HR Assignment

Submitted to Prof: John Peter

Date of Submission: 6th December 2010

Submitted By:

Priyank Vora 60421

Niraj Baua 60422

Trisha Agrawal 60426

Darshni Sanghavi 60432

Saugat Das 60433

Ravi Jogi 60434

1

Table of Contents

Topic Page No.

Work Separation 3

Effect of Work Separation 4

Exit interviews 5

Tips for interviews 7

Lay off 8

Practices in Layoff

Tata Sons Jet Airways

9

10

How to Handle Layoffs 12

Exit Interview (Sample form, Exhibit1) 13

2

Voluntary Work Separations  

A work separation is voluntary if initiated by the employee.

1. Resignation with advance notice - the employee gives the employer oral or written notice of leaving in advance.

2. Retirement - a form of resignation with advance notice that involves satisfying some kind of condition for leaving the company with one form or another of continued benefits.

3. Resignation without advance notice, but with notice given at the time of the work separation - the employee does let the employer know somehow that he or she will not be returning to work.

4. Resignation without notice at all - this can include walking off the job, job abandonment, and failure to return to work after a period of leave.

 

As long as the employer did not pressure the employee into resigning, work separations that occur under those circumstances may be considered voluntary. 

Involuntary Work Separations 

A work separation is involuntary if initiated by the employer. An employer initiates a work separation by taking some kind of action that makes it clear to the employee that continued employment will not be an option past a certain date. There are many ways in which a work separation can be involuntary:

1. Layoff, reduction in force, or downsizing - separation due to economic inability to keep the employee on the payroll.

2. Temporary job comes to an end - separation due to work no longer being available because the job is simply finished.

3. Discharge or termination for misconduct or "cause" - separation that the employer views as somehow being the claimant's fault.

4. Resignation in lieu of discharge - same as discharge, but the employer gives the employee the option of resigning as a face-saving option.

5. Forced retirement - same an economic layoff or a discharge for cause, but in this situation, the employee is allowed to qualify under a retirement plan.

6. "Mutual agreement" - in most cases, this form of work separation is viewed as involuntary, since it is usually initiated or encouraged by the employer.

 

3

Effect of Voluntary or Involuntary Work Separations  

The nature of a work separation may determine several important things following the decision to sever the employment relationship:

1. Voluntary work separation:1. An employee who leaves voluntarily must receive the final pay no later than the

next regularly scheduled payday following the work separation.2. In an unemployment claim, the claimant who voluntarily left employment faces

the burden of proving good cause connected with the work for leaving the job.3. In many companies, employees who leave voluntarily receive different benefits

than those who are involuntarily separated, depending upon the terms of the company's benefit plan.

2. Involuntary work separation:1. An employee who leaves involuntarily must be given the final pay no later than

six calendar days following the last day of work.2. In an unemployment claim, the employer that initiated the work separation has

the burden of proving misconduct connected with the work as the reason for discharge.

3. Post-termination benefits eligibility under company benefit plans is often affected by involuntary work separations. If the discharge was for "cause" or misconduct, such benefits are often reduced or denied.

Procedures for Separation

a. Exit Interviews

b. RecommendationsEmployee in the interview at the time of quitting is asked for recommendation about the company and writes a feedback. Some companies may also take resumes of employees at the time of quitting and try to provide new jobs in different companies if they have been unemployed for a while (more than 6 months).

c. Employee WelfareThe company normally provides incentives to employees who quit. The company may ask the employee to leave immediately (depending on the reason) or after 3months (provide training to the new employee).

4

What is an Exit Interview?

In human resource terms, an exit interview is a survey that is conducted with an employee when he or she leaves the company.

Purpose of an Exit Interview:-

Exit interview is an in depth analysis which finds the root cause for why the employee is leaving the organization. The information from each survey is used to provide feedback on why employees are leaving, what they liked about their employment and what areas of the company need improvement. Exit interviews are most effective when the data is compiled and tracked over time.

Types of Exit Interviews:-

In-Person Exit Interviews Over the Telephone On Paper Through Internet

In- person Exit Interview:-

With in-person exit interviews an HR representative meets individually with each terminating employee.

Pros Gives a personal touch to each employee Can probe for more information on each question

Cons Employees may be afraid to share sensitive or negative information during an in-person

interview. For larger companies, it may be too time consuming to interview every employee. It’s difficult to track information received verbally during an interview.

5

Telephone Exit Interviews

Telephone Exit Interviews are conducted over the telephone by an HR Representative or an outside third party consultant.

Pros Can probe for more information on each question Can enter data into a tracking system while conducting the interview Easier to schedule than in-person interviews

Cons Time consuming if done in-house by an HR Representative Expensive if done with an outside consultant Employees often reluctant to verbally share sensitive or negative information

Paper and Pencil Exit InterviewsPaper and Pencil Exit Interviews are usually conducted by a form that is given to the employee on their last day to the employee’s home.

