2.1 Human Resource Planning


Possible Reasons for dismissal :

-Performance of employee below expectations

-Employee not following company rules (ex: Hours, breaks)

-Employee may have pattern of poorly explained absenteeism

-Other issues which contradict employee work contract

Procedure needs to be followed, employer may need to issue both verbal and written warnings.


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Redundancy occurs through no fault of the employee.  A redundant worker is not replaced, the position has disappeared due to :

-Fall in demand for company's products

-Need for restructure due to external changes (Social, Legal, Economic, Political, Technological)

-Outsourcing overseas a particular job (strategic decision)

When made redundant, an employee will normally be entitled to a redundancy payment, based on years of service to the business.


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Also known as Retrenchement, Downsizing is a brutal policy, removing layers of middle and line managers from organizatons. It is a justified way to garantee the organization's survival.(http://www.letstalkaboutwork.tv/wp-content/uploads/2012/10/downsizing-300x258.png)

Downsizing Disadvantages:

  • - Layers of management stripped, may hinder effective operation and good customer service
  • -Experienced managers could be rehired by competitors
  • -Workers who remained would lack managing, training them could cost +
  • -Restructuring can cost millions $$$, sometimes + expensive than without Downsizing (short term)
  • -Job insecurity for those remaining can affect current employees, increased workload and low motivation level, reducing efficiency.
  • -When economic conditions become better, how would the gaps in management be filled in?


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