Dismissal is a personnel activity. There are two basic reasons for the dismissal. The first is a gross violation of work discipline, the second is redundancy - the organization does not work for the employees.
The first reason usually leads to immediate dismissal. The second reason - redundancy - is solved in two ways. One is the LIFO method and the other is method based on the performance of workers.
LIFO is an acronym of Last In First Out and means the preferred laying off of workers with the shortest period of employment. It is based on the belief that longer employed workers have more right to remain in the organization. This kind of dismissal is generally easier to justify. The advantage is that workers employed for a shorter period of time usually leave with less tacit knowledge.
Dismissal based on performance is based on the belief that the efficient workers have more of a right to remain. When to use this method, it is necessary to evaluate the quality performance of employees to find the desired result.
Both theory and practice indicate that dismissal should be the resort as the utmost option and other ways should be looked even before for - limiting overtime, use of natural attrition, etc.
Note: LIFO is analogous to the LIFO method.