HR Simulation Second Year Performance
Our second year performance turned out to be good, although there were still some difficulties existed. I believe it was the sixth quarter that we faced to have to deal with the negative vacancy number for the seventh quarter. Our team did not face this situation before, so we decided to eliminiate some employees but not all of them. However, our morale and productivity went down dramatically in the next quarter's report, and it was also the first time for our team to have the morale below the average industry. We were discussing that at least we did not eliminate all of them; otherwise, we could not imagine how bad would the morale be. Therefore, when it came to decide for the eight quarter that had negative vacancy number as well, we decide not to fire any of the employees, and it turned out that our morale was still well above the average. One thing that I learned from this HR Simulation was that we had to work together as a team that could get different feedbacks from every of the team members, and also to improve or find a beeter way from the past experiences.
Comments
Posted by: Ya-Yun Wang
Posted on: December 10, 2005 10:37 PM
Wei-Ting,
During out HR Simulation process, our group also has to face the same problem. Due to the fact that the company does not need as many employee for several quarters, out firm ended up having a lot more people than we need. After having a discussion with Professor Piderit, we end up making the decision of keeping out employee. The reason why we decided to keep our employee is because the fact that out production is going to increase 2 or 3 quarters later. And, we felt that it is better to keep the employees that we have already trained and build up the truest than firing them and have to spend extra money in firing the old employees, hiring new employees, and training the new employees.
Another reason is the fact that firing employees may actually have a lager negative impact toward the firm than having extra. The immediate affect it is going to have by firing employees is an increase in turnover rate. Due to the fact that when you fired an employee they still count as leaving the job, the turnover rate will relatively increase.
I felt that after talking with Professor Pridet and thought about it more, I found out how bad it actually is to fire employees. I just thought that maybe you would like to know a bit more why such a result happens to your HR Simulation and hope this is helpful.