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:
    1. Separation as a result of management action:
    2. Disciplinary action
    3. Dismissal due to dissatisfaction with performance
    4. Redundancy
  • It could also be due to other factors that are unavoidable such as:
    1. Death this is quite common with soldiers for example although it can happen in any occupation
    2. Retirement
    3. Ill health
    4. Pregnancy
    5. Marriage
  • Voluntary or avoidable separations:
    1. 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:
    1. incapacity
    2. misconduct
    3. 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

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