TITLE \u2013 LAYOFFS IN IT COMPANIES
\nAUTHOR \u2013 ALIFIYA KANCHWALA<\/p>\n
1 Procedural Fairness in Restructuring and Layoffs between two Telecom Companies of Pakistan<\/p>\n
This study compares impact of Procedural Fairness in\u00a0Layoffs\u00a0and Restructuring on Employee satisfaction between two telecom\u00a0companies\u00a0[Pakistan Telecommunication\u00a0Company\u00a0Limited (PTCL) and Nokia Siemens Network (NSN)] operating in Pakistan. … Correlation coefficient shows strong positive association between Procedural Fairness in Restructuring and\u00a0Layoffs\u00a0with Employee Satisfaction in case of NSN then PTCL. Moreover, regression analysis show that Procedural Fairness in Restructuring and\u00a0Layoffs\u00a0are fairer in case of NSN as compare to PTCL. These processes have matured in case of NSN, where employees are more satisfied with the Procedural Fairness in\u00a0Layoffs\u00a0than Restructuring<\/p>\n
Mass layoffs in the Czech Republic and Slovakia
\nThe paper describes the legislative framework for mass\u00a0layoffs. … The paper analyzes particular cases within selected\u00a0companies.\u00a0Companies\u00a0tried to avoid mass\u00a0layoffs\u00a0by reducing costs such as an elimination of selected employee benefits, shortening working hours, abolition of recruitment, etc. … When analyzing the process of mass\u00a0layoffs, authors have built certain assumptions. Assumptions were divided into five groups dealing with the reasons for\u00a0layoffs, employee selection criteria,\u00a0layoff\u00a0process itself, help for laid-off employees, and building a good reputation.<\/p>\n
“When Are Layoffs Acceptable? Evidence From A Quasi-Experiment
\nWe performed quasi-experimental surveys to study when employees in the U.S. and Canada feel that\u00a0layoffs\u00a0are fair.\u00a0Layoffs\u00a0were perceived as more fair if they were due to lower product demand than if the result of employee suggestions. This result appears to be solely due to norms of reciprocity (companies\u00a0should not punish employees for their efforts), rather than norms of sharing rents, as new technology was also considered a justification for\u00a0layoffs. Consistent with theories of distributive and procedural equity,\u00a0layoffs\u00a0were perceived as more fair if the CEO voluntarily shared the pain. CEO bonuses due to\u00a0layoffs\u00a0lowered their reported fairness only slightly.<\/p>\n
Layoffs as Part of an Optimal Incentive Mix: Theory and Evidence
\nThese contracts contain a mix of incentives, such as fixed wages, bonus payments, promotion options, and\u00a0layoff\u00a0threats. … In particular, we show that it can be optimal for firms to combine cost-efficient incentives such as promotions and bonuses with\u00a0layoffs. The intuition is that\u00a0layoffs\u00a0play a dual role. … Using personnel records from a large international pharmaceutical\u00a0company, we find that the model\u2019s predictions are consistent with the data.<\/p>\n
“Layoff announcements and intra-day market reactions
\nThis paper examines investor intra-day reactions related to two types of\u00a0layoff\u00a0announcements, the first one at the start of\u00a0layoff\u00a0negotiations and the other at the final\u00a0layoff\u00a0decisions. We provide statistically significant evidence that, on average, investors have strongly negative reaction to\u00a0layoff\u00a0negotiations within the first 10 min. … Moreover, on the aggregated level, final\u00a0layoff\u00a0announcements do not generally convey information that is exceptionally useful to investors, except when reactions to associated initial announcements have not been statistically significant. … Finally, we find that intra-day reactions cannot be explained by various\u00a0company\u00a0background characteristics, such as the number of employees, sales, profitability, and assets\/liabilities ratio.<\/p>\n
When are layoffs acceptable? Evidence from a quasi-experiment,
\nWe perfomed quasi-experimental surveys to study when employees in the U.S. and Canada feel that\u00a0layoffs\u00a0are fair.\u00a0Layoffs\u00a0were perceived as more fair if they were due to lower product demand than if the result of employee suggestions. This result appears to be solely due to norms of reciprocity (companies\u00a0should not punish employees for their efforts), rather than norms of sharing rents, as new technology was also considered a justification for\u00a0layoffs. Consistent with theories of distributive and procedural equity,\u00a0layoffs\u00a0were perceived as more fair if the CEO voluntarily shared the pain. CEO bonuses due to\u00a0layoffs\u00a0lowered their reported fairness only slightly.<\/p>\n
Relationships, Layoffs, and Organizational Resilience: Airline Industry Responses to September 11,”
\nCertain of these\u00a0companies\u00a0emerged successful, however, and demonstrated remarkable resilience while others languished. This investigation identifies the reasons why some airline\u00a0companies\u00a0recovered successfully after the attacks while others struggled. Evidence is provided that\u00a0layoffs\u00a0after the crisis, while intended to foster recovery, instead inhibited recovery throughout the four years after the crisis. But\u00a0layoffs\u00a0after the crisis were strongly correlated with the lack of financial reserves and the lack of a viable business model prior to the crisis. … One implication of our findings is that\u00a0layoffs, while reducing costs in the short term, may also undermine the positive relationships that are critical for achieving lasting recovery.<\/p>\n
“Board of Directors\u2019 Remuneration, Employee Costs, and Layoffs: Evidence from Spain
\nThus, in this study, our aim is to test whether there is a causal relationship between the remuneration of the board of directors of listed\u00a0companies\u00a0and the personnel policies of the\u00a0companies, expressed through the cost of personnel and\u00a0layoffs. For that, we used a sample of Spanish listed\u00a0companies, and we found that two performance measures (return on equity and earnings per share on market price) have a greater effect on the growth rate of board remuneration when\u00a0layoffs\u00a0occur<\/p>\n
The Perceived Fairness of Layoffs in Germany: Participation, Compensation, or Avoidance?,
\nThis study analyses to what extend and under what circumstances\u00a0layoffs\u00a0are accepted in Germany. … Key findings are: (1) The management of a\u00a0company\u00a0can increase the acceptance of\u00a0layoffs\u00a0if the employees get some participation rights. (2) For impartial spectators generous compensation for those made redundant leads to a higher degree of perceived fairness. But job alliances are not even preferred to\u00a0layoffs\u00a0without measures to soften the blow of job loss. (3) Implicated stakeholders accept job alliances and perceive wage cuts as fair than\u00a0layoffs<\/p>\n
“Investor Reactions, Social Implications and Layoff Announcements in the UK: A Comparison between Periods
\nSecond, it further discusses the social implications of layoffs and the extent to which investor reactions towards\u00a0layoffs\u00a0may have changed overtime. Details of\u00a0layoff\u00a0announcements for UK listed\u00a0companies\u00a0were gathered for the periods1980 to 1984 and 1990 to 1995 inclusive. Comparative to prior U.S. findings, the results show that UK investors do respond negatively to announcements categorised as reactive. Two findings not established by prior research were: (1) UK investor reactions appear to be much more sensitive to\u00a0layoffs\u00a0in the 1990’s as opposed to the 1980s, and (2) UK investors appeared increasingly sensitive toward layoffs compared to their US counterparts.
