Retrenchment

[Audio] BROOKE. Retrenchment. By Kirsten Colclough and Brooke Edmonds.

[Audio] BROOKE Problem definition During the current high-level chronic unemployment rate, a diverse and functioning organisation is required to implement the decision to downsize its number of employees. In accordance with achieving the cost-saving aspect of the company's long-term strategic plan, employees made redundant will be replaced with automated modern technology. If implemented, redundancies will be completed within three months. Wood et. al's ( 2020) defines the static problem type as a once-off problem, which when effectively solved, goes away. Solution analysis and solution steps move the organisation from the current step to the desired step..

[Audio] BROOKE: Not all problems have the same issues or content, and the business may need to be selective about which tools to use ( wood et al., 2020). During the problem-solving stage, the root cause analysis tool is used to define the problem and generate solutions..

[Audio] BROOKE: Contract Adjustment: When downsizing, a way of retaining staff is by putting them on temporary contracts for a period of time. Or allowing staff to be employed under a permanent part-time contract. This then allows the business to retain loyal and hard-working staff members, whilst decreasing Wages Payable. This allows for more room in the budget to invest in 'robotic machines' to increase productivity. In all aspects of a business, it is always suggested that there is a ' human' aspect. Decreasing staff to replace them with robots will increase productivity and work-flow, however, it takes all humanity out of the business production. Robots are consistent workers, they work at the same speed and need no breaks, they don't take holidays, or sick days. But they don't have an emotional connection to the customer. A customer returns to a business when they feel valued and appreciated. So as much as a robot can do the work much more efficiently than a human, a business still needs humans to interact with their customers. Otherwise there will be no business for the robots to work in..

[Audio] KIRSTEN: Developing an Assessment Criteria – Developing an Assessment Criteria that predominantly considers aspects of performance, using Key Performance Indicator ( KPI) results as a determining factor. This solution would enable the Organisation to retain staff with optimal abilities, performance, and experience; ultimately to ensure that profitable staff are retained within the organisation. In relation to solution one, when selecting appropriate staff to retain on temporary and part-time contracts, the business can develop an assessment criteria to evaluate employee performance. As a result, the most efficient staff are retained within the business. With the implementation of automated technology to work alongside human employees would be a major benefit to the business, in terms of productivity and increased performance results. The assessment criteria must outline Key Performance Indicators such as; performance, efficiency, work-ethic, and targets. Since the business is downsizing, the staff who need to stay will be working as efficient as ever to maintain their position with the company. It is vital that the Assessment Criteria outlines KPI's to keep the staff in check as to how they are performing in comparison to the robots..

[Audio] BROOKE: Do Nothing Approach - In this situation, it is easy to do nothing, and not care about the results of the business downsizing. Hundreds of staff members may lose their jobs to robots because this is the world we are living in. By doing this, the business is only adding to the rise in unemployment and people living on Centrelink benefits. However, in the big scheme of things, a business that turns over hundreds of thousands of dollars in revenue, won't see the reality of what they are doing to their former employees. They will simply, 'do nothing'..

[Audio] KIRSTEN: Although providing employment opportunities within society benefits the business and is in the best interest of the economy – The financial health and stability of the business and its shareholders are vital, just as providing quality products and services. Retained employees can be invested in to improve selection criteria, if necessary. To prioritise and identify the most feasible solution, categorisation, elimination and ranking tools ( Wood et al., 2020) are used to evaluate the proposed solutions..

[Audio] BROOKE: Contract Adjustment: Adjusting contracts to reduce hours in order to retain more employees has the ability to retain dedicated staff members with a high work ethic, whilst employing robots to do the jobs that humans have been retrenched to do. By doing this, the business returns loyalty to employees that have remained loyal and dedicated towards the entity, retaining a part of the business that remains humane. Whilst reducing costs and reducing the unemployment rate. Transitioning contract conditions may lead to susceptibility for employees and business practice..

[Audio] KIRSTEN: Developing an Assessment Criteria: An Assessment Criteria would benefit the process and be fair for both employees and the business. Employees who have maintained professionalism and dedicated efforts to perform would be most likely to retain their positions, or similar. These aspects can be determined using the KPI's of the business that in accordance with the objectives of the company's Strategic Plan. This solution also avoids bias, discrimination, and adverse action, preventing breaches in company policy and Fair Work regulations ( Fair Work Australia, 2022)..

[Audio] BROOKE: Do Nothing Approach: The 'Do Nothing' approach would result in employees retaining their employment, as the company would not implement the automated technology to assist with achieving their strategic plan. The main benefit of the 'Do Nothing' approach is that employee retention would assist the economy's high-level chronic unemployment rate. However, the Company would be required to seek alternative means to reduce operational costs, in order to achieve the cost-saving aspect of the company's long-term Strategic Plan. The Business misses the opportunity to reduce costs and continues to operate as usual, as opposed to introducing cost-saving technology into its operations..

[Audio] KIRSTEN: Most feasible solution to be planned and implemented: Although making employees redundant is difficult for a business and its employees, retrenchment is circumstantial and activity that is vital for the financial health of the business. The rational decision-making model relies on assumptions that include the decision-maker having complete information, can identify all the relevant options in an unbiased manner and choosing the option with the highest utility ( Robbins et al., 2021). Rational decision-making encourages utilitarianism, enabling decision-makers to utilise evidence-based and factual information such as KPI's, tenure and regulations to make informed decisions, with outcomes that are most suitable for the Company's employees and business practices. Organisations can constrain decision makers, creating deviations from the rational model. BROOKE: Organisational constraints ( Robbins et al., 2021). Selecting employees to be retained based on developing an Assessment Criteria would ensure that the business is able to retain the most suitable and valuable employees. Therefore, the most suitable employees are retained and the company's investment into human capital continues..

References. Fair Work Ombudsman. (2022, June 20). Unlawful Workplace Discrimination . Australian Government. https://www.fairwork.gov.au/tools-and-resources/fact-sheets/rights-and-obligations/workplace-discrimination Robbins, Judge, T., Edwards, M., & Sandiford, P. (2021). Organisational behaviour (9. ed.). Pearson. https://jcu.primo.exlibrisgroup.com/permalink/61ARL_JCU/jr3nv4/alma991004010170006376 Wood, Cogin, J., & Beckmann, J. (2009). Managerial problem solving : frameworks, tools, techniques. McGraw-Hill Australia. https://jcu.primo.exlibrisgroup.com/permalink/61ARL_JCU/1nbbula/alma991002883389706376.

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