Review of Public Administration and Management

Abstract

Is Job Redundancy Applied Right?

Munshi Joy

Job redundancy is the termination of a position, not an employee. It has recently gained its popularity among MNEs as a cost-cutting and profit enhancing strategy. While this should be considered as the last resort to downsize, studies suggest that businesses adapt redundancy without even considering other available strategic option, whenever they face financial difficulties. During and followed by the recent credit crunch, MNEs around the world especially those operating in the the UK and Australia has frequently announced redundancy. However, the practice is often criticised by the critics in that the strategy is often used to cut heads, not jobs. Therefore, the researcher has critically analysed job redundancy from academic, business and ethical viewpoints.