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Layoff-Severence Scenario for Sarah Schiffler, marketing

Layoff/Severence Scenario for Sarah Schiffler, marketing

Layoff/Severence Scenario

After eight years as a marketing assistant for the New York
office of a large French bank, Sarah Schiffler was told that her job, in a
non-revenue producing department was being eliminated. Her choices: She could
either be laid off (with eight months’ severance pay) or stay on and train for
the position of credit analyst, a career route she had turned down in the past.
Nervous about making mortgage payments on her new condo, Sarah agreed to stay,
but after six months of feeling miserable in her new position, she quit.

1. Was her separation from the bank voluntary or

2. Can you think of situations in which a voluntary
separation is really an involuntary separation?

3. What are the managerial implications of such situations?

4. Did seniority play a role in this layoff?

Source: Gomez-Mejia, L.R., Balkin, D.B., & Cardy, R.L.
(2007). Managing Human Resources (5th ed.). Upper Saddle River, NJ: Pearson
Prentice Hall.

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