Hi Guys,
Saw a lot of perspectives here and must say that most of us do not agree with the Hire & Fire tendency!
I am also not in a favor of the same, however, I wold like to express that Hire & Hire is not just about playing with the employee's career. I am sure that most of the HRs would agree with me that we hire employees based on Manpower Plans, which inturn are based on projected income and projected business.
Due to the global disturbances, and a lot of political turn overs around the world, a lot of corporates are facing business losses and hence all the plans for projected income, gains and business at times go for a toss. They may not project their financials properly and hence may live in the shadow of good looking paper work (to attract share holders) and subsequently loose track of business.
I would say that it is at times not in the hands of the big corporate houses, they can't cope up with the employee cost's also. Therefore they have to ask some of them move out.
From India, Faridabad
19Saw a lot of perspectives here and must say that most of us do not agree with the Hire & Fire tendency!
I am also not in a favor of the same, however, I wold like to express that Hire & Hire is not just about playing with the employee's career. I am sure that most of the HRs would agree with me that we hire employees based on Manpower Plans, which inturn are based on projected income and projected business.
Due to the global disturbances, and a lot of political turn overs around the world, a lot of corporates are facing business losses and hence all the plans for projected income, gains and business at times go for a toss. They may not project their financials properly and hence may live in the shadow of good looking paper work (to attract share holders) and subsequently loose track of business.
I would say that it is at times not in the hands of the big corporate houses, they can't cope up with the employee cost's also. Therefore they have to ask some of them move out.
From India, Faridabad
Shweta, may be its because companies are so concerned about cutting corners that they try to squeeze every penny possible from their employees.But, again if an employee just isn't able to do a competent job, and company have given the employee a reasonable opportunity to succeed, then termination will often be seen as appropriate.
From India, Mangaluru
From India, Mangaluru
HR is set of process such as recruitment, induction, performance appraisal, training, promotion, transfer etc.
Hire is one among process therefore Fire is also one among another process.
But if your organisation is not professionally managed this process can be misused. For example good balanced organization worked out caliberated manpower plan and do not promote excess recruitment than requirement this is done on the basis of business plan for next five years forcast.
Once manpower planning is done salary budget is prepared on the basis of revenue generating and profit margines to reward the employees by paying compansation or remuneration.
But in your case management have no clue what is happening on HR front they without proper analysis recruit surplus people under influence of some department heads or rationale.
This is not good practice because, as an organization one should not recruit employee if they cannot offer better prospects in the organization. If organization which cannot afford the salaries or some sort of surplus employees has no right to exist because these organizations are economically not viable. salary or wages cost of any organization does not exceeds maximum od 10 to 12 percentage of operative cost.
This is vary cheap labour cost employer doesnot share windfall of revenue with employees if market is booming or similarly during downsliding employer has to protect employees as far as possible. But most of the CEO are taking shelter of downsizing the organization at the cost of employees to show their performance in reducing operative cost to influence the owners of business.
This is common error on the part of employers. Whenever I joined any organization in India employers tend to express that they have surplus manpower and they are doing charity by engaging surplus manpower. But in reality the technology they used is 1970- 80 or 90's which was labour intensive process which cannot be compare with automation technology during 2000 era.
Today baring some sector technology is automated and less labour intensive. Workforce is apply more intellect and target oriented. No organization should exercise such painful measure until its beyond employers tolerance.
But who will bell the cat this greedy people who find employees as scapegoat for victmizing.
Kind Regards
Sawant
From Saudi Arabia
Hire is one among process therefore Fire is also one among another process.
But if your organisation is not professionally managed this process can be misused. For example good balanced organization worked out caliberated manpower plan and do not promote excess recruitment than requirement this is done on the basis of business plan for next five years forcast.
Once manpower planning is done salary budget is prepared on the basis of revenue generating and profit margines to reward the employees by paying compansation or remuneration.
But in your case management have no clue what is happening on HR front they without proper analysis recruit surplus people under influence of some department heads or rationale.
This is not good practice because, as an organization one should not recruit employee if they cannot offer better prospects in the organization. If organization which cannot afford the salaries or some sort of surplus employees has no right to exist because these organizations are economically not viable. salary or wages cost of any organization does not exceeds maximum od 10 to 12 percentage of operative cost.
