GREAT LAKES GARMENTS, INC. Case Study 2.2 Presented By: Vamsee Vanaparthy

Presentation Format Introduction (Ice Breaking) (5 Minutes) Presentation of Case (15 Minutes) Discussion of Case (5 Minutes) Question and Answer Session Interactive Session (10 Minutes)

Introduction What is the case about? Is the case Important (Perception)? What is Layoff? A layoff is defined as the termination of an employee's employment for reasons that are beyond the employee's control and do not reflect discredit upon the employee. What is a “All Hands” Memorandum? What we are intended to learn from this case?

Identification of Problem Business Problem Layoff Strategy Bounce Back Strategy Communication problem Who should deliver the message? Should the President involved in the communication with the employees? “All Hands” Memorandum to all. Timing of the communication and method of delivering the news.

All Hands Memorandum TO: (EMPLOYEE NAME) This is to notify you that your position will be eliminated on {date}. You will be laid off at the close of business on that date. Due to the reason of heavy financial obligations, the company has decided upon reduction of service substantially and eliminate the positions of many valued employees.

Continuation of the letter…. Important things to remember: You will be eligible to apply for unemployment benefits after you are laid off. Continuation of your medical insurance benefits is available, on a self-paid basis. Company’s Employee Assistance Program, is available for consultation on financial, emotional and other issues. The enclosed survey is provided by Employment Security. Please complete the survey and return to Human Resources. Your response will help Employment Security tailor future training sessions. All responses are kept confidential.

Continuation of the letter…. Your service to Great Lakes Garments, INC. is greatly appreciated. It is my hope that the company will receive additional funds and will be able to recall many employees. If you have any questions whatsoever, please do not hesitate to contact me or your department director. Sincerely, ___________________

Dealing Problems Management Perspective Leaders Must be Visible and Involved During Layoffs Shouldn’t Over-Communicate During Layoffs and Downsizing. Make Sure Some Things Stay the Same Following Layoffs or Downsizing. Keeping in frequent touch with the unions to help laid off employees find new work or recall them.

Dealing Problems contd. Managing Communication: Communicating with employees honestly and frequently Broadcasting official news of a downsizing Explaining reasons for restructuring Providing frequent opportunities for questions Meeting employee representatives

Dealing Problems contd. Managing Dismissal: Respecting employees' personal worth Guiding employees to services for finding work Providing information about benefit packages Referring employees to out-placement services

Bounce Bank Strategy After it's over: Meetings with remaining employees Reassuring remaining employees that their jobs are safe Answering employee questions and/or concerns Involving employees in planning Focus on the future, learn from the past

Bounce Bank Strategy Contd. Emphasizing the positive goals that we can accomplish this year together. Provide rewards and recognition wherever it is necessary. Continue to hold expected events, sponsorships, and programs that people have come to count on from the company before the layoffs.

Conclusion We can improve organizational performance, quality and reputation - even when down-sizing and terminating employees. Well-planned downsizing can develop company image, while avoiding angry employees, expensive lawsuits and family tragedies

Questions and Answer Session Shoot you Questions Please ???

Thank You Very Much.