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  • Module 2 - Activity 1 (ETHICS)

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    Gwyneth W Paghinayan
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    The document discusses considerations for employee termination. It calculates the costs of separating 300 employees who have average tenure of 10 years. The monthly carrying cost of keeping the employees would be $8.28 million, while the separation pay would be $69 million. Outplacement of laid off employees should be offsite to avoid anxiety and lower confidence. Termination interviews should be brief at 15 minutes to provide reasonable explanations without prolonging difficult discussions. When forced to choose who to lay off, an employee nearing retirement should be selected over a new hire who shows potential, as retaining the new employee benefits the company longer term.

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    Module 2- Activity 1 (ETHICS)

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    The document discusses considerations for employee termination. It calculates the costs of separating 300 employees who have average tenure of 10 years. The monthly carrying cost of keeping the employees would be $8.28 million, while the separation pay would be $69 million. Outplacement of laid off employees should be offsite to avoid anxiety and lower confidence. Termination interviews should be brief at 15 minutes to provide reasonable explanations without prolonging difficult discussions. When forced to choose who to lay off, an employee nearing retirement should be selected over a new hire who shows potential, as retaining the new employee benefits the company longer term.

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    © All Rights Reserved
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    11 views2 pages

    Module 2 - Activity 1 (ETHICS)

    Uploaded by

    Gwyneth W Paghinayan
    The document discusses considerations for employee termination. It calculates the costs of separating 300 employees who have average tenure of 10 years. The monthly carrying cost of keeping the employees would be $8.28 million, while the separation pay would be $69 million. Outplacement of laid off employees should be offsite to avoid anxiety and lower confidence. Termination interviews should be brief at 15 minutes to provide reasonable explanations without prolonging difficult discussions. When forced to choose who to lay off, an employee nearing retirement should be selected over a new hire who shows potential, as retaining the new employee benefits the company longer term.

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    © All Rights Reserved
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    Module 2- Activity 1 9548/ Business Ethics

    1. How would the employees who remained be affected by the unjust


    termination of a colleague?
    The unjust termination of a colleague can affect the effectiveness and
    efficiency of the remaining employees because the work of the terminated
    employee will be added to the remaining employees which can cause stress and
    pressured.

    2. Assuming the following numbers, solve for the Separation Pay, Monthly
    Carrying Cost, and
    Payback Period:
    300 employees
    Average length of service is 10 years
    Average monthly pay is P23 000
    Fringe Benefit cost is 20% of the basic pay

    Cost of Separation Pay= 300 x 23 000 x 10


    = 69 000 000

    Monthly Carrying Cost = (300 x 23 000) + 1 380 000


    = 8 280 000

    Payback Period = 69 000 000/ 20 700 000


    = 8.333 months

    3. What do you think is the reason why outplacement for laid off employees
    should be away from company headquarters?
    Maybe because it can cause anxiety and it can lower the confidence of the
    employees, because they will think they are not good enough and they will also
    start to questions their capabilities. Due to this, they will teach the employees
    how to hold grudges, of course those employees who are terminated will feel
    angry towards the company.

    4. Why should you complete a termination interview for at most 15 minutes?

    Of course, the employees need reasonable explanations from the company of all
    people why he/she would be terminated.

    5. Suppose you have to choose who to lay off between an employee who is
    about to retire and a new employee who shows significant potential. What
    would be your considerations in choosing the person to lay off? Who will
    you choose to layoff then?

    I would choose the person who is about to retire because it is a waste of


    time, due to the fact that his/her duty will be ending soon. It is better for the
    company to keep the new employee because he/she has many time to show off
    his/her capabilities.

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