Tuesday, August 7, 2012

Human Resource Management | Downsizing

What can managers do to manage downsizing? 

Downsizing or layoffs is the planned elimination of jobs in an organization. When an organization has too many employees—which can happen when it's faced with an economic recession, declining market share, too aggressive growth, or poorly managed operations—one option for improving profits is to eliminate some of those excess workers.

In order to manage downsizing, managers should:
a. communicate openly and honestly - Managers must inform those being let go as soon as possible. They should also tell the surviving employees the new goals and expectations and also explain the impact of layoffs to them.

b. follow all the laws regulating severance pay or benefits.

c. provide support/counseling for surviving employees.

d. reassign roles according to individuals' talents and backgrounds.

e. focus on boosting morale - Managers should offer individualized reassurance, continue to communicate, especially one-on-one, and remain involved and available.

f. have a plan for the empty office spaces/cubicles so it is not depressing for surviving employees.

Source: Management, 11e (Robbins/Coulter)

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