When large-scale redundancies are announced, it is common practice for a firm to consult with employees’ representatives (usually, trade unions) to agree a rational basis on which to make the redundancies. Several sets of criteria are in common use: (1) FIFO (First In, First Out), is less frequently used but is often attractive where there are many long-standing employees at the top of their pay scale, hence their leaving will significantly ease the salary bill; (2) LIFO (Last in First Out) is often seen as fair in that those employees who have been with the company the least length of time have less personal stake in the company; (3) Measured Employee Performance is based on the view that the firm would prefer to keep the best workers; and (4) Commitment, often measured in terms of disciplinary record is also based on an argument that the organisation will try to keep people who will work well. 1. Which of the above options is the most ethical choice, and why?
When large-scale redundancies are announced, it is common practice for a firm to consult with employees’ representatives (usually, trade unions) to agree a rational basis on which to make the redundancies. Several sets of criteria are in common use: (1) FIFO (First In, First Out), is less frequently used but is often attractive where there are many long-standing employees at the top of their pay scale, hence their leaving will significantly ease the salary bill; (2) LIFO (Last in First Out) is often seen as fair in that those employees who have been with the company the least length of time have less personal stake in the company; (3) Measured Employee Performance is based on the view that the firm would prefer to keep the best workers; and (4) Commitment, often measured in terms of disciplinary record is also based on an argument that the organisation will try to keep people who will work well.
1. Which of the above options is the most ethical choice, and why?
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