A guide to managing employee terminations and resulting changes is presented for administrators. Three reasons for termination that are legitimate, nondiscriminatory, and acceptable in today's marketplace and courts are: cause (serious misconduct, dishonesty, unethical, or dangerous behavior); job elimination (reduction in force, economic conditions, retrenchment, merger, or shutdown); and poor performance (incompetence, missing key goals, and causing problems with others that drag down total performance of the unit). What to document when terminating an employee and the concept of outplacement (reemployment assistance) are addressed. In addition to considering a proposed severance package for a terminated employee, costs of carrying an unproductive or troublesome employee before termination are noted, and advice is provided on avoiding complications after termination. Suggestions are offered concerning various aspects of termination, including the planning stage, convincing senior management and boards, communicating with colleagues and staff, and group terminations. Appendices include: an internal memo concerning reorganization and cutbacks, a termination checklist, a sample termination letter, and a statement of reference/rationale. (SW)