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Dear Workforce Which is Better During Layoffs Individual or Group Announcements
Q
Dear Workforce:
When performing a reduction in force of manufacturing employees, is it better to conduct terminations one-by-one or by a group? We are concerned about violent reactions since no severance is being given and want to know if the group setting would inhibit or promote unwanted reactions.
— Safety & Training Facilitator, manufacturing company, Valencia,California.
A Dear Concerned About Safety:
For me there’s no contest: one-by-one exit interviews acknowledge the psychological complexity of the termination process and respect the integrity of the soon-to-be former employee. Group termination avoids the issues and will inflame the fires.
Advantages of one-on-one
Being forced to leave an organization is a trying experience for most folks, especially if there’s substantial work history. A tight job market adds to the stress. Giving the employees no severance package may become salt on the wound. The human resources department needs to take the time in a one-on-one basis to note hard company economic realities and tough choices. And HR needs to recognize that hard company choices won’t negate the fact that people feel dissatisfied, angry, upset, frightened, etc., about this reduction in force.
Also, it’s important to give the employees time and space to share how they feel about the RIF; that’s the reason for the face-to-face meeting. As long as an employee does not become abusive or violent, some expression of anger is reasonable and healthy. (If an employee does become threatening, at least it’s in the open and an appropriate safety response becomes a quick option.)
If the number of people being let go is very large — beyond HR’s capacity for one-on-one administration — then consider some pre-exit workshops led by trainers skilled in dealing with grief and termination. Consider employee assistance professionals or consultants with both a clinical and organizational training background.
Sometimes management cuts off this intimate termination process. Management may cut off this one-on-one venting because of their feelings of guilt, which also is an understandable reaction. Bringing out this array of emotions, while difficult, will likely reduce the chances of an outbreak of violence.
Dangers of a group meeting
A group meeting for the announcement of the RIF exacerbates the violence potential. Anger and feelings of abandonment or betrayal not vented or handled constructively lend themselves to reduction of individual responsibility for subsequent actions and could lead even to mob reaction.
Also, many people will not speak up in a group. For some of these individuals, anger will smolder inside. If such an individual finds this RIF threatening and has preexisting emotional instability (especially a history of uncontrolledrage or premeditated belligerent or cruel behavior), then this person may be ripe for a violent reaction, even if a subsequent stress trigger seems trivial.
Finally, don’t promote the sole purpose of one-on-one termination meetings to be the prevention of violence. Hold this meeting for various reasons, namely because it:
- Demonstrates respect for the integrity of the employees.
- Indicates appreciation for their past contributions.
- Shows management is genuinely willing to tackle tough personnel issues.
- Encourages surviving employees during a vulnerable period that management doesn’t get rid of people on a whim.
- Is the right thing to do.
SOURCE: Mark Gorkin, LICSW, “The Stress Doc” and American Online’s”Online Psychohumorist,” Washington, D.C., April 16, 2001.
LEARN MORE: See “Anticipate Sabotage– Have aCrisis Plan in Place”
The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or legal opinion. Also, remember that state laws may differ from federal law.
Dear Workforce How Do We Implement TQM
Q
Dear Workforce:
Organizations practicing total quality management (TQM) have a long-termcommitment to quality and consider quality to be the core value. What are thekey points in TQM and what are some ways to improve it?
– Office Administrator, software/systems, Kuala Lumpur.
A Dear TQM:
Total Quality Management (TQM) generally refers to a comprehensive systemwhereby companies are able to achieve extraordinary levels of quality in theirdelivered products and services. Most people, when they think TQM, invariablythink about automation technology, super-efficient processes, close supplierrelationships, and analytical tools like statistical process control that leadto so-called “Six-Sigma” levels of quality.
These elements represent the foundation of an effective TQM program. Asimportant as these elements are, however, the really hard part of achieving orsustaining TQM is getting beyond mouthing platitudes to actually implementinghuman capital practices that will drive and sustain the appropriate culturechange.
Culture change is where the human capital notions of competencies andperformance management enter the picture. Competencies, in short, are thebehaviors and the skills that top performers demonstrate. In a TQM environment,top performers demonstrate these six key competencies:
Customer focus by proactively seeking input from internal and externalcustomers.
