The Business of Layoffs!

George Clooney Style

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 1

Introduction
Layoff
Also called redundancy in the UK, is the Layoffs focus on positions, not individuals
temporary suspension or permanent Layoffs are not to be used for resolving
termination of employment of an employee performance problems
employee or a group of employees for
business reasons, such as when certain These are not technically classified as
positions are no longer necessary or firings
when a business slow-down occurs.

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 2

Introduction
Up In The Air
In the movie Up In The Air he
plays Ryan Bingham, a high-flyin
layoff artist, hired by corporations
too spineless to deliver the bad
news themselves.
IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2
This isnt about the layoffs that a
company arrives at due to harsh
economic times and after exhausting
other alternatives, like change in
leadership, process improvement,
hiring and salary freezes, temporarily
cutting salaries, and work furloughs.
Its about seizing layoffs as a simple
solution to a complex problem.
3
Layoffs- Reasons

Lack of funds
Lack of work
Organizational change
Economical change

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 4

Types Of Layoffs

Redundancy Regular Complex

Permanent Laying off one/few Laying off an entire

termination individuals unit/department

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 5

Want big impact?
Use big image.
 Layoff- Process
Perform the
layoff as

Inform staff why

soon as
possible
Make sure you
the layoff was are not breaking
Explain to
necessary to staff if
Understand
the laws
the laws
necessary
avoid panic

Offer
Business
resources
Severance pay and support
Plan Clear business
package, plan before as
recommendation well as after
etc. Set up the layoffs
Hold a one meeting
on one with
meeting concerned
employee

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 7

Rights Of A Laid Off Employee

Severance
Recall
Preferential Rehire
Outplacement Transition Services

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 8

Alternatives to layoffs

Transfer or reassignment to open vacant positions

Pay cuts (FEDEX)
Shut down retirement funds( G.M)
Cut back on costs: Energy saving Training cost Free
lunches Office supplies (sprint)

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 9

 Lessons Learned

Listen to your employees

Early in the movie, Ryan and ambitious new employee Natalie Keener go to one downsized company
together. Natalie, still in training, fires an employee who expresses suicidal ideations. When Natalie shares
her reservations about the woman, Ryan tells her not to worry about it. Weeks later, Natalie finds out the
woman killed herself. She is so upset she quits her job and leaves town.

Why wasnt Ryan alarmed by the womans talk of harming herself? Because he was so used to firing
employees that he stopped truly listening. If he had been more aware, less habituated, he might have
been able to help the woman, or at least direct her to someone who could. Instead, he didnt take her
seriously. As a result, he was unable to help prevent her death.

The lesson here? Even if you deal with thousands of customers, youll best serve them if you make
listening part of your personal or company DNA.

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 10

 Anna Kendrick lets a middle aged
woman Tamala Jones go, only to
find out that employee plans to kill
herself. Theres a very specific
apathy in the womans voice that is
truly haunting.
Later in the movie, the women really
does kills herself.

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 11

 Lessons Learned

Have a plan B

Up in the Air is full of characters who lack backup plans. Ryan Bingham, for example, bases his entire
value system into his job. To Ryan, flying and travel represent freedom. Frequent flyer miles and hotel
points make him feel valued. His status at work makes him feel competent. He has his basic human needs
met through his unattached working lifestyle.

But what happens when his boss stops him from traveling, thanks to new technology that lets him fire
people remotely? He faces an empty apartment and an empty life.

What happens when Ryan goes out on a limb and tries, for once, to show serious interest in a woman he
met on the road? He fails. Then he defaults back to his old shallow system.

If Ryan was to be fired, his entire world would collapse. He never considered life outside of the travel
circuit. He avoided cultivating anything but travel points. If he loses his job, he loses his outlook, his belief
system, his life. The lesson? Dont let your business or career be like this. Have a fallback plan or two.

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 12

 Lessons Learned

You cant digitize every thing

In todays information age, we try to make everything digital. That includes social interactions, customer
service, interviews, and other functions that used to occur face-to-face. But certain impactful
communications, like firing people, cant effectively be done from a distance.

Thats what Craig Gregory, Ryan Binghams boss, finds out the hard way. Gregory hires Natalie Keener, a
young business school grad, to revamp the companys system of hiring and firing people. Instead of doing
it face-to-face, Natalie implements a remote system. The person getting fired is informed of her fate by a
face on a screen.

After Natalie quits, Gregory (Jason Bateman) throws in the towel on her method of firing people. Gregory
wanted to change his traditional business model to cut company costs. He realized afterward that his
company actually worked better the old way. Going digital isnt the answer to everything, after all.

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 13

 Lessons Learned

Don't expect security

When Gregory implements remote firing, Ryan, one of the companys best employees, is grounded in
Omaha. Ryan, a star performer, thought his position was secure. If this movie and this economy prove
anything, however, its that security is a thing of the past. Not even stellar performance can guarantee it
for you.

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 14

Firing - Checklist
Get everything in order
beforehand
Practice what you plan to say to
the employee and have all the
required documentation in order
so that you can make the
process as smooth as possible.
Protect your business
Document, document, document.
Without proper documentation
ofcompany rules, position
requirements [and] expectations,
infractions anddisciplinary
policies, you will lose most
lawsuits
IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2
Choose a proper time and place
Plan the date, time and place. Do
it at a time when business
impact is minimized.
Dont do it alone
Don't fire an employee alone. As
we stated above, a firing is an
emotionaland sensitive
situation, and so you never
know how someone will react.
Focus on the facts (and the law)
When firing an employee you need
to focus on specific facts andagain
not attack the employee as a
person. You also need to follow
lawsspecific for your region for
notice and in some instances
severance pay.
Keep it short
Firing someone is never
pleasant, regardless of the
reason. Be resolute with your
decision, clear with your
reasons, andbrief with your
interaction.
15
Firing - Checklist
Dont make up excuses
It's OK to fire someone who
simply doesn't fit in with
yourorganization, and who never
should have been hired in the first
place. Don'tget sucked into trying
to build a case on nonexistent
performance issues. Behonest.
IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2
Keep it private Be consistent
If you do need to fire the Be sure your decision to fire is
employee, allow the person to consistent with your past behavior
leave with dignity. Don't make and practices. Firing someone today
the employee empty out his or for being late to work three times
her desk in front of colleagues, while you did not fire some other
for example. employee for the same behavior is a
red flag.
16
 Big concept
Yes, layoffs can be a necessary part of keeping a business
alive, and yes, companies rebound from them. But once a
company uses layoffs to manage the numbers,
employees know they are just a number and that the
leadership who asks them to give their all is not willing to
give them even 5-10% of it.
IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 17
Thanks!
Any questions ?

IIM RAIPUR- ORGANISATIONAL BEHAVIOUR-2 18