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PINK SLIP MANAGEMENT

             ~ SANDESH GHOSAL

1            IIPM AHMEDABAD 09-11
PINK SLIP
       Pink Slip – refers to being fired or laid off from one’s job


       Cutting cost Mantra – anyone’s head could be on the block


       Causes defiance, antagonism, trauma, disappointment, frustration, etc.


       India – lay offs not common, leads to psychological tension


       Retrenched employees – worried about EMIs




    2                                          IIPM AHMEDABAD 09-11
PINK SLIP LIST
    NAME OF THE SECTOR                        JOB LOSSES
         Export Sector                         30,00,000
       Engineering Sector                       1,00,000
    NAME OF THE COMPANY                       JOB LOSSES
           Air India             15,000 (offer to non-operational staff)
          Jet Airways               1900 (reinstated by the company)
            Satyam                                 1500
            Wipro                                  1000
              TCS                                   500
        Patni Computers                            400
           Kingfisher                               300
            Virtusa                                 200
                                           Source: Business World, November 3, 2008

3                           IIPM AHMEDABAD 09-11
PRODUCT LIFE CYCLE vs.
            EMPLOYEE LIFE CYCLE
PARTICULARS                     PLC                 PARTICULARS                     ELC

    Introduction   •   Heavy Operational cost          Induction       •   Period of slow performance
                   •   Lot of promotional                              •   Lots of developmental &
                       activities                                          supporting activities


      Growth       •   Product fully accepted        Development       •   High performance &
                   •   Profit enhancement                                  productivity
                       realized.                                       •   Aiming @ improve
                   •   Sales high & improve                                knowledge, sharpen skills &
                       revenues                                            mold attitude
                   •   Less amount of                                  •   More Managerial Level
                       promotional activities

     Maturity      •   Sales growth decline           Promotion        •   Reward & recognition
                   •   Product realized –                              •   Job Enrichment & higher
                       prospective buyer                                   responsibilities
                   •   Promotional activities                          •   Look for higher tasks
                       withdrawn                                       •   Training play minor role


4                                               IIPM AHMEDABAD 09-11
. . . contd
PARTICULARS                      PLC                     PARTICULARS                      ELC

         Decline      •   Sales demonstrate             Retire/Retrenchment   •   Gives up work
                          declining flow & profits                            •   Sometimes earlier, early
                      •   Product withdrawn                                       retirement incentive
                                                                                  plans
                                                                              •   Employee can’t predict
                                                                                  when his life will be end

       Recession times – prepare mentally & physically for layoffs




    5                                                IIPM AHMEDABAD 09-11
ROLE OF HR DEPARMENT IN
            MANAGING PINK SLIP
       Associate line managers – retrenchment & retention strategies


       Be voice for employees – find effective solutions


       Enhance retained employees


       Compensate employees – quality output




    6                                         IIPM AHMEDABAD 09-11
PINK SLIP MANAGEMENT
       Accept the possibility of receiving pink slip


       Study Report – 20% workers able to sustain their families. Make habit of

        saving money for unforeseen events


       Cutback on superfluous expenses


       Search for an alternative job




    7                                         IIPM AHMEDABAD 09-11
PINK CONCLUSION
       Knowledge era – keep updated, have learning attitude – will help during
        recessionary times
       Financial Experts – keep adequate bank balance & liquid cash to meet expenses
        & EMIs
       B-Schools Today – introduce specialization like lay – off management or pink
        slip management
       B-Schools – they should taught how to manage yourself during recession times
       Tackle pink slip – don’t think why “me”, go for other options, search job sites
        of your sector, maintain positive attitude
       Consider it as an opportunity


    8                                        IIPM AHMEDABAD 09-11
9   IIPM AHMEDABAD 09-11

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Plc vs elc

  • 1. PINK SLIP MANAGEMENT ~ SANDESH GHOSAL 1 IIPM AHMEDABAD 09-11
  • 2. PINK SLIP  Pink Slip – refers to being fired or laid off from one’s job  Cutting cost Mantra – anyone’s head could be on the block  Causes defiance, antagonism, trauma, disappointment, frustration, etc.  India – lay offs not common, leads to psychological tension  Retrenched employees – worried about EMIs 2 IIPM AHMEDABAD 09-11
  • 3. PINK SLIP LIST NAME OF THE SECTOR JOB LOSSES Export Sector 30,00,000 Engineering Sector 1,00,000 NAME OF THE COMPANY JOB LOSSES Air India 15,000 (offer to non-operational staff) Jet Airways 1900 (reinstated by the company) Satyam 1500 Wipro 1000 TCS 500 Patni Computers 400 Kingfisher 300 Virtusa 200 Source: Business World, November 3, 2008 3 IIPM AHMEDABAD 09-11
  • 4. PRODUCT LIFE CYCLE vs. EMPLOYEE LIFE CYCLE PARTICULARS PLC PARTICULARS ELC Introduction • Heavy Operational cost Induction • Period of slow performance • Lot of promotional • Lots of developmental & activities supporting activities Growth • Product fully accepted Development • High performance & • Profit enhancement productivity realized. • Aiming @ improve • Sales high & improve knowledge, sharpen skills & revenues mold attitude • Less amount of • More Managerial Level promotional activities Maturity • Sales growth decline Promotion • Reward & recognition • Product realized – • Job Enrichment & higher prospective buyer responsibilities • Promotional activities • Look for higher tasks withdrawn • Training play minor role 4 IIPM AHMEDABAD 09-11
  • 5. . . . contd PARTICULARS PLC PARTICULARS ELC Decline • Sales demonstrate Retire/Retrenchment • Gives up work declining flow & profits • Sometimes earlier, early • Product withdrawn retirement incentive plans • Employee can’t predict when his life will be end  Recession times – prepare mentally & physically for layoffs 5 IIPM AHMEDABAD 09-11
  • 6. ROLE OF HR DEPARMENT IN MANAGING PINK SLIP  Associate line managers – retrenchment & retention strategies  Be voice for employees – find effective solutions  Enhance retained employees  Compensate employees – quality output 6 IIPM AHMEDABAD 09-11
  • 7. PINK SLIP MANAGEMENT  Accept the possibility of receiving pink slip  Study Report – 20% workers able to sustain their families. Make habit of saving money for unforeseen events  Cutback on superfluous expenses  Search for an alternative job 7 IIPM AHMEDABAD 09-11
  • 8. PINK CONCLUSION  Knowledge era – keep updated, have learning attitude – will help during recessionary times  Financial Experts – keep adequate bank balance & liquid cash to meet expenses & EMIs  B-Schools Today – introduce specialization like lay – off management or pink slip management  B-Schools – they should taught how to manage yourself during recession times  Tackle pink slip – don’t think why “me”, go for other options, search job sites of your sector, maintain positive attitude  Consider it as an opportunity 8 IIPM AHMEDABAD 09-11
  • 9. 9 IIPM AHMEDABAD 09-11