GREAT LAKES
GARMENTS, INC.
Case Study 2.2
Presented By:
Vamsee Vanaparthy
Presentation Format
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Introduction (Ice Breaking)
(5 Minutes)
Presentation of Case (15 Minutes)
Discussion of Case (5 Minutes)
Question and Answer Session
Interactive Session (10 Minutes)
Introduction
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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.
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What is a “All Hands” Memorandum?
What we are intended to learn from this
case?
Identification of Problem
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Business Problem
– Layoff Strategy
– Bounce Back Strategy
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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:
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You will be eligible to apply for unemployment
benefits after you are laid off.
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Continuation of your medical insurance benefits is
available, on a self-paid basis.
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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.
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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 downsizing 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.