Due to the recent failure of its online product distribution endeavors, FastService Inc. is now facing potential layoffs throughout the company. Top executives have narrowed down a list of five people, three of whom must be fired. Layoffs, though necessary at times, are often extremely difficult decisions to make. This process is further complicated by the strict enforcement of employment law. Legislation, such as the Civil Rights Act of 1964, protects certain classes of individuals and prohibits employers from employment termination based on specific criteria.
Though FastService's reason for downsizing its employment source stems from the failure of its online distribution project, it is still important that the company avoid any action that can be viewed as discriminatory when deciding which employees to let go. In the following pages, the profiles of employees up for possible termination will be reviewed as well as the various legislation that holds each person in a protected class.
When managers, acting as agents of an organization, are asked to choose employees to let go, they must "make decisions with no concern for their own preferences, but only for those of their principals" (Chew & Stuart 2005). Therefore, before making any final recommendation, it is first wise to identify actions that may harm the company, recognize the organizations need for specific skill sets, and weigh all risks associated with terminating each employees contract. In order to weigh such risks, it is beneficial to be familiar with legislation that limits the organizations ability to fire at will. Prior to the 1930's, Employment-at-Will yielded much more power to employers, who were able to fire employees anytime without cause (Re ...