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  • Essay / HR Issues Related to Layoffs and Downsizing

    This article discusses the issues with Amazon based on the new minimum wage law that was recently passed to increase the minimum wage to $15 from hour by Amazon. Since Amazon needs to pay their employees more, they are now looking to eliminate monthly bonuses and stock awards, as well as reduce some employee hours as well. This company decision is also known as layoffs or downsizing. Instead of giving more working hours to employees, they use different machines and technologies to implement more automation machines, which allows them to reduce the extra wages that cost them. The article also mentions how Amazon garnered praise for raising the minimum to $15 an hour for its workers, but that came with an expense and the fact that warehouse workers are no longer eligible for monthly bonuses and stock rewards. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay This article contains some main issues related to human resources. The first in this article is about layoffs and downsizing by increasing the use of technology to replace workers. The other HR issue is the elimination of monthly bonuses and stock awards, both of which impact employee morale. Layoffs and downsizing are a very serious and important problem in the HR field. In this news article, Amazon attempts to use machine technology to replace workers. Amazon's response to rising wages is to cut other benefits and jobs in order to keep expenses low. They believe that using mechanization and machines will cost less than paying workers the new minimum wage rate. Using this approach from Amazon, currently employed workers will receive a lower weekly work hour or, even worse, lose their job to a machine. This is a common problem nowadays, staff reductions are a typical problem in the workforce due to different reasons, for example, reduction in work expenses or the worker is not performing well . It is not as easy for a company to choose to eliminate certain positions of its employees, but there are effects and results for the employee and the company. A major problem that a company may face in laying off employees is that the organization will most likely be unable to perform their tasks as competently and adequately to achieve their goals. How workers respond to the organization's downsizing strategy is another way to influence the company or employer. This demonstrates that downsizing can reduce labor expenses, but if companies reduce working hours irrationally, then worker engagement will be affected due to employer action. On the other hand, workers may also not be as efficient because they now lose their monthly bonuses and stock awards. (Ramlall et al., 2104). Worker morale is also influenced, as they may be stressed by the expanded task that remains to be accomplished, stressed by being the next person to be fired, and even by supervisors giving them more work and weight. much more work. This shows that moraleand the work efficiency of workers would both be influenced. Job enlargement is an expansion of job duties and obligations to make a position even more difficult. This may ultimately cause debates or conflicts with their managers if workers are continually given a greater number of tasks. This article contains some suggestions for organizations and businesses. The main suggestion is the competence and suitability of the computerized approach to hire more workers. Using machines would increase suitability because it would reduce the risk of making a mistake, whereas a human worker may make mistakes more frequently than machines. Machines and mechanization also help in retaining consumers as it would make procedures such as packing shipments faster and more efficient. This will satisfy the customer as they will have saved their time. The other implication for the company is that in the long run, the company will be able to save more on its operating costs because it will be able to spend a one-time cost on the new machine and use it for a long time. period. time. Moreover, in this case, they will save more by eliminating the monthly premiums that would cost them more if they kept them, plus the increase in the minimum wage. Sooner or later, they may be able to take care of the expenses related to the machine and start profiting from it. Machines and automation will not only influence the business, but they will also influence the workers themselves. The first suggestion for workers is that they might benefit from the minimum wage increase, but in general they may actually lose more money than before due to the minimum wage increase. that organizations will attempt to reduce or eliminate benefits and weekly hours to reduce costs. Although employees might lose supervisors in this situation, they would expect more from workers since they are technically getting an increase in their pay. Therefore, workers are not really paid more over a long period of time because they are working to earn money. Employer stability is another important importance in this article. Since the machines and the new technology used could carry out the organization's activity, workers could be laid off now or fear being laid off. This would influence their morale and efficiency because workers who have not been laid off might think that if they are the next employee to leave the company. Villano, M. (2007). states that workers connect with each other (Villano, M. 2007). Therefore, in the event that a worker is fired and never works with the organization again, the rest of the workers may panic, which would impact the job. they do. The use of machines and different technologies not only affects businesses and workers but also has a huge impact on society. This can have both a positive and negative impact on the public. In the case where organizations like Amazon offer machines and other technologies to do the majority of the work instead of recruiting workers and paying them more work; at this point it would greatly affect the general public. Again, if using machines and different technologies does not work, the organization will have to come back and hire more workers at the increased minimum wage, which would result in increased labor expenses. In this way, the cost of goods.