ination or dismissal is inevitability despite how strong the firms’ recruiting, performance management, management practices as well as hiring effectively be. Dismissal of the employees results from behavioral misconduct such as theft, violation of standards of conduct and/ or policies, changes in business such as lack of work, new markets and contract ending as well as performance issues. It is importance to note that, before settling down to conduct a dismissal meeting, a firm should first consult with a counsel from an employment attorney to ascertain non-exposure to litigation.
As noted by Martin Yate’s “Keeping the Best”, a firm that fails to strip-off chronic poor performers, is viewed by the best performers employees as having condoned lackluster performance and/or it fails to recognize the difference as the best performers will always long for associating themselves to the best (Yate, 1991, p. 65). It is therefore key for both small and large firms to dismiss employees when it is called for. This is because small business may not afford to retain unproductive employees since poor performance negatively affect the Company’s outcomes through demotivating best performers. However, firing of employee calls for proper handling of the dismissal process to curb the looming pitfalls such as reduction in morale and productivity with respect to retained employees. In addition, the image of the Company and recruitment of new staff are embedded on how dismissal process is handled. As noted by Richard S. Deems in his book ‘How to Fire Your Friends’, “Do it the right way, and there’s no lasting negative effect on the company or the person who is existing. Do it the wrong way, and the fired employee may have a very difficult time finding a new job and you and your company may end up in court (Deems, 1989, p. 16).”
The manager needs to set the tone as how the work group will react to the challenge or stress arising from the unwelcome change. The