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Chapter 21

Managing Separations and Right Sizing

Human Resource Management, 5E

Learning Objectives
Understand types of separations and how to manage them. Understand the nature, causes, and principles of transfers. Understand the nature, purposes and principles of promotion.

Human Resource Management, 5E

Principles of Promotion
New hires or internal promotions Seniority or merit Promotion to vacancies or no vacancies Promotion chart Frequent promotions not advisable Preceded by job analysis and performance appraisal Policy to be discussed with unions
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Types of Promotion
Horizontal Vertical Dry

Human Resource Management, 5E

Principles of Transfers
The frequency of transfers and the minimum period between transfers need to be decided upon and made known to all the employees. Defence personnel and government employees, for example, are subjected to transfer once in three years. The employees in these establishments know when they are due for a transfer and are prepared for it. The authority which would handle transfers is to be decided upon. The usual practice is that transfers in each department are handled by the person in charge of that department. The best course is to centralise the authority handling transfers, and make the HR department responsible for them. The criteria for entertaining transfers need to be laid down and strictly adhered to.

Human Resource Management, 5E

Principles (contd..)
The area of the organisation over which transfers can be made need to be defined. The effect of the transfer on the pay and seniority of the transferred employee may be clearly evaluated. Transfers should be clearly defined as permanent or temporary. he performance of the employee needs to be assessed before transferring him or her to a different job. Similarly, the job itself must be properly described. Job description and employee assessment enable the management to know whether the individual fits the new job or whether he or she needs training before taking up the new assignment. The interests of the organisation are not be forgotten in framing a policy of transfers.
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Types of Transfers
Production Replacement Versatility Shift Remedial

Human Resource Management, 5E

Separations
Lay-off Resignation Dismissal Retrenchment VRS

Human Resource Management, 5E

Guidelines to Manage Downsizing


Consider the human element Make who goes and who stays decisions judiciously Delay any pay hikes Freeze hiring Restrict overtime Retrain or redeploy employees Engage part-time employees Switch to job-sharing Restore to across-the-board pay cuts Implement early retirement programmes Attend to morale of serving employees
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