\n11 – \u00a0As more and more Big Tech companies continue to sack employees, they have listed various reasons behind the move —\u00a0over-hiring, uncertain global macroeconomic conditions, strong tailwinds from the Covid-19 pandemic.<\/p>\n
REFERENCE :
\n1 Jibran Hussain & Hassan Ali & Mobashar Sadik & Saba Qasim, 2017. “Procedural Fairness in Restructuring and Layoffs between two Telecom Companies of Pakistan,”\u00a0Global Journal of Social Sciences Studies, Online Science Publishing.<\/p>\n
2 Ji\u0159\u00ed Duda & Katar\u00edna Hrubov\u00e1, 2011. “Mass layoffs in the Czech Republic and Slovakia,”\u00a0Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press.<\/p>\n
3 Charness, Gary B & Levine, David I. I., 2000. “When Are Layoffs Acceptable? Evidence From A Quasi-Experiment,”\u00a0University of California at Santa Barbara, Economics Working Paper Series\u00a0qt4vs7h4hh, Department of Economics, UC Santa Barbara.<\/p>\n
4 Frederiksen, Anders & Tak\u00e1ts, El\u00f6d, 2006. “Layoffs as Part of an Optimal Incentive Mix: Theory and Evidence,”\u00a0IZA Discussion Papers\u00a02447, Institute of Labor Economics (IZA).<\/p>\n
5Santiago Vel\u00e1squez & Juho Kanniainen & Saku M\u00e4kinen & Jaakko Valli, 2018. “Layoff announcements and intra-day market reactions,”\u00a0Review of Managerial Science, Springer, vol. 12(1), January.<\/p>\n
6 Gary Charness & David I. Levine, 1999. “When are layoffs acceptable? Evidence from a quasi-experiment,”\u00a0Economics Working Papers\u00a0369, Department of Economics and Business, Universitat Pompeu Fabra.<\/p>\n
7 Jody Hoffer Gittell & Kim Cameron & Sandy Lim & Victor Rivas, 2005. “Relationships, Layoffs, and Organizational Resilience: Airline Industry Responses to September 11,”\u00a0EERI Research Paper Series\u00a0EERI_RP_2005_06, Economics and Econometrics Research Institute (EERI), Brussels<\/p>\n
8 Mariano Gonz\u00e1lez-S\u00e1nchez & Eva M. Ib\u00e1\u00f1ez Jim\u00e9nez & Ana I. Segovia San Juan, 2021. “Board of Directors\u2019 Remuneration, Employee Costs, and Layoffs: Evidence from Spain,”\u00a0Sustainability, MDPI.<\/p>\n
9 Christian Pfeifer, 2007. “The Perceived Fairness of Layoffs in Germany: Participation, Compensation, or Avoidance?,”\u00a0Journal of Business Ethics, Springer, August.<\/p>\n
10 Phillip McKnight & Anthony Lowrie & Chris Coles, 2002. “Investor Reactions, Social Implications and Layoff Announcements in the UK: A Comparison between Periods,”\u00a0Journal of Management & Governance, Springer; Accademia Italiana di Economia Aziendale (AIDEA), March. <\/p>\n","protected":false},"excerpt":{"rendered":"
TITLE \u2013 LAYOFFS IN IT COMPANIES AUTHOR \u2013 ALIFIYA KANCHWALA 1 Procedural Fairness in Restructuring and Layoffs between two Telecom Companies of Pakistan This study compares impact of Procedural Fairness in\u00a0Layoffs\u00a0and Restructuring on Employee satisfaction between two telecom\u00a0companies\u00a0[Pakistan Telecommunication\u00a0Company\u00a0Limited (PTCL) and Nokia Siemens Network (NSN)] operating in Pakistan. … Correlation coefficient shows strong positive association… Continue reading Lay offs in IT Industries<\/span><\/a><\/p>\n","protected":false},"author":111990,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[1593,1730,1731],"class_list":["post-17092","post","type-post","status-publish","format-standard","hentry","category-management","tag-covid-19","tag-it-companies","tag-lay-offs","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/111990"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17092"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17092\/revisions"}],"predecessor-version":[{"id":17093,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17092\/revisions\/17093"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17092"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}