Syllabus: Cambridge - International AS & A Level Business
Module: 2.1 Human Resource Management (HRM)
Lesson: 2.1.4 Redundancy and Dismissal

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Introduction

This section of the Cambridge International AS & A Level Business syllabus focuses on redundancy and dismissal within the Human Resource Management topic. It explores the reasons, processes, and implications for both employees and employers. Mastery of this content equips students to understand how staffing decisions affect organisational performance, legal compliance, and workplace morale. As with other HRM elements, it is important for teaching to balance conceptual knowledge with applied examples to prepare students for both exams and the world of work.

Key Concepts

  • Redundancy: Occurs when a role is no longer needed, often due to organisational restructuring, technological change, or financial pressures. It is not related to individual performance.

  • Dismissal: Termination of employment due to factors such as misconduct, poor performance, or breach of contract.

  • Legal frameworks: Understanding of employee rights, notice periods, and employer obligations under employment law.

  • Procedural fairness: The importance of following correct procedures to avoid unfair dismissal claims.

  • Impact on stakeholders: Consequences for remaining employees, management, customers, and public perception.

  • Alternatives to redundancy: Redeployment, retraining, reduced hours, or natural attrition.

Real-World Relevance

High-profile redundancy programmes, such as those in the aviation and retail industries during economic downturns, highlight the importance of strategic HRM. For example, British Airways’ redundancy process during the COVID-19 pandemic required balancing cost-cutting with maintaining operational capability. Mismanaged dismissals can lead to reputational damage, as seen in cases where employees have challenged terminations in employment tribunals. Bringing these examples into lessons helps students connect theory to practice.

How It’s Assessed

In Cambridge assessments, redundancy and dismissal may appear in:

  • Short-answer questions assessing definitions and distinctions between terms.

  • Data response questions linking workforce changes to financial and operational performance.

  • Essay-style questions requiring evaluation of the most effective HR strategy in a given scenario.
    Command words such as analyse, discuss, and evaluate are common, so students must demonstrate understanding, application, and reasoned judgement.

Enterprise Skills Integration

This topic naturally connects to decision-making and problem-solving. Students can use simulations to experience the challenge of managing staffing costs while maintaining morale and productivity. For example, in an Enterprise Skills Business Simulation, they might weigh the trade-offs between redundancy, redeployment, and investment in automation, observing the immediate and long-term impacts of their decisions.

Careers Links

Understanding redundancy and dismissal is relevant to careers in:

  • Human Resources (HR Advisor, Employee Relations Specialist)

  • Business Management

  • Industrial Relations and Employment Law

  • Entrepreneurship (where staff decisions directly impact business survival)
    These roles link to Gatsby Benchmarks 5 and 6, providing encounters with the realities of workforce management and workplace expectations.

Teaching Notes

  • Use case studies: Present contrasting examples of well-managed and poorly managed redundancy processes to explore outcomes.

  • Role-play activities: Assign students to management and employee roles to simulate consultation meetings.

  • Highlight legal context: Ensure learners understand the basics of UK and international employment law relevant to the syllabus.

  • Common pitfalls: Students often confuse redundancy with dismissal; use examples to reinforce the difference.

  • Extension activities: Link to corporate social responsibility by examining how ethical considerations influence redundancy decisions.

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