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Layoff/Severence Scenario for Sarah Schiffler, marketing assistant

Layoff/Severence Scenario

After eight years as a marketing assistant for the New York office of a large French bank, Sarah Schiffler was told that her job, in a non-revenue producing department was being eliminated. Her choices: She could either be laid off (with eight months' severance pay) or stay on and train for the position of credit analyst, a career route she had turned down in the past. Nervous about making mortgage payments on her new condo, Sarah agreed to stay, but after six months of feeling miserable in her new position, she quit.

1. Was her separation from the bank voluntary or involuntary?
2. Can you think of situations in which a voluntary separation is really an involuntary separation?
3. What are the managerial implications of such situations?
4. Did seniority play a role in this layoff?

Source: Gomez-Mejia, L.R., Balkin, D.B., & Cardy, R.L. (2007). Managing Human Resources (5th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Solution Preview

Separation of employees from the employer composes of a process that ensures that the departing employee does so in not only a structured manner, but in an orderly one as well. Many organizations take employee separation seriously to the extent that many dedicate a department (usually within Human Resources) to tackle the process of employee exits. Towards this end, employee separation can either take the form of voluntary or involuntary.

Voluntary employee separation exists when the employee resigns from service at will. This is actually the most common type of employee separation especially during recessionary times. On the other hand, involuntary separation involves the management of an organization requesting the employee to leave. What basically constitutes the ...

Solution Summary

Layoff and severence scenario for Sarah Schiffler as a marketing assistant for French Bank.

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