The practices of managing dismissals, retirement, and redundancies are the areas of leadership work that require careful due to an opportunity to maintain a productive work regime. Bergström and Arman consider various strategies for interacting with dismissed employees and note the importance of not only legal but also ethical communication. Under existing labor legislation, severance payments are mandatory bonuses that business organizations are to provide to employees who cease their activities in a particular company. At the same time, Bergström and Arman note the importance of such a practice as outplacement counseling. The possibility of finding a new job with the advice of a former employer increases the authority of the management among remaining employees and is consistent with corporate ethics conditions.
With respect to the principles of retirement management, special approaches can also be applied so that both parties involved can be satisfied. According to Bergström and Arman, for older employees who leave jobs due to their age, voluntary retirement programs may be offered as effective strategies for avoiding conflicts and misunderstandings. These programs are legal and require the provision of appropriate bonuses to workers in case of resignation by mutual agreement of the parties. In addition, impartiality is one of the positive outcomes that may be achieved. Older employees do not feel discriminated against, and engaging with former employers is ethically fair and unbiased. Therefore, the principle of voluntary retirement is a convenient mechanism for resolving potential problems related to the issue in question.
In relation to redundancies, there are practices that allow employers to reduce labor surpluses in accordance with the official legislation. Bergström and Arman mention an approach that involves prior warning trade unions of the need for active measures, and this communication should be carried out at an early stage. In this case, all interested parties will be aware of the existing problem timely, and this will provide an opportunity to establish a reduction process gradually and avoid law violations due to unjustified dismissals. Moreover, employees who fall into the category of reduction obtain a chance to find a new job, thereby avoiding a long period of unemployment. Therefore, prior warning of trade unions is a sound practice that helps eliminate the negative effects of redundancies.