Year of Award
Master of Business Administration (MBA)
College of Business & Professional Studies
termination, dismissal, downsizing, hiring, firing, employment
Outplacement is the systematic support of the terminated employee(s) from the time dismissal is announced to successful placement in a new position.
Outplacement counseling was first introduced in the 1960's to help clergymen who were leaving the church voluntarily. The concept of the formal outplacement service was also used in the United States in the 1960's by the oil and gas industry.
The rapid growth of outplacement has been attributed to two major forces: (1) union pressure to have members treated in the most responsive and humane manner possible and (2) the threat of federal legislation.
There seem to be more advantages than disadvantages to using an outplacement firm versus inhouse resources. Outplacement is relatively so new that there is limited proof that it is the best or most effective way of dealing with the unpleasant task of termination. There also is limited proof that outplacement services can meet the needs of every employee. However, presently outplacement services do appear to be one of the most humane methods available for handling displaced employees.
A survey of the top 10 companies in the St. Louis area will reveal their pros and cons for using outside versus inhouse outplacement services.
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Rossi, Cindy Marie, "The History and Review of Internal Versus External Outplacement Services in St. Louis Major Corporations" (1988). All Theses, Dissertations, and Capstone Projects. 525.
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