Chapter 12 - Managing Workforce Flow

• Have representatives from an outside company or from a neutral department, such as human resources, collect the information. • Train the interviewers. • Use a questionnaire that allows the firm to systematically compare respondents' answers. • Rather than interviewing the separating employee during his or her last working days, consider supplementing (or even replacing) the exit interview with a post-exit questionnaire.

Firms can do the following to improve the validity of the information they gather via exit interviews:

One-time versus staggered programs

Holding brief meetings the first day and then over the next few weeks can help prevent "information overload." Although a one-time meeting can be cheaper, holding the meetings in different departments or different parts of the organization helps new hires get a more complete understanding of the breadth of the company. Each socialization activity or step can be given a time frame for completion or left open, and newcomers can be required to complete socialization experiences in a set order or randomly.

• What to include: What people, politics, culture, language, job requirements, and work processes should be discussed? Which elements of the company's history, business goals, and key strategic objectives should be included? • Whom to include: Which people should be involved in the socialization program—the newcomer's hiring manager, coworkers essential to the new hire's job success, or perhaps the new hire's family? • How to use technology: Should the socialization program be Web based or should new hires attend in-person?

In addition to the basic types of socialization programs a firm has to choose from, there are other choices that must be made when it comes to the socialization process, including the following:

anticipatory socialization

Interacting with the company's representatives (e.g., its recruiters and managers) before entering the company develops new hires' expectations about the company and the job. Ensuring that all employees who interact with recruits reinforce the company's culture and expectations of employees

termination

May happen immediately after a policy violation or other job misconduct (e.g., a safety violation, failure to renew a professional license, etc.), or after a long pattern of poor performance

• Meeting the firm's authorized full-time employee headcount goals • Increasing the firm's ratio of supervisors to employees • Employee loss due to attrition versus personnel loss due to incentive programs

Measuring the effectiveness of a downsizing effort can be done in a variety of ways, including the following:

1. A verbal warning 2. A written warning 3. Suspension 4. Discharge

Most organizations use some form of progressive discipline for poor performers to give them a chance to improve. The typical progression of steps in progressive discipline is as follows:

8-12 weeks for clerical jobs 18-22 weeks for professionals 24-28 weeks for executives

On average, the time for new external hires to achieve full productivity is:

voluntary, dysfunctional, and avoidable.

Organizations generally try to minimize turnover that is..

doing it publicly writing a positive letter of reference after a termination for cause (this opens up the company to charges of having given a negligent referral) trying to document a discharge for a just cause case that doesn't exist firing an employee after a merit raise or favorable performance review and stating that the person conducting the discharge disagrees with it. Juries have also looked unfavorably at discharges that were done at the end of a workday or workweek, after the employee returns from a business trip, or at the beginning of a holiday.

Some common discharging errors include:

survivors' trust fairness perceptions and belief in firm's future

Successful downsizing depends on WHAT 3 THINGS?

true

T or F: Although it might seem that a more structured orientation would inhibit employees from acting on their own, in fact the opposite is true. Structure promotes proactive behavior on the part of new employees, such as their asking questions, seeking feedback, and building relationships with other people in the organization. This can increase the job satisfaction and commitment of the new hires.

true

T or F: Downsizing impacts multiple employees. Termination focuses on an individual.

false; low-cost strategies

T or F: For firms trying to maximize the efficiency of their workforces, which is particularly important for companies pursuing high-cost strategies, optimizing their workforces is critical.

true

T or F: One key factor related to voluntary turnover is the current economic climate. Although top performers are usually being courted by other companies, if the economy is good and jobs are plentiful, retaining employees both good and bad is more difficult. When the economy is softer and fewer organizations are hiring, it is harder for employees to leave, and turnover rates are usually lower.

true

T or F: The potential exists for strikes or even violence during and after a discharge, layoff, or downsizing. Supervisors need to be able to spot the warning indicators for employee violence, including anger, depression, paranoia, withdrawal or isolation, and drug or alcohol abuse, on the part of employees. Many companies now conduct training to help supervisors recognize these signs.

• Involve senior leadership. • Use frequent two-way communication. • Focus on improving the work processes that will be needed in the future. • Dismiss contract and temporary employees first. • Consider reducing work hours, pay, or benefits. • Try to provide options. • Provide assistance to separating employees. • Don't ignore the survivors.

