AN ASSIGNMENT

ON
HUMAN RESOURCE PLANNING AT ALLIED CORPORATION
(Case Application- 04)
Course Name: Human Resource Management
Course Code: HRM - 8402

Submitted to
Asst. Professor Dr. Md. Yunus Ali
Assistant Professor
Faculty of Business Studies
Bangladesh University of Professionals (BUP)

Submitted by
Group 07
Name Roll No
Anadi Ranjan Barai 18019099
Lamiya Motin 18019003
Md. Saiful Alam 18019005
Maksudul Karim Sharifee 18019007
Rabiul Hossain 18019053
Mahmudul Hasan Sourav 18019081
Section: A
Session: Sep 2018
Program: MBA (Professional)

21st June 2019

Faculty of Business Studies(FBS)

Bangladesh University of Professionals(BUP)

Mirpur Cantonment, Dhaka 1216
 Given Case
Pink Slips
In 1979, Edward L Hennessy, Jr. became CEO of the Allied Corporation. Upon it's taking over,
he began to look for ways to make the organization more profitable. Throughout his investigation,
he determined that the company’s payroll was too high and, in part, the root of the problem.
Later that year, Mr. Hennessy instructed his personnel department to reduce the number of
employees by 842 creating a savings of over 30 million. Realizing that this would be a shock, the
company prepared to outplace the affected employees. An outplacement firm was hired to oversee
the operations. The personnel direction wrote letters to the CEOs of more than one hundred
companies, trying to place these workers, special offices were set up so that the terminated
employees could make telephone contacts and work on their resumes. An array of services was
available to the individuals, all leading to help them find new employment opportunities.
In the final review, almost all 842 workers were outplaced. Some still upset about being terminated
complained that the new positions were lower than their current ones. Nonetheless, most were
successfully outplaced, and severance from Allied Corporation was smoothly processed.

QUESTIONS
 Discuss the advantages and disadvantages of using the company’s premises for
outplacement services.
 What socially responsible behavior was exhibited by Allied? How might this help or
hurt its image?
  The advantages and disadvantages of using the company’s premises for outplacement
services.

Outplacement is the support service provided by responsible organizations, keen to support

individuals who are exiting the business (voluntarily or involuntarily) – to help former employees
transition to new jobs and help them re-orient themselves in the job market. [1]
When an organization makes the tough economic decision to lay off employees, any assistance the
company provides is appreciated. A severance package that covers two weeks or more of pay for
each year that an employee worked and continuation of benefits for a period of time are the most
common severance package components.
Outplacement is a rapidly growing component of a severance agreement that is intended to help
employees find work following a layoff or job loss. The services are contracted for by the employer
who is laying off employees. People can pay for outplacement themselves, but it is a bonus when
provided by an employer as part of a severance agreement.
Whether outplacement is effective in helping employees find jobs more quickly can depend on
specific circumstances.
Advantages

 Better brand, Outplacement solutions promote a great company reputation,

demonstrate your commitment to current and former staff, and showcase your ability to
provide the solutions modern professionals need, such as access to job boards,
networking connections, or transfer options. It strengthens the corporate image both
external and internal and reduces the risk of labor claims.
 Reduce unemployment, Outplacement solutions offering diverse options can fix
various issues, such as resume assistance, career management, and networking advice,
all of which can help them to secure a new job. In the end, this reduces that scary
unemployment number and gets workers back on their feet faster than just a payout
alone Contributes to the professional and personal development of the former
employee.
 Liability protection, Allied Corp. had a corporate responsibility to their employees.
That said, outplacement solutions can serve as liability protection against possible
disgruntled displaced employees. While someone is no longer their employer, they are
taking the necessary steps to ensure a smoother transition, avoiding any possible legal
action. This includes job search assistance, interview preparation tools, and career
assessments. As a result, Raise motivation, confidence, and productivity of those
 laboring continued with allied corp. because they are sending a message that they are
still his contract the company not checked out.
 Maintain healthy relationships The company shows commitment to the welfare of
employees and their environment. No matter the outcome, displaced workers likely
contributed to the success of the previous organization at one point or another.
Outplacement services help to maintain healthy relationships with displaced employees
during a time when they may have a positive mindset.
 Increased productivity from current employees, Outplacement solutions showed
allied corporations dedication to their team, no matter how bad things may get. In turn,
this can increase productivity and engagement from current staff since they are aware
of the organization’s commitment to them, displaced or otherwise.
 According to The Wall Street Journal, the main benefit of this service is that it is of
no cost to the individual and often provides them with help in drafting a resume, and
launching a search.

Disadvantages
 According to The Wall Street Journal, the main drawback is that the individual
doesn't choose the program suited to their needs and timeframe.

 Career coaches at outplacement agencies might be assigned to several participants,

limiting one-on-one attention, and for professionals with a lot of experience, the
advice received can seem trivial and not very helpful.

 Resumes and cover letters that outplacement firms develop may be based on average
standard and not stand out, especially when a candidate is competing with other
clients of the same outplacement firm for the same job.

 As many recruiters always prefer to hire younger employees, many of aged and
experienced employee may face underpaid issues.

 Too many dissatisfied outplaced employees may cause reputation risk to the
organization.
 What socially responsible behavior was exhibited by Allied? How might this help or
hurt its image?
We found a digitized version of an article from The NewYork Times’s print archive 06/06/1982.
From there we have this information-

In 1979, at Allied - formerly the Allied Chemical Corporation - which ranks 55th in the Fortune
500, employs 55,000 people and achieved sales of $6.4 billion in the previous year. Then Edward
L. Hennessy Jr. took over as chief executive and began to stress such things as management
development, succession planning, attitude studies, and retirement counseling.
In the fall of 1979, the Allied payroll was too large. It was the most wrenching decision of CEO’s
career, he mandated that pink slips go out to 842 workers, carving $30 million off the payroll.

A placement operation was mobilized to dig up new work for those being let go. The organization
itself wrote to the chief executives of the 100 biggest companies. Thirty offices were cleared out
for employees to use to make calls and formulate resumes. Each worker got free postage for up to
200 letters. An outplacement firm was hired to ease the shock.
In the end, according to Allied, most of its employees found jobs. Not all those jobs were as good
as the old ones, however; and some of the dismissed left mightily embittered.

Positive outcomes reported by companies that provide separated employees with outplacement are
reduced exposure to litigation, increased productivity and profitability, improved employee
morale, higher stock price, and decreased turnover, sick days and recruiting costs.

Outplacement is considered an integral component to support most respondents’ business strategy

to right-size, be more competitive and aid in the return to profitability. In addition to helping
outplaced employees find the best new career opportunity, our research found that allied’s
outplacement service enhanced their brand reputation.

It helped to maintain positive relations with departing and current employees and reduced the stress
levels of the internal staff required to implement the layoffs. Company reputation and a strong
employer brand can impact the attractiveness of any organization. People are much more apt to
trust organizations based on what they hear from their current and past employees. This is much
like consumer reviews. Recruitment and talent retention relies heavily on employee advocacy than
any other factor. Many job seekers look carefully at how former employees say they were treated
by the company when making decisions about where to work. Younger employees tend to care
more about this because they want to make a difference and be respected by an employer at the
same time.