Human Resource 1

Management
 Separation

Obj ti
Objectives of
f thi
this session
i

V Nature of Separation.
V Different types of Separation .
V How
o to manage
a age Separation
epa at o
effectively.

Human Resource 2
Management
 Separation

St
Structure
t of
f thi
this session
i

V Wh t is
What i S
Separation.
ti
V Different types of Separation .
V How to manage Separation
effectively.
y
V How to reduce attrition.
V Related reading
V Summary

Human Resource 3
Management
 Separation

10 1 Wh
10.1 What
t i
is S
Separation.
ti

Separation occurs when an employee

l
leaves th organization.
the i ti S
Separation
ti can
be voluntary or involuntary. When
separation is voluntary the initiative
for separation is taken by employee
while in involuntary separation it is
by employer.
employer
Separations make organizations
leaner and reduce overheads. If new
entrants are hired they bring in new
ideas and skills and diversity.
Separations can cause disruptions
and may increase costs.
costs
Human Resource 4
Management
 Separation

10 2 Diff
10.2 Different
t t
types of
f Separation.
S ti

Voluntary Separations
R i
Resignations
ti / Quits
Q it : Employee
E l
resigns or decides to quit when he is
totally dissatisfied with the job,
suffers from ill health, spouse has
relocated or he has secured a better
job elsewhere.
elsewhere
Retirements : Retirements occur
when employees reach the end of their
career. B
Benefits
fit lik
like pension
i ,
gratuity or provident fund are
available to retiring employee. It
is an amicable process.
Human Resource 5
Management
 Separation
10 2 Different types of Separation .
10.2
Involuntary Separations
Employers ask employees to leave
when 1] organization is passing through
financially adverse conditions, 2]
emplo ees show
employees sho deviant
de iant behaviour
beha io r or 3]
faulty hiring resulting in mismatch
between job and employee. Involuntary
separation takes place as
Discharge / Dismissal: Employee is
discharged if there is excessive
absenteeism, serious misconduct, theft
of company property, espionage or
submission of false data at
Human Resource
recruitment. 6
Management
 Separation
10 2 Different types of Separation .
10.2
Involuntary Separations
Layoff: Employees are laid off for a
certain period when organization is
faced with recession, shortage of raw
materials
materials, acc m lation of stocks or
accumulation
any such reason.
50% of the normal wages are
payable as compensation during layoff
for employees covered under Industrial
Disputes Act, 1947.
Normally employees are laid off
based on seniority. Those with
shortest service period are laid
off first.
Human Resource 7
Management
 Separation
10 2 Different types of Separation .
10.2
Retrenchment: Employees are retrenched
permanently when they become surplus
due to automation, change in products
or closure of a department etc.
Retrenched employees
emplo ees are entitled to
compensation.
Voluntary Retirement Schemes: Here
surplus labour is reduced by paying
hefty compensation to employees
agreeing to retire prematurely. The
schemes have to be handled tactfully
to ensure that competent employees
do not quit the organization.
organization
Human Resource 8
Management
 Separation
10 2 Different types of Separation .
10.2
Downsizing: Downsizing means reducing
the size of the workforce. It involves
several employees and is adopted when
organization incurs losses over a
period of years
ears or when
hen organization
organi ation is
restructured.
Downsizing should be handled
carefully because of its negative
impact. It affects employee morale as
the surviving employees experience loss
of identity, colleagues and security.
Also planned economic benefits do
not always materialize.
materialize
Human Resource 9
Management
 Separation
10 3 How to manage Separation effectively .
10.3
Employee separation needs to be
handled with sensitivity, discretion
and speed so that exits can happen
smoothly and on good terms. Ex-
emplo ees are the most effective
employees effecti e brand
ambassadors for the company.
Exiting employees present a wealth
of valuable feedback and insights on
the organization’s strengths and
weaknesses.
This important data about employer
has to be collected through exit
interviews of leaving employee.
employee
Human Resource 10
Management
 Separation
10 3 How to manage Separation effectively .
10.3
Exit Interview
Exit interview should be
mandatory for all leaving employees. It
should have structured set of questions
like
o reasons for leaving.
o best points about the job.
o worst points about the job.
o best points about organization.
o worst points about organization.
o would employee like to comeback later
o what would make organization better.

Human Resource 11
Management
 Separation
10 4 How to minimize turnover / reduce attrition
10.4
Attrition can be reduced by
retaining high performers through
innovative reward schemes while
engaging in human resource planning to
ens re that only
ensure onl a few
fe employees
emplo ees occupy
occ p
difficult to replace positions.

