Downsizing

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Downsizing involves reducing the size of the organisation. In order to survive in this competitive environment the organisation is expected to reduce the cost of operations.

Role Of Human Resource In Downsizing
* Human relations should lay down guidelines for the employees to be retrenched.
* The retrenchment policy should properly be communicated to the employees who are to be retrenched.
* Human resource is expected to give management inputs about severance package to the employees who are to be retrenched after discussing with the trade union.
* The need for downsizing should be properly explained to the employees by the human resource department as it is likely to have effect on the morale of the employees.
* The HR department should study the procedures followed, severance packages offered etc. of other competing firms which have resorted to downsizing.
* HR department should ensure that severance package is immediately made available to the retrenched employees so that they do not face financial problems post retirement.
* HR department should undertake training programs to harp on the skills of remaining employees post downsizing as the responsibilities and the work is likely to change.
* HR department can have counselling sessions for those who are likely to be retrenched as they are likely to be under tremendous stress..

 

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