chapter+overview

8/8/2019 Chapter+Overview

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Chapter 6

Managing EmployeeSeparations, Downsizing,

and Outplacement

CHAPTER OVERVIEW (PPT 6.1-

6.2)

Conducting a termination or layoff is one of the most sensitive and difficultthings that a manager will ever have to do. There are a number of factors toconsider when conducting this process, and the manner in which thetermination or layoff is performed and managed has impact on not only theaffected employee but also those that remain with the organization in itsaftermath. Additionally, many separations (voluntary or involuntary) can beavoided through good management practices. The cost of separations to theorganization are much higher than many people realize, making goodmanagement practices even more important.

ANNOTATED OUTLINE

I. What Are Employee Separations?

An employee separation occurs when an employee ceases to be amember of an organization. The rate of employee separations in anorganization (the turnover rate) is a measure of the rate at whichemployees leave the firm.

A. The Costs of Employee Separations (PPT

6.3)

There are always costs associated with employee separations. Thecost may be more or less, depending on whether managers intendto eliminate the position or to replace the departing employee.Costs included in separations include: recruitment costs, selectioncosts, training costs, and separation costs.

1. Recruitment costs.2. Selection costs.3. Training costs.

4. Separation costs.

B. The Benefits of Employee Separations (PPT 6.4)

While many people understand the costs of employee separations,there are benefits as well. Some of the benefits of separations

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include: reduced labor costs, replacement of poor performers,increased innovation, and the opportunity for greater diversity.

1. Reduced labor costs.2. Replacement of poor performers.

3. Increased innovation.4. Opportunity for greater diversity.

II. Types of Employee Separations

Employee separations can be divided into two categories based on whoinitiates the termination of the employment relationship. Voluntaryseparations (quits and retirements) are initiated by the employee.Involuntary separations (discharges and layoffs) are initiated by theemployer.

A. Voluntary Separations (PPT

6.5)

1. Quits.2. Retirements.

B. Involuntary Separations (PPT 6.6)

Involuntary separations occur when management decides toterminate its relationship with an employee due to economic

necessity or a poor fit between the employee and the organization.1. Discharges.2. Layoffs.3. Downsizing and rightsizing.

III. Managing Early Retirements (PPT 6.7)

When a company realizes that it needs to downsize its scale of operations, its first task is to examine alternatives to layoffs. One of the

most popular of these methods is early retirement.A. The Features of Early Retirement Policies

Early retirement policies consist of two features: (a) a package of financial incentives that make it attractive for senior employees toretire earlier than they planned and (b) an open window that

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restricts eligibility to a fairly short period. After the window isclosed, the incentives are no longer available to senior employees.

B. Avoiding Problems with Early Retirements

Managing early retirement policies requires careful design,implementation, and administration. When not properly managed,early retirement policies can cause a host of problems. Allmanagers with senior employees should make certain that they donot treat senior employees any differently than other employees.

IV. Managing Layoffs

Generally, an organization will institute a layoff when it cannot reduceits labor costs by any other means. Managers should first try to reducelabor costs with layoff alternatives.

A. Alternatives to Layoffs

There are many alternative methods of reducing labor costs thatmanagement should explore before deciding to conduct a layoff.These alternatives include things such as early retirements,employment policies (attrition and hiring freeze), job redesign (jobsharing), pay and benefits policies (pay freezes and cuts), training,and other voluntary workforce reductions.

1. Employment policies. (PPT 6.8)2. Changes in job design. (PPT 6.9)3. Pay and benefits policies. (PPT 6.10)4. Training (PPT 6.11)5. Nontraditional alternatives to layoffs.

B. Implementing a Layoff (PPT 6.12-6.13)

A layoff can be a traumatic event that affects the lives of thousandsof people, so managers must implement the layoff carefully.Issues that need to be considered include how to notify employees,developing layoff criteria, communicating to laid-off employees,coordinating media relations, maintaining security, and reassuringsurvivors of the layoff.

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1. Notifying employees.2. Developing layoff criteria.3. Communicating to laid-off employees.4. Coordinating media relations.5. Maintaining security.

