On
I am almost thankful to all my group members who contribute their time and their
utmost dedication in completion of this task.
I would have not finished this project without the support of my family who has
always been there for me whenever I need them, the encouragement they give to
keep me going and their love to empower me that never fails all the time. Thank
you.
I would also like to thanks to my senior Ehtisham Bhai,Bilal bhai and as given me
a chance to prove that I can do things on my own. He gave me a lot of positive
perspective in life. Who taught me things far more of my understanding. I thank
them challenging me to do this project. To you sir, I give you lots of thanks and
respect. Thank you.
I thank Mr.RAZA Muhammad who is the Purchasing head of the Cornett Food
Pakistan EBM(Hattar) for sharing his valuable time and for giving me helpful
information to finish this project. Thank you.
By.ALVEENA HABIB
Downsizing and layoffs, once phenomena associated mainly with individual
company distress or larger economic downturns, have become permanent
features of the global business landscape. This entrenchment of job-shedding
activity has been driven by a number of factors. These factors include: more
rapidly evolving technologies and business cycles, intensified pressure to
improve stock performance, and mergers and acquisitions. At the same time, a
growing body of evidence has shown that companies often fail to realize
anticipated gains from downsizing, and nearly always suffer from substantial
hidden costs. Employers therefore have begun to understand that simply
reducing headcount may not be a strategy for long-term advantage. (For
purposes of this overview, "downsizing" - defined as a net reduction in a
company's workforce - also includes "layoffs," which can take place in one part of
a company concurrent with hiring in another part of the same company.)
Business Importance
Businesses are recognizing that there are hidden and often very significant costs
associated with layoffs and downsizing. This is particularly true when job cuts are
poorly planned and implemented, a state of affairs common to companies
seeking short-term results from downsizing. At the same time, many companies
are understanding that significant benefits may be realized through strategies
that avoid downsizing and layoffs altogether, or carry out these activities in more
strategic - and, ultimately, less-costly - ways. Among the business rationale for
responsible downsizing:
Share Price: Downsizing often doesn't pay off in shareholder value, according to
several studies. For example, a 1997 Wharton School of Business analysis of 52
studies involving several thousand companies found that corporate restructuring
had little if any positive impact on earnings or stock performance. The year
Watson Wyatt study mentioned above found that only one in five downsizing
companies enhanced shareholder return on investment.
Potential legal and administrative costs: Many companies find that the price of
downsizing can be high in the costs of legal challenges, disability claims, and
other unanticipated costs. For example, a 1997 survey of 300 midsized and large
companies by the American Management Association and CIGNA Corp. found
that eliminating jobs can lead to an increase in disability claims, both
occupational and non-occupational, particularly stress-related claims. The study
also found that claims last an average of 25 percent longer than in companies
that haven't downsized. A top executive at a large facilities-services firm quoted
in Personnel Journal said that 90 percent of the 600 claims, charges, and cases
the company had open were filed following a termination.
Recent Developments
There are few clear-cut external standards in the area of downsizing. In the
absence of such standards, most companies have sought guidance by
benchmarking peer companies or other leadership companies, and by seeking
ways to avoid or mitigate the harm of layoffs and downsizing. Companies must
also refer to the sometimes complex set of legal and government policies in
effect in their countries of operation and origin.
International Standards
Legal Standards
Companies around the world must comply with a wide variety of laws related to
workplace practices. In addition to observing the appropriate laws for the
countries in which they are operating, global corporations must refer both to their
home countries' laws as well as to international standards. In most European
countries, for example, companies must comply with a relatively strict body of
legislation that specifically addresses downsizing. In the U.S., very little
legislation specifically addresses downsizing, though a large body of federal law
protects employees from discriminatory practices and a range of legal standards
may come into play when an employee is terminated. Additionally, class-action
suits may be filed on behalf of a group alleging discriminatory termination.
