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Downsizing is harmful to both employees and companies. The company loses their valuable employees. Downsizing should be done in a dignified manner, just throwing people out of the company can only save your payroll, but it affects the manufacturing process. Downsizing is done in different steps:
Step1: Frame a leave structure for employees:
Organization reduces the leave of an individual. Extra cushioning should be looked into. This will reduce the liability of the organization. Leave rules should be flexible.
Step2: Cost cutting from pay packages of the employees:
HR manager should very transparently put the issues, business scenario in front of employees and payment procedure will be done according to the performance of the individual. HR can always say that employees cannot be sustained if the organization is not performing, because the organisation's profit or loss depends upon the performance and contribution of the employee.
Step3: Finding out non-value added activities and resources:
HR should identify various non-value activities and resources, these activities should be given proper attention and should be re-arranged or eliminated.
Step4: Emotional employees may prove harmful to organization:
Emotions may proves harmful for an organization. Identification and study of manpower should be done department-wise, which helps remove people without affecting the organization.
The object behind reducing manpower is to gain profit because the organization does not have cash to pay the salaries. List the people who do not have legal liabilities. Basically new employees comes in the list. It's better to remove people following the above points rather then coming to the negative point. It is always said “precaution is better than cure”...
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Steps To Be Followed By HR While Downsizing
Downsizing is harmful to both employees and companies. The company loses their valuable employees. Downsizing should be done in a dignified manner, just throwing people out of the company can only save your payroll, but it affects the manufacturing process. Downsizing is done in different steps:
Step1: Frame a leave structure for employees:
Organization reduces the leave of an individual. Extra cushioning should be looked into. This will reduce the liability of the organization. Leave rules should be flexible.
Step2: Cost cutting from pay packages of the employees:
HR manager should very transparently put the issues, business scenario in front of employees and payment procedure will be done according to the performance of the individual. HR can always say that employees cannot be sustained if the organization is not performing, because the organisation's profit or loss depends upon the performance and contribution of the employee.
Step3: Finding out non-value added activities and resources:
HR should identify various non-value activities and resources, these activities should be given proper attention and should be re-arranged or eliminated.
Step4: Emotional employees may prove harmful to organization:
Emotions may proves harmful for an organization. Identification and study of manpower should be done department-wise, which helps remove people without affecting the organization.
The object behind reducing manpower is to gain profit because the organization does not have cash to pay the salaries. List the people who do not have legal liabilities. Basically new employees comes in the list. It's better to remove people following the above points rather then coming to the negative point. It is always said “precaution is better than cure”...
Back