Chapter 21 Managing Separations and Rightsizing

1. Chapter 21 Managing Separations and Rightsizing

2. Recap of Previous Lecture • Employee Safety • Principles of Safety Program • Implementation of Safety Program • Health • Work Stress • Burnout

3. Lecture Overview • Types of separations • Principles of Transfers • Principles of Promotions

4. Separation • Leaving of organization by employee is called separation • Reasons: Voluntarily or Involuntarily Reasons of Separation Involuntary Voluntary • Quits • Retirement • Discharges • Layoffs • Retrenchment • VRS • Rightsizing (restructuring) • Guidelines to Manage Downsizing • Decision to who stays and who leaves • Delay and pay hikes • Freeze hiring • Restrict overtime • Retrain or redeploy employees • Engage part time employees • Switch to job sharing • Across the board pay cuts • Early retirement schemes • Keep morale of working employees Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, Pp. 516-52133

5. Managing Separations • Functional: Organizations are more leaner, reduce hierarchy, more communication, reduce compensation cost • Dysfunctional: Disturb employees and their morale, training cost Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 5223

6. Transfers Change in job (change in place) horizontal or lateral movement Reasons of Transfer: • Shortage/surplus of employees in one department • Conflict (incompatibility) between supervisor or co workers • To correct initial misplacement decisions • Change in interests and capabilities of individual • Productivity of employee has declined due to monotony of job • The employee health or age may inhibit him to work effectively in present job • Family issues (spouse job) • Keeping employee motivated and develop knowledge level of employee

7. Principles of Transfers • The frequency and period of transfer should be decided and communicate to employees • Authority to make transfer must be clear • The criteria for transfer must be well documented • The area of transfer must be clear • The effect on pay and seniority must be clearly defined • Permanent or temporary transfer • The performance evaluation of employee must be made before transfer • The job descriptions and specification must be considered before transferring employee • Performance evaluation of transferee (after transfer) must be made with in reasonable time frame • Transfer must be made in organizational or public interest

8. Types of Transfer • Three broad categories • Enhance training and development • Adjustment to volume of work • Correct poor placement • Types of Transfers • Production Transfer • Replacement Transfer • Versatility Transfer • Shifts Transfer • Remedial Transfer

9. Promotions • Upward or vertical movement of employees • Promotion results into more pay, prestige, responsibilities, and position with in organization • Purpose of Promotion • Motivate employees • Attract and retain talented people • Recognize and reward efforts and efficiency • Increase effectiveness and efficiency of employee • Fill up higher posts form within the organization • Build loyalty and morale • To provide career development path

10. Principles of Promotions • HRM must clearly established policy whether to promote from with in to fill higher vacant position or from recruitment of external candidate • Basis of promotion (seniority or performance) • Promotions against vacant positions or non vacant positions (time bound) • Frequent promotions are not good practice • Promotions decision must be made based on job analysis and performance appraisal • Clear promotion policy and communication to employees • Promotion based on competence must be advertised on notice board

11. Promotions

12. Summary • Types of separations • Principles of Transfers • Principles of Promotions