Ownership and accountability by handling ambiguity well and taking personalresponsibility for outcomes.
Analytical problem solving by effectively utilizing analytic tools toidentify root causes and assess problems and opportunities.
Process orientation by using operating metrics to drive continuous processimprovements.
Attention to detail by processing large amounts of detailed information whilestill understanding the big picture.
Results orientation by initiating and executing needed actions in a fast andfocused manner).
Performance management is one of the key means by which organizations givemanagers incentive to drive for desired results. In a TQM environment, thecompetencies noted above must be integral to an effective performance managementsystem. Managers must be assessed and rewarded on how well they have achievedoperating results, as well as how effective they have been in applying these keycompetencies that are, essentially, the long-term enablers of high performance.Identified competency shortcomings naturally lead to education, training andrelated self-development activities.
Companies that combine the foundation elements noted earlier with theappropriate competencies integrated into an effective performance managementsystem will be able to sustain and improve a long-term TQM culture.
SOURCE: Dr. Gerald Michael, senior consultant, organization developmentpractice, Unifi Networks, a subsidiary of PricewaterhouseCoopers, Boston, Mass.,April 11, 2001.
LEARN MORE: See “Change Keeps TQM ProgramsThriving“
The information contained in this article is intended to provide usefulinformation on the topic covered, but should not be construed as legal advice ora legal opinion. Also remember that state laws may differ from the federal law.
Outline of a Change Strategy
Below is an outline of a change strategy from an organization preparing itselffor e-commerce through the realignment of its product groupings, the upgradeof its information management systems, and expansion of its ability to cross-sellproducts between its dispersed companies.
Umbrella Outcome: To become a preeminent e-business that sells customizedfamilies of products
Positioning: Top Priority
Bold Actions
Conduct large group employee meetings(100-1,000 people) in every market worldwide to generate input to the casefor change and vision.
Realign executive incentive programto motivate e-commerce support and lavishly reward cross-company selling.
Create a high-powered video thatdramatizes the vision of worldwide inter-company selling over the Internet.
Retire Product X.
Strategic Levers
Incorporate e-commerce strategiesin every business.
Reorganize to consolidate interdependentproducts and services.
Realign worldwide information technologysystems to enable cross-selling.
Reposition our image in the marketplaceas a one-stop shop.
Reorganize customer point of contactfor ease and expansion of sales.
Replace all of Europe’s informationmanagement systems.
Executive level breakthrough trainingprocess for top 2,000 leaders to address obsolete mindset, leadership styles,and behaviors.
Participation Strategies
Worldwide information managementdesign input conference.
Cross-company task forces.
International best practices studytour.
Change advocates identified fromevery product and service line.
Customer Advisory Council.
Change Infrastructure
Top executive change sponsor.
All company presidents on the changeleadership team.
Information technology change processleader
All companies appoint top-level changeprocess leaders, linked to worldwide change process leader.
Senior-level change consultants,with consulting support staff in every company.
Open-door network of change advocatesfor design and impact analysis.
Published conditions for success.
Worldwide, interactive communicationplan.
Electronic input of new informationto e-commerce change process Web site.
Milestone Events
January, Year 1: Kick off with interactivevideo; rollout of leadership breakthrough process.
January-March, Year 1: Team-basedcommunications about case for change, vision, and change strategy worldwide.
March, Year 1: Information technologycompatibility assessment; change readiness assessment in every company;sales education process.
September, Year 1: Retire ProductX; initiate design process.
January, Year 2: Turn key date forEurope’s new information management systems; worldwide impact analysis.
February, Year 2: Develop implementationmaster plan for pilot test in Asia.
March, Year 2: Pilot inter-companyelectronic selling in Asia with Products A, B, and C.
September, Year 2: Evaluate pilotand integrate learnings into organization-wide implementation plans.
December, Year 2: Worldwide promotionof e-commerce availability and benefits.
January, Year 3: Worldwide rollout.
Timeline
Year One: Assessment.
Year Two: Design and pilot.
