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Case2 _layoff

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Case2 _layoff

  1. 1. • Started as small furniture making company • Separate Capital for acquisitions • Kiran Swastik takes over as CEO in 1996 • High Customer service focus • Employees treated well
  2. 2. • Revenues have dropped • Profits have dropped • Facing competition from cheaper retailers • 10% of the workforce needs to be cut
  3. 3. • Elaboration Stage - Need for Revitalization • Revolutionary Change • Kiran Swastik has to go through a change himself • He has to chose from any/combination options given by his board
  4. 4. 1. First in first out 2. Rank and yank 3. Last, in first out 4. Lose a unit 5. Pay cut
  5. 5. Alternatives • 4day work weeks • Unpaid Vacations • Furloughs • Pension cuts • Methods to Cut labour costs and still maintain labour force
  6. 6. • Downsizing (Technological) • Structural (technological) • Performance Appraisal (HRM) • Reward Systems (HRM) • Integrated Strategic Change • Culture Change
  7. 7. • MD needs to be the motivating leader  Motivate  Bring Transparency  Give new direction to the company and the people • Identify the weak links(give severance pay)
  8. 8. Pay cut  Stop new recruitments  Employees need to take a paycut  Unpaid vacations  Cut down on parties and expenses Md needs to loosen his purse

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