DOWNSIZING WORKFORCE

Workforce Planning

This planning is establishing the workforce needed by the business for the foreseeable future in terms of the number and skills of employees required.

Situation in which downsizing of workforce is neccessary

Introduction of automation

Falling demand for goods and services

Factory/ Shop/Office closure

Relocating factory abroad

Business has merged/ take over and some jobs have become surplus

Human Resources Department will:

Finding out skills of present employees

Counting out anyone who will be leaving

Find out who want to fill new jobs

Recruitment plan- how many new staff need to be recruited

Reduce employees:

Dismissal

Redundancy

Dismissal

This is where a worker is told to leave their job because their work or behaviour is unsatisfactory

Redundancy

This is when an employee is no longer needed and so loses their job. It is not due to any aspect of their work being unsatisfactory.