6. Reassuring survivors of the layoff.

V. Outplacement (PPT 6.14)

Outplacement is a human resource program created to help separatedemployees deal with the emotional stress of job loss and to provideassistance in finding a new job

A. The Goals of Outplacement

The goals of outplacement reflect the organization's need tomaintain employee productivity. The most important of thesegoals are (1) reducing the moral problems of employees who will

be laid off so that they will remain productive; (2) minimizing theamount of litigation initiated by separated employees; and (3)assisting separated employees in quickly finding comparable jobs.

B. Outplacement Services

The most common outplacement services provided to separatedemployees are emotional support and job-search assistance. These

services can help achieve the goals of outplacement.1. Emotional support.2. Job-search assistance.

A QUESTION OF ETHICS: Guide to discussion

Page 205: What can a company do to help a community when it decidesto close a plant that is important to the community's economicprosperity?

There are several things that a company can do to assist a communitythat will be affected by their decision to close a plant. One major item isearly notification. In fact, before the decision is made, there are usuallyseveral years where the question is being raised. Some companies have

begun to signal communities that such actions are being consideredseveral years before making such a move. This allows the communitytime to try to attract alternative employers and to prepare for the

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economic impact of the departure. Also, in some cases, members of thecommunity may seek a buyer for the plant. If such overtures are made,it is in the best interest of the company and the community for agreements to be reached in a timely and reasonable fashion.Alternatively, the community may seek ways to help the company to

regain the profitability that they need from the plant. Sometimes that isin increased employee productivity, and other times it is in tax relief andother benefits granted by the community. In general, the best things acompany can do is communicate clearly and early and then to work withthe community to develop innovative alternatives.

Page 210: Is it ethical for top managers to receive cash bonuses while atthe same time asking lower-level employees to accept a pay freeze?

It would be interesting to see if there are any students who feel that thisis acceptable and ethical. Most will probably respond that it is not. It

certainly does not create a sense of loyalty or fairness on the part of theemployees.

Page 212: How much notice of a layoff should a company be obligated togive?

While federal law now requires U.S. employers with more than 100employees to give 60 days’ advance notice of layoffs that will affect anentire plant or 50 or more employees, there are many layoffs that do notmeet this criteria. Keep students focused on those layoffs that areoutside of this regulation. Some may argue that they should give asmuch notice as possible; let employees know as soon as it becomes clear that this step will need to be taken. However, as the text discusses, thereare many other impacts of a layoff, including stock prices, competitor advantages, etc., that may make it difficult for an employer to willinglydo so. Others may argue that advance notice is not as important as muchas is a good severance package that will allow them time to search for another job. This subject should spark some good discussion.

ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS

1. After eight years as marketing assistant for the New York office of alarge French bank, Sarah Schiffler was told that her job, in a non-revenue-producing department, was being eliminated. Her choices: Shecould either be laid off (with eight months' severance pay) or stay on andtrain for the position of credit analyst, a career route she had turneddown in the past. Nervous about making mortgage payments on her newcondo, Sarah agreed to stay, but after six months of feeling miserable inher new position, she quit. Was her separation from the bank voluntaryor involuntary? Can you think of situations in which a voluntary

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separation is really an involuntary separation? What are the managerialimplications of such situations?

Sarah's separation from the bank was a quit, or a voluntary separation.A separation may be interpreted as an involuntary separation when

eligible employees perceive that they are being forced to resign or retire.Other situations are when an employee quits because of harassment or intolerable working conditions. In these cases, courts have sometimesagreed that the separations were, in fact, involuntary. Occasionally,management will seek to force someone to leave voluntarily in order toavoid unemployment or other cots. This is not a wise tactic.

2. What are the advantages and disadvantages of using seniority as thebasis for layoff? What alternatives to seniority are available as layoff criteria?

Seniority, the amount of time an employee has been with the firm, is themost commonly used layoff criterion. The main advantages of usingseniority are (1) seniority criteria are easily obtained and applied and (2)most employees see seniority system as a fair criterion for the decision

because managers cannot play favorites. The disadvantages of usingseniority as the basis for layoff are (1) the possibilities of losing top

performers under the "last in-first out" method and (2) a disproportionatenumber of minorities and women may be lost.

The alternatives to seniority are not uncommon. It is not unusual for management to base layoff decisions on performance criteria or acombination of performance and seniority…. criteria when the work force is nonunion or when it primarily includes professional andmanagerial employees. If a company has taken the time to develop avalid performance appraisal that accurately measures performance andmeets the government guidelines, then there is no reason why appraisaldata cannot be used as the basis for layoff.

