The following notice was posted in the employee cafeteria on Monday morning:
To: All Accounting and Clerical Employees
From: I.M. Krewel, President
Subject: Termination of Employee Positions
Effective this Friday, all accounting and clerical employees not otherwise contacted will be terminated. Our new computer system eliminates the need for most of these jobs. We’re grateful for the loyal service you’ve rendered as employees and wish you success. You may wish to pick up your final checks on Friday before you go.
Discuss the president’s approach to human resource management. What are the possible repercussions of this episode? Assuming that job termination is the best alternative available, how should management approach the situation?