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SEPARATION PROCESS
Human resource management
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Redundancy in organizations
reduction in need for employees in the business. A
dismissal is by reason of redundancy only when it is
caused by such a reduced need.
This reduced need can arise in many ways, for example
because of:
disposal of part of the business, or
relocation of the business, or
the introduction of new methods of work that reduces the
number of employees needed.
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Redundancy in organizations
An employee may also be dismissed by reason of
another employee's redundancy. For example, employee
A's job disappears because the place of work is closed
butitis employee B who
is d
ism
issed.
The employerwants to retain A. Employee B's dismissal is often called
a bumped redundancy but remains in law a redundancy.
Particularly in large-scale redundancy programmes,
bumped redundancies may be common. Redundancies
can also be voluntary. The essential point is to besatisfied that the total number of redundancies matches
the reduced need for employees.
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Separation
Separation means cessation of service or
agreement with the organization for one or
other reason. The employee may be
separated from the payroll of the company as
a result of
Resignation
Discharge & Dismissal Suspension & Retrenchment
Layoff
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Employee Separations
An employee separation occurs when an
employee ceases to be a member of an
organization.
The rate of employee separation in an
organization, the turnover rate, is a measure
of a rate at which employees leave theorganization.
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Human Resource Replacement Costs
Costs
Recruitment Cost Training Cost Separation CostSelection Cost
Advertising
Campus Visit
Recruiter Time
Search Firm Fees
Interviewing
Testing
ReferenceChecks
Relocation
Orientation
Direct
Training Cost
Trainers Time
Less Productivity
During Training
Separation Pay
Benefits
Unemployment
Insurance Cost
Exit Interview
Outplacement
Vacant Position
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Benefits of employee separations
Reduced labour costs
Replacements of poor performances
Increased innovation The opportunity for greater diversity
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Types of employee separations
Types of employee separations
Voluntary Involuntary
Quits
Retirements
Layoffs
Discharges
Retrenchment
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Involuntary separations
It occurs when an employer decides to terminate its
relationship with an employee due to
Economic necessity or
A poor fit between the employee and the organization.
Voluntary separations
A separation that occurs when an employee decides, for
personal or professional reasons to end the relationship
with the employer.
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Types Of Voluntary Separations
There are two types of voluntary separations:
Quits
Retirement
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Discharges or dismissals
Discharge: Employer discovers that it is no moredesirable to keep an employee any longer, also called as
termination should be avoided as far as possible.
dismissal takes place when mgmt decides that there is a
poor fit between an employee and the organization. It hasto supported with sufficient reasons:
Excessive absenteeism
Serious misconduct
False statement of qualification Theft of companys property
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Layoffs
Layoffmeans the failure, refusal" orinability on the part of any employer to give
employment to any number of workmen on
account of shortage of raw material,
accumulation of stock, breakdown of
machinery or for any other reason. It is
temporary separation, it may be for a definite
period or may extend if employer is unable toestimate when he can recall.The employee has
to be paid compensation at the rate of half of
wages
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Layoffs
It may be due to:
Shortage of coal, power , raw material
Accumulation of stocks Breakdown of machinery
For any other reason
The lay off can be on the bas
is of mer
it orseniority. After lay off recalling in case of
resumption of normal activity is determined
by seniority
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Retrenchment
Retrenchment means discharge of surplus
labour or staff by the employer on account of
long period of layoff, or closure of part of plant or
improved machinery or automation of machinesor similar other reasons. It is the termination of
services of employees where they are sent home
for good unlike a layoff where they stay attached
to the company. It is different from dismissal as itis forced on both employer and employee and it is
for a group where as dismissal is one or two
people.
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Effective handling of downsizing
Consider the human element
Make decisions of who goes or not
judiciously.
Delay any pay hikes
Freeze hiring
Restrict overtime
Retrain or redeploy
morale
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Resort to across the board pay cuts
Implement early retirement plans
Engage part time employees
Switch to job sharing
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Downsizing: Managerial Perspective
Who should be laid off?
How much notice?
How to provide secur
ity dur
ing layoffs?
How/when to communicate to those let go,
media, survivors?
How to best manage survivors?
How can we help separated employees?
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Impact OfLayoff
Effects the morale of remaining employees
Regions economic vitality
Entire commun
ity suffers
Investors are affected
companys image
Difficult to attract & recru
it h
ighly sk
illedemployees
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Implementing A Layoff
Notifying employees ( before 7 days )
Developing layoff criteria
Communicating to laid off employees Coordinating media relations
Maintaining security
Reassuring survivors of layoff
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ManagingLayoffs
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Alternatives to layoffs
Employment policies
Reduction through attrition
Hiring freeze
Changes in job design
Transfer
Relocation
Job transfer
Training
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Outplacement
Outplacement assistance is a program created to
help departing employees find jobs more rapidly
by providing the with training in job-search
skills.
Goals are: To reduce the morale problems of laid off and surviving
employees To minimize litigation by separated employees
To assist separated employees in finding comparable jobs
ASAP
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Outplacement
It is an HR program created to help separated
employees deal with the emotional stress of job
loss.
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Goals of outplacement
Reducing the morale problem of employees who
are about to be laid off.
Minimizing the amount of litigation initiated by
separated employees
Assisting separated employees in finding new
jobs