LAY OFFS IN SOFTWARE INDUSTRY CAN CREATE SYSTEMIC IMBALANCE IN SOCIETY

 

LAY OFFS IN SOFTWARE INDUSTRY
CAN CREATE SYSTEMIC IMBALANCE IN SOCIETY

  There are news reports that a Major Software Company  will do layoffs about 5% of its employee strength in India and that number will be thousands and precisely 10000 as reported. Though the reports are about one company Accenture right now, there are other majors who may follow suit.

 The Software industry can give biggest back slash in India over time as it had given a forward slash. When thousands get ejected from the stream it will cause systemic instability. The news reports say the it is routine for the company to lay off about 5% and replace it by new hiring. Laying off and replacing by hiring is no logic and no good a HR (Human Resources) policy and no relief to society. When people are shunted out at mid-career, when the laid offs would have created families, have children and liabilities, dependent parents and family members, shunting one at mid-career level amounts to shunting minimum-5 in equivalence and replacing by one at the most. This can cause dangerous imbalance in society. The company can tighten its hiring mechanism. But after hiring the habit of laying off and replacing by hiring is a bad practice. The logic given in this regard as appears in the news reports, by the software company, or any one is not logical. Hire, fire and replace is no good HR policy.


About the Author : Dr. Nimain Charan  Biswal is a B.Sc.(Agri. Science and Technology ). M.B.A. and Ph.D.( Management Area ) by qualifications and he has 34+years of work experience in both  industrial and development sectors in diversified fields of social importance. He has been educated at Orissa University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural Management Anand (IRMA) and Gujarat University ( with Resource Support of IIM-Ahmedabad ). Dr.Biswal is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple Computer Industries and Spar Inc., USA. He has worked for reputed National and International Organisations in Senior/Top Management Capacities. He is a management  expert, a prominent professional of India and known Internationally as well. He lives at Mumbai in India.

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