Years Three/Four: Marketing of thee-commerce brand and rollout of the new business.
Reprinted withpermission from TheChange Leader’s Roadmap, by Linda Ackerman Andersonand Dean Anderson, Jossey-Bass/Pfeiffer, 2001.
Sample Consulting Proposal
Below is a sample of a proposal for consulting work that was used by a $1.3 billion company in the early 1990s.
To: Samuel F. Jones, Chief Financial Officer, The Concept Corporation
From: Arthur M. Freedman, QUANTUM Associates
Proposal: Factors Contributing to Dissatisfaction and Low Morale
Provisional Statement of the Current State:
The members of the Finance Department’s senior management team (SMT) are concerned about the low morale of its approximately seventy members. The SMT believes that this is caused in part by the interactions the members have with members of the department’s clients — the major subsystems of the corporation. The SMT believes the Finance Department is held in low esteem by the rest of the corporation and that the CFO is not granted appropriate recognition in establishing corporate goals and policy.
As a result, Finance Department members are treated with disrespect and feel they are unable to optimize their potential contributions to their corporation, department, division, team, and their own careers.
Goals of the Consultation:
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Validate and specify the primary indications and root causes of low morale and dissatisfaction within the department.
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Demonstrate that the CFO and the SMT are firmly committed to take viable actions to correct unacceptable conditions with the department and between the department and the rest of the corporation.
Phase One: Announcement
Meet with CFO to do the following:
Confirm (or modify) this proposed plan;
Determine what will be said in the CFO’s announcement of his intention to move forward with this effort. This announcement should include:
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Indicators of dissatisfaction with current conditions in the Finance Department;
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The need to identify the root causes; and
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The CFO’s commitment to take both corrective and preventive actions by either changing conditions or enabling department members to adapt and adjust to changing conditions.
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Estimated Costs:
Two hours, plus expenses.
Phase Two: Organizational Diagnosis
Establish and distribute composition and schedules for ten focus group sessions.
Activities:
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In each focus group, Finance Department members conduct self-assessments of factors that contribute to dissatisfaction and also establish the ten high-priority factors.
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Members identify the root causes of the ten highest priority factors.
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Each focus group selects one (or two) representatives for Phase Three.
Method:
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Form ten focus groups to include all Finance Department members (one group for senior management team; seven accounting groups with seven or eight members, maximum; mix by function and level, one group each for tax and finance with seven members each).
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Conduct ten focus group interviews (two hours each, fifteen-minute breaks, three per day).
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Identify factors that contribute to current dissatisfaction; members identify and organize issues into factor clusters (self-assessments).
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Establish priorities among factor clusters; identify the five highest priorities.
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Present “root cause analysis” format.
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Identify root causes for each of the five high-priority factors.
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Prepare self-assessments for Phase Three.
Products:
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Completed self-assessments from each of the ten focus groups.
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One (or two) members from each focus group prepared to represent their groups.
Estimated Costs:
Three and one-half days, plus expenses.
Phase Three: Data Organization and Preparation
Activities:
Representatives from each focus group form a single team and do the following:
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Integrate the ten sets of data; and
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Prepare for feedback session to CFO and directors.
Method:
Management team chooses from three alternatives:
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In private.
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With validation by a second set of representatives from each focus group.
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In a “fishbowl” with all other finance members invited to observe and provide input through an “empty chair.”
Products:
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Format and process for data feedback meetings are selected.
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Root cause analysis of the current state is completed.
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Recommendations for corrective and preventive actions are developed.
Estimated Costs:
Two days, plus expenses.
Phase four: Data Feedback Meeting
Activities:
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Feedback of results (prioritized issues and recommendations) to CFO and directors by team of representatives.
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Develop criteria for determining priorities (for example, members’ personal concerns, degree of control over the issue, costs incurred to make the change, time to make change, visibility of the effort, and /or alternatives and additions from management team).
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Establish priorities among the issues.
Method:
Management team chooses from two alternatives:
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Focus group representatives interface with CFO and directors.
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“All hands on deck” meeting.
Products:
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Prioritized issues are accepted by most involved parties.
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Proposals or commitments for “next steps” are determined.
