Introduction
An organization is made up of different groups of people who have come together so as to achieve the goals and objectives of the organization. In the top management of any organization, there is always a Human Resource Manager/ Officer who is concerned about the welfare of the work force of the organization.
The Human Resource Manager should treat the employees in the right way so that they can feel part of the organization’s family. Despite the fact that the employees might be competent in their work, good working environment and conditions are necessary for the success of the entire organization (Baldwin, 2006, p.2).
Among the essential management tools when it comes to employees is justice. Justice in the organization therefore entails the way the employees comprehend the way they are treated by the organizational management in terms of task assignments, awarding of gifts and rewards, promotions and any other matters that affect the employees’ welfare.
On the other hand, psychological contract entails the anticipation achieved from the relationship between the employees and the employer. This occurs because both the employee and employer have different expectations and duties to perform as written down in their employment contract. Each of these principles is applicable and used in almost all organizations despite their size, location or any differing factors (Smithson, 2003, p.1). This essay is a case study on the application of both principles in an organization.
Analysis of the Scenario
It has come to the notice of the company that it is struggling to maintain itself as it is incurring extra costs yet not making adequate profits. In making a fast decision, the company decides to lay off some of the employees immediately. Such decisions are not worth making especially when you look at the impact they bring to the people who have been laid off from work (Wellin, 2000, p.10).
The first mistake this company made was to lay off the workers without a notice of sufficient time as required by the labor laws. It is important that any organization gives a minimum of thirty days notice before terminating the employment contract of any employee.
The notice is of benefit to both the employer and employee as it gives the employer sufficient time to organize any payments to be made or find allocations for the position the dismissed employee was holding. At the same time the employee is also given adequate time to adjust psychologically the situation at hand and be able t face it without stress (Baldwin, 2006, p.2). If in any case an employee decides to resign from the job, then a notice of sufficient time is also required to be given to the employer.
Another important issue during termination of an employment contract is the method/ medium of communication. In this case, the General Manager decided to send emails to all the employees and later handed over the dismissal letters to his secretary who delivered them to the redundant employees. This was not a good way of communicating as in the first incidence the sent emails obviously caused a lot of panic among the employees. Employees in such a state could not work efficiently hence a disadvantage to the company.
The delivery of the envelopes to the employees to be redundant was also not a good way of communicating because this could bring shock on the individuals (Coetzee, 2005, p.12). Therefore, the best medium for communicating such matters is one that does not oppress the employees and prepares them psychologically in advance.
Lastly, even after laying off the workers in such unacceptable manner, the company did not pay them any remuneration caused by the redundancy. It is a requirement that on top of the dues of an employee, there should be redundancy pay which serves as a reward for the damages caused as a result of the redundancy. The employees however, could not sue the company since the terms of payment in case of redundancy were not included in their employment contract.
The senior managers did not present themselves during the laying off process for fear of being confronted by the angry employees due to their unfair treatment. This was not a good way of dealing with the process as it indicated how the company is not concerned about the welfare of their employees (Wellin, 2000, p.8).
As a matter of fact, the senior managers should have been present and talked to the employees and maybe even invite a counselor to counsel those who were to be laid off. This would have been a good way of showing concern and treating the employees during this hard time of termination of their employment.
Conclusion
From the above discussion, it can be concluded that there should be organizational justice in the organization and that both the employees and employers should expect the best from this relationship (Coetzee, 2005, p.14). This company failed in its obligations and responsibility of good treatment to their employees hence oppressing them.
Reference List
Baldwin, S. (2006). Organizational Justice. Web.
Coetzee. (2005). Organizational Justice. Web.
Smithson, J. (2003). Psychological Contract. Web.
Wellin, M. (2000). Managing the psychological contract. Web.