This is vary cheap labour cost employer doesnot share windfall of revenue with employees if market is booming or similarly during downsliding employer has to protect employees as far as possible. But most of the CEO are taking shelter of downsizing the organization at the cost of employees to show their performance in reducing operative cost to influence the owners of business.
This is common error on the part of employers. Whenever I joined any organization in India employers tend to express that they have surplus manpower and they are doing charity by engaging surplus manpower. But in reality the technology they used is 1970- 80 or 90's which was labour intensive process which cannot be compare with automation technology during 2000 era.
Today baring some sector technology is automated and less labour intensive. Workforce is apply more intellect and target oriented. No organization should exercise such painful measure until its beyond employers tolerance.
But who will bell the cat this greedy people who find employees as scapegoat for victmizing.
Kind Regards
Sawant
From Saudi Arabia
Dear Jaitly
Cutting cost-downsizing manpower is one of the tool,there are other tools/practices such as cost reductin in usage of material,reduction in time of manufacturing,reduction in utility cost etc,etc.
If the company is really in trouble and in RED and is following all the above said methods it is fine and acceptable as is the right of the employer.
If the company is only doing downsizing manpower and not taking any other step in reducing the cost some thing wrong and motive is different.
Being in HR u must understand one thing that is whether the manpower deployed is in accordence with the approved organogram or in excess,or the company has gone for more sophesticated technology where in down sizing is must.
In case of workers/employees falling under the definition of workmen under ID act different procedure is to be followed ,where as in other cases it is different approach.
Now u can judge whether your employer is doing right thing for right purpose or otherwise
Patrudu
From India, Hyderabad
Cutting cost-downsizing manpower is one of the tool,there are other tools/practices such as cost reductin in usage of material,reduction in time of manufacturing,reduction in utility cost etc,etc.
If the company is really in trouble and in RED and is following all the above said methods it is fine and acceptable as is the right of the employer.
If the company is only doing downsizing manpower and not taking any other step in reducing the cost some thing wrong and motive is different.
Being in HR u must understand one thing that is whether the manpower deployed is in accordence with the approved organogram or in excess,or the company has gone for more sophesticated technology where in down sizing is must.
In case of workers/employees falling under the definition of workmen under ID act different procedure is to be followed ,where as in other cases it is different approach.
Now u can judge whether your employer is doing right thing for right purpose or otherwise
Patrudu
From India, Hyderabad
Hi Shweta,
There are lots of facets to this discussion. Hire and Fire is what the Private Sector is all about!!! Its only over a previous decade or so with technology revolution and overall development and growth there was a definite need for skilled and talented employees and HR gained importance like never before. Various HR practices were relooked at and reinvented to attract, motivate and retain employees.
Rapid expansion and competition in the markets drove various employers to expand their employee base giving focus to deeper aspects like personalised marketing, customer service, door-to-door service etc to achieve business targets over and above the existing competition. But whenever there is a setback in the market conditions, the Companies suffer and are forced to cut costs and the first chop falls on the redundant staff.
We cannot truly state this is wrong or right because its a situation of survival for the Company. On the other hand it is a blow to the employee's budding career. The recent incident at Noida where the employees attacked the CEO clearly reflects the reactions and consequences arising out of this situation.
Another important aspect now adding a new dimension to the scene is the diminishing loyalty of employees in pursuit of higher pay scales and benefits. Employees also do not exhibit deep attachment and loyalties while jumping for new jobs despite existing employers offering higher pay, at times. There is a high rate of churning in BPOs/KPOs despite the attractive incentives they offer. So its a "No Obligation" either side situation!!!
Prudent organisations always adopt the policy of systematic Manpower Planning. It is wise to continue to do so and engage temporary staff for any work expansion which is required for short term. On the other hand the advise for employees is to continuously qualify themselves academically and be aware of the market conditions and aspire to seek employment in companies having reasonably safe and good track record of recruitment practices. Higher academic qualifications would offer self-employment opportunities and also enable one to set up own consultations etc to tide one over during the non-employment period.
It is always imperative on the part of the employers to be extremely sensitive to the method adopted in conducting the cost cutting exercises, communicating to the employees and affording all possible co-operation in making the hand shake pleasant. Employees on the other hand have to demand for more participatory role and try to assist in suggesting ways to the management to reduce the impact of drastic cost cutting measures. Again an active HR role.