3. Would an employer ever want to increase the rate of employeeturnover in a company? Why or why not?

Employers may want to increase turnover in a company to reduce labor costs, to replace poor performers, to increase innovations, and to createopportunities for greater diversity. When turnover rates are too low, fewnew employees will be hired and the number of opportunities for

promotion is sharply curtailed. In addition, a persistently low turnover rate may have a negative effect on performance if the work force

becomes complacent and fails to generate innovative ideas.

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4. What advantages might an organization have it if takes a customer-oriented approach to conducting layoffs?

Because a layoff can be a traumatic event that affects the lives of thousands of people, a well thought out and carefully implemented

customer-oriented approach to layoff is essential to preserving a goodlabor climate, maintaining a positive public image, and continuingquality relationships with customers, suppliers as well as thesurrounding community. Risks of a poorly executed layoff includeformer employees (and sometimes current employees) bad-mouthing thecompany, reduced productivity, diminished loyalty, possibility of sabotage and loss of customers, bad press, and potential threats tofacility security and employee safety, all of which have negative effectson the bottom-line of the business. These benefits and risks illustrate thevalue of a customer-oriented approach, characterized by management’sactions of treating employees respectfully throughout the process,

effective communication mechanisms, well executed plans, anarticulated vision of the future, and care and attention to layoff survivors.

5. In an age when more and more companies are downsizing, anincreasingly trendy concept is the "the virtual corporation." The idea isthat a company should have a core of owners and managers, but that, tothe greatest degree possible, workers should be contingent--temporary,part-time, or on short-term contracts. This gives the corporationmaximum flexibility to shift vendors, cut costs, and avoid long-term laborcommitments. What are the advantages and disadvantages of the virtualcorporation from the point of view of both employers and workers?

Students' answers will vary. An example of a major advantage of thevirtual corporation from the employers' viewpoint is significantreductions in labor costs. The disadvantages are the probable absence of company loyalty and loss of employee morale as well as inadequatelyexperienced employees. An example of a major advantage of the virtualcorporation from the workers' viewpoint is flexibility in deciding work schedules, assignments, and employers. The disadvantages are theabsence of job security and the lack of employee benefits.

6. Under what circumstances might a company's managers prefer touse a layoff instead of early retirements or voluntary severance plans as away to downsize the work force?

An important influence on the likelihood of a layoff is the business'sstrategy. Companies with a lifelong employment HR strategy are lesslikely to lay off employees because they have developed alternative

policies to protect their permanent employees' job security. When early

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retirement plans may be perceived as "forced retirement," companiesmay prefer to use a layoff to avoid age discrimination complaints.Furthermore, when early retirements or voluntary severance plans leadto top performers leaving the organization, an employer may use a layoff to avoid excess resignations and to avoid a "talent drain."

7. Under what set of conditions should a company lay off employeeswithout giving them advance notice?

The Worker Adjustment and Retraining Notification Act of 1988(WARN) requires U.S. employers with 100 or more employees to give a60 days' advance notice to employees who will be laid off because of a

plant closing or a mass separation of 50 or more workers. Employerswho do not give their employees notification must give them theequivalent of 60 working days of income.

There are many layoff situations that do not fall under the WARN act.There may be situations where a company might feel the need to keepthe layoffs secret until they are actually implemented. Such situationswould include places where the likelihood and threat of sabotage aregreat, times when that information would lead to a competitivedisadvantage, and situations where there may be an unfavorableeconomic impact if the information is released early.

8. "The people who actually have the face-to-face contact with theperson who is being laid off aren't the ones who made the decision. Theyoften didn't have any input into which of their people who go," says atechnician at a firm that experienced large-scale layoffs. What roleshould managers—who have the "face-to-face" contact with employees— play in implementing a layoff? Do you think managers and HR staff members always agree on how employee separations should be handled?Why or why not?

The managers should provide input in developing the layoff criteria andshould have direct responsibility for making consistent, fair decisions

based on those criteria. The HR department's role should be to adviseand guide the process and to make sure that the decisions are consistentand fair. Managers and HR staff members do not always agree on howemployee separations should be handled. These differences are in part

because of their different roles within the organization and the tasks andgoals of those roles. Managers do have the face-to-face contact with theindividuals, and, as such, the task of choosing individuals for layoffs can

be very traumatic and difficult. They may want to "save" certainindividuals because of factors which have not been identified as layoff criteria.