The following is a summary of some of the best ways to conduct a downsizing:

redeployment

The movement of employees to: - other strategic business units - other roles to better meet talent needs - Software - Supply chain management; meeting evolving customer needs (Apple) - Workforce optimization as a cost-savings structure

get new employees up to speed on their jobs and familiarize them with the organization's culture, which consists of the company's norms, values, behavior patterns, rituals, language, and traditions.

The primary goal of socialization is to..

voluntary, involuntary, avoidable, unavoidable, functional, and dysfunctional.

The six different types of turnover are:

socializing new employees as a group using formal activities and materials in a predetermined order within a specified time frame giving new employees access to role models or mentors and providing them with social support

The socialization process can be improved by ...

1. Anticipatory socialization. 2. Encounter. 3. Settling in.

The socialization process typically includes three phases:

Actively involve new employees - Encourage them to ask questions - Clarify new roles and their connection to business strategy - Manager must take the time to get the employee up to speed Pairing coworkers with new hires for days or weeks can facilitate their transition - Assess transition progress using metrics including engagement, 30-, 60-, and 90-day retention rates, and supervisor satisfaction

What Makes a Socialization Program Effective?

Should not be conducted by immediate supervisor (this can sway what the employee will say as their opinion) Value rests in effectively using the data provided Incentivize or mandate participation Listen more than talk Timing; halfway through separation process

What are some tips to implement to make exit interviews more effective?

encounter

When starting a new job, employees receive training and begin learning about the company's culture and norms, and how to do the job. A higher quality work relationship is created when managers help new employees understand their roles and duties and understand the stresses and issues they are likely to experience.

settling in

When they begin feeling comfortable with their jobs and work relationships, new hires become interested in the company's evaluation of their performance and possibly about potential career opportunities within the company.

socialization

a long-term process of planned and unplanned, formal and informal activities and experiences through which an individual acquires the attitudes, behaviors, and knowledge needed to successfully participate as an organizational member and learns the firm's culture

sequential socialization programs

a socialization process that follows a specific sequence of steps.

serial socialization

a socialization process whereby supportive organizational members serve as role models and mentors for new hires. Newcomers are generally expected to follow in their mentors' footsteps. maintains the continuity of a firm and its sense of history.

formal socialization

a structured socialization process conducted outside of the work setting using specifically designed activities and materials.

divestiture socialization

an attempt to strip away people's personal characteristics by requiring newcomers to "pay their dues" before they can become full organizational members. The first year of many medical schools is like this, as is the military's boot camp. organizations explicitly intend to strip away existing behaviors and attitudes in order to introduce new ones desired by the organization. generally considered undesirable in most work organizations, except for work situations in which extreme discipline is required.

informal socialization

an unstructured socialization process conducted on-the-job by a new hire's coworkers. More structured, formal socialization increases new hires' job satisfaction and reduces turnover. Additionally, socialization increases employees' tendency to be proactive.

exit interviews

asking departing employees why they are leaving to acquire information that can be used to improve conditions for current employees

collective socialization

best when many people have been hired to fill a particular type of job. This can occur, for example, when the firm is expanding and hiring many people.

tournament socialization

each stage of socialization is an "elimination tournament," and a new hire is out of the organization if he or she fails. tends to stifle innovation and risk taking and produces a closely controlled culture and a homogeneous workforce with very similar norms tends to make employees more insecure and submissive to authority, it is inconsistent with the talent philosophies of many organizations. It also often renders an organization capable of making only slow, incremental changes to its culture and way of doing business.

variable socialization

employees receive few clues as to when to expect their probationary periods to end. Moreover, the timeline isn't necessarily consistent across employees, which decreases the ability of cohorts to remain cohesive over time.

increasing employees' pay and benefits challenging them on the job developing better managers to supervise them offering the employees work flexibility creating accountability among managers locating the company in a desirable area or in an area where there are few firms competing for the same talent Providing employee support Creating mobility barriers Creating strong corporate culture Mergers and acquisition Managing succession

firm's employee retention strategies can range from ...

employee engagement

how engaged employees are in their work and how willing they are to put in extra effort, has become a component of competitive advantage for many companies. Socialized employees who fit in well with their jobs, work groups, and organizations and who share their firms' values are more engaged. Research has shown that the engagement of a firm's employees will determine the company's success and that loyal and dedicated employees will outperform less engaged employees.

competency based downsizing

involves retaining employees with the competencies the company expects to need in the future and downsizing employees who lack them. Downsizing can also be done through self- selection, if a firm offers its employees inducements to leave, such as early retirement packages or buyouts.

