Human resource management 8e by gomez mejia 2016 chapter 06
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Chapter 6
Managing Employee
Separations, Downsizing, and
Outplacement
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Chapter Challenges
1. Understand employee separations
2. Gain mastery in identifying types of
employee separations
3. Have familiarity with managing
early retirements
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Inc.
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Chapter Challenges
4. Learn practices for managing layoffs
5. Recognize the role of outplacement
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What Are Employee
Separations?
Employee Separation
Employee ceases to be a member of
the organization
Turnover Rate
Measure of the rate at which
employees leave the organization
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Costs of Employee
Separations
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Benefits of Employee
Separation
Reduced Labor Costs
Replacement of Poor Performers
Increased Innovation
Opportunity for Diversity
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Types of Employee
Separation
Voluntary
Quits
Retirements
Involuntary
Discharges
Layoffs
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Managing Early
Retirement
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Financial Package Incentives
Short Eligibility Window
Reduce the Size of the Organization
Must Be Managed Carefully
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Avoiding Problems with
Early Retirement
Too many employees take retirement option
Desired employees may leave
Perception of forced leave
Age discrimination complaints
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Managing Layoffs
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Alternatives to Early
Layoffs
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Implementing Layoffs
• Notifying Employees
o WARN Act—60 -ay notice
• Developing Layoff Criteria
o Seniority or Employee Performance
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Communicating to Laid-Off Employees
Coordinating Media Relations
Maintaining Security
Reassuring Survivors
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Effects of Layoffs on
Survivors
Increased absenteeism and turnover
Lower productivity and poorer job
satisfaction
Increased sabotage
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Outplacement
Goals of Outplacement:
• Reduce morale problems
• Minimize litigation
• Assist laid-off employees
Outplacement Services:
• Emotional support
• Job-search assistance
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Summary and
Conclusions
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What Are Employee Separations?
Types of Employee Separations
Managing Early Retirements
Managing Layoffs
Outplacement
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Pearson Education, Inc.
Copyright
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