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9. Managing survivors in a layoff is important. As a manager, whatconcerns would you have about the surviving workforce after a layoff?How can the human resource management staff be of assistance inproviding support for the survivors of a layoff?

Concerns should include: How can I keep my employees motivated?Am I going to loose more good employees because of the stress? Howcan I keep morale from plummeting? What about sabotage? Are myemployees going to be overloaded as a result of fewer people in thedepartment?

Human Resource staff can provide assistance in many ways. They canmake sure that information continues to flow to the survivors. They canalso provide counseling as well as social opportunities to helpemployees recover morale. The list can go on and on.

10. Why should management be concerned with helping employeessuccessfully retire from their organization?

Besides the fact that it is the right thing to do, current and prospectiveemployees are watching. If this transition is not successful, morale of existing employees will suffer (and probably productivity as well) and

prospective employees may choose to go elsewhere.

11. Organizations have worked hard to develop teams as a cohesive andeffective framework in the workplace. What can a layoff do to thisframework and to the sense of cohesiveness? What could you do tomanage these problems?

A layoff can have a tremendous disruptive impact to team-basedstructures. A great deal of time and resources are spent in developingteam- based systems and achieving a level of functioning that iseffective. Team cohesiveness, not to mention employee morale and

productivity can be negatively impacted by a layoff as a result of issueslike “survivor guilt”, realignment of tasks and reduced resources toaccomplish the work. Management can manage this process by clearlycommunicating the alignment of tasks, the future structure of the teamand the organization and being open to employee suggestions andfeedback on how to accomplish the work once he layoff process has

been completed.

Customer-Driven HR Case 6.1Severance Payback: Employees as Customers or as ExpendableCommodities?

Critical Thinking Questions

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1. Do you think that the company should pursue repayment of theexcessive severance package? Why or why not?

Students answers will vary significantly on this question. Some students

will argue that the company made a mistake, and should assume the costof that mistake and not pursue repayment. Other students may arguethat the employer is fully justified in pursuing repayment as employeesshould have recognized the overpayment when they received theseverance, and thus are obligated to return the money to the company.

From a company standpoint, what is likely to happen is the organizationwill evaluate the value of the overpayment, the cost of recouping themoney, legal fees, and other intangible costs associated with potentiallydamaging negative press as a result of making the mistake in the first

place.

2. The company’s lawyer has stated that the organization issympathetic with the hardship that repayment may pose on the formeremployees. So the company is willing to accept a payment plan of fourequal payments, one on each of four months.

a. Do you think the payment plan offer is a good idea? Why or whynot?

While this initially may sound like a reasonable solution, given thenumber of employees that are affected, a payment plan could becomeextremely burdensome to manage. The cost, resources required tomanage this process, and the aggravation associated with it are factorsthat need to be considered before implementing this approach.

b. The company is presenting the payment plan option as evidence of

its sympathetic and customer oriented approach to the laid off workers. Do you agree that Filtronic Comtek is taking a customeroriented approach to its former workers? Why or why not?

Students will have differing opinions on this issue. Proponents of the payment plan will argue that the company is giving former workers analternative to ease the burden, which they don’t necessary need tooffer. Those students who object to the payment plan option are likelyto feel that the company was never customer focused from the

beginning, by asking the former employees to pay back the money, asit was the company’s mistake.

3. Some of the former workers are experiencing financial difficultiesand don’t know how they can pay the money back. For example, Debbie

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Burnard is a single parent with three children. After being laid off shecame down with pneumonia and other health difficulties. She now has$900 in medical bills to pay and receives $300 every two weeks inunemployment benefits. She panicked when she received the letter fromFiltronic’s lawyer and doesn’t know how she can repay, even on the

payment plan. The money was spent months ago. Should FiltronicComtek somehow take ability to repay into account? How might they goabout this?

This is a dangerous approach in that now different standards are being used,and the door is opened for others to present their case for not repaying themoney back. This can snowball out of control quickly, and the managing therepayment process can become cumbersome, time-consuming andunmanageable.

That being said, if the company decides to take ability to repay into account,

one way to do this effectively is to develop a scale which identifies acceptabletimeframes of repayment for different levels of income, much like banks andcredit card companies do when there are changes in financial situations.

