The employees have to know the criteria for the selection of employees to leave the organization in the headcount reduction. As the organization decides about downsizing, the HRM Function has to propose the general rules for the headcount reduction.
When the general rules are not applied in the process of the headcount reduction, the process is not fair and transparent and it is not consistent and it bring huge damages to the organization.
The HRM Function has to have a serious discussion with the top management to set up the general rules for the headcount reduction and it has to monitor the whole process as the managers select the employees to leave the organization.
The HRM Function should propose the rules, which brings a limited damage to the organization. The managers should prepare the lists of employees to leave the organization and the HRM Function has to make a background check. The HRM Function collects a lot of data about employees and managers and they can be checked against the lists of employees.
The HRM Function has a lot of historical data about the results of the performance reviews, the data about the historical salary reviews and much other information about the life of employees in the organization.
The HRM Function has to monitor the internal consistency of the lists as the employees with similar behavior and results should be collected. Additionally, the top management can decide about the special conditions for the headcount reduction, as the employees with the worst performance appraisal results have to be automatically on the list.
The HRM Function has to keep the consistency and it has to provide the managers with the immediate feedback on their own selection of the employees in the headcount reduction.
