Ch 11 Separation PDF

SUMMARY CHAPTER 11 Separation Separation occurs when an employee leaves the organization. Separation can be either voluntary (initiation taken by employee) or involuntary (Initiation taken by employer) Turnover can infuse diversity and new experience, new ideas. Voluntary separation: resignation an...

SUMMARY CHAPTER 11 Separation Separation occurs when an employee leaves the organization. Separation can be either voluntary (initiation taken by employee) or involuntary (Initiation taken by employer) Turnover can infuse diversity and new experience, new ideas. Voluntary separation: resignation and retirement. Resignation may be due to job dissatisfaction, ill health, spouse relocation or better career prospects. Retirement occurs on superannuation at the age of 58 yrs. Or 60 yrs. As per company policy. On retirement employee gets various benefits such as gratuity, pension, Provident fund, balance leave pays etc. no hurt feelings as he knows about retirement in advance, and he gets the long- term benefits. Involuntary separation: Reasons can be organization is passing through tough times financially due to recession or pandemic like covid 19 or new technology leading to their products become obsolete etc.; employee showing deviant behavior which is against organization’s policy or culture or faulty hiring affecting environment of organization. Discharges, layoffs, retrenchment, and Voluntary Retirement Scheme are the common methods of involuntary separation. Discharge or dismissal is due to excessive absenteeism, serious misconduct, theft, espionage or submission of faulty qualification/ experience certificates in resume/application blank Layoff is temporary separation of employee by employer due to excess inventory, unavailability of raw material, recession etc. seniority based i.e. last in first go method or performance based method is used for layoff. Half pay is to be given to them during period of layoff as per Industrial Disputes Act, 1947 Retrenchment: termination of services by employer because of replacement of labour with machines or closure of department due to lack of demand for the products. It entitles compensation at the rate of half month’s salary for the remaining duration of employment before retirement age. He stops being on role. P. 1 Internal V.R.S.: surplus labour due to excessive staff is reduced by paying handsome compensations. Downsizing: reduction of staff due to organization is constantly incurring losses or is going for restructuring.it affects surviving employees’ morale. The entire separation process should be handled sensitively without the separating employee feeling harassed or emotionally disturbed. exit interview helps for future handling of separation and improving attrition rate. Attrition rate can be minimized by innovative reward system, strong and supportive corporate culture, to create, nurture and enhance employee-enabling climate and by succession planning and career planning. Succession planning for senior management by training /development programs and series of job assignments. Involvement and commitment of top management, high-level review of succession plans formal assessment of the performance and potential of the candidates and specific development program plans for candidates is done. Career planning: Career is progress of a person in some profession or in an organization. Several initiatives are taken by organizations to develop their employees’ careers. – career planning, workshops, career counseling, mentoring, personal development plans and career workbooks. It is a key retention tool. Impact can be seen through productivity indicator, engagement surveys and reduction in attrition rate. ______________________________________________________________________ P. 2 Internal