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Legal Issues in Reduction of Workforce Paper. FastServe Inc. is a $25 million
company in the direct marketing of sports apparel industry. ...
Legal Issues In Reduction Of Workforce Simulation Paper. The rise of the dot com
industry in the 21st century brought with it many challenges. ...
... regarding legal issues in reduction of the company’s workforce. This paper will
address the important issues in understanding and avoiding the risks of ...
... Cutting costs is the primary reason for FastServe’s recent reduction of
workforce decisions, and legal issues have come into play. ...
... paper indicates what are the key terms that reflect on the simulation compared to
the readings in Chapters 14 & 15. Legal Issues in Reduction of Workforce ...
Submitted by ucampeon98 on November 26, 2007
Category: Business
Words: 1824 | Pages: 8
Views: 667
Popularity Rank: 10,487
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FastServe Inc. is a $25 million company in the direct marketing of sports apparel industry. The company has 350 employees. In an effort to concentrate sales on America’s sports oriented generation Y clientele, the company made a strategic move into an online sales approach.
With this strategic move, FastServe moved 10% of its employees to manage the online stores and try to increase sales. The company also created and implemented a program for the websites that served as virtual mannequins, called ‘3-D drape-n-see’. At first, the 3-D mannequins attracted many new customers from the targeted age group; however, soon after the websites went live, they realized that potential buyers were not staying on the website and completing transactions because the program was too cumbersome to download.
FastServe realized that the 3-D mannequin technology was not worth the costly investment for the amount of business it created in return. Due to the problems with the website main marketing tool, the company opted to move out of the online sales, thus creating the inevitable need for downsizing.
A decision needed to be made to select which employees would be laid off and which ones would be retained. FastServe management decided to base this decision on the employees’ past performance as well as skill level. After several meetings with FastServe’s senior management team, the company’s COO had given a list of five people being considered for layoffs to the senior HR manager. Out of the five, only three individuals would be laid off and the other two would be retained with new job definitions.
After referring to HR and performance records in the last two years, the HR manager needed to come up with the final three as well as communicate the decision to the selected employees within a week. Various factors needed to be studied and analyzed to make sure that FastServe did not break any employment laws or would not end up being sued for any type of...
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