Chapter 6

Managing Employee
Separations, Downsizing,
and Outplacement

CHAPTER OVERVIEW (PPT 6.1-

6.2)

Conducting a termination or layoff is one of the most sensitive and difficult

things that a manager will ever have to do. There are a number of factors to
consider when conducting this process, and the manner in which the
termination or layoff is performed and managed has impact on not only the
affected employee but also those that remain with the organization in its
aftermath. Additionally, many separations (voluntary or involuntary) can be
avoided through good management practices. The cost of separations to the
organization are much higher than many people realize, making good
management practices even more important.

ANNOTATED OUTLINE

I. What Are Employee Separations?

An employee separation occurs when an employee ceases to be a

member of an organization. The rate of employee separations in an
organization (the turnover rate) is a measure of the rate at which
employees leave the firm.

A. The Costs of Employee Separations (PPT

6.3)

There are always costs associated with employee separations. The

cost may be more or less, depending on whether managers intend
to eliminate the position or to replace the departing employee.
Costs included in separations include: recruitment costs, selection
costs, training costs, and separation costs.

1. Recruitment costs.
2. Selection costs.
3. Training costs.
4. Separation costs.

B. The Benefits of Employee Separations (PPT

6.4)

While many people understand the costs of employee separations,

there are benefits as well. Some of the benefits of separations

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include: reduced labor costs, replacement of poor performers,

increased innovation, and the opportunity for greater diversity.

1. Reduced labor costs.

2. Replacement of poor performers.
3. Increased innovation.
4. Opportunity for greater diversity.

II. Types of Employee Separations

Employee separations can be divided into two categories based on who

initiates the termination of the employment relationship. Voluntary
separations (quits and retirements) are initiated by the employee.
Involuntary separations (discharges and layoffs) are initiated by the
employer.

A. Voluntary Separations (PPT

6.5)

1. Quits.
2. Retirements.

B. Involuntary Separations (PPT

6.6)

Involuntary separations occur when management decides to

terminate its relationship with an employee due to economic
necessity or a poor fit between the employee and the organization.

1. Discharges.
2. Layoffs.
3. Downsizing and rightsizing.

III. Managing Early Retirements (PPT

6.7)

When a company realizes that it needs to downsize its scale of

operations, its first task is to examine alternatives to layoffs. One of the
most popular of these methods is early retirement.

A. The Features of Early Retirement Policies

Early retirement policies consist of two features: (a) a package of

financial incentives that make it attractive for senior employees to
retire earlier than they planned and (b) an open window that

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restricts eligibility to a fairly short period. After the window is

closed, the incentives are no longer available to senior employees.

B. Avoiding Problems with Early Retirements

Managing early retirement policies requires careful design,

implementation, and administration. When not properly managed,
early retirement policies can cause a host of problems. All
managers with senior employees should make certain that they do
not treat senior employees any differently than other employees.

IV. Managing Layoffs

Generally, an organization will institute a layoff when it cannot reduce

its labor costs by any other means. Managers should first try to reduce
labor costs with layoff alternatives.

A. Alternatives to Layoffs

There are many alternative methods of reducing labor costs that

management should explore before deciding to conduct a layoff.
These alternatives include things such as early retirements,
employment policies (attrition and hiring freeze), job redesign (job
sharing), pay and benefits policies (pay freezes and cuts), training,
and other voluntary workforce reductions.

1. Employment policies. (PPT

6.8)
2. Changes in job design. (PPT
6.9)
3. Pay and benefits policies. (PPT
6.10)
4. Training (PPT
6.11)
5. Nontraditional alternatives to layoffs.

B. Implementing a Layoff (PPT 6.12-

6.13)

A layoff can be a traumatic event that affects the lives of thousands

of people, so managers must implement the layoff carefully.
Issues that need to be considered include how to notify employees,
developing layoff criteria, communicating to laid-off employees,
coordinating media relations, maintaining security, and reassuring
survivors of the layoff.

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1. Notifying employees.
2. Developing layoff criteria.
3. Communicating to laid-off employees.
4. Coordinating media relations.
5. Maintaining security.
6. Reassuring survivors of the layoff.

V. Outplacement (PPT
6.14)

Outplacement is a human resource program created to help separated

employees deal with the emotional stress of job loss and to provide
assistance in finding a new job

A. The Goals of Outplacement

The goals of outplacement reflect the organization's need to

maintain employee productivity. The most important of these
goals are (1) reducing the moral problems of employees who will
be laid off so that they will remain productive; (2) minimizing the
amount of litigation initiated by separated employees; and (3)
assisting separated employees in quickly finding comparable jobs.

