recommend and justify which employee(s) to make redundant in a given situation
2.2.4 Why reducing the size of the workforce may be necessary
📚 Scenario: The Little Lemon Café
The Little Lemon Café employs 10 staff members. Due to a sudden drop in foot traffic, the café’s monthly revenue has fallen by 35%. The owner, Ms. Patel, must decide whether to reduce staff to keep the business afloat.
🛠️ Factors to Consider
- 💰 Cost of redundancy: Legal fees, notice pay, and potential compensation.
- 📈 Performance: Who consistently meets targets?
- 🧩 Skill diversity: Employees who can cover multiple roles.
- ⏳ Experience: Senior staff may have institutional knowledge.
- 📊 Future needs: Roles that will be essential after the crisis.
📊 Decision‑Making Matrix
| Employee | Role | Performance | Skill Flexibility | Redundancy Cost |
|---|---|---|---|---|
| Alex | Barista | High | Can also do kitchen prep | Low |
| Beth | Cashier | Medium | Can do inventory | Medium |
| Carlos | Chef | Low | Specialist only | High |
| Dana | Manager | High | Can train others | Medium |
| Eli | Cleaner | Low | Can do basic barista tasks | Low |
🤔 Recommendation
Based on the matrix, the most cost‑effective and least disruptive redundancies are:
- Eli – low performance and low redundancy cost, but can be retrained for basic barista duties.
- Carlos – specialist chef role with low performance and high redundancy cost; removing him saves money but requires a quick replacement or menu simplification.
These choices minimise financial impact while preserving key skills (Alex, Beth, Dana) that can adapt to the café’s new, leaner operation.
📌 Exam Tips
- Always start by identifying the problem (e.g., revenue drop).
- Use a criteria list (cost, performance, skills, redundancy costs) to evaluate each employee.
- Show a clear decision‑making process – explain why each recommendation was made.
- Remember the legal and ethical aspects of redundancy (fairness, notice periods).
- Keep your answer concise and structured – use headings, bullet points, and tables where appropriate.
Good luck! 🚀
Revision
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