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Institution

Course

Student

Date

Human Resource Management

Due to the economic condition Valley Technology Inc. is undergoing, it could be

strategic to remove a fair number of employees. However, it is hard a blow how this will come to

a number of those employees affected, who try their best to take the company to the top.

Reduction In force process is a skillful step which may affect the lives of a number of people,

this step has to be taken when things get tough. However important this may be, in the short run

a Reduction in workforce may come out affecting in many detrimental ways. Reduction in

workforce may result in the following, some of which may be a step down for valley technology

Inc., whose chain has grown steadily over the last year. These may include, closing a branch or a

department merging a department with another and consolidating job duties, job sharing, cutting

down of employees benefits, reduction in a work week bringing in changes to day to day work

activities according to Rudolf & Mary,16 . As reducing manpower is the criteria most of the

times, some of the functions will be merged to eliminate redundancy. However, when there is the

merging of functions, there would be need for valley technology to let go of some of the

employees. Jan should only consider this if there is no other option other option other than letting

go of staff to meet the financial crunch. However this process may spoil the organizations

reputation, reducing future prospects for good employees wanting to work for Valley
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Technology Inc. Owing to the fact that valley based Inc. would be strategically aiming at cost

reduction, as downsizing is mainly reducing the burden on financial, it indirectly affects the

overall bottom line. For instance, if there would be a reduction of manpower, then it would

directly hit the production or services as it would be reduced when compared to the previous.

A reduction in force strategy would be best take for valley Technology Inc. With a proper

a cost-value analysis, the goal of any cost-cutting exercise should be to eliminate any task whose

cost of doing it exceeds the business value it provides (Lawler et al, 2018). However, this

analysis may be difficult as some tasks do not have a direct monetary value. The bottom line for

Jan would be to take time, identify the gaps, plan the cost cuts and the impact they will have, and

only then execute. However risky this operation might be, Jan should consider lying off those

employees whose salaries are too high. Based on performance. With other cost reduction

methods such as early retirement, the main threat imposed to valley technology may be the risk

of losing to skilled and experienced employees, Rudolf & Mary (13). However, a well-planned

lay off scheme can help Jan lay off employees without necessarily affecting the overall work

output. However, an early retirement plan could be harmful to the organization

Seniority selection can be a simple method to implement (Lawler et al, 2018). Jan can

consider the last employees to get hired becoming the first ones to let go. With this consideration

an assumption can be made that, if they were just recently hired they probably haven’t become

organizational assets yet. And it can be well argued the valley technology Inc. was doing fine

before they started working for the organization. Likewise, according to Rudolf & Mary (16), an

employee Status Based Selection can be implemented as a lay off strategy for valley technology.

With this method, more emphasis is put on ensuring security for full time employees.
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The rest of the workers, hereby referred to as the Contingent workers at the organization, such as

contractors and/or part time workers, will be laid off, while the permanent workers with full time

employee status are given preference in keeping their job.

Nevertheless, Jan can apply a merit based lay off in helping valley technology cut down

on human resource cost. Being one of the most popular methodologies in choosing which

employees to layoff and for good reason, will It help managers weed out poorly performing

employees, so that organizations don’t lose important company assets that they could potentially

lose using other methods( Lawler et al, 2018). However, there are several factors that must not

go undervalued. First, to be able to carefully execute this method, there will be need to have a

strong performance evaluation system. Many are times performance evaluations aren’t objective,

and are not done on a regular basis. This often leads to a lot of legal liability when managers lack

documentation to back up their layoff decisions.

Jan can employ a number of items in a scorecard to come up with the employees to lay

off. These may include, tenure at the company Employee status, Merit Value of skillset, Potential

for promotion and leadership, or even Threat of competitor poaching Impact of work.

For each of these categories, the manufacturing employees would be ranked on a scale (Lawler et

al, 2018). Those rankings would be inputted into the weighted formula, and then the Human

resource Manager Can executive could lay off employees with the worst score. This can also act

as a vital evidence in case of any case that may await valley technology following employee’s

dissatisfaction with the layoff.

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From the two methods used to communicate to employees laid off, the reasons for lay off

and remedies to help the affected have been brought out clearly. Valley technology Inc. CEO

shows sympathy to the affected and offers to provide assistance with job search, including

conducting workshops to enhance their résumé, interviewing and job search skills. The kind of

appreciation is also recommendable. The Vice President, Tape Storage Unit also exhibits similar

approach towards making sure that employee’s reasons for lay off are clearly spelt. “It is also

very difficult for the individuals whose jobs are affected. Human Resources will be working with

those affected employees to get as many as possible redeployed to other positions at VTI.”
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Works Cited

Rudolp, Sanchez & Mary Bielenberg-Sanchez. Valley Technology Inc.-case study, Employee &

Labor relations, online resource, available at www.shrm.org/hreducation/cases.asp.

Accessed 02/02/2018.

Lawler, Edward E, and John W. Boudreau. Human Resource Excellence: An Assessment of

Strategies and Trends. Stanford, California: Stanford Business Books, an imprint of

Stanford University Press, [2018] ©2018, 2018. Internet resource.