B. Outplacement Services

The most common outplacement services provided to separated

employees are emotional support and job-search assistance. These
services can help achieve the goals of outplacement.

1. Emotional support.
2. Job-search assistance.

A QUESTION OF ETHICS: Guide to discussion

Page 205: What can a company do to help a community when it decides

to close a plant that is important to the community's economic
prosperity?

There are several things that a company can do to assist a community

that will be affected by their decision to close a plant. One major item is
early notification. In fact, before the decision is made, there are usually
several years where the question is being raised. Some companies have
begun to signal communities that such actions are being considered
several years before making such a move. This allows the community
time to try to attract alternative employers and to prepare for the

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economic impact of the departure. Also, in some cases, members of the

community may seek a buyer for the plant. If such overtures are made,
it is in the best interest of the company and the community for
agreements to be reached in a timely and reasonable fashion.
Alternatively, the community may seek ways to help the company to
regain the profitability that they need from the plant. Sometimes that is
in increased employee productivity, and other times it is in tax relief and
other benefits granted by the community. In general, the best things a
company can do is communicate clearly and early and then to work with
the community to develop innovative alternatives.

Page 210: Is it ethical for top managers to receive cash bonuses while at
the same time asking lower-level employees to accept a pay freeze?

It would be interesting to see if there are any students who feel that this
is acceptable and ethical. Most will probably respond that it is not. It
certainly does not create a sense of loyalty or fairness on the part of the
employees.

Page 212: How much notice of a layoff should a company be obligated to

give?

While federal law now requires U.S. employers with more than 100
employees to give 60 days’ advance notice of layoffs that will affect an
entire plant or 50 or more employees, there are many layoffs that do not
meet this criteria. Keep students focused on those layoffs that are
outside of this regulation. Some may argue that they should give as
much notice as possible; let employees know as soon as it becomes clear
that this step will need to be taken. However, as the text discusses, there
are many other impacts of a layoff, including stock prices, competitor
advantages, etc., that may make it difficult for an employer to willingly
do so. Others may argue that advance notice is not as important as much
as is a good severance package that will allow them time to search for
another job. This subject should spark some good discussion.

ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS

1. After eight years as marketing assistant for the New York office of a
large French bank, Sarah Schiffler was told that her job, in a non-
revenue-producing department, was being eliminated. Her choices: She
could either be laid off (with eight months' severance pay) or stay on and
train for the position of credit analyst, a career route she had turned
down in the past. Nervous about making mortgage payments on her new
condo, Sarah agreed to stay, but after six months of feeling miserable in
her new position, she quit. Was her separation from the bank voluntary
or involuntary? Can you think of situations in which a voluntary

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separation is really an involuntary separation? What are the managerial

implications of such situations?

Sarah's separation from the bank was a quit, or a voluntary separation.

A separation may be interpreted as an involuntary separation when
eligible employees perceive that they are being forced to resign or retire.
Other situations are when an employee quits because of harassment or
intolerable working conditions. In these cases, courts have sometimes
agreed that the separations were, in fact, involuntary. Occasionally,
management will seek to force someone to leave voluntarily in order to
avoid unemployment or other cots. This is not a wise tactic.

2. What are the advantages and disadvantages of using seniority as the

basis for layoff? What alternatives to seniority are available as layoff
criteria?

Seniority, the amount of time an employee has been with the firm, is the
most commonly used layoff criterion. The main advantages of using
seniority are (1) seniority criteria are easily obtained and applied and (2)
most employees see seniority system as a fair criterion for the decision
because managers cannot play favorites. The disadvantages of using
seniority as the basis for layoff are (1) the possibilities of losing top
performers under the "last in-first out" method and (2) a disproportionate
number of minorities and women may be lost.

The alternatives to seniority are not uncommon. It is not unusual for

management to base layoff decisions on performance criteria or a
combination of performance and seniority…. criteria when the work
force is nonunion or when it primarily includes professional and
managerial employees. If a company has taken the time to develop a
valid performance appraisal that accurately measures performance and
meets the government guidelines, then there is no reason why appraisal
data cannot be used as the basis for layoff.

3. Would an employer ever want to increase the rate of employee

turnover in a company? Why or why not?

