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Making Decision in Company Dismissal Process

Although all companies tend to develop and grow, the reality is also business contraction with necessity of firing company employees. This especially occurs during the global crisis and decreased demand for company goods and services that reduces company reproduction process. Therefore is employee reduction often the only solution for cost reduction and company survival. To minimize social costs, employee dismissal process should be managed fairly with all relevant criteria taken into account. Management of the company should rate actual workers performance, development potential or social criteria all objectively to get strong arguments for first selection and for making the final choice. Not all rated criteria are equally important in a specific moment so Analytic Hierarchy Process is used to select and rank the employees that are taken into account for firing based on the importance of each criteria which is defined by company management. Human individuals cannot always be measured or valued by pure numbers, yet final result of this method precisely shows which candidates should be in focus for dismissal based on different information about each employee (actual performance, development potential or social criteria).

AHP method; Dismissal criteria; Employees dismissal; Ranking; Saaty's scale

Selected Papers from 2nd International Scientific Conference on Economic and Social Development, Paris, France, April 5, 2013.