Title VII of the Civil Rights Act of 1964 prohibits discrimination on the basis of
race, color, religion, gender, or national origin.
The Age Discrimination in Employment Act of 1967 protects workers who are
at least 40 years old.
The Civil Rights Act of 1991 provides for financial damages in employment
discrimination cases. This act has fueled a wave of wrongful-termination lawsuits,
because it allows plaintiffs to be awarded not only reinstatement, back pay, and
attorney's costs, but also compensatory and punitive damages, thus creating a
strong incentive for both plaintiffs and their attorneys.
Implementation Steps
Company approaches to downsizing are many and varied and there are few
templates to follow. Following are some key issues to consider:
making managers responsible for finding new positions within the company for
downsized employees;
assigning employees to voluntary community activities that fit with the company's
philanthropic goals;
encouraging voluntary time off and leaves of absence, during which employees
continue to receive benefits and retain seniority;
implementing wage freezes or pay cuts that apply to all employees, including
managers; and
Respect diversity. Keep the company's diversity in mind before, during, and
after the layoff process. Before deciding who to downsize, analyze the make-up
of your workforce - by gender, race, and age - with statistics broken down by
department, job groups and salary grades. Then, before laying off employees,
analyze similar data on potentially affected employees to be sure no particular
group is disproportionately affected. Similarly, form a diverse, cross-functional
team to plan and manage layoffs. At a minimum, such a team should include
representatives from human resources, labor relations, operations, finance,
public relations, community relations, government affairs, and legal affairs.
Diverse, cross-functional teams have proven to be effective at addressing the
needs of employees and external stakeholders, and presenting clear messages
about why and how the company is downsizing.
Share the pain: Senior managers should demonstrate that they are sharing the
burden of downsizing. They should not announce management bonuses or
salary increases during a period of downsizing. In addition to destroying trust
among laid-off employees and survivors alike, this invites criticism from external
stakeholders such as investors and community groups.
Craft a fair package: Develop a fair benefits package that fits the needs of
affected employees. In addition to severance, these benefits may include
outplacement assistance; personal, financial, and career counseling; an
allowance for job retraining, education costs, or small business startup; and
assistance with medical and dental insurance coverage. Prepare employees for
the tax implications of their severance packages, and consider compensating
them for sizable one-time liabilities. In addition, help affected employees
integrate benefits available in the public sector with those offered by the
company. Private Investment Councils (PICs), State Worker Dislocation Units,
local organizations, and federal programs such as the Job Training and
Partnership Act can provide funds for and assist with job development, training,
and placement. Consider also outside experts, who often prove to be extremely
useful in assisting with transition services. Nonprofit organizations such as the
Council for Adult and Experiential Learning as well as a variety of for-profit
companies can provide expert assistance, particularly in areas such as job
placement and counseling.
Consider external impacts: Anticipate and prepare for consequences outside
the workplace. Layoffs frequently trigger sharp increases in child, spousal, and
substance abuse. Companies often find they can assist most effectively in these
areas by providing confidential access to counseling services, and by working
with and providing extra support to social service organizations that in these
areas.
Avoid "survivor guilt": Anticipate morale problems and "survivor guilt" among
employees who have not been laid off, and take positive steps to help employees
to recommit and reengage. Articulate a clear vision for the company and the
place within it that remaining employees will have, including opportunities that will
be available to them. In addition, prepare managers for what is sometimes
described as "terminator guilt," morale problems they may face after
implementing a downsizing.
http://www.johnshepler.com/articles/managedown.html
Johnshepler.com
As bad as it seems...
You are not the first to got through this and you won't be the last. Once viewed
as extreme measures, downsizing, de-layering, restructuring, and other dramatic
changes in the workplace are now "normal" business practice. Change
management has become an important leadership skill for all managers.
People and organizations DO survive and adjust to the new reality. Not only
does life go on, but many people actually prosper and grow as a result of having
change thrust upon them. It is often true that "when one door closes another is
opened."
