Employee Relation and

Enrichment
Separation

 Employee Separation is the process of efficiently and fairly terminating workers.

 Separations : Final way in which an employee leaves a position.
 Two types of Separation:
Voluntary : Employee resigns.
Involuntary : Employee is laid-off or
terminated.
Separation can be….

• Discharge/Dismissal
• Suspension
• Resignation
• Death
• Retrenchment
• Layoff
• Retirement
• VRS
• Promotion
• Transfer
Dismissal or Discharge:

 Dismissal  Discharge
Dismissal is the termination of the Discharge also means termination of
services of an employee as a punitive the service of an employee, but not
measure for some misconduct. necessarily as a punishment step
 The following reasons may lead to the
dismissal/Discharge of an employee:

1.Unauthorized absenteeism from duty for a long time.

2. Willful violation of rules
3. False statement of qualification at the time of employment.
4. Dishonesty
5. Drunkenness
6. Carelessness
7. Insubordination
8. Inefficiency
9. Violent and aggressive acts
10. Physical disability
Steps to Discharge an Employee:

 Preliminary Disciplinary Action

 Final Written Warning

 Notice of Discharge
Suspension

 Suspension means prohibiting an employee from attending work and performs

normal duties assigned to him.
 This is a serious punishment and is generally awarded only after a proper
enquiry has been conducted.
 During suspension, the employee receives a subsistence allowance.
 If the charges against the suspended employee are serious and are proved,
suspension may lead to termination also.
Resignation

 A resignation refers to the termination of employment at the instance of the

employees.
 A resignation may be put voluntarily by the employee. An employee resigns
when he secures a better job elsewhere
 In the case of a female employee when she marries and has to quit for
personal reasons or when an employee suffers from ill health or for any other
reasons.
 The administration of separation caused by voluntary resignation is very
simple because the employee himself is responsible for it.
 In compulsory resignation, an employee is asked to put in his resignation if
he wants to avoid termination of his services on the ground of gross
negligence of duty on his part or some serious charge against him.
Death

 Some employees may die in service.

 When the death is caused by occupational hazards, the employee gets
compensation as per the provisions of the Workmen’s Compensation Act.
 On compassionate grounds some organizations offer employment to the
spouse/child/dependent of the employee who dies in service.
Retrenchment

 Retrenchment, too, results in the separation of an employee from his

employer.
 Retrenchment is generally on account of surplus staff, poor demand for
products, general economic slowdown etc.
 Termination of services on disciplinary grounds, illness, retirement,
winding up of a business does not constitute retrenchment.
 Retrenchment entitles the employees to compensation which in terms of
section 25 (f) of the Industrial Disputes Act 1947, is equivalent to fifteen days
average pay for each completed year of continuous service. The principle in
the procedure of retrenchment is that the last person employed in each
category must be the first person to be retrenched i.e. “last come first go”.
Layoff

 A lay off is a temporary separation of the employee from his employer at the
instance of the latter without any prejudice to the former.
 Sec. 2 (kkk) of the Industrial Disputes Act, 1947 defines lay off as follows:
 “Lay off means the failure, refusal or inability of an employer on account of
coal, power or raw-materials or accumulation of stock, breakdown of
machinery or by any other reason to give employment to a workman whose
name is borne on the muster roll.”
 lay off is resorted to as a result of some bonafide reasons as factors which are
beyond the control of the employers.
 As the employees are laid off at the instance of the employer, they have to
be paid compensation for the period they are laid off.
 Sec. 25 of the Industrial Disputes Act 1947 makes it mandatory on the part of
the employer to pay compensation for all the days of the lay off.
 The compensation must be equal to half the normal wages the employee
would have earned if he had not been laid off.
 It goes without saying that employees with the shortest period of service to
their credit are first laid off and the older employees are retained as long as
conditions permit.
 Competence as the basis for lay off is not possible in unionized companies
because of the outright resistance shown by union leaders.
 Voluntary Retirement Scheme (VRS)

VRS is one of the employee separation strategies introduced in

the early 1980s in central public sector undertakings (PSUs)

 The VRS is the most humane technique to provide overall

reduction in the existing strength of the employees

 VRS is a scheme whereby the employee is offered to

voluntarily retire from his services before his retirement date.

 Its eligibility varies from company to company

 Technicalities of VRS

The VRS candidates must have worked for the organization

for minimum of 10 years and also the age of the worker must
be minimum of 40 years

 Employees not complying with these conditions still can

apply for the early separation but it would not be counted as
the VRS legally. Thus these employees won’t be able to avail
the benefit of Tax Exemption

 Employees receiving VRS can get the Tax Exemption up to

an extent of Rs. 5 lakhs
Promotion:

According to Dale Yoder, PROMOTION may be described

as:
“A movement to a position in which
responsibilities and presumably, prestige are increased.”
Promotions have a positive impact on the employees.
Besides pay hike it also satisfies the higher needs of
employees.
 Purpose / Objectives of Promotion

To recognize an individual’s performance and reward him

for his work

 To put the employee in a position where he will be of

greater value to the company

 To promote job satisfaction among the employees and give

them an opportunity for unbroken continuous service
 Purpose / Objectives of Promotion

To build up morale, loyalty and a sense of belonging on the

part of the employees

 To demonstrate effective career development plans

 To attract suitable and competent employees for the

organization

 To create among employees a feeling of contentment with

their present conditions and encourage them to succeed in the
company
 Types of Promotion

Open Promotions:
An organization or a company considers all individuals
within it as a potential candidate and announces it to various
aspirants internally.

