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:

  1. Eli – low performance and low redundancy cost, but can be retrained for basic barista duties.
  2. 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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