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Chapter 21 Managing Separations and Rightsizing

Chapter 21 Managing Separations and Rightsizing. Recap of Previous Lecture Employee Safety Principles of Safety Program Implementation of Safety Program Health Work Stress Burnout. Lecture Overview Types of separations Principles of Transfers Principles of Promotions. Separation

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Chapter 21 Managing Separations and Rightsizing

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  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

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