Thursday, September 26, 2019

Management Principles Essay Example | Topics and Well Written Essays - 2500 words - 1

Management Principles - Essay Example This report identifies the advantages and disadvantages of the lifetime employment model and offers lessons for today’s managers who are still considering using this lifetime employment system. When employees are given lifetime employment guarantees, the business must consider its responsibilities in terms of the law. Gibson and Piscitelli (1997) offer that business leaders must be careful about certain statements which are made which can be interpreted by employees to mean that their jobs will always be secure. In one large, multi-national business environment, a business manager, in passing workplace discussion, told his employee that â€Å"we will retire together†. This statement was made in an environment where no such lifetime employment guarantees were part of the business model, however the employee was able to convince the legal system that a lifetime employment contract was implied, thus imposing significant consequences for the business. Even though this was not a business where lifetime employment was being offered to employees, it tends to illustrate the importance of considering the legal responsibilities of these agreements. Repa and Stewart (1999) offer that the largest legal risk is when employees begin to perceive that contracts exist between themselves and the business entity, thus the creation of an implied contract becomes grounds for legal disputes. In a business where lifetime employment is part of the business model, companies must consider the risks of these types of agreements as employees have considerable legal resources available in the event that employees perceive breaches of these contracts, whether implied or based on written employee contracts. The business must also consider that, when offering lifetime employment guarantees, the current marketplace or economic conditions will not always, in the future, be favourable

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