Measures That Can Be Taken By Organization to Avoid Compulsory Essay

Measures That Can Be Taken By Organization to Avoid Compulsory Redundancy - Essay Example (Francis, 2001) At first, it is necessary to prepare a plan, reflecting strategy of carrying out redundancy, and the reasons for this measure. This plan is to be detailed and accurate and it should provide unity of managers' actions. Redundancy should not be selective or optional; it should be based on many objective factors, like skills or experience. Clear and objective criteria of selection demonstrate that the process is clear and all the employees have equal rights and position. (Burr, 1991) It is necessary to remember that such factor as past productivity of each employee is not objective. It may be regarded as beneficial for the company, but the result will be based upon appraisal of past performance that might have been carried out incorrectly throughout the company. (Ogden, 2004) It is known that the case of redundancy is one of the most painful events that may be experienced by the worker. Redundancy announcement inevitably affects his moral condition, work-related behavior, productivity and individual motivation. It is known Popular methods applied to avoid redundancy It is known that compulsory redundancy is one of possible measures taken in case business faces various problems. Of course, the company should observe and consider all measures that could resolve these problems, that could change business concept and that all causes of competitiveness loss were examined. "Failing to address workforce issues and driving the company into bankruptcy thus losing all jobs does not make sense". (Benyon, p. 14) There are some strategies that are regarded as the alternatives to compulsory redundancy. The specialists provide for the following list of these strategies: Natural wastage is non-hiring new workers in case old employees retire or leave the company, thus, reducing the number of employees. It can be effective where reductions are required across the entire workforce and over a prolonged period. Drawbacks include, the most able leave, attracting new talent causes resentment and turnover continues after achieving the desired workforce level. Stopping overtime - can be effective if it has become part of normal working practice. Drawbacks include, the differing impact on workforce groups and the subsequent difficulty in getting exceptional work requirements met. Early retirement measures - offer early retirement to volunteers. Drawbacks include the loss of some of the most experienced staff. Terminating temporary contracts - can be relatively quick to implement . Drawbacks can include insecurity for some workers, loss of supplier confidence and contractual penalties. Retraining or redeployment - this should always be explored in depth. It is more cost effective than compensation, recruitment and induction costs." Internal recruitment Recruitment freeze (Edwards, p. 50) Internal recruitment Internal recruitment is described as the situation "when a business recruits one of their current employees for another job within the business. For example, a person working on the cash desk of a shop might

Dynamics of multinational companies Essay Example | Topics and Well Written Essays - 1250 words

Dynamics of multinational companies - Essay Example However, it should be noted that the benefits that come about as a result of FDI can only be possible if all the three parties follow the right regulations, and the ethical ways of doing business is strictly adhered to. This paper sheds some light on the costs, and benefits of FDIs to the investors, the home country, and the host country. In addition, it will also review how the country, and the firms’ level of development, and growth play a role in determining the costs, and benefits accrued from the FDIs (Weigel, Wagal & Gregory 1997, 56). Benefits and costs for The host country One of the core benefits of global foreign direct investment is that it creates an opportunity for money to freely flow to any business around the world that shows any signs of potential growth in the future. This is in light of the fact that when investors choose to invest their money, the main logic behind this is that they expect some forms of return from the investment. Additionally, the home cou ntry’s capital account will benefit from the inward flow from the returns on the investment. There are no standard criteria on who deserves the investment, and who doesn’t. This ensures that all the businesses get equal competitive advantage, and no particular business is favored over the others. Subsequently, economists observed that the best money will be invested in the best business anywhere in the world despite the race or color or culture. This in turn means that the goods, and services will reach the market just in time as compared to an instance when unrestricted FDI wouldn’t have been available. Benefits and costs for home country The foreign direct investment has an advantage to the investors too. The investors get to receive global benefits. The fact that the investors can freely invest in different countries reduces the risks likely to be suffered from the investment. Diversification brings about reduction in the risks likely to be incurred, and an i ncrease in the returns that will be enjoyed from the investment (Stephan 2013, 43). Secondly, the other benefit to the home country that comes with FDIs is that the investors can learn new valued skills that may come in handy from the foreign markets. Thereupon, these skills are then transferred to the home country leader to even further growth, and development for the country’s economy. Moreover, the businesses also get to benefit in that when an investor chooses to invest in a particular business, it is often expected that the investor will ensure that the staff is competent enough to give the investment a return. Additionally, the investors will introduce new technology to the business to ensure that it has a competitive edge over its competitors.(Chung 1997, 40) The business will get to be enlightened on ways of doing business they would likely not have been aware of before the investors come into the picture (Jones & Wren 2007,54). As a result, there will be improved gen eral living standards of the employees of the business with all these new incorporation. To add to this, since there are no kinds of favoritism in choosing which business to invest in, it would be expected that the government will have less influence on the business, and that the government isn’t able to put up poor economic policies that will affect the business. The other advantage for the host country is that there is a general improvement on the standards of living for the people in the country.