separation
- Downsizing –reducing the size of an organisation, especially in terms of reducing the number of people in order to make it more profitable
- Downsizing can be a result of:
- new technology that reduces the labour needs within the organisation e.g. computers replacing record keepers
- Falling demand for the product
- Poor human resources planning resulting in surplus employees
- Insolvency of the business
- Redundancy-is the elimination of jobs or job categories caused by downsizing, rightsizing, or outsourcing
- with redundancy the employee is no longer needed or their position no longer exists within the organisation
- Natural wastage-is the process of employees leaving the organisation because they want to retire or move to other jobs rather than as a result of dismissal by the employer
- Dismissal-is the termination of an employee’s employement contract in a correct, fair and lawful manner by the employer
- If dismissal is not fair it is called unfair dismissal
- Reasons for proper dismissal include:
- incapacity
- misconduct
- redundancy or any other substantial reaoson
- Retrenchment- is the act of laying off employees by the organisation due to a number of reasons including cost reduction
To access more topics go to the O Level Business Notes