2. PINK SLIP
Pink Slip – refers to being fired or laid off from one’s job
Cutting cost Mantra – anyone’s head could be on the block
Causes defiance, antagonism, trauma, disappointment, frustration, etc.
India – lay offs not common, leads to psychological tension
Retrenched employees – worried about EMIs
2 IIPM AHMEDABAD 09-11
3. PINK SLIP LIST
NAME OF THE SECTOR JOB LOSSES
Export Sector 30,00,000
Engineering Sector 1,00,000
NAME OF THE COMPANY JOB LOSSES
Air India 15,000 (offer to non-operational staff)
Jet Airways 1900 (reinstated by the company)
Satyam 1500
Wipro 1000
TCS 500
Patni Computers 400
Kingfisher 300
Virtusa 200
Source: Business World, November 3, 2008
3 IIPM AHMEDABAD 09-11
4. PRODUCT LIFE CYCLE vs.
EMPLOYEE LIFE CYCLE
PARTICULARS PLC PARTICULARS ELC
Introduction • Heavy Operational cost Induction • Period of slow performance
• Lot of promotional • Lots of developmental &
activities supporting activities
Growth • Product fully accepted Development • High performance &
• Profit enhancement productivity
realized. • Aiming @ improve
• Sales high & improve knowledge, sharpen skills &
revenues mold attitude
• Less amount of • More Managerial Level
promotional activities
Maturity • Sales growth decline Promotion • Reward & recognition
• Product realized – • Job Enrichment & higher
prospective buyer responsibilities
• Promotional activities • Look for higher tasks
withdrawn • Training play minor role
4 IIPM AHMEDABAD 09-11
5. . . . contd
PARTICULARS PLC PARTICULARS ELC
Decline • Sales demonstrate Retire/Retrenchment • Gives up work
declining flow & profits • Sometimes earlier, early
• Product withdrawn retirement incentive
plans
• Employee can’t predict
when his life will be end
Recession times – prepare mentally & physically for layoffs
5 IIPM AHMEDABAD 09-11
6. ROLE OF HR DEPARMENT IN
MANAGING PINK SLIP
Associate line managers – retrenchment & retention strategies
Be voice for employees – find effective solutions
Enhance retained employees
Compensate employees – quality output
6 IIPM AHMEDABAD 09-11
7. PINK SLIP MANAGEMENT
Accept the possibility of receiving pink slip
Study Report – 20% workers able to sustain their families. Make habit of
saving money for unforeseen events
Cutback on superfluous expenses
Search for an alternative job
7 IIPM AHMEDABAD 09-11
8. PINK CONCLUSION
Knowledge era – keep updated, have learning attitude – will help during
recessionary times
Financial Experts – keep adequate bank balance & liquid cash to meet expenses
& EMIs
B-Schools Today – introduce specialization like lay – off management or pink
slip management
B-Schools – they should taught how to manage yourself during recession times
Tackle pink slip – don’t think why “me”, go for other options, search job sites
of your sector, maintain positive attitude
Consider it as an opportunity
8 IIPM AHMEDABAD 09-11