Estimated Costs:
One day, plus expenses.
Reprinted with permission from Finding Your Way in the Consulting Jungle, by Arthur M. Freedman and Richard E. Zackrison, Jossey-Bass/Pfeiffer, 2001.
For Managers How HR Can Help You Get The Most Out of Your Team
Anew best-selling book, TheBoss’s Survival Guide, is just what it says: A handbook to help bossesnavigate the minefield of running their businesses. In this section, the authors(who include a regular Workforce contributor and Workforce‘s formereditor and publisher), explain the ins and outs of HR. You already know howvaluable HR is, and so co-author Bob Rosner suggests printing this story out,clipping an “FYI” note to it, and handing it around to the managerswho work with you. You might find they develop a whole new attitude about workingwith you.
Know the issue
Using a popularity scale of one to 10 with 10 beingwildly popular (Mickey Mouse, a free lunch, and after-Christmas sales) and onebeing wildly unpopular (telemarketers, Congress, and rush-hour grid-lock), wherewould you place human resources?
Many people who have been working more than 10 yearswould rate HR a two — right in there with the IRS and members of the AmericanDental Association. Those people remember when HR worshipped the rules and theirfavorite word was “No.” They have learned to work around HR if theythink about it at all.
Newer entrants to the workforce are more enlightened.They know that in many places, the paper pushing, picnic-planning policy policeof yore have gone the way of the T-Rex and the Dodo bird. That’s because asbusiness has changed, HR has changed, too. Today’s HR still respects the rules,but they jump right in to help solve problems and now their favorite word is”Yes.” No wonder today’s employees are more likely to rate HR an eightor nine.
Of course, a few holdouts of the old guard are lurkingout there and giving HR a bad name. How do you know whether your HR departmentis friend or foe? Here is a simple test: Do they understand your part of thebusiness? If no one in HR can tell you your department’s turnover rate, howlong it takes (on average) to fill a job in your department, how much your departmentcontributes to the bottom line, or what your best performers actually doall day, then they are probably a foe. We encourage you to ignore them — exceptwhen it comes to legal matters, or if you think you have a chance to turn theminto a friend.
Today’s HR pros are business-focused. They help engineerways to make the business better, and to do this they have to under-stand thebusiness and all its components. This means that someone in HR can offer youmuch more than just accurate information about the vacation plan. She couldhelp you redesign jobs, create an incentive plan to drive up profits, or findan assessment tool to improve your hiring success. If someone from HR asks aboutyour business, is willing to hear about your business, or (best of all) worksalongside you in your part of the business, you’ve just found a valuable partner.
The trick is then getting the most out of that partnership.As with any successful relationship, it demands give and take. But if you investin a partnership with HR (assuming you have an HR function where you work),you’re sure to reap sizeable dividends.
Take action
Identify your resources. Start by figuring out how HR is structured.In some cases, a central HR function serves the entire organization. Thedepartment has specialists in each discipline of HR, such as staffing, compensation,and benefits. In other organizations, each business unit or department hasits own HR function; they are usually staffed by HR generalists who havebroad knowledge in all areas of HR. Some large companies have a hybrid ofthese two models.None of these is the “right” approach. The onlything that matters is that you know who to go to for help. The ideal isto bond with an HR generalist who can either work with you directly or connectyou with the appropriate specialist. That person can also advocate for youwithin HR. If you can’t identify a single person to work with, find a handfulof specialists and build relationships with them.
Teach a crash course. For anyone in HR to really help, they needto understand your part of the business and understand it almost as wellas you do. Offer to take your HR contact to lunch once a week and spendthe time teaching. Be willing to invest some serious time because your courseneeds to be thorough:
What do you see as the primary purpose of your department?
How is your department’s success measured?
Where is your department excelling and where is it failing? Why?
Who are your star performers? What sets them apart?
Who are your poorest performers? What sets them apart?
What are your biggest frustrations and challenges?
What do you see as your key strengths?
Where would you like the department to be in a year? Why? How do youplan to get there?
What happens in your department every day? What are your productionschedules, budgets, deadlines, productivity goals, and so forth? Behonest. Painting an artificially rosy picture won’t get you the helpyou need.