Employers may want to increase turnover in a company to reduce labor

costs, to replace poor performers, to increase innovations, and to create
opportunities for greater diversity. When turnover rates are too low, few
new employees will be hired and the number of opportunities for
promotion is sharply curtailed. In addition, a persistently low turnover
rate may have a negative effect on performance if the work force
becomes complacent and fails to generate innovative ideas.

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4. What advantages might an organization have it if takes a customer-

oriented approach to conducting layoffs?

Because a layoff can be a traumatic event that affects the lives of

thousands of people, a well thought out and carefully implemented
customer-oriented approach to layoff is essential to preserving a good
labor climate, maintaining a positive public image, and continuing
quality relationships with customers, suppliers as well as the
surrounding community. Risks of a poorly executed layoff include
former employees (and sometimes current employees) bad-mouthing the
company, reduced productivity, diminished loyalty, possibility of
sabotage and loss of customers, bad press, and potential threats to
facility security and employee safety, all of which have negative effects
on the bottom-line of the business. These benefits and risks illustrate the
value of a customer-oriented approach, characterized by management’s
actions of treating employees respectfully throughout the process,
effective communication mechanisms, well executed plans, an
articulated vision of the future, and care and attention to layoff
survivors.

5. In an age when more and more companies are downsizing, an

increasingly trendy concept is the "the virtual corporation." The idea is
that a company should have a core of owners and managers, but that, to
the greatest degree possible, workers should be contingent--temporary,
part-time, or on short-term contracts. This gives the corporation
maximum flexibility to shift vendors, cut costs, and avoid long-term labor
commitments. What are the advantages and disadvantages of the virtual
corporation from the point of view of both employers and workers?

Students' answers will vary. An example of a major advantage of the

virtual corporation from the employers' viewpoint is significant
reductions in labor costs. The disadvantages are the probable absence of
company loyalty and loss of employee morale as well as inadequately
experienced employees. An example of a major advantage of the virtual
corporation from the workers' viewpoint is flexibility in deciding work
schedules, assignments, and employers. The disadvantages are the
absence of job security and the lack of employee benefits.

6. Under what circumstances might a company's managers prefer to

use a layoff instead of early retirements or voluntary severance plans as a
way to downsize the work force?

An important influence on the likelihood of a layoff is the business's

strategy. Companies with a lifelong employment HR strategy are less
likely to lay off employees because they have developed alternative
policies to protect their permanent employees' job security. When early

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retirement plans may be perceived as "forced retirement," companies

may prefer to use a layoff to avoid age discrimination complaints.
Furthermore, when early retirements or voluntary severance plans lead
to top performers leaving the organization, an employer may use a layoff
to avoid excess resignations and to avoid a "talent drain."

7. Under what set of conditions should a company lay off employees

without giving them advance notice?

The Worker Adjustment and Retraining Notification Act of 1988

(WARN) requires U.S. employers with 100 or more employees to give a
60 days' advance notice to employees who will be laid off because of a
plant closing or a mass separation of 50 or more workers. Employers
who do not give their employees notification must give them the
equivalent of 60 working days of income.

There are many layoff situations that do not fall under the WARN act.
There may be situations where a company might feel the need to keep
the layoffs secret until they are actually implemented. Such situations
would include places where the likelihood and threat of sabotage are
great, times when that information would lead to a competitive
disadvantage, and situations where there may be an unfavorable
economic impact if the information is released early.

8. "The people who actually have the face-to-face contact with the
person who is being laid off aren't the ones who made the decision. They
often didn't have any input into which of their people who go," says a
technician at a firm that experienced large-scale layoffs. What role
should managers—who have the "face-to-face" contact with employees—
play in implementing a layoff? Do you think managers and HR staff
members always agree on how employee separations should be handled?
Why or why not?

The managers should provide input in developing the layoff criteria and
should have direct responsibility for making consistent, fair decisions
based on those criteria. The HR department's role should be to advise
and guide the process and to make sure that the decisions are consistent
and fair. Managers and HR staff members do not always agree on how
employee separations should be handled. These differences are in part
because of their different roles within the organization and the tasks and
goals of those roles. Managers do have the face-to-face contact with the
individuals, and, as such, the task of choosing individuals for layoffs can
be very traumatic and difficult. They may want to "save" certain
individuals because of factors which have not been identified as layoff
criteria.

