10

November, 2014

LIFE’S LESSONS* Fall 2014, Real Issues…Reconstituted Facts

THREE STAGES OF PLANNING FOR A REDUCTION IN FORCE

With year-end on the horizon, businesses closely assess performance relative to their financial objectives. Workforce restructurings and staff reductions may be a knock-down effect of such assessments, to enable a business to maximize efficiencies and reduce costs. Assume ABC Co. is undergoing just such an assessment.

Bernice, the Head of Sales, plans to consolidate her teams by eliminating all district sales manager roles and designating up to three sales supervisors in each region, who will perform some local management functions in addition to their regular sales duties. Bernice’s plan will impact 10 employees, in six different states.

Lucas, the Head of Production, plans to cut 15 junior staff roles by automating and consolidating functions. In selecting among the employees whose functions are not directly impacted by automation, Lucas is considering performance, cross-training, attitude, flexibility in scheduling/overtime, and special skills.
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10

November, 2014

LIFE’S LESSONS* Fall 2013, Real Issues…Reconstituted Facts

SELECTING AMONG EMPLOYEES IN A RIF/DOWNSIZING

Let’s consider the subject of “graceful exits”, and how “graceful” is all in the eyes of the beholder.

Keith is a senior manager, who was recently advised that he needs to reduce his staff by three full-time employees before year end. Keith has selected the two lowest performers on his team (a man and a woman), as well as Alix. While Alix was rated a year-on-year average performer, Keith says there are some issues with her performance that have not been documented. Keith comments that Alix seems unhappy and does not get along well with her colleagues. Last month Alix had complained to HR about one of her coworkers. Keith views the severance package as a “graceful exit” for Alix.
Should Keith move forward with these terminations?
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