Making Decision in Company Dismissal Process

Abstract

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 Hierarch 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).

Keywords: AHP method, Dismissal criteria, Employees dismissal, Ranking, Saaty's scale