Downturn Decisions: Balancing the Business, Legal, and Ethical Considerations

Author

Eric Clifford Benckendorf, Fontbonne College

Year of Award

1991

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

layoffs, employee, managers, minorities, women, discrimination

Abstract

Downsizing examples will show how negative the effects of a layoff can be to the employees, to the community, and to the corporation. Employees suffer unemployment, reduced wages, possibly forced early retirement, and all of the associated hardships. The community loses skilled workers, has a decrease in its tax base, has an additional drain on its relief funds, and has a ripple effect of unemployment and local recession. The corporation is faced with litigations and a loss of skilled workers in the short run and with retraining and rehiring costs and decreased loyalty and productivity in the long run.

This study will show that there are many other options available to an employer and that layoffs are often not necessary. These options range from the typical cutting of costs to the relatively new concept of employment security which entails retraining or relocating of employees.

It will also be shown that many funds from programs such as EDWAA, IAA, TAA, and UI can help subsidize training, reduced salaries, and outplacement assistance costs. Also government regulations such as WARN and state laws delay and add costs to layoffs because they are intended to protect the workers.

In conclusion, it will be found that corporations should balance business, legal, and ethical considerations when making downsizing decisions. It should be found that non-layoff alternatives might cost more in the short term, but will have a far greater benefit in the long term.

Document Type

Restricted Thesis

Recommended Citation

Benckendorf, Eric Clifford, "Downturn Decisions: Balancing the Business, Legal, and Ethical Considerations" (1991). All Theses, Dissertations, and Capstone Projects. 416.
https://griffinshare.fontbonne.edu/all-etds/416