EX-EMPLOYEES’ FAIRNESS PERSPECTIVE ON REDUNDANCY: CAN OUTPLACEMENT SOLVE IT?

• Main Author: Fathima Zahra, Annisa
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80863
• Institution: Institut Teknologi Bandung

Redundancy is a critical part of business cycles for performance improvement but often brings negative consequences like damaging reputation and moral concerns for ex-employees. In such a dilemma, outplacement is seen as an essential component to reduce negative effects aimed to uphold people's sustainability. This study focuses on ex-employees' fairness perceptions regarding redundancy with outplacement. The objectives are exploring outplacement impact, fairness perception, and outplacement management. Using qualitative methods, 17 interviews of ex-employees were conducted across seven industries in Indonesia. Three key results are presented based on its objectives. First, Ex-employees have positive and negative views on outplacement impact. Positive impact relates to financial packages and range of non-financial program while negative impact links to discrimination, irrelevant training, poor implementation and socialization, and passive approach. Second, fairness perceptions differ; while equality and legal procedure are perceived fair, shortcomings exist in equity, needs, informational, and interpersonal justices. Third, ex-employees expect improvement on the strategy, design, implementation, and evaluation of outplacement management. Recommendations include flexible outplacement type and time duration, address needs beyond financial compensation, earlier notification period and socialization, optimize solidarity and community, and more emphatic and clear communication