{"id":28751,"date":"2025-08-25T20:24:30","date_gmt":"2025-08-25T20:24:30","guid":{"rendered":"https:\/\/certifeka-edu.com\/programs\/organizational-behavior-professional-certificate\/lessons\/lesson-6-closing-a-business-operation\/"},"modified":"2025-08-25T20:49:10","modified_gmt":"2025-08-25T20:49:10","slug":"lesson-6-closing-a-business-operation","status":"publish","type":"lesson","link":"https:\/\/certifeka-edu.com\/ar\/programs\/organizational-behavior-professional-certificate\/lessons\/lesson-6-closing-a-business-operation\/","title":{"rendered":"Lesson 6: CLOSING A BUSINESS OPERATION"},"content":{"rendered":"
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Lesson 6: Change Management\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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CLOSING A BUSINESS OPERATION\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Businesses make the difficult decision to close all or part of their operations for many reasons, including economic recession, market decline, bankruptcy, sale, a realignment of operations, downsizing, reorganization, outsourcing or loss of contracts.<\/span><\/h5>
HR professionals will play an integral role during such business closures, from developing the plan for the closure through the final stages of shutdown. Some of HR’s major responsibilities during this type of organizational change are listed in the following slides:<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Following facility-closing notification laws <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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HR must determine whether and to what extent the business must comply with notification requirements under federal or state laws for mass layoff and facility closings.<\/span><\/h5>
HR will also lead the announcement process and participate in all aspects of employee communications, which may include all-employee meetings, written announcements and media interviews.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t
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Announcing the closure news <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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HR has an important role to play in anticipating and responding to workforce reactions by having as much information and resources on hand as possible.<\/span><\/h5>
To avoid hostilities or other destructive behavior, HR should consider using an employee assistance program or an outplacement firm.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t
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Providing employee benefits information <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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After the shock of the announcement subsides, the most frequently asked questions involve benefits,<\/span><\/h5>
including unemployment compensation, health care continuation, pension plan issues<\/span><\/h5>
and retirement plan distributions and rollovers.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t
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Coordinating outplacement services <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Offering outplacement services for departing employees may enable business owners and managers to provide much-needed support and protect the organization’s reputation<\/span><\/h5>
If financially feasible, the organization may offer departing employees outplacement services from a private outplacement consulting firm or, in some states, a state agency.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t
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Negotiating with unions <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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In unionized facilities, employers have a duty to bargain about the effects of a business closure decision.<\/span><\/h5>
These negotiations typically involve assistance benefits, seniority issues, pension plan issues and employment opportunities at facilities not affected by the closure.<\/span><\/h5>
Costing the closure. Anticipating the costs of a business closure is critical from an early stage of the process and will fall heavily on HR.<\/span><\/h5>
This procedure involves assessing the cost of winding down employee benefits, assistance benefits, payroll and administrative costs, severance payments, union demands, unresolved employee claims or charges, security precautions, and any closing notification penalties.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t
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Disposing of company property <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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HR should know the organisation’s policy for disposal of company property and respond to employees’ requests for office furniture, equipment, machinery and other tangible business assets.<\/span><\/h5>
If the business does not sell or transfer assets or is not in debt to creditors, HR may help determine whether to give items to employees, community groups, schools or other potential recipients.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t
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Complying with legal requirements <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Numerous legal issues surround the closing of a business<\/span><\/h5>
Depending on the number of employees and the employer’s commitments to employee benefits programs,<\/span><\/h5>
legal compliance may require following closing-notification requirements, sending out COBRA notices and termination letters, issuing final paychecks,<\/span><\/h5>
making any required severance payments and communicating unemployment compensation. HR must know how to comply with the laws and avoid litigation risks.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"comment_status":"open","ping_status":"closed","template":"","class_list":["post-28751","lesson","type-lesson","status-publish","hentry"],"yoast_head":"\nLesson 6: CLOSING A BUSINESS OPERATION - Certifeka-edu<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/certifeka-edu.com\/ar\/programs\/organizational-behavior-professional-certificate\/lessons\/lesson-6-closing-a-business-operation\/\" \/>\n<meta property=\"og:locale\" content=\"ar_AR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lesson 6: CLOSING A BUSINESS OPERATION - Certifeka-edu\" \/>\n<meta property=\"og:description\" content=\"Lesson 6: Change Management CLOSING A BUSINESS OPERATION Businesses make the difficult decision to close all or part of their operations for many reasons, including economic recession, market decline, bankruptcy, sale, a realignment of operations, downsizing, reorganization, outsourcing or loss of contracts. 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