There is help available from those who have gone through this experience
before you. The insights and suggestions that I offer you on this site come
directly from my own experiences in numerous workforce reductions and
organizational upheavals. There are websites, books, courses and consultants
who can all help you get through and lead others through the ensuing chaos that
results from downsizing.
Strange as it seems at first, those who survive the downsizing process may
suffer as much as those who don't!
Even more than the loss of familiarity and momentum is the sense of personal
loss that many people feel at seeing their friends leaving or their positions
eliminated. It feels very much like a death in the family and needs the
compassion and time for mourning that we expect whenever a loved one is lost.
A good manager will have the compassion for the human need to cope with
the shock and fear that people feel, combined with a sense of optimism, direction
and mission that will help them through the often painful transition from what was
to what is to be. There are actually 3 steps that will need to be accomplished
before the new organization is back on its feet.
Endings - People need to understand and come to accept that the changes
are real and not reversible. The old organization, the old ways are gone and
won't be restored. Something has ended...forever. It is reasonable and proper to
mourn for the loss, but eventually it is necessary to move on.
Transitions - There is an in-between time when you are letting go of the old
and getting familiar with the new. It is a time of uncertainty and often confusion,
discomfort and high stress. People may even feel incompetent until they master
new tools, new skills and new roles. This is the wilderness through which
managers have such a critical role of leadership if the new organization is to take
hold and prosper.
New Beginnings - As people come to accept and master their new roles, the
structure of the organization begins to gel and once again a routine and sense of
"normalcy" begin to become apparent. The old ways fade into memory and the
new ways become the expectation. People feel competent and confident again.
Productivity increases as people focus on the job at hand rather than dwelling on
personal anxieties.
In any given group, expect that 70 to 80% will be apathetic or take a "wait and
see" attitude. They need to be led. Another 10 to 15% will be openly hostile or
will subtly sabotage the changes and try to return to the way things were before.
The remaining 10 to 15% are your leaders. They will proactively try to help you
make things work. Put them in charge of the others.
Try to exude optimism and "can do" regarding changes that need to be made.
Promote optimism and positive thinking and speaking as much as possible. Don't
deny the trauma and pain that is occurring, but find the bright spots and
emphasize those rather than dwelling on the loses, the difficulty of making the
transitions or all the work that is piled up and needs to be done. Minimize
criticism and fault finding. Celebrate every success, no matter how minor.
Develop a vision of the future that draws people toward doing the right things.
Specifics can be developed as you go along, but it is essential that people have a
clear and understandable picture of the goal in their minds. It is also important
that they see something in it for themselves so they will begin to get on board
and lend their voluntary support.
Build teamwork. Create a sense that "we are all in this together and need each
other to make it." Acknowledge that everyone's contribution is essential and their
input is valued. Encourage group discussions where people can freely express
their feelings and offer suggestions. Bring treats. Sometimes even a bag of
cookies can offer some comfort and break the ice. Get people kidding and
laughing, even if some of the humor is "gallows humor."
If you can see what is coming with some time to prepare, then start creative
problem solving as soon as possible. Get training for managers and other
leaders in the human aspects of change. In good times, most managers are 80%
technically oriented and 20% people oriented. During times of crisis, those
numbers should reverse until routine is established again. Most technical
managers will need human resources training and support. Read books and take
courses on managing change...before you have to implement.
Way over communicate everything. When things seem to be coming apart, the
normal communication links break down just as suspicion and mistrust begin to
predominate. Some news is always better than no news, even if it is the same
old news. If people don't hear anything, they fear the news is so bad that no one
wants to tell them. Bore them to tears with as much detail as often as possible.
Trust will build.