Take a crash course. Invest some time learning about HR, too. Listento what your contact tells you about his job. And if you don’t know, askthe following questions:
How does HR function every day? How are priorities set?
What expertise does HR have to offer?
Who do they see as HR’s key customers?
What makes them say yes or no?
How is HR’s performance measured? How do they win or lose?
Which HR programs or initiatives do they think are working best? Why?
What challenges does HR face? (Budgetary? Staffing HR? Time?)
How do HR initiatives in your company (pay rates, benefits, employeedevelopment) compare to those of your competitors? How do they compareto the average company in your area?
Put your cards on the table. This relationship — like any other– demands honesty. Share how you really feel about HR, pro and con.Explain where those feelings come from. Are they based on bad experiences,successes, or hearsay? Talk about what you appreciate about HR and whatdrives you crazy. Bring up HR efforts in other companies that you’ve heardabout and like or don’t like. Then ask HR for the same feedback about youand your department.
Keep HR in the loop. Once HR has a solid understanding of your department,they need to stay current. The more they know, the better, and the morethey can observe firsthand, the better. There are lots of ways to do that:
Invite your contact to shadow you for a day or parts of days — letthem watch you and your department in action.
Invite HR to sit in on your staff meetings.
Send HR copies of key memos, status reports, and other informationtied to department milestones.
Plan regular lunches or meetings with your HR contact.
Choose your battles. Don’t drop 15 problems in HR’s lap and expectequal attention to them all. Other departments need help, too! Identifyyour top concern and work with HR to resolve it. Getting one thing donewill give you a sense of accomplishment and boost everyone’s credibility.
Don’t jump to conclusions. It’s great to go to HR with ideas, butdon’t get too invested into a single course of action. Your HR partner maysee other options. Managers often request a training program, for example,when they face a challenge. But changes in hiring practices or even jobdesign may ultimately be the better solution. Respect HR’s expertise.
Be willing to be a guinea pig. Perhaps you read about a cool HReffort in the Wall Street Journal. Or perhaps you had a great ideayourself. If you find yourself wondering, “Why don’t we …,”considervolunteering to pilot a program. You can team up with HR to develop a program,and then test it in your department. Together you can work out the kinks.If it works, you’ll get the benefits and you can enjoy the acclaim as theprogram is rolled out through the rest of the company.
Stay out of jail
If you have an HR function, you should always consult with them about:
Hiring
Discipline
Termination
Employee leave
Workers’ compensation
Employee complaints (such as sexual harassment and discrimination)Check with HR before you take action.
No matter how great your partnership is, HR will sometimes say no.It doesn’t mean they don’t like you. Remember that one of HR’s greatestresponsibilities is to protect the company from lawsuits. (As one HR executiveobserved, “The better we do our job, the less visible we become.”)Employment law is complex; trust HR’s counsel.
Real life examples
How would you like to have a binder on your desk thatwalked you through every stage of employee development for every employee youmanage? A binder that includes job descriptions, required competencies, aptitudetests, specific interview questions, tailored performance appraisal forms, andmore? A binder that gave you enough information that you could focus on day-to-dayoperations and helping employees solve problems?
If you worked at Valspar Corporation, you’d have one.That’s because HR has created those binders for every one of the company’s morethan 3,800 jobs. The effort started as a small-scale attempt to identify corecompetencies in the manufacturing department and spread from there.
Salespeople at Buckman Laboratories International,Inc. make big sales pitches — pitches in which million of dollars in revenueare at stake. But how can a salesperson in Thailand get the information sheneeds to close a sale if the home office is closed?
At Buckman, the salesperson can get the informationanytime, from anywhere in the world. That’s because HR has worked with managersto promote knowledge sharing. The idea is to take the axiom “two headsare better than one” and turbo-charge it with technology. Thanks to onlineforums, connected knowledge bases, electronic bulletin boards, and virtual conferencerooms, employees can tap into each other’s knowledge and experience like nowhereelse.