individual socialization program

involves socializing newcomers individually. An apprenticeship is a good example. With collective socialization, new hires are socialized collectively and go through a common set of experiences as a group

layoff

known as a reduction in force, is a temporary end to employment. Unlike downsizing, which is a permanent separation of employees, the company intends to rehire employees when business picks back up. Employers tend to dislike these compared to other downsizing methods. forced by law due to budget cuts, which is the case with most public-sector layoffs. At other times, economic conditions result in layoffs. If a firm is unionized, union members with seniority must usually be retained prior to more junior union members. Unfortunately, this won't guarantee that the firm will end up retaining the right competencies it needs to compete more successfully.

culture

norms, values, behavior patterns, rituals, language, and traditions that provide a framework that helps employees interpret and understand their everyday work experiences

workforce redeployment

nvolves moving employees to other parts of the company or to other jobs the company needs filled. - applies the supply-chain management principles used to optimize inventory management, planning, and production to optimize the utilization of a firm's employees.

random socialization

occurs when the socialization steps are ambiguous or changing. Becoming a doctor is often sequential, whereas becoming a manger is often

disjunctive socialization

often happens when the "old guard" of a company is removed and new employees take their place. This can occur, for example, when a firm merges or is bought out by another company, and new managers and employees are brought into the company.

fixed socialization

processes inform new hires in advance when their probationary status will end.

investiture socialization

reaffirms newcomers' self-confidence and reflects the fact that the organization's senior members value the knowledge and personal characteristics of the newcomers. Organizations use investiture tactics when they want to capitalize on the newcomers' existing skills and knowledge. tells recruits that the company likes them just the way they are and that the organization wants to utilize their unique skills.

repatriation

reintegrating employees to their home office and country when the global assignment ends, is also important. A global assignment often influences the expatriate's values and beliefs, and it can take time to settle back into what was once a very familiar and comfortable environment. Families of returning expats may also benefit from intercultural repatriation programs to address their specific needs.

discharging

requires clearly communicating the message that the person's employment is being terminated and attempting to lessen the person's desire to pursue any legal action against the company. Asking the employee to sign a severance agreement that includes a release is one measure that can be taken.

business-based downsizing

targets only certain segments of a business. In addition, downsizing can target specific functions or departments that need to be reduced, or specific positions or jobs that are overstaffed.

performance-based downsizing

targets poor performers. When downsizing is seniority based, the last people hired are the first people let go. If cost cutting is a goal of the downsizing, This method involves targeting a firm's most highly paid employees.

geographic downsizing

targets specific locations for employee reductions, perhaps due to the loss of an important customer.

dysfunctional turnover

the departure of effective performers the company would have liked to retain.

functional turnover

the departure of poor performers that could in turn benefit the organization

downsizing

the intentional reduction of employees intended to improve the efficiency or effectiveness of the firm. •Can improve operational results. Often in response to: merger or acquisition revenue or market share loss technological and industrial change new organizational structures inaccurate labor demand forecasting. Can be means of avoiding more drastic measures Legal caution

orientation

the process of completing new hires' employment-related paperwork and familiarizing them with their jobs, coworkers, work spaces, work tools, and the company's policies and benefits

orientation and onboarding

the process of completing new hires' employment-related paperwork, familiarizing them with their jobs, coworkers, work spaces, work tools, and the company's policies and benefits Formal HR, not management Often spans several days or weeks

optimal turnover

the turnover level that produces the highest long-term levels of productivity and business improvement. Achieving this turnover means understanding both the financial gains and costs of different types of turnover as well as controlling who stays and who goes.

unavoidable turnover

turnover that could not have been prevented by the employer. This turnover can result from resignations due to an employee becoming a parent, experiencing a serious illness or death, or a spouse accepting another job requiring that the family relocate.

avoidable turnover

turnover that the employer could have prevented by addressing the cause of the turnover. Low pay, employee dissatisfaction, and poor work and life balance issues

orientation and socialization

what two things work together to acclimate new hires to an organization.

involuntary turnover

when the separation is due to the organization asking the employee to leave. - misconduct - ongoing performance issue

voluntary turnover

when the separation occurs when an employee chooses to leave the firm of his or her own accord. include a written or verbal resignation not reporting for work as assigned, failing to return from an approved leave of absence at the end of the leave, or retirement.