Customer Driven HR Case 6.2Recognizing the Importance of Workers: Layoffs as a Last Resort


1. In addition to the examples just mentioned, what else couldorganizations do to avoid or limit layoffs? Generate possibilities by

brainstorming, referring to this chapter as well as by finding additionalcompany examples.

Some other strategies would include addressing the need to reduceexpenses by attrition; offering early retirement packages; offeringflexible work arrangements including part-time and reduced schedules;transfers and relocation; changes to pay and benefits policies including

pay freezes, cutting overtime pay, using vacation and leave days, andvariable pay programs; and employment policy changes such asreducing or eliminating subcontracted work and giving that work to in-house employees; voluntary time off, leaves of absences and reduced

work schedules.

2. Prioritize your alternatives to layoff. What would you do first,second, and so on?

The order of prioritized alternatives will differ by student depending ontheir values and beliefs around what is most important (i.e. preserving

pay; providing alternatives which provide employees for opportunity for

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time off; etc.). Most students are likely to support implementation of voluntary programs first, and then if fiscal goals are not achieved,impose those solutions that have economic impact across the board.There is no right or wrong answer to this question, as the proper order will differ by company depending on the situation.

3. Given that you are in a management position in an organization,describe how you would provide the sequential strategy to employees yougave in your answer to question 2. Would you use meetings, newsletters,etc? Draft the description or announcement that would frame thissequential strategy and place it in a context. For example, what’s thepurpose(s) of the strategy?

An example of such a communication is illustrated below:

“As a result of the need to significantly reduce expenses and at the same

time avoiding the need for a layoff, XYZ organization has developed the following alternatives to preserving employment while still achieving the fiscal objectives of cost containment. Effective March 1, the

following options will be available to employees:

1. Early Retirement 2. Reduced work week schedule3. Voluntary leave of absence

Criteria have been developed for each of these options. Employees whowould like to take advantage of one of these three options should submit their name to Human Resources by March 15.

It is our attempt to meet our cost cutting objectives through these programs. However, if there are insufficient participants in these programs, the following programs will be implemented:

1. Elimination of overtime2. Shortened work week 3. Pay freeze

These programs would be implemented by April 1. Employees areencouraged to talk to their manager or Human Resources about anyquestions or concerns. It is the organizations goal to avoid a layoff

situation and maintain employment of all employees.”

The most effective vehicles for this type of communication would include both meetings to explain the process to employees as well as a writtendocument to thoroughly outline the programs, so that employees are wellinformed and educated about what is occurring.

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4. Do you think a sequential strategy could be an effectivemanagement tool? Explain?

A sequential strategy can be a very effective management tool. This strategy

involves the implementation of a series of steps that generally begin withvoluntary alternatives. This approach allows employees to feel some degreeof control over the situation by having some choices. Once these alternativeshave been exhausted, the next series of steps transition to more aggressivesteps with potentially greater economic impact.

Emerging Trends Case 6.3Turnover Redux


1. Kroger’s emphasis on the application process focuses oncharacteristics of workers as an important causal factor in turnover. Doyou think that its approach will be effective? Why or why not?

Research shows that behavioral characteristics are key indicators of future job success in terms of identifying individual motivators.

2. Are there system characteristics that might be importantdeterminants of retention and turnover? In other words, what factorsabout jobs or organizations might be important in determining whethersomeone decides to quit or stay with an employer?

There are a host of factors that could influence retention and turnover.The financial condition of the company and perceived job security iscritical and important factor. Wages and benefits are another key factor.Management style, employee relationships with their supervisors, andother cultural issues are also factors that influence turnover. Match of individual personality traits to the job can also influence turnover. For example, an employee who is an extrovert, motivated by socialinteraction, placed in a job that has minimal contact with people, will not

be likely to stay in that job long term because their basic needs for human interaction will not be met. Another example of a situation

where turnover is likely is placing an employee who is motivated byhaving a lot of freedom and latitude, placed in a job with strict rules andlimited mobility.

3. For the system factors you identified in question 2, what would yourecommend Kroger do about each? Are there some factors that may bedifficult or impossible to change?

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In order to answer this question, the requirements of the job must beexamined. Jobs in retail grocery stores require employee characteristicssuch as tolerance for repetitive tasks and routine, attention to detail, andability to interact with customers. Additionally, the economics of theindustry present a challenge in that the pay in grocery stores is fairly

low, influencing the pool of candidates who show up to apply for the job. These factors are difficult, but not impossible to change.Strategies that address the issues of job design, creative compensationstructures and training programs can be designed to address thechallenges within this type of industry, and in fact, there are severalgrocery chains that have successfully achieved positive results withregard to employee turnover by employing creative and innovativestrategies to ensure employee retention (Publix; Wegman’s).