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9. Managing survivors in a layoff is important. As a manager, what

concerns would you have about the surviving workforce after a layoff?
How can the human resource management staff be of assistance in
providing support for the survivors of a layoff?

Concerns should include: How can I keep my employees motivated?

Am I going to loose more good employees because of the stress? How
can I keep morale from plummeting? What about sabotage? Are my
employees going to be overloaded as a result of fewer people in the
department?

Human Resource staff can provide assistance in many ways. They can
make sure that information continues to flow to the survivors. They can
also provide counseling as well as social opportunities to help
employees recover morale. The list can go on and on.

10. Why should management be concerned with helping employees

successfully retire from their organization?

Besides the fact that it is the right thing to do, current and prospective
employees are watching. If this transition is not successful, morale of
existing employees will suffer (and probably productivity as well) and
prospective employees may choose to go elsewhere.

11. Organizations have worked hard to develop teams as a cohesive and

effective framework in the workplace. What can a layoff do to this
framework and to the sense of cohesiveness? What could you do to
manage these problems?

A layoff can have a tremendous disruptive impact to team-based

structures. A great deal of time and resources are spent in developing
team- based systems and achieving a level of functioning that is
effective. Team cohesiveness, not to mention employee morale and
productivity can be negatively impacted by a layoff as a result of issues
like “survivor guilt”, realignment of tasks and reduced resources to
accomplish the work. Management can manage this process by clearly
communicating the alignment of tasks, the future structure of the team
and the organization and being open to employee suggestions and
feedback on how to accomplish the work once he layoff process has
been completed.

Customer-Driven HR Case 6.1

Severance Payback: Employees as Customers or as Expendable
Commodities?

Critical Thinking Questions

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1. Do you think that the company should pursue repayment of the

excessive severance package? Why or why not?

Students answers will vary significantly on this question. Some students

will argue that the company made a mistake, and should assume the cost
of that mistake and not pursue repayment. Other students may argue
that the employer is fully justified in pursuing repayment as employees
should have recognized the overpayment when they received the
severance, and thus are obligated to return the money to the company.

From a company standpoint, what is likely to happen is the organization

will evaluate the value of the overpayment, the cost of recouping the
money, legal fees, and other intangible costs associated with potentially
damaging negative press as a result of making the mistake in the first
place.

2. The company’s lawyer has stated that the organization is

sympathetic with the hardship that repayment may pose on the former
employees. So the company is willing to accept a payment plan of four
equal payments, one on each of four months.

a. Do you think the payment plan offer is a good idea? Why or why
not?

While this initially may sound like a reasonable solution, given the
number of employees that are affected, a payment plan could become
extremely burdensome to manage. The cost, resources required to
manage this process, and the aggravation associated with it are factors
that need to be considered before implementing this approach.

b. The company is presenting the payment plan option as evidence of

its sympathetic and customer oriented approach to the laid off
workers. Do you agree that Filtronic Comtek is taking a customer
oriented approach to its former workers? Why or why not?

Students will have differing opinions on this issue. Proponents of the

payment plan will argue that the company is giving former workers an
alternative to ease the burden, which they don’t necessary need to
offer. Those students who object to the payment plan option are likely
to feel that the company was never customer focused from the
beginning, by asking the former employees to pay back the money, as
it was the company’s mistake.

3. Some of the former workers are experiencing financial difficulties

and don’t know how they can pay the money back. For example, Debbie

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Burnard is a single parent with three children. After being laid off she
came down with pneumonia and other health difficulties. She now has
$900 in medical bills to pay and receives $300 every two weeks in
unemployment benefits. She panicked when she received the letter from
Filtronic’s lawyer and doesn’t know how she can repay, even on the
payment plan. The money was spent months ago. Should Filtronic
Comtek somehow take ability to repay into account? How might they go
about this?

This is a dangerous approach in that now different standards are being used,
and the door is opened for others to present their case for not repaying the
money back. This can snowball out of control quickly, and the managing the
repayment process can become cumbersome, time-consuming and
unmanageable.

That being said, if the company decides to take ability to repay into account,
one way to do this effectively is to develop a scale which identifies acceptable
timeframes of repayment for different levels of income, much like banks and
credit card companies do when there are changes in financial situations.

Customer Driven HR Case 6.2

Recognizing the Importance of Workers: Layoffs as a Last Resort

Critical Thinking Questions

1. In addition to the examples just mentioned, what else could

organizations do to avoid or limit layoffs? Generate possibilities by
brainstorming, referring to this chapter as well as by finding additional
company examples.

