Unintended Consequences_.docx - Running head: UNINTENDED...

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Running head: UNINTENDED CONSEQUENCESUnintended ConsequencesGrand Canyon University: PSY-65512/4/181
UNINTENDED CONSEQUENCESUnintended ConsequencesDecisions have to be made whenever problems arise, whether that problem is with acompany’s way of operations or the well-being of someone’s family. This paper will go over thedetails and decisions that may lead to company layoffs and the unintended consequences.Information about leadership and decision-making with showing the ethical reason thesedecisions were made will be outlined.Unintended Consequences ScenarioLayoffs are not an uncommon occurrence in today’s economy, and they can happen tojust about any company. In accordance to the WARN Act constituted in 1988, a mass layoff isdefined as, “a reduction in force that is (1) not the result of a plant closing, but (2) leads to anemployment loss at the employment site of 500 or more employees during a 30-day period, or aloss of 50-499 employees if they make up at least 33% of the employer's active workforce” (Pub.L. 100–379).Every year thousands of employees are being laid off due to business needs (Bureau ofLabor Statistics 2013).Layoffs have led to additional stress emotionally and financially as wellas a higher cause for mental health illnesses such as depression. For those who were not laid offfelt the same insecure feelings in their position not know when another layoff may occur. Thougha company may have their reasons for a layoff the amount of stress and issues that occur fromthis decision may not be entirely worth it and could be beneficial to find other ways of dealingwith the issues. According to Mavondo and Farrell (2004) “They state that some of these reasonsinvolve globalization, mergers, international competition, new technology development,deregulation and gaining or retaining a competitive edge.”2
UNINTENDED CONSEQUENCES

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Term
Spring
Professor
N/A
Tags
Termination of employment, Severance package, Gandolfi

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