 Closed Promotions:
An organization or company does not consider all
individuals within the organization but restricts the openings
or vacancies for higher positions. Also the announcement is not
done internally.

Frequently companies follow a combination of both the systems.

 Types of Promotion (Contd…)

Dry Promotions:
Dry Promotions are those that are given in lieu of increase in
compensation.

 Horizontal Promotions:
Promotions that do not necessarily lead to the change in the
nature of work i.e. similar kind of work remains intact. For e.g..
Lower to higher grade without any change in the work content.

 Vertical Promotions:
Promotions that lead to the change in the nature of the
work. For e.g.. Supervisor to Manager.
 Transfer

A transfer is a horizontal or lateral movement of an employee

from one job, section, department, shift, plant or position to
another at the same or another place where his salary, status and
responsibility are the same.

Transfer may be initiated either by the company or the

employee. It also can be temporary or permanent.
 Purpose of Transfer

To increase the effectiveness of the organization

 To increase versatility and competence of key positions

 To deal with fluctuations in work requirements

 To correct incompatibilities in employee relations

 To correct erroneous placement

 To relieve monotony
 Purpose of Transfer (Contd…)

To adjust workforce

 To punish employees (Generally in Government

organizations, employees who commit mistakes or
malfeasance will be treated with transfer to other place
where he cannot act according to his wish or misuse his
job position)
 Types of Transfers

Production Transfers:
Such transfers are made to meet the company
requirements. The surplus employees in one
department/section who are efficient might be absorbed in
other place where there is a requirement. Such transfers help
to stabilize employment.

 Replacement Transfers:
This takes place to replace an old employee who has
been in the organization for a long time by a new employee
thereby giving some relief to the old employee from the heavy
work pressure.
 Types of Transfers (Contd…)
Versatility Transfers:
It is also known as rotation. It is aimed at all round
development of employees by moving them from one job to
another. It also helps to reduce boredom and monotony.

 Personal or Remedial Transfers:

Such a transfer is made to rectify mistakes in selection and
placement. As a follow up, the wrongly placed employee is
transferred to a more suitable job.

 Shift Transfers:
This is pretty common where there is more than one shift
and when there is regularized rotation.
 Exit Interview
It is the final formal meeting between the management
and an employee leaving the firm.

It is used as a learning opportunity for the

executives concerned who seek candid views on work
related problems.
 Exit Interview – An Overview

In HR terms, an Exit Interview is a survey that is conducted

with an employee when he or she leaves the company. The info
available from each survey is used to provide feedback on why
employees are leaving, what they liked about their employment
and what areas of the company need improvement. Exit
interviews are most effective when the data is compiled and
tracked over time.
 Types of Exit Interview

In-Person Exit Interview:

With in-person exit interviews an HR representative meets
individually with each terminating employee.

 Telephone Exit Interview:

It is conducted over the telephone by an HR Representative
or an outside third party consultant.

 Paper and Pencil Exit Interview:

It is usually conducted by means of a form that is given to
the employees on their last day or mailed to the employees’
home.
Job Enrichment and Job
enlargement
 JOB ENRICHMENT

Job enrichment is a management concept that

involves redesigning jobs so that they are more
challenging to the employee and have less repetitive
work.
FEATURES OF JOB ENRICHMENT

 The characteristics or features of job enrichment are:-

 Nature of Job : Job enrichment is a vertical expansion of the job.

 Objective : The objective of Job enrichment is to make the job more lively and challenging.

 Positive Results : Job enrichment gives positive results if the workers are highly skilled.

 Direction and Control : Job enrichment encourages self-discipline.

ADVANTAGES OF JOB ENRICHMENT
The importance or merits or advantages of job enrichment are:-

 Job enrichment is useful to both the workers and the organization.

 The worker gets achievement, recognition and self-actualization.

 The worker gets a sense of belonging to the organization.

 The worker finds the job meaningful.

 Job enrichment reduces absenteeism, labour-turnover and grievances.

 It motivates the workers to give best performance.

Job Enlargement Means

 Job Enlargement is the horizontal expansion of a job. It involves the addition of tasks at
the same level of skill and responsibility. It is done to keep workers from getting bored.
It is different than job enrichment.

 Examples: Small companies may not have as many opportunities for

promotions, so they try to motivate employees through job enlargement.
ADVANTAGES OF JOB ENLARGEMENT
The importance or merits or advantages of job enlargement are:-
 Variety of skills :- Job enlargement helps the organization to
improve and increase the skills of the employee due to organization
as well as the individual benefit.
 Improves earning capacity :-Due to job enlargement the person
learns many new activities.
 Wide range of activities :- Job enlargement provides wide range of
activities for employees.
 Job Enrichment
1. Job loading Job enrichment involves vertical
loading of functions and
responsibilities of the employee .
2. Purpose The purpose of job enrichment is to
make the job more lively, challenging
and satisfying.
3. Skills required Job enrichment requires the
development and utilization of higher
skills, initiative and innovation on the
part of the job holders.
4. Direction & In job enrichment the employee uses
Control his own capabilities of self-direction
and control. He needs less of external
direction and control.
Job Enlargement
Job enlargement involves a
horizontal loading or expansion
of job .
The purpose of job enlargement
is to reduce the monotony in
performing certain repetitive
jobs .
Job enlargement may not
necessarily call for the
acquisition of higher level or new
skills on the part of the job
holders.
In job enlargement the job
holder may need more external
direction and control in view of
enlargement of the scope of his
responsibilities.