Be honest about the realities and future expectations. Don't say "the layoffs
are over" if there is any uncertainty that the business situation has stabilized. It is
not uncommon for a series of changes to occur during the process of
readjustment. If people begin to relax their guard only to get more shocking
news, they will be much slower to trust any statements in the future.
http://www.work911.com/articles/downsizing.htm
There are two (only two?!) issues regarding downsizing. First, the
period of downsizing brings with it incredible anxiety for everyone. Both
managers and employees have to "get through" this period where downsizing is
announced and individuals are notified. While this is the period of greatest short
term stress, it is an acute situation.
The second problem, and one of much more long term significance is
the issue of those that remain. Somehow managers have to deal with the fall-out
from the downsizing process, and move their organizations beyond the grief, the
anger and the loss of morale that characterizes these major organizational
events. It is those that remain that will determine what happens to the
organization. We are going to talk about the long term issues here.
In the first few weeks after downsizing even those who still have jobs
will feel a lot of difficult things. Grief, anger, sense of betrayal, and depression
are common "normal" reactions. Typically productivity drops as people work
through their feelings by talking with each other.
Listening is key here. Ask questions and keep your own comments to
a minimum, and don't exhort or pressure people. By showing concern and
interest, you will be working towards repairing the sense of broken trust that
accompanies downsizing.
During this period, you need to take stock of your own emotional
situation. Your ability to lead people through the tough times will depend on your
own physical and emotional health. Try not to cut yourself off. Talking to
colleagues outside your organization is a good idea, or at least, venting your own
feelings with someone unconnected with your organization. If you find yourself
plagued by sleeplessness, mood swings and depression and guilt, don't hesitate
to take advantage of support services that are available.
Normalizing
While the feelings of employees are important during this phase, staff
need to be slowly moved back to getting the job done. By getting clear
understandings of the changes, you will create a climate of stability, which is
necessary for the "recovery" of people in the organization.
Futuring
People need a vision of the future, a sense of what they are trying to
achieve, and they also need to know that they are part of a goal-oriented team
pulling in the same direction. While we have talked above about "getting
through", futuring involves people in trying to create (or confirm) a vision of the
organization, and it's goals, values, purpose, etc. It is the creation and
commitment to these things that will work to revitalize an organization that has
been downsized.
Recap
The sorting and clearing process is by far the most DAUNTING part of making a
later life move (or preparing for later life even if a move is not part of the plan).
Below are some tips and suggestions for starting the process of going through
years of accumulated belongings in your home.
WHERE TO DIG IN
Begin in the areas of the house that you are currently not USING. Many older
adults are still living in the same houses where they raised their families. In most
situations, there are areas of the house that are currently not being used --
upstairs bedrooms, the basement family room, etc. Start the sorting and clearing
process in these rooms because it will be least DISRUPTIVE to everyday life.
These areas also often contain lots of items that have not been used in a
considerable length of time and that will not be missed when passed on to
children, grandchildren, charity or the auction house.
Start with the large items in each room and work your way down to the small
items. The rationale for this? It's easier to start with furniture and the bigger
pieces and you'll feel like you are making some PROGRESS. If you start with the
small items, you may get overwhelmed and frustrated before you even get
started. With large items, either prepare a list of your decisions (e.g. dresser --
keep; will work well in a smaller bedroom), or use stickers and mark the items as
you decide what to do with each piece.
CATEGORIZE AS YOU GO
Again, keep a list of your decisions, separate the items into separate piles, or
mark the items with stickers. The goal is to GET RID of as much stuff as possible
as you work through the downsizing process. What does this mean? This means
putting items to be thrown away into garbage bags and setting out this trash for
pickup each week. This means calling your charity of choice and arranging for a
pickup as soon as you have enough items to justify their making a trip. This
means asking family and friends to make arrangements to get their items, or to
have their belongings mailed to them.
GIVE IT BACK TO YOUR KIDS
I always tell people that one of the easiest places to start with clearing a house is
telling their family that it's time to come get their stuff! Tell your KIDS that it's
time for them to collect the things that they still have STORED at your house.
