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To crises most of these measures turn out to be

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Unformatted text preview: asures Flexibility measures Cutback measures Processes are streamlined Job mobility is reinforced: employees are trained to perform different jobs Fixed-term contracts are not extended The number of hierarchies is reduced and the span of control is increased Performance management is tightened Hiring criteria are tightened Flexible work time is set up: pay is reduced for reduced working hours Employees are compensated for earlier overtime Tasks are centralized in shared service centers Work is outsourced Subcontracted activities are insourced The workweek is shortened temporarily The profit-related component of compensation is increased Work is offshored Company events are cut back Recruiting is cut back Employees are laid off Training is cut back Employees are forced to take their vacations Bonus payments are cut back or postponed Fringe benefits are cut back or postponed Part-time work arrangements are increased Overtime is no longer paid out The share of temporary employees is increased Early retirement is increased Base salaries are reduced Unpaid leaves are increased Pension plans are reduced Employees are encouraged to go on sabbaticals The nonmonetary component of compensation is increased High performer Less oen More oen Low performer (usage of methods by low performer in comparison with high performer) Seldom Oen Usage of measure Sources: Proprietary Web survey with 5,561 responses; 731 responses in this section; BCG/WFPMA analysis. KLM Keeping the Family Together From oil price shocks to avian flu to terrorism, few industries work as close to the edge of the next crisis as the airline industry. KLM, the Dutch arm of the Air France–KLM Group, recognized the importance of developing a less reactive approach to crisis management. Under the theme “Keeping the Family Together,” this initiative has changed the mindset of KLM employees, employee representatives, and managers. Flexibility in the form of occupational mobility represents a pillar of the new initiative. As Wim Kooijman, KLM’s executive vice president for HR and industrial relations, put it, “Being a KLM family member means that everyone in the firm is willing to work where they are needed the most, that they are willing to develop new skills, look after themselves, and stay healthy.” In return for a no-layoff commitment, KLM’s management asked employees to be willing to step out of their current roles and temporarily transfer to other positions. C P A “We had pilots handling baggage or doing quality and maintenance checks. Or we had cabin crew members working with the ground staff. All this happened on a voluntary basis,” Kooijman said. Besides the direct savings associated with hiring fewer temporary workers, KLM benefited from engaging the workforce in taking on these challenges. The alternative offered only temporary relief, since forced layoffs come with high direct and indirect costs. Even worse, Kooijman pointed out, “You paralyze the organizat...
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