3. REASONS FOR DOWNSIZING
Internal
External
Change in economy
Change in technology
Change in ownership and control Improper HRP
Business restructuring Wrong selection
Outsourcing Improper reward system
MANAGEMENT OF REDUNDACIES
4. POLICIES & PROCEDURES
• Need for policies
1. Stable work environment
2. High level of job security
• Case : Virgin Airlines
MANAGEMENT OF REDUNDACIES
5. COMPENSATION
½ Week *each year of employment under the
age of 22
1 Week * each year of employment between the
ages of 22 & 40
1 ½ Week pay * each year of employment above
the age of 41
MANAGEMENT OF REDUNDACIES
6. APPROACHES TO DEAL WITH
WORKFORCE REDUNDANCIES
▫ Combine worker flexibility
▫ Review job specifications at regular intervals
▫ Training
▫ Last resort
▫ Encouraging entrepreneurship
▫ VRS
MANAGEMENT OF REDUNDACIES
7. SOCIALLY RESPONSIBLE DOWNSIZING
Five Paradoxes facing businesses
i. Meaningful work & high quality of life
ii. Asset not considered as asset
iii. Employee satisfaction translates to customer
satisfaction
iv. Objective of downsizing
v. Mergers & acquisitions
MANAGEMENT OF REDUNDACIES
9. HOW TO GO ABOUT VRS?
• Need, impact , responsibility
• Indentify who will cover?, who may opt?, does
scheme cover all levels?
• Sharing of the information
• Educate supervisors- need, features, processes
• Consult/involve union in designing scheme
• Scheme administered in phased manner
MANAGEMENT OF REDUNDACIES
10. • In the context of profile needs of the organization certain
features should be given careful thought like ;
Assessment of manpower
Identification of jobs were VRS would be refused
Method of payment, etc.
• VRS scheme design should cover:
Preamble
Short title
Eligibility, date, duration
Mode of payment, etc.
MANAGEMENT OF REDUNDACIES
11. • Conduct labour market survey
• Counseling sessions
• Appropriate review of VRS
• Working on retaining good employees
• A proper mechanism for monitoring the effects of
VRS
• Take workers, union & line manager into confidence
from the beginning
MANAGEMENT OF REDUNDACIES
12. Case :
Joioned as HR
Task of VRS Meeting with M.D
Manager
and Union Leader
Effort to improve
Workers accepted the situation and Unsatisfied with
the offer explaining the observations
Union
MANAGEMENT OF REDUNDACIES
