Preview

Employee Morale After Downsizing

Better Essays
Open Document
Open Document
6263 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Employee Morale After Downsizing
Employee Morale After Downsizing Downsizing has become a significant idea in today 's economy and maintaining the trust of employees when something like this takes place has also become very serious business (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). The question is not whether a company should downsize their employees but how to do the downsizing properly so that as few employees as possible are injured (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). There are several ways that companies can downsize that will help retain much of the loyalty of the workers that remain (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994).
Companies who downsize through attrition and buyouts, those companies that work to help downsized employees find new jobs, and companies that are willing to provide outplacement services to those individuals often end up in positions that are much better than companies that simply fire workers due to downsizing (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). These companies who show that they care about the workers that they have to remove through downsizing have a much greater chance of retaining a lot of the loyalty originally given to them by the workers that survived the downsizing (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994).
Trust is a very important asset for these companies but it is very difficult to achieve and just as difficult to hold on to (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). If companies are willing to downsize in a way that is considered to be very humane by many of the workers these companies will fare better in the long-term than companies who perceive workers as disposable (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). Late in the 1970s, companies began to downsize workers (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). They



Cited: Brockner, J., Konovsky, M., Cooper-Schneider, R. Folger, R., Martin, C., & and Bies, R.J. (1994). Interactive Effects of Procedural Justice and Outcome Negativity on Victims and Survivors of Job Loss. Academy of Management Journal, 37, 397-409. Brockner, J., Tyler, T.R., & Cooper-Schneider, R. (1992). The Influence of Prior Commitment to an Institution on Reactions to Perceived Unfairness. Administrative Science Quarterly, 37, 241-261 Cole, J Daft, R.L. &Lewin, A.Y. (1993). What Are the Theories for the 'New ' Organizational Forms? Organizational Science, 4, i-vi Davidow W.H Hirschhorn, L. & Gilmore, T. (1992). The New Boundaries of the 'Boundaryless ' Company. Harvard Business Review, 70: 104-115. HR Paints a Bleak Portrait of Downsizing Survivors. (1993). HR Focus, 70, 24. If You Are Going to Downsize, Says U.S. Labor Secretary Robert Reich, Do It Gently. Interview, (1996). Sales & Marketing Management, 148, 118-123. Kets de Vries M.F.R. & Balazs, K. (1997). The Downside of Downsizing. Human Relations, 50, 11-50.

You May Also Find These Documents Helpful

  • Better Essays

    Downsizing is a strategy to improve an organization’s efficiency by reducing the workforce or changing and restructuring the systems of the organization (Belcourt & McBey, p. 260). There are multiple factors that are forcing Stonewall Industries to make the ultimate decision to downsize. Environmental factors play a vital role in effective Human Resources Management, impacting the strategy of any organization, including the decision to downsize. If Human Resource Planning is not adaptive to relevant environmental factors and change, then the organization can seriously suffer.…

    • 1458 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Possible solutions at managing layoffs would include considering alternatives to reducing staff, properly training managers how to handle layoffs, or implementing a hiring freeze. Companies should consider whether job losses are in fact necessary. Too often organizations result to downsizing and don’t even consider the alternatives because they want to show shareholders they are trimming costs. Alternatives to layoffs include cutting wages in management as well as lower level positions, transferring employees to other departments, and using fewer contract workers. Also, training managers on the different type of…

    • 333 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    -Issues related to racial diversity (don't worry about specific percentages of those employed, just know the overall idea)…

    • 316 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Qantas International

    • 2259 Words
    • 10 Pages

    Litter, C. C. And P. Innes. 2001. Does Downsizing Improve the Skill- base of Organisations? Downsizing: