Managing Separations & Rightsizing

• Separations– Voluntary • Quits• Retirements

– Involuntary• Discharges• Layoffs• Retrenchment• VRS• Rightsizing

• Employers resort to terminate employment contract for the following reasons:– Organization is passing through lean period and is unable

to maintain the existing labour.– Initial faulty hiring resulting in mismatch between job and

employee fit.– Employee exhibits deviant behavior disturbing the

environment around.• Layoff’s : Under Section 2 (kkk)of the industrial

disputes act 1947, lay off is the failure, refusal or inability of an employer to give employment to a worker.– Shortage of raw materials– Accumulation of stocks– Breakdown of machinery

• Rightsizing: means downsizing the employee strength through planned elimination of jobs. Downsizing is triggered by :– The company’s bottom line is threatened– Technological advancement renders people redundant– Organizational restructuring

• Guidelines to manage downsizing:– Consider the human element– Make “who goes and who stays” decision judiciously– Delay any pay hikes– Freeze hiring– Restrict overtime– Engage part time employees– Switch to Job Sharing– Implement early retirement programmes

• The Performance - Replaceability Matrix.• Horizontal Movements of Employees.• Vertical Movements of Employees.• Reasons for Transfer• Principles of Transfer:– Frequency of transfers– Authority to handle transfer– Effect of transfer on pay or seniority– Permanent or temporary

• Principles of Promotion:– Internal or external– Seniority or Merit– Time Bound Promotions

• Types of Transfer:– Production Transfer– Replacement Transfers– Versatility Transfers– Shift Transfers– Remedial Transfers