TAKE IT EASY
Allow plenty of flexibility and time for the sorting and downsizing and trust the
process. Plan to spend maybe one or two hours at a time (at most) working
through the sorting process. This is not a task that you can do for LONG
PERIODS of time at any age -- there will be too many emotions and memories
stirred up because in essence you are sorting through the years of your life. Take
time for recalling memories, to shed tears as you need to, and to share stories
with friends and family. And be easy on yourself and flexible when making
decisions.
This is a very important and valuable part of the later life transition process. Allow
yourself time to REMEMBER and to grieve losses. Don't rush yourself to make
too many decisions at once. If you need to discuss with family or friends what to
do with certain items or belongings, take time to do so. If you can't make a
decision about something, then set it aside and THINK about it for awhile until
you do come to a decision. Also remember that you can change your mind about
any item as long as it's still in your possession. If you've started early and are
planning ahead, you should be able to work at a pace that is comfortable for you
and your situation.
GETTING A GRIP
For many people, starting the sorting and decision-making process is as difficult
at walking out to a yard piled with leaves in the fall and deciding where to begin
raking. The task appears to be so OVERWHELMING! All you can do in this
situation is to START somewhere and to approach it step by step, pile by pile
until the job is finished.
Remember that your goal is to SIMPLIFY your life. I always tell my clients that
they don't need to get rid of everything but they do need to pare down their years
of accumulated belongings to the key things, the favorite things they want to
have around them and that they need or enjoy using. Think about what you really
use in your home on a day-to-day or week-to-week basis and I bet you'll see that
this amounts to a FRACTION of what you have in your house.
As always, the employees most likely to have the opportunity to get a job
elsewhere are precisely the ones you least want to see go. Working to improve
employee retention after downsizing is a wise tactical move. In this article we’ll
show how it’s done.
Companies that do the right things pre-downsizing will have the fewest problems
with retention post-downsizing. The key is to engage employees in the
downsizing process; they need to feel that downsizing was done with them not to
them.
Another way to improve retention is to survey your employees to find what their
likes/dislikes, ideas for improvement, etc. Employers often are hesitant to do a
survey after downsizing fearing they will get bad news, but it is a powerful way to
engage and retain those who remain. In addition to the usual survey questions,
you can ask questions aimed specifically at finding out how people are feeling
about the downsizing process and life in the organization after downsizing. The
survey process needs to include not just asking the right questions, but also
analyzing and publishing the results then working with your people to implement
change.
Another basic but underutilized tool is exit interviewing. When anyone leaves
after a downsizing event, HR should be doing exit interviews to get as much
intelligence from the employee as possible.
One client asked Drake’s HR consulting team to conduct online and telephone
exit interviews for their call centre business across North America. The client
believed the high turnover was caused by poor compensation and poor
supervisory skills. But the exit interviews showed that people were actually
leaving because they simply didn’t like the job. This result showed why the recent
investments in training supervisors and increasing compensation were not having
an effect. After the HR consulting intervention the client changed their recruiting
process to ensure candidates got a realistic sense of the job before they were
hired. Listening to employees through exit interviews, and acting on what was
learned, enabled the call centres to improve retention.
A Sense of Belonging
All the actions we have discussed are good HR processes at any time. What
companies overlook is how these processes are particularly valuable after a
downsizing event when morale is fragile and the organization absolutely needs
the best from every employee.
Drake’s Approach
Drake has many decades of experience helping small and mid-sized firms with
their HR needs. We’ve learned how to take off-the-shelf solutions and tailor them
to the specific needs of the client’s business—because every company truly does
have some unique issues. We take a consultative approach focused on
generating Exponential Impact (tm) for your business, through a long-term
relationship. Our focus is on helping you engineer an improved bottom line
through the efficiency and effectiveness of your people. If we can’t do that…then
you shouldn’t work with us!
Drake writes extensively on HR issues and the solutions to those issues. You
can read our white papers at www.drakeintl.com.