Review the case One Thing I Need to Know,..Should I Stay or Should I Go
INTRODUCTION
In November of 2008, US employers shed 533,000 jobs and called the process about that many different names. In December, an additional 693,000 lost their jobs. Nokia referred to a 9000 person RIF as a "synergy related headcount adjustment goal." E Bay called their 1600 person adjustment "actions to simplify our organization." "Rationalizing","surplusing", "de-verticalization", and "strategic review of strategies" have all been sighted in RIFing literature. And the baby boomers are now giving way to generation X and X to Y. And the big wheel keeps on turning.
When the Baby Boomers were entering the workforce, one thing remained constant: No matter what was happening in society, IBM was solid. If you were fortunate enough to get a job at IBM, you could expect one for life. Those that joined "Big Blue" often had a "Big Brother." And Big Brother did not lay anyone off. And IBM was not the only one. In Indiana, Eli Lilly also had a culture that informally prohibited RIFs. In a 1991 article in Business Week, there were ten major corporations identified as never having downsized. But times have changed. There is now exactly zero left that can make that statement. Jobs are being defined today as virtual. Skills are key as many jobs are really temporary. Rightsizing, downsizing, restructuring, RIFing.Whatever you call it, it has the effect of leaving fewer people to do the same amount of work.
THE CASE
Your boss has just sent you a memo instructing you to permanently lay off 40% of your people. Attached to this note is a post-it that says that you must reduce to three positions and that if you fail to carry out this order, that she will terminate you! All workers function as HR generalists. Biographical data for your use is as follows:
Suzetta James
African American female, age 22. Recent college graduate with a 4.0/4.0 average in Industrial Psychology.Four month employee. A probationary employee for the next two months, Suzettarecently filed a sexual harassment case against the VP of HR, your boss. She claims that he won't leave her alone and keeps pestering her for dates, even though he is married. This created a hostile working environment for her. She initiated the case directly with the Indiana EEOC office without saying anything to your boss or anyone else at the company. The case is pending and you think she will win her case. This is Suzetta's first full time position. She is single and is paying off her college loan. Her performance during the last four months is questionable. She has been approached to serve on the town's Human Relations Board. This board hears local discrimination complaints. Rumors have circulated that Suzanne is dating a company VP (not your boss).
Vernon Miller
White male, age 35, six months in HR, three and one half years with the company. Before that he had worked for 7 companies in 5 years after completing college "on the ten year plan." Average performance ratings the last three years. Working on a Masters in Business Administration through a online non-accredited degree mill called Sun Valley University. Vernon is getting married next week and he and his fiancée have just purchased a home. Vernon is the highest paid HR generalist because he received a large raise when he saved the company $3.8 million last year through his suggestion to implement a review of medical insurance payments. He plays a lot of golf with your boss and is rumored to drink heavily at times, though if this is true, it does not appear to impact his work performance. He generally shows you little respect.
Virginia Gray
White female, age 39, fifteen years with the company in current job. Outstanding performance rating last three years.B.S. in Business Administration with Honors.Virginia is single, has no children and never mentions dating. She tends to leave lunch conversations that deal with heterosexual banter, excusing herself politely. She has called in sick nine times in the past four months, and you believe she is upset because she did not get the promotion to HR manager at a company branch that she applied for six months ago. She was a finalist for the job but a white male who had recently graduated with an MBA got the job. You have heard it rumored that she frequents a homosexual bar. You went there one night to see for yourself but she was not there. (As luck would have it, another of your coworkers saw you there and now the rumor is out about you! Serves you right!)
JohannBack
White male, age 48, PhD in Geography. Four years with company, all in HR. He was a college professor before, but was laid off when the college eliminated his department. Johann has seven children, ages 8-28; two children are in school and two in private school. Johann is recently widowed. His performance the past three years has slipped, going from above average to average, to below average (coinciding with his wife's illness and passing). A review of his resume indicates that he stays at a job no longer than five years. Johann is a recovering alcoholic, who has had binge recurrences twice in the past two years. Last year, you picked him up at the county lockup and took him to outpatient rehab. But he is going to his sessions now, as far as you know. He has been very friendly and cooperative towards you during his difficult times - you think he is seeking your support.
TomThorpe
African American male, age 52, 29 years in HR - started as a clerk immediately after his discharge from military service - where he served as an HR clerk - and moved up to his current position. Tom has a high school diploma and has taken some college courses in HR. He is presently 9 hours away from his college degree. His performance ratings over the last three years were: outstanding, average, above average. Tom is married with three grown children, all of whom have graduated from college. Tomhas made it known that he wants to retire as soon as he can afford to. He provides outstanding customer service to the organization.
QUESTIONS
1) Who goes? How will you justify your decision?
2) How will you manage this RIF? Be specific.