The film is about an investment firm that is facing financial difficulties. The firm embarks on a retrenchment initiative to try and improve viability. It retrenches the head of risk management who was working on an important analysis regarding certain mortgage-backed security valuations being ‘overstated’ and the company’s overexposure to these securities. Before leaving, he hands the file over to one of his junior risk analysts with the words: “Be careful”. The employee continues his work late into the evening realizing that the firm has hit an impending financial crisis that will have material impact on the survival of the firm and financial markets. He notices that the volatility of the mortgage-backed security …show more content…
An important part of the dismissal is that it still passes procedural and substantive fairness. The employer must first notify, discuss and negotiate with the employees or their representatives, such as trade unions, when considering retrenchments. Notifications in writing should include: the reasons for the layoffs, how many workers will be influenced, the process of selecting affected jobs, the date of the dismissals, alternatives investigated, severance pay offers allocated and any assistance such as re-employment or training that could be …show more content…
It should be appropriately handled to gain the best solution to the financial crisis. However, near the end of the film, the conflict occurs between the senior CEO who is having a meal and the head of the trading floor, who wants to resign from his position due to the unethical strategy taken by the company. The conflict arises as the employee shows inner conflict by considering both that he wants to abide by his own morals and that he still wants to have a job. The tool used to resolve the minor conflict between the CEO and the employee is handled via smooth talking, negotiating and consulting the conflict directly. However, ultimately it is not the CEO’s ability of smart communication and coercion that causes the agreement of the employee, but rather by using an item of value – seen as a transactional approach. Money, once again is used to inspire the employee to accept his terms and by doing this he secretly ‘forces’ the position onto the employee to yield the