Pros Takes less time to provide a form compared with conducting an in person or phone

interview Employees can share information on paper that they may be reluctant to say in person

Cons Return rates for exit interview forms average just 30-35% Difficult and time consuming to compile and track the data from paper and pencil forms

Online Exit InterviewsPros

Employee self-service so easy for HR to administer Employees comfortable sharing information by computer so more honest responses Information automatically compiles and tracked Reports available at a click of a button

Reasons for non implementation of exit interviews by companies

a) Many employers do not find them useful as they believe that no one is indispensibleb) Employees do not speak the truth for the sake of not burning those bridges

6

Some important tips that should help you handle your exit interview:

Prepare before you appear: Prepare yourself for an exit interview like you would for a recruitment interview. Take small notes about the things you would like to say, issues you would like to raise.

Avoid derogatory remarks: Avoid making derogatory remarks about your boss and colleagues. If you think providing feedback about certain things is important, focus on the situation, what you expected, what actually happened and how it could have been made better.

Knowledge transfer: One of the basic purposes of the exit interview is to make knowledge transfer easier. This becomes more important if a long-time employee decides to leave the company. So, help your employer by transferring whatever knowledge you have gained during your employment with them and information that could be critical for them. This makes it easy for your replacement to take over your responsibilities and will leave your employer appreciative of your effort.

Provide feedback only if it will be used: Many of you might harbour a lot of ill feeling towards your employer but if you think that your feedback is not going to change anything, avoid it. You will have to judge the situation and talk accordingly.

Legal cases: If you decide to leave your employer for a legal reason such as harassment or discrimination, talk to your lawyer and ask them how to handle the interview.

7

What is Layoff?

A layoff could be defined as a temporary idling of a specific production line or a permanent downsizing effort across all departments. Sometimes a layoff in one department has a ripple effect on other departments as demand for a product decreases or the company shifts its work to another part of the world. A layoff in an automobile manufacturing plant, for example, could reduce the need for parts manufactured by another supplier. As the need for supplies decreases, other companies may have to lay off the workers who produce those parts. One general layoff in one influential industry can create a domino effect on all the other industries or subsidiaries which depend on its continued success.

Why do Companies need to go for lay off?

A layoff can occur for a number of reasons. Sometimes a company discovers it can still meet production demands with a smaller workforce. If fewer workers are needed to produce a product of identical quality, the company saves money on labour costs. The company may decide to keep its most productive or experienced workers on the job and lay off the rest of the workforce. This form of layoff is more common in businesses where profit margins are thin and any reduction in labour costs could lead to a better chance at survival in the marketplace.

Some workers are hired on a seasonal basis to meet demand, but often face a general layoff after the busy season is over. The company may retain a skeleton crew during the slower periods and rehire seasonal workers as needed, but it is not unusual for companies to hire new crews every year on a temporary basis. Temporary workforces are not generally eligible for the same unemployment benefits as regular workers who have been officially laid off.

Workers who have been dismissed through a general layoff can usually qualify for unemployment compensation, because their jobs were terminated for reasons out of their control. Even though companies must pay into these unemployment funds after a general layoff, not having these workers on the company payroll still represents a significant savings in labour costs. Laid-off workers are free to pursue other employment opportunities, and the company is no longer obligated to provide other benefits such as health insurance, vacation pay or performance bonuses.

8

HR practices in layoffs.

The Good – Tata Sons

Layoff is one of the most dreaded news that passes through a company's grapevine. But it's not same in all the companies. The practices of certain companies defer and that very practice differentiates the company from its competitors.

A company spends a huge amount on training and development of employees. If the employee is laid off, the entire investment is washed off. In order to prevent this, companies and times adopt innovative practices by which they can reduce the costs and also not let go of their employees.

A few of these practices are reduction in working hours, job rotation, job enlargement etc. At times the companies offered a voluntary retirement scheme to the employees. The latest approach is to move the employees within the company preferably to another section where his skills could be used. If such a transfer is not possible, the employee is given severance pay such that he can find a new job until the time he finds employment, he has enough money. At times the company itself helps the employees find new jobs.

Tata Sons, one of the largest family controlled conglomerates in India has gone professional without losing a distinct set of old-school values. It is considered a ferocious competitor with a very liberal touch.

It thinks of its workers before the managers. For example: At Tata steel, half of the workforce was cut in order to become the lowest cost competitor, but Tata’s kept their promise to pay all the laid off employees full salary until retirement.

This tea to steel to IT giant is unique not only outside but even in India. The company is one of the best human resource management practices in India.

The biggest promise lies in the takeovers that the company does. It holds the promise of not laying off any of the former employees of the company that it has acquired. All the employees of the acquired industries are offered contracts to continue to work with the company or are given enough severance pay to live life well off.

9

The bad – Jet Airways

The modern world saw one of the worst forms of economic depression during the economic meltdown of 2008. Many of the leading companies were seen in red. Most of them saw a reduced scale of operations.