Some other strategies would include addressing the need to reduce

expenses by attrition; offering early retirement packages; offering
flexible work arrangements including part-time and reduced schedules;
transfers and relocation; changes to pay and benefits policies including
pay freezes, cutting overtime pay, using vacation and leave days, and
variable pay programs; and employment policy changes such as
reducing or eliminating subcontracted work and giving that work to in-
house employees; voluntary time off, leaves of absences and reduced
work schedules.

2. Prioritize your alternatives to layoff. What would you do first,

second, and so on?

The order of prioritized alternatives will differ by student depending on

their values and beliefs around what is most important (i.e. preserving
pay; providing alternatives which provide employees for opportunity for

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time off; etc.). Most students are likely to support implementation of

voluntary programs first, and then if fiscal goals are not achieved,
impose those solutions that have economic impact across the board.
There is no right or wrong answer to this question, as the proper order
will differ by company depending on the situation.

3. Given that you are in a management position in an organization,

describe how you would provide the sequential strategy to employees you
gave in your answer to question 2. Would you use meetings, newsletters,
etc? Draft the description or announcement that would frame this
sequential strategy and place it in a context. For example, what’s the
purpose(s) of the strategy?

An example of such a communication is illustrated below:

“As a result of the need to significantly reduce expenses and at the same
time avoiding the need for a layoff, XYZ organization has developed the
following alternatives to preserving employment while still achieving
the fiscal objectives of cost containment. Effective March 1, the
following options will be available to employees:

1. Early Retirement
2. Reduced work week schedule
3. Voluntary leave of absence

Criteria have been developed for each of these options. Employees who
would like to take advantage of one of these three options should submit
their name to Human Resources by March 15.

It is our attempt to meet our cost cutting objectives through these

programs. However, if there are insufficient participants in these
programs, the following programs will be implemented:

1. Elimination of overtime
2. Shortened work week
3. Pay freeze

These programs would be implemented by April 1. Employees are

encouraged to talk to their manager or Human Resources about any
questions or concerns. It is the organizations goal to avoid a layoff
situation and maintain employment of all employees.”

The most effective vehicles for this type of communication would include
both meetings to explain the process to employees as well as a written
document to thoroughly outline the programs, so that employees are well
informed and educated about what is occurring.

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4. Do you think a sequential strategy could be an effective

management tool? Explain?

A sequential strategy can be a very effective management tool. This strategy

involves the implementation of a series of steps that generally begin with
voluntary alternatives. This approach allows employees to feel some degree
of control over the situation by having some choices. Once these alternatives
have been exhausted, the next series of steps transition to more aggressive
steps with potentially greater economic impact.

Emerging Trends Case 6.3

Turnover Redux

Critical Thinking Questions

1. Kroger’s emphasis on the application process focuses on

characteristics of workers as an important causal factor in turnover. Do
you think that its approach will be effective? Why or why not?

Research shows that behavioral characteristics are key indicators of

future job success in terms of identifying individual motivators.

2. Are there system characteristics that might be important

determinants of retention and turnover? In other words, what factors
about jobs or organizations might be important in determining whether
someone decides to quit or stay with an employer?

There are a host of factors that could influence retention and turnover.
The financial condition of the company and perceived job security is
critical and important factor. Wages and benefits are another key factor.
Management style, employee relationships with their supervisors, and
other cultural issues are also factors that influence turnover. Match of
individual personality traits to the job can also influence turnover. For
example, an employee who is an extrovert, motivated by social
interaction, placed in a job that has minimal contact with people, will not
be likely to stay in that job long term because their basic needs for
human interaction will not be met. Another example of a situation
where turnover is likely is placing an employee who is motivated by
having a lot of freedom and latitude, placed in a job with strict rules and
limited mobility.

3. For the system factors you identified in question 2, what would you
recommend Kroger do about each? Are there some factors that may be
difficult or impossible to change?

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In order to answer this question, the requirements of the job must be

examined. Jobs in retail grocery stores require employee characteristics
such as tolerance for repetitive tasks and routine, attention to detail, and
ability to interact with customers. Additionally, the economics of the
industry present a challenge in that the pay in grocery stores is fairly
low, influencing the pool of candidates who show up to apply for the
job. These factors are difficult, but not impossible to change.
Strategies that address the issues of job design, creative compensation
structures and training programs can be designed to address the
challenges within this type of industry, and in fact, there are several
grocery chains that have successfully achieved positive results with
regard to employee turnover by employing creative and innovative
strategies to ensure employee retention (Publix; Wegman’s).

