Presentation is loading. Please wait.

Presentation is loading. Please wait.

CHAPTER 13 EMPLOYEE SEPARATION PowerPoint Presentation by Charlie Cook Copyright © 2002 South-Western. All rights reserved.

Similar presentations


Presentation on theme: "CHAPTER 13 EMPLOYEE SEPARATION PowerPoint Presentation by Charlie Cook Copyright © 2002 South-Western. All rights reserved."— Presentation transcript:

1 CHAPTER 13 EMPLOYEE SEPARATION PowerPoint Presentation by Charlie Cook Copyright © 2002 South-Western. All rights reserved

2 Copyright © 2002 South-Western. All rights reserved.00–2 Employee Separation Reasons for employee separations:Reasons for employee separations: –Pressures on firms to remain competitive and efficient –Decline in employee commitment to individual employers The importance of managing separations:The importance of managing separations: –Transitions of employees out of the firm go smoothly. –Continuing operations of the firm are not disrupted. –Important professional relationships are not damaged. Types of separationsTypes of separations –Reductions-in-force, turnover, and retirements Reasons for employee separations:Reasons for employee separations: –Pressures on firms to remain competitive and efficient –Decline in employee commitment to individual employers The importance of managing separations:The importance of managing separations: –Transitions of employees out of the firm go smoothly. –Continuing operations of the firm are not disrupted. –Important professional relationships are not damaged. Types of separationsTypes of separations –Reductions-in-force, turnover, and retirements

3 Copyright © 2002 South-Western. All rights reserved.00–3 Reductions-in-Force (RIFs) Causes of reductions:Causes of reductions: –Restructuring as a result of mergers and acquisitions –Attempts to make the organization more cost competitive –Adjustments to declining business environment conditions Reasons for reductions:Reasons for reductions: –Inefficiency in operations –Lack of adaptability in the marketplace –A weakened competitive position in the industry Methods for dealing with reductions:Methods for dealing with reductions: –Continuance pay and outplacement programs Causes of reductions:Causes of reductions: –Restructuring as a result of mergers and acquisitions –Attempts to make the organization more cost competitive –Adjustments to declining business environment conditions Reasons for reductions:Reasons for reductions: –Inefficiency in operations –Lack of adaptability in the marketplace –A weakened competitive position in the industry Methods for dealing with reductions:Methods for dealing with reductions: –Continuance pay and outplacement programs

4 Copyright © 2002 South-Western. All rights reserved.00–4 Reductions-in-Force (RIFs) Worker Adjustment Retraining and Notification Act (WARN) of 1989:Worker Adjustment Retraining and Notification Act (WARN) of 1989: –Requires employers with more than 100 employees to provide affected employees with a minimum of sixty days written notice of any facility closings or large-scale layoffs of 50 or more employees. –WARN does no apply to governmental agencies. –Exceptions to WARN: “faltering company”“faltering company” “unforeseeable circumstance”“unforeseeable circumstance” natural disasternatural disaster “temporary facility”“temporary facility” Worker Adjustment Retraining and Notification Act (WARN) of 1989:Worker Adjustment Retraining and Notification Act (WARN) of 1989: –Requires employers with more than 100 employees to provide affected employees with a minimum of sixty days written notice of any facility closings or large-scale layoffs of 50 or more employees. –WARN does no apply to governmental agencies. –Exceptions to WARN: “faltering company”“faltering company” “unforeseeable circumstance”“unforeseeable circumstance” natural disasternatural disaster “temporary facility”“temporary facility”

5 Copyright © 2002 South-Western. All rights reserved.00–5 EXHIBIT 13-1: STRATEGIES FOR MANAGING EMPLOYEE SURPLUSES AND AVOIDING LAYOFFS Workforce Management Strategies

6 Copyright © 2002 South-Western. All rights reserved.00–6 TurnoverTurnover Involuntary turnoverInvoluntary turnover –Employees who are asked to leave the organization for cause (e.g., poor performance) or due to circumstances that cause a reduction-in-force. Voluntary turnoverVoluntary turnover –Employees who leave an organization on their own initiative. “Beneficial” turnover“Beneficial” turnover –When low performing employees depart and/or when new higher performing employees are promoted or hired as replacements. Involuntary turnoverInvoluntary turnover –Employees who are asked to leave the organization for cause (e.g., poor performance) or due to circumstances that cause a reduction-in-force. Voluntary turnoverVoluntary turnover –Employees who leave an organization on their own initiative. “Beneficial” turnover“Beneficial” turnover –When low performing employees depart and/or when new higher performing employees are promoted or hired as replacements.

7 Copyright © 2002 South-Western. All rights reserved.00–7

8 Copyright © 2002 South-Western. All rights reserved.00–8 Outcomes of Managed Turnover and Retention

9 Copyright © 2002 South-Western. All rights reserved.00–9 RetirementRetirement Age Discrimination Act of 1967Age Discrimination Act of 1967 –Prohibits an employer from setting a mandatory retirement age except in certain occupations such as airline pilots. RetirementRetirement –Creates advancement opportunities for younger employees and reduces payroll costs. –Can cause a loss of vital accumulated historical knowledge of the organization, its industry and the marketplace. –Employers can offer part-time and consulting work to older workers to ease the transition to retirement. Age Discrimination Act of 1967Age Discrimination Act of 1967 –Prohibits an employer from setting a mandatory retirement age except in certain occupations such as airline pilots. RetirementRetirement –Creates advancement opportunities for younger employees and reduces payroll costs. –Can cause a loss of vital accumulated historical knowledge of the organization, its industry and the marketplace. –Employers can offer part-time and consulting work to older workers to ease the transition to retirement.


Download ppt "CHAPTER 13 EMPLOYEE SEPARATION PowerPoint Presentation by Charlie Cook Copyright © 2002 South-Western. All rights reserved."

Similar presentations


Ads by Google