In 2008, Jet Airways had laid off 1900 employees to cut cost on its bleeding operation. While 1100 employees were laid off over a period of 4 months, the rest 800 were removed from the job in a period of 2 days.

ANALYSIS

EMPLOYEES VIEW

1. Loss of income

From the point of view of employees, removing them from the job without any notice was uncalled for. All of a sudden the employees lose their job, their source of income. Many a times these individual are the sole income earners in the family. Such actions are not in the greater interest of the society.

2. Affects goodwill

Layoff affects the goodwill of the company. In the future whenever the company wants to go for expansion and recruitment it may not get quality people because they shall always have underlying fear that this company may throw them off anytime without notice.

3. Effect on morale of employees

The morale of the employees that remain with the company is highly compromised. They always remain in the fear that they may lose their jobs too. Consequently, this impacts the productivity of employees. At such times it is essential for the HR department of the company to keep the motivation levels of the employees high

4. Political Pressure

The employees approached the MNS and other political parties. Due to the mounting political pressures, the company had to call back on its decision. Naresh Goyal, the founder Chairman had to publicly apologize for the decisions of the his company

10

EMPLOYER’s VIEW

Jet had to lay off employees primarily as a result of recession that had set in 2008 with USA at its core.

1. Probationary Employees

While it is not very explicitly known, it is said that the terminated employees were on probation. Legally, during the probation period (6 months), the company may terminate the employment agreement at any time without notice, with or without cause.’ Notice during probation may go as short as 24 hrs. Keeping this in view there was no reason for the employees to retaliate. By accepting the job-offer contract the employees were a party to it. They knew it before hand itself that they may be terminated.

Jet did the recruitment with the view of a possible expansion. Now that it is delayed, the company did not really need to carry the excess staff which would in turn be a problem for the management and HR later and above all it would be doing harm to the employees who would not be having any career gains. Therefore the act was justified.

2. Responsibility towards Stakeholders

If the company continued carrying the extra baggage of employees then it wouldn’t be able to sustain for long because of increase in costs and would get into uncontrollable losses. As an entity it is responsible to the other stakeholders of the company, primarily the investors. It cannot allow itself to get into losses.

Jet management handling of the whole laying off episode showed off their poor HR practices but what followed after that was equally bad.

11

How to Handle Layoffs

Letting people go is an emotional event — not just for those being laid off but for those who remain. Of course those who are let go need help with the transition to new employment. But the employees who survive the cutbacks also need reassurance about their own future — and an understanding of the strategic goals behind the cuts. The following guidelines will help companies handle layoffs in a way that affords dignity to those let go and reassures survivors that the downsizing decision wasn't made arbitrarily. It will also help the remaining employees feel positive about the organization, optimistic about their future, and committed to working toward a better day. Keep in mind that employees who resent how their laid-off colleagues were treated and are fearful about the company's direction are not productive employees.

1. Communicate widely and often

Managers often think they shouldn't let employees know when things are going poorly. They don't want their workers to become discouraged. Discussing and acknowledging the company's position is the first step to keeping people involved — and committed to solving problems they understand.

2. Fill in information gaps for your employee

If layoffs become necessary, people won't be shocked if they have been able to see them coming. To that end, companies must share market data and competitive information.

3. Provide outplacement support

The question everyone asks after a layoff is, "What do I do now?" Few people have a resume at hand and a job-hunting network mobilized. Outplacement helps them land on their feet. You're offering help at a high-stress, emotional time. It sends a signal to them and to the remaining employees that you're treating the ex-workers as people, not as line items on a budget.

4. Support survivors, too

Employees who survive the layoffs will struggle with doubts about the company's future. They want to know how their jobs will change. Will they now be expected to do their jobs plus the jobs of their ex-coworkers? Or will their goals be changed accordingly? What is the precise state of the company financially? Are further layoffs imminent? Their doubts will begin with their own roles and expand outward to their teams and to the company as a whole. These issues must be addressed with level of concern with as much rational discussion as possible.

12

Exit Interview

Employee Name Termination Date

Employee ID # Eligible for Rehire [ ] Yes [ ] No

Job Title Job Code

Reason for Termination

Voluntary Involuntary

[ ] Another Position [ ] Attendance

[ ] Personal Reasons [ ] Violation of Company Policy

[ ] Relocation [ ] Lay Off

[ ] Retirement [ ] Reorganization

[ ] Return to School [ ] Position Eliminated

[ ] Other [ ] Other

Employee Comments:

Interviewer Comments:

13

Employee’s Signature Date

Interviewer’s Signature Date

Questionnaire

1. What are your primary reasons for leaving?

2. What did you find most satisfying about your job?

3. What did you find most frustrating about your job?

14

4. Were there any company policies or procedures that made your work more difficult?

5. Would you consider returning to this company in the future?

6. Would you recommend this company to a friend as a good place to work?

7. Is there anything the company could have done to prevent you from leaving?

SOURCE: hrVillage.com

15