All of employee has certain expectations which he thinks ought to be fulfilled by the organisation he is working for. While the organisation fails to do this, a feeling of discontent or dissatisfaction is developed. A person who is dismissed from service might find it difficult to discover alternative employment, while compared to a person who is discharged from service. In particular case of discharge, the errant employee might be served a reasonable, advance notice. Layoffs have a strong impact on the organisation. They bring down the confidence of the organisation's remaining employees, who are compiled to live in an environment of insecurity and uncertainty. Discharge/dismissal is a radical measure seriously impairing on the earnings potential and the image of an employee. It should be utilized sparingly, in exceptional cases where the worker has demonstrated constant inefficiency, gross insubordination or constant violating rules even after numerous warnings.