Section Four DEALING WITH EMPLOYEE SURPLUSES
There are several methods by which companies may reduce the
likelihood that they will have to lay off employees. These
include both short-range and long-range approaches. Several of
these approaches need further explanation. Two of these are
redeployment and retraining, with the latter often being
required before employees can be redeployed without being
laid off.
Redeployment and Retraining
The prevention of skill obsolescence and career plateauing
were covered earlier. Unfortunately, obsolescence is not always
prevented and retraining may be required. With the increased
rate of technological change and potential for skill
obsolescence, retraining may become more important. As a
result, many companies provide retraining for managers whose
skills have become obsolete. A critical determinant in the
success of such programs is managers’ self-efficacy beliefs, or
expectations that they will be successful in mastering the new
skills. Interestingly, some companies send the wrong
message.^43