Ironically, despite all the importance and contribution of HR department to Organisational Development, in typical lay off conditions, it is the HR dept which is targetted first for redundant employees!!
Good topic for discussion. If we discuss at various forums continuously some amicable solution might arise somewhere. After all Man himself is a Survivor!!
Good luck.
Jyothi
There are lots of facets to this discussion. Hire and Fire is what the Private Sector is all about!!! Its only over a previous decade or so with technology revolution and overall development and growth there was a definite need for skilled and talented employees and HR gained importance like never before. Various HR practices were relooked at and reinvented to attract, motivate and retain employees.
Rapid expansion and competition in the markets drove various employers to expand their employee base giving focus to deeper aspects like personalised marketing, customer service, door-to-door service etc to achieve business targets over and above the existing competition. But whenever there is a setback in the market conditions, the Companies suffer and are forced to cut costs and the first chop falls on the redundant staff.
We cannot truly state this is wrong or right because its a situation of survival for the Company. On the other hand it is a blow to the employee's budding career. The recent incident at Noida where the employees attacked the CEO clearly reflects the reactions and consequences arising out of this situation.
Another important aspect now adding a new dimension to the scene is the diminishing loyalty of employees in pursuit of higher pay scales and benefits. Employees also do not exhibit deep attachment and loyalties while jumping for new jobs despite existing employers offering higher pay, at times. There is a high rate of churning in BPOs/KPOs despite the attractive incentives they offer. So its a "No Obligation" either side situation!!!
Prudent organisations always adopt the policy of systematic Manpower Planning. It is wise to continue to do so and engage temporary staff for any work expansion which is required for short term. On the other hand the advise for employees is to continuously qualify themselves academically and be aware of the market conditions and aspire to seek employment in companies having reasonably safe and good track record of recruitment practices. Higher academic qualifications would offer self-employment opportunities and also enable one to set up own consultations etc to tide one over during the non-employment period.
It is always imperative on the part of the employers to be extremely sensitive to the method adopted in conducting the cost cutting exercises, communicating to the employees and affording all possible co-operation in making the hand shake pleasant. Employees on the other hand have to demand for more participatory role and try to assist in suggesting ways to the management to reduce the impact of drastic cost cutting measures. Again an active HR role.
Ironically, despite all the importance and contribution of HR department to Organisational Development, in typical lay off conditions, it is the HR dept which is targetted first for redundant employees!!
Good topic for discussion. If we discuss at various forums continuously some amicable solution might arise somewhere. After all Man himself is a Survivor!!
Good luck.
Jyothi
Hi Shwetha, Im sure you would be having much more experience and exposure than me, and every one have their own mindset. So thanks for your reply. Regards, Shahed
From Qatar, Doha
From Qatar, Doha
Dear all,
Asking for resignation is the short cut methode for Cost cutting. Employees are forced to resign for silly reasons to reduce the manpower. But in my view it is a costly affair for the long term. Firstly good employees will not be available at the time of need. Secondly recruit & train the new one will cost more than the retaining the talent. Thirdly due to lack of job security, no one will refer his collegue for the company. Lastly company will loss his faith in the market and not only placement agencies will refrain from the company, clients also will try to avoid.
:confused: Most important thing in this type of companies is that their bosses get promoted or good increment on this type of actions. That time no body comes forward to tell the meaning of cost cutting.
Thanks & Regards
Manoj Kamboj
From India, Ahmadabad
Asking for resignation is the short cut methode for Cost cutting. Employees are forced to resign for silly reasons to reduce the manpower. But in my view it is a costly affair for the long term. Firstly good employees will not be available at the time of need. Secondly recruit & train the new one will cost more than the retaining the talent. Thirdly due to lack of job security, no one will refer his collegue for the company. Lastly company will loss his faith in the market and not only placement agencies will refrain from the company, clients also will try to avoid.
:confused: Most important thing in this type of companies is that their bosses get promoted or good increment on this type of actions. That time no body comes forward to tell the meaning of cost cutting.
Thanks & Regards
Manoj Kamboj
From India, Ahmadabad
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