Chapter 21

1. Chapter 21 Managing Separations and Right Sizing Human Resource Management, 5E

2. Learning Objectives • Understand types of separations and how to manage them. • Understand the nature, causes, and principles of transfers. • Understand the nature, purposes and principles of promotion. Human Resource Management, 5E

3. Principles of Promotion • New hires or internal promotions • Seniority or merit • Promotion to vacancies or no vacancies • Promotion chart • Frequent promotions not advisable • Preceded by job analysis and performance appraisal • Policy to be discussed with unions Human Resource Management, 5E

4. Types of Promotion • Horizontal • Vertical • Dry Human Resource Management, 5E

5. Principles of Transfers • The frequency of transfers and the minimum period between transfers need to be decided upon and made known to all the employees. Defence personnel and government employees, for example, are subjected to transfer once in three years. The employees in these establishments know when they are due for a transfer and are prepared for it. • The authority which would handle transfers is to be decided upon. The usual practice is that transfers in each department are handled by the person in charge of that department. The best course is to centralise the authority handling transfers, and make the HR department responsible for them. • The criteria for entertaining transfers need to be laid down and strictly adhered to. Human Resource Management, 5E

6. Principles (contd..) • The area of the organisation over which transfers can be made need to be defined. • The effect of the transfer on the pay and seniority of the transferred employee may be clearly evaluated. • Transfers should be clearly defined as permanent or temporary. • he performance of the employee needs to be assessed before transferring him or her to a different job. Similarly, the job itself must be properly described. Job description and employee assessment enable the management to know whether the individual fits the new job or whether he or she needs training before taking up the new assignment. • The interests of the organisation are not be forgotten in framing a policy of transfers. Human Resource Management, 5E

7. Types of Transfers • Production • Replacement • Versatility • Shift • Remedial Human Resource Management, 5E

8. Separations • Lay-off • Resignation • Dismissal • Retrenchment • VRS Human Resource Management, 5E

9. VRS at SAIL Human Resource Management, 5E

10. VRS in NTC Human Resource Management, 5E

11. Guidelines to Manage Downsizing • Consider the human element • Make “who goes and who stays” decisions judiciously • Delay any pay hikes • Freeze hiring • Restrict overtime • Retrain or redeploy employees • Engage part-time employees • Switch to job-sharing • Restore to across-the-board pay cuts • Implement early retirement programmes • Attend to morale of serving employees Human Resource Management, 5E

12. Performance-Replaceability Matrix Human Resource Management, 5E

13. Reality Check • Which separations – voluntary or involuntary – lead to high attrition rate? Human Resource Management, 5E