Succession planning for top

positions is required to identify,
develop, retain and allocate key
members of your workforce before any
talent gap occurs. This is a sound
process to replace key vacancies.
Human Resource 12
Management
 Separation
10 4 How to minimize turnover / reduce attrition
10.4
Most succession planning
programmes include the involvement and
commitment of top management, high
level review of the succession plans,
formal assessment of the performance
and potential of the candidates with
written specific development plans for
individual candidates.
Succession planning efforts need
to be
b i
integrated
d into
i organization’s
i i
strategic overall business plans.

Human Resource 13
Management
 Separation
10 4 How to minimize turnover / reduce attrition
10.4
Career Development refers to a formal
approach used by an organization to
ensure that employees with proper
qualifications and experience are
available when needed.
HR undertakes some significant
i iti ti
initiatives lik
like career planning,
l i
workshops, career counseling,
mentoring,
g, ppersonal development
p plans
p
and career workbooks to achieve this
objective.

Human Resource 14
Management
 Separation
10 4 How to minimize turnover / reduce attrition
10.4
Career development benefits both
employees as well as organizations as
properly developed employees add value
to themselves and to the organization.
It is the most effective retention
tool and one of the greatest motivator
to keep employee happy and engaged.
Employees have a clear career track,
know the obstacles they need to
overcome and
d final
fi l goal l to be
b reached.
h d
It is a major HR step to build
intellectual capital.
p
Human Resource 15
Management
 Separation
10 5 Related reading
10.5
Handling Employee Resignation
Every resignation,
resignation from whichever
employee, is a cause for disruption in
operations. HR has to rush to handle
the team which is losing its member.
The first task here is to distribute
responsibilities among remaining
members.
Next is to seek replacement that
i
is acceptable
bl to the
h team. HR has
h to
ensure that new entrant and the team
with which he has to work are
comfortable with each other.
Human Resource 16
Management
 Separation
10 5 Related reading
10.5
Handling Employee Resignation
While dealing with employee who
has resigned, HR has to tie loose ends
and bring about a positive transition
and in no way de-motivate the team.
A common meeting by HR of the team
with the leaving member needs to be
arranged to resolve grievance, if any,
and to maintain productivity at earlier
hi h levels.
high l l

Human Resource 17
Management
 Separation
10 5 Related reading
10.5
Life After Layoff
Layoff or Downsize are terms that
are quite familiar now to Indian
workers. Still when layoff happens
affected
ff t d workerk i
is t k
taken b
by surprise
i
and rarely has financial power to tide
over the unexpected vacation.
Laid off employee has to remember
that he is not the only one to suffer
this loss and there was nothing
personal that made him lose the job. It
has to be viewed as an opportunity
t introspect
to i t t & start
t t afresh.
f h
Human Resource 18
Management
 Separation
10 5 Related reading
10.5
Life After Layoff
First, laid off employee needs to
tend to finances and plan to manage
bare household expenses for at least
six
i months.
th N t he
Next h should
h ld tap
t th
the
contacts and websites to seek a new
job.
Employee has also to ensure that
all rightful dues are fully collected
from ex
ex-employer.
employer.
It helps to stay calm and be among
friends and well wishers. Never
f ll prey to
fall t any addiction.
ddi ti
Human Resource 19
Management
 Separation
10 5 Related reading
10.5
Life After Layoff
Normally there are always early
signals about impending layoff or
downsizing. It is the time when you
should
h ld b
be i
in constant
t t t
touchh with
ith
supervisors and get their feedback.
Set up your networking both inside
and outside the office. Update your
resume tailor made to suit the job for
which you are going to apply.
This can perhaps open new gates to
your career growth.

Human Resource 20
Management
 Separation
10 6 Summary
10.6
Separation occurs when an employee
leaves the organization.
organization Separation can
be either voluntary or involuntary.
Resignations and retirements fall in
the category of voluntary separation
whereas discharges, layoffs,
retrenchments fall in the category of
involuntary separation.
An organization manages turnover
b
by separation
i through
h h retention
i
strategies.

Human Resource 21
Management
 Separation
10 6 Summary
10.6
An exit interview is a process to
elicit
li it th
the views
i of
f th
the exiting
iti
employee.
Career development and succession
planning are some of the strategies
adopted by organization to retain high
performing employees.

Human Resource 22
Management
 .

Human Resource 23
Management