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Are pink slips guided by performance?

Created by : Vikash Jaiswal, Business Analyst, SAP  | 09 16 2008 05:29:33 +0000
Industry : IT ProductsFunctional Area : Application Software(Technology)
Keywords : Hr Employees Performance INFOSYS WIPRO It Companies SATYAM TCS Pink Slips PATNI Global Slowdown Hr Dept Guided
Activity:  1036 views;  last activity : 07 06 2010 20:18:09 +0000

What do you say? 

Reference: http://infotech.indiatimes.com/articleshow/3486035.cms

Seems the ugliest face of slowdown -- pink slips -- is back at Indian IT cos. After Wipro sacking thousand and putting another 3,000 under scanner, came the reports of the country’s no. 1 IT exporter TCS planning another round of layoffs.

The fourth largest IT services exporter Satyam too is reported to be giving pink slips to as many as 4500 of its employees.

Incidentally, all companies have termed the job cuts as purely performance-based. Said a Satyam spokesperson, "The bottom 5 per cent of those who have got a bad appraisal are put under PIP (performance improvement plan) and given dummy projects to prove themselves. If they fail they will be shown the door. But some of them marked for PIP said they have been given very little time to come up as winners."

However, even as it downsizes, Satyam continues to hire new employees in thousands. Over 40 per cent of them are fresh blood just passing out of college.

The HR department of other IT companies too sings a similar tune. Are pink slips really based on employee performance or are they a result of a tough economy.

Are pink slips really a belt tightening measure from IT companies facing sagging bottomlines due to global economic turmoil?

Share your views on it...

 
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Yes Vs No
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Top Argument
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I will say YES as the companies are also cautious on there brand and the dont want a word to spread out in the market about the layoffs which can hamper there reputation. So taking the PIP route is the easy way out I have recently seen PIP been given to guys who were on bench from past some time ... the question I want to make is that If the company is not able to engage a person in a project how come the person be held liable for it. Its the management who have hired those guys based on there forsight and if that has not worked it the top bass who shd take the responsiblity.


By Darpan Sinha, Tech Architect, Royal Bank of Scotland  11 17 2008 11:39:40 +0000
 
Top Argument
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I feel it is the effect of global slowdown and they don't necessariliy be dependent on performance.
By Vikash Jaiswal, Business Analyst, SAP  09 16 2008 05:29:33 +0000
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Yes.most of the layoffs or the pink slips that are being handed over to employees are purely based on their performances.But as Mr,Darpan and Mr.Sujoy said if the management themselves are not able to engage an employee in a project after hiring him in the first place then its their fault and the employees can't be fired just like that.Before appointing or hiring someone a company should think of the work that will be allocated to the person so that he didn't have to face any humiliation after some time.
By Dipen Trivedi, Project Manager, 3i Infotech  | 04 27 2009 08:31:59 +0000
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I agree with Darpan in the respect, that the management should take up responsibility. Unfortunately in some "big companies" some of the top mgmt try to save their own skin, and put on the blame to the subordinates .

The subordinates get the pink slips and the mgmt ( who should have honoured their own fault ) stay put.

The most funniest part of the story is that these companies also aim for a PCCM Level 5.!!!!!

 
By Sujay Ghosh, Principal Software Engineer / Individual Contributor, SOAIT Solutions (Worksoft Inc.)  | 03 26 2009 10:25:15 +0000
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Companies ideally do it once they couldn't make business, it is all marketing stunts. When the Companies feel that they are going to win a bid, they shall start recruiting in numbers, once the deal is not reached, then they give pink slip to employees. To Keep the companies goodwill, they give a bogus name called "Employees given pink slip due to performance"
By Sathish Kumar, SAP Basis Administrator, Logica  | 09 28 2008 17:12:55 +0000
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In the absence of yardsticks to evaluate the performance (basic concept : Individuals differ from each other , even the identical twins differ from each other) Pink slip is the Curse... No relevant to Indian context.
By G C Jagadeesan, Retired Client Banker - Corporate Banking, ICICI Bank  | 04 27 2010 05:15:32 +0000
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I agree with Rizwan Ahmed that " Pink slips are more of a political gimmick". An unusual way to kick the employee out of the organisation.

And Yes pink slips are guided by performance, but with the performance of the organization than the employee. If organization is not doing well because of fraud and all employees are the one who are show the doors and not the top C's of the organization.
By Arun Sarin, Business Analyst, Oracle  | 04 08 2009 10:03:11 +0000
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Absolutely right Mr.Sinha.

I know a person who was on bench for almost 6 months, and she was getting paid for it. The company didn't have any project and the company was not able to engage her and her colleague. They can't laid them off because they were doing pretty well in the last project.

Finally when other companies started to lay off to cut cost. This one also started to implement it.

Pink slips are given when the companies want to cut cost. To survive the market downturn.
By Dipen Trivedi, Project Manager, 3i Infotech  | 04 02 2009 11:27:50 +0000
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No, pink slips are not guided by performance rather it depends on the profit that the organisation in making or the problems it is facing due to the economic slowdown and all.


By Radhakrishna Marar, Business Analyst, Oracle  | 03 27 2009 09:22:41 +0000
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The recession and the global slowdown are the major causes the layoff's and pinkslips.

Some top managers say it as a cleanup period and is purely on performance basis (most of the time).
By Anil Kumar Lohithan, Project Manager, Zensar Technologies Ltd.  | 02 04 2009 08:51:44 +0000
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yes companies should stay healthier to g row further and sheeding extra load is a good idea so that they can come out of the problem
By Vinayarajan KV, Head/VP/GM-Sales, EP Tech  | 11 17 2008 04:45:35 +0000
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Actually, companies edge out the bottom non-performing employees in most cases. This is a measure to stay in the hunt and enrich its profit. However, its is also true that they edge out freshers if projects do not come their way.

Hence, its is a common excercise, so I dont think there is nothing to create a hullbo for this.


By Kishalay Majumdar, Software Developer, IBM India Pvt. Ltd.  | 09 28 2008 19:17:57 +0000
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Pink slips are more of a political gimmick.
By Rizwan Ahmed, Associate Vice President, Quality Management Concepts Pvt. Ltd  | 09 27 2008 08:26:39 +0000
1
0

yes  company  has  to  show  action  ,signal  that  things  are  not  so  good  now  and  executives  have to  perform

to  retain  profits.
By seshadri srinivasan, Admin/Facilities Manager, ashok leyland,technical centre,chennai 103  | 09 19 2008 08:50:24 +0000
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