At one time, Continental Airlines was the laughingstockof the airline industry. The carrier had been through two bankruptcies and therewas a revolving door in the executive suite. Passengers could expect poor service,late arrivals, and lost bags. No wonder employees tore the company patches offtheir uniforms at the end of the day; they didn’t want anyone to know wherethey worked.
Then management teamed up with HR and took the airlinefrom worst to first. An incentive pay program, streamlined policies (to replacethe policy manual that management publicly burned), and aggressive communicationimproved every area of performance. Today, employees keep the patches on theiruniforms and share in the airline’s newfound profits.
Employee teams setting goals and measurements for themselves?Employees teams managing themselves while managers act as coaches? Believeit. It’s a profit-driving reality at GE Fanuc Automation of North America, Inc.More than 40 work teams are proving it can be done and the best coaches arethe managers earning the greatest rewards. It works because HR partners withmanagers in the coaching process; an HR staffer is part of every department.
Get more information
- HumanResource Champions: The Next Agenda for Adding Value and Delivering Results,Dave Ulrich, Harvard Business School Press, 1997.
- HumanResources Kit for Dummies, Max Messmer, IDG Books Worldwide, 1999.
From TheBoss’s Survival Guide by Bob Rosner, Allan Halcrow, and Alan Levins. Copyright© 2001 by Bob Rosner and Allan Halcrow. Reprinted by permisson of The McGraw-HillCompanies, Inc. All rights reserved.
Table of Contents August 2001
Faculty internships, Disney-style HR, low-cost inpatriation, and more! All in this month’s issue of Workforce magazine — Subscribe Now!
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Dear Workforce Where Do I Begin When Formulating HR Policy?
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Ten Steps for a Successful Employee-Referral Program
T
houghtfully implemented employee referral plans are excellent ways to attract the best people at the lowest cost. Consider the following guidelines when starting your own program:
Start at the top: If senior management is not committed to the successof the program, it won’t work. ERPs must be clearly communicated from the topdown to make it clear that it’s everyone’s job to actively search for talent.
Keep rules to a minimum: Complex submission rules, coupled withsix-month length-of-stay requirements, are the easiest way to limitparticipation in ERPs.
Let everyone participate: Why exclude senior managers from referralprograms? Doesn’t it make more sense to share a $1,000 referral fee with asenior VP than to pay a contingency search firm $25,000? Also, consider allowingHR staff to participate. As long as they are not directly involved in hiring fora specific opening, why not benefit from their network of contacts?
Involve and reward outsiders: Alumni are great sources for talent, asare vendors, customers, and people who have turned down offers. How about youremployees’ friends and former business associates? They can all lead to topcandidates, so it’s advisable to involve them in the program and reward them fortheir efforts. Casting the referral net a little wider can yield better results.
Give VIP status to résumés: Give special, fast-track treatment torésumés referred by employees. Employee-referred candidates should be calledquickly. (Find the time to do this by following the next rule.)
Let employees track progress: Let employees check the status ofreferred candidates themselves, rather than bombard the recruiter with calls ande-mails to see if a friend has been hired. Along the same lines, send employeese-mails to let them know how their referred candidates are advancing in thehiring process.
Make it easy to refer: Employees should be able to look at availableopenings and “push” them out to their friends with the click of amouse. If they have to copy and paste job descriptions into an e-mail, yourreferral numbers could suffer.
Promote constantly: Weekly “hot job” e-mails, combined withe-mails announcing the list of employees who have referred successfully, aregreat ways to keep ERP momentum strong. Motivate staff with company-widecongratulatory e-mails from the CEO about those who took the time to makereferrals. Posters on the refrigerator and in the bathrooms work well, too.
Pay a decent bonus: These days, $1,000 is a good minimum bonus. Thebonus for top jobs, however, can go upwards of $10,000. More than $10,000 justmight be too much, as employees begin to get skeptical that the bounty will everin fact be paid.
Pay it fast: When an employee is entitled to a finder’s fee, pay it ontime. Don’t force employees to follow up on fees that they have earned.
Source: Joseph Slavin, general manager, Referral Networks
Workforce, June 2001, p. 68 — SubscribeNow!
Benefits Comparisons for Merging Companies
A benefits comparison chart for merging companies:
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