Adjustment in the size of workforce of an enterprise .
Adjustment may be needed to meet special situations :
changes in organizational structure,
relocation of individuals,
fluctuation in volume of production
employment
Provide workforce flexibility & mobility to suit the
requirements of the organization.
Can be accomplished informally or formally.
Commands
better pay, better
It is a status , higher
vertical opportunities/
Defined as an move in challenges,
upward rank & responsibility &
advancement of responsi authority, better
an employee in bility. working
an organization environment &
to another job . so on.
Purpose :
To furnish an effective incentive for initiative,
enterprise & ambition.
To conserve proved skill, training & ability.
To reduce discontent & unrest.
To attract suitable & competent workers.
To suggest logical training for advancement.
Lateral/ horizontal movement of
an employee from one position to
another without any change in
pay, skills, status etc.
May be either company-initiated
or employee initiated.
Purpose :
To satisfy needs of an organization
To meet an employee’s own request.
To utilize properly the services of an employee.
To increase the versatility of the employee.
To adjust the workforce of one plant with another
plant.
To replace an employee with another employee
To penalize the employee.
means cessation of service with the
organization for one or other reason.
Employee may be separated from the payroll
of a company as a result of:
Resignation
Discharge & Dismissal
Suspension
Retrenchment
Lay-off
Compulsory or voluntary action
done by the employer or
employee.
Reason : to avoid termination of
his/her service, on the ground of
health, physical disability, better
opportunities etc.
Permanent separation of an employee
from the pay roll.
Reason : violation of company rules,
inadequate performance, dishonesty etc.
Carries certain penalties.
Termination of the service of an
employee by way of punishment for
some misconduct, unauthorized &
prolonged absence from duty etc.
Termination without notice or
payment
Part of a disciplinary procedure.
Employee suspended on full pay if allegations
of misconduct have been made against
him/her and are being investigated.
Suspension on full pay is not a punishment,
but part of the investigation process in a
disciplinary procedure for many employers.
Known as ‘reduction of workforce’
Defined as an activity to legally terminate any
employment contract with the employee by
offering a compensation package
Redundancy is one of the reasons for
retrenchment.
Refers as indefinite separation of the employee from
the payroll due to factors beyond the control of the
employer.
Purpose: to reduce the financial burden on an
organization.
Layoffs are not caused by any fault of the employees
but by reasons such as lack of work, cash, or material.
Permanent layoff is called redundancy.
A layoff is when an employer suspends or terminates
a worker, either temporarily or permanently, for
business reasons
Layoff refers to the provisional termination of
the employee, at the instance of the employer.
As soon as the layoff period is over, the
employees are re-appointed to their previous
posts.
Retrenchment, in which the employees are
not taken back by the company, once they are
terminated.