Separation Process 2

8/8/2019 Separation Process 2

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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

Separation Process 2

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