Emerging Trends Case 6.4 Layoff and Security


1. What message is being sent to workers being laid off by following thestandard procedure just described?

The message being sent is that the employee did something wrong todeserve the termination. While in some cases, the criteria for layoff include performance rating data, this may or may not be shared with theemployee.

2. What effect would this standard approach to laying off workershave on the retained workers? A recent survey of such layoff survivorsfound over 25 percent saying their layoff was handled poorly and nearly50 percent said they found out about the layoff through informal rumorsrather through official communication. These conditions can make theorganization vulnerable to retaliatory theft and sabotage from layoff survivors. Explain how the process by which a layoff is conducted couldhave these negative effects.

The effect of the standardized approach described here is generally oneof fear and distrust. The layoff process needs to be well communicated and

well orchestrated in order for retained workers to have a sense of security, andconfidence that management handled the situation as well as could beexpected. Poor communication to “survivors”, insensitive treatment towardsthose employees who are being laid off, and an uncaring attitude all sendmessages to retained employees about management’s values and philosophy,and will have a negative impact on the employee climate.

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3. It has been recommended that employers should take a moreenlightened and customer-oriented approach to laying off workers. Forexample, it has been suggested that employers establish electronic alumninetworks. These networks would allow former workers to keep in touchwith the company and with each other. Furthermore, the network could

provide a source for new hires that would have limited recruiting andtraining costs.

Identify characteristics of a more customer-oriented approach toconducting layoffs. What steps would be involved? Identify majorguidelines and characteristics of your proposed process.

Characteristics and steps involved in a customer-oriented approach toconducting a layoff would include 1) frequent communication wit employeesduring the layoff period, explaining the reasons for the layoff and the methodsemployed; 2) high management visibility during the layoff period; 3)

Outplacement services to laid off employees in order to provide them support;4) private termination; 5) clearly communicated vision from management toremaining employees about “where we go from here”; 6) continuing trainingand development programs for remaining employees in order to demonstratecommitment; and 7) care and attention to remaining employees for “survivor”guilt issues and stress.

Discussion Case 6.5Managing Outplacement at Rocky Mountain Oil


1. Do you see any problems with the outplacement program at RockyMountain Oil?

One of the problems is that Rocky Mountain Oil is using its ownsupervisors as counselors. Normally, outplacement programs usetrained counselors to assist employees in dealing with the emotionsassociated with job loss. Such counseling helps to defuse some of thehostility that terminated employees are feeling toward the company.Additionally, since the supervisors are the ones who choose who getslaid off, the animosity and hostility that the employees feel towards the

company will be personified in their supervisor. This will create more problems than it will solve.

Another problem will be created by having the temporary offices on thecompany property where the laid-off employees will have to park inview of their former colleagues. This will create an uneasiness, and will

be a visual reminder to the survivors of the recent layoffs, delaying thehealing and moving on that must happen.

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The choice of materials and support services is questionable. The “teneasy steps” article could be insulting to the laid-off employees. Justgiving them the book and sending them to a junior college course willnot give them the skills that they are really going to need to conduct a

good job search.

2. What did Karen Sinclair mean by her statement?

Students’ comments will vary as they attempt to express what Karenmeant by her statement. One example of what she meant is that the

program was bound by cost considerations, rather than people concerns.Outplacement services are often handled by consulting firms retained bythe organization. The company appears to have a framework commonto outplacement services, such as emotional support throughsupervisors-counselors, and job search assistance by giving the laid-off

employees a popular book and access to a personnel managementcourse. However, the implementation of the program was clearly basedon cost considerations and not on the needs of the situation.

3. What improvements to the design of the outplacement program doyou think need to be made?

Several improvements can be made. For example, the outplacement program could be changed to replace supervisors as counselors withtrained counselors. Because the family may suffer if the breadwinner

becomes unemployed, family members should be included in thecounseling. The personnel management course could be substitutedwith a career management or a career planning course that is designedfor and given exclusively to the affected employees. All outplacementservices need to be offered at a neutral site that is away from the plant.

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