Emerging Trends Case 6.4

Layoff and Security

Critical Thinking Questions

1. What message is being sent to workers being laid off by following the
standard procedure just described?

The message being sent is that the employee did something wrong to
deserve the termination. While in some cases, the criteria for layoff
include performance rating data, this may or may not be shared with the
employee.

2. What effect would this standard approach to laying off workers

have on the retained workers? A recent survey of such layoff survivors
found over 25 percent saying their layoff was handled poorly and nearly
50 percent said they found out about the layoff through informal rumors
rather through official communication. These conditions can make the
organization vulnerable to retaliatory theft and sabotage from layoff
survivors. Explain how the process by which a layoff is conducted could
have these negative effects.

The effect of the standardized approach described here is generally one

of fear and distrust. The layoff process needs to be well communicated and
well orchestrated in order for retained workers to have a sense of security, and
confidence that management handled the situation as well as could be
expected. Poor communication to “survivors”, insensitive treatment towards
those employees who are being laid off, and an uncaring attitude all send
messages to retained employees about management’s values and philosophy,
and will have a negative impact on the employee climate.

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3. It has been recommended that employers should take a more

enlightened and customer-oriented approach to laying off workers. For
example, it has been suggested that employers establish electronic alumni
networks. These networks would allow former workers to keep in touch
with the company and with each other. Furthermore, the network could
provide a source for new hires that would have limited recruiting and
training costs.

Identify characteristics of a more customer-oriented approach to

conducting layoffs. What steps would be involved? Identify major
guidelines and characteristics of your proposed process.

Characteristics and steps involved in a customer-oriented approach to

conducting a layoff would include 1) frequent communication wit employees
during the layoff period, explaining the reasons for the layoff and the methods
employed; 2) high management visibility during the layoff period; 3)
Outplacement services to laid off employees in order to provide them support;
4) private termination; 5) clearly communicated vision from management to
remaining employees about “where we go from here”; 6) continuing training
and development programs for remaining employees in order to demonstrate
commitment; and 7) care and attention to remaining employees for “survivor”
guilt issues and stress.

Discussion Case 6.5

Managing Outplacement at Rocky Mountain Oil

Critical Thinking Questions

1. Do you see any problems with the outplacement program at Rocky

Mountain Oil?

One of the problems is that Rocky Mountain Oil is using its own
supervisors as counselors. Normally, outplacement programs use
trained counselors to assist employees in dealing with the emotions
associated with job loss. Such counseling helps to defuse some of the
hostility that terminated employees are feeling toward the company.
Additionally, since the supervisors are the ones who choose who gets
laid off, the animosity and hostility that the employees feel towards the
company will be personified in their supervisor. This will create more
problems than it will solve.

Another problem will be created by having the temporary offices on the

company property where the laid-off employees will have to park in
view of their former colleagues. This will create an uneasiness, and will
be a visual reminder to the survivors of the recent layoffs, delaying the
healing and moving on that must happen.

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The choice of materials and support services is questionable. The “ten

easy steps” article could be insulting to the laid-off employees. Just
giving them the book and sending them to a junior college course will
not give them the skills that they are really going to need to conduct a
good job search.

2. What did Karen Sinclair mean by her statement?

Students’ comments will vary as they attempt to express what Karen

meant by her statement. One example of what she meant is that the
program was bound by cost considerations, rather than people concerns.
Outplacement services are often handled by consulting firms retained by
the organization. The company appears to have a framework common
to outplacement services, such as emotional support through
supervisors-counselors, and job search assistance by giving the laid-off
employees a popular book and access to a personnel management
course. However, the implementation of the program was clearly based
on cost considerations and not on the needs of the situation.

3. What improvements to the design of the outplacement program do

you think need to be made?

Several improvements can be made. For example, the outplacement

program could be changed to replace supervisors as counselors with
trained counselors. Because the family may suffer if the breadwinner
becomes unemployed, family members should be included in the
counseling. The personnel management course could be substituted
with a career management or a career planning course that is designed
for and given exclusively to the affected employees. All outplacement
services need to be offered at a neutral site that is away from the plant.

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