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Organizational Ethics and Social Responsibility

I need help with the following scenario:

Recently, a major company had its first layoff (1000 staff and management) in its history. The company lost some great people because performance was not considered, only seniority. So, some people who were not the best performers did not lose their job but some, more junior, people had to go.

The company never wants to do that again. But, the performance rating system had gotten to the point where 96% of the professional staff had very good reviews. So, it would have been impossible to base the decision on performance. Now, a new evaluation system will be put into effect so that people are evaluated more critically and there will be a clear distinction between the good and the "less than good" performer.

Does this sound like a good change?

Solution Preview

Layoffs are sometimes a necessary evil in organizations. Most often, as is the case in today's economy, the reasons for layoffs are external. In other terms, changes in the external environment lead to the necessity of cost cutting and therefore layoffs.

The suggested change is less than ideal. The new approach is vague, and can create a grey area when it comes to assessment. Employees will question what it means to be 'good' or 'less than good', creating ...

Solution Summary

The organizational ethics and social responsibility is examined.