The article deals with a department of human resources management and it is a personnel work. Many managers have to make an unpleasant decision on layoffs. This is a difficult situation for providing a solution. Using the circles model, as described in the article, is suitable when deciding. The model is based on the use of an informal working group structure and determination of personal relationships among employees. The application of the model requires manager´s good knowledge of his subordinates. Using the model helps to minimize conflict situations in the workplace, to eliminate negative effects on other workers and contributes to a better work climate. The model facilitates managerial decisions on layoffs. The model can be applied not only in manufacturing companies and business ventures but also in public administration and other organizations. Wide application of the model in the field of human resources management represents one of its indisputable advantages for manager when deciding. Using the model is relevant especially to times of an economic downturn during reducing the number of employees in organizations.
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