Tuesday 20 August 2013

The Boredom Rooms in Japanese Companies- New Management Trend!


The Boredom Rooms in Japanese Companies- New Management Trend!

I read an article on the internet,  which said in Sony Corporation in Japan, Boredom rooms or Chase out rooms have come up to lay off employee indirectly as the labor legislation in Japan supports job security, unlike American companies where the norm is Hire and Fire policy.  Below is the link about the Boredom room a new trend  in Sony, NEC and other companies as per the article.


After reading the above article, as a HR practitioner was really startled and disturbed to know that the management can even think such way’s to lay off resources?  

In some Indian companies prior to recession, to lay off someone who is not performing or toeing the line of management was to change the reporting structure internally or bring someone above the employee. Thus not providing an internal growth so that employee feels ashamed and looks for opportunities outside the department/location within the company or leaves the company on his/her own accord.

During the recession, the companies in India and other western countries have been ruthlessly  laying off resources- Lehman brothers is a great example of 2008 recession and the company was in existence for more than 100+ years http://en.wikipedia.org/wiki/Lehman_Brothers.  Now the question is what is ethical practice- whether laying of resources due to recession or separation due to non-performance is right as is done in US which is the norm in India too last many years or consider Japanese culture where it is practiced as “Life time employment and be hypocritical by retrenching an employee through a boredom/chase out rooms.

In my opinion that there is no stigma attached today, unlike earlier times and a practical way to handle the recession or non-performance is through a separation.  The best way to do this exercise should be through a Human touch, empathy and sensitivity. 

It is always better that  the reporting manager/management/ HR talks to the identified employees so as to make them realize that their continuity is a challenge in the organization as the company will not be able to do justice to them. The growth, opportunity through a career progression or support them monetarily through increments/revisions- because of their non performance or due to the economic scenario, is not possible.  The pain is the same whether you put them in Chase out rooms or hire and fire policy.  The best way is to speak to the employees directly with sensitivity, it builds confidence.  If need be, speak to Union’s where Union exists, instead of alienating the employee in boredom rooms and making them suffocate. “The saddest thing is when you are feeling low & down; you look around to realize that there is no shoulder for you”. This is the pain and trauma one goes through during loneliness.

The management has to have a dialogue as part of separation so that management’s point of view is put forward and employee’s concerns are addressed- it is a two way process to provide a win-win solution. Employees appreciate the straight talk, they will have respect for the management / Leadership style and the core values of the organization.  The message should come out clearly that the decision is out of compulsion and market scenario and definitely not personal- It is a business decision.  There is hope for the employee to return, when the market opens or they upgrade their skills. Such professional approach is mutually beneficial to employee as well as management.

In my opinion the Sony Corporation need not have created the Boredom/Chase out rooms and keep the reluctant employee in the system.  If the decision is on sympathy or legislation, they can very well pay the salary as part of settlement or pay them through a negotiation while they are at home, so that a negative behavioral impact in the system can be avoided.  Retaining an employee in boredom room and playing with their psych is not a healthy Management/HR trend.

While balancing between the management and employees as a people strategist, HR has some moral commitments to the profession. Managing resource rationalization is an (he) art and has to be done with due respect, which I will share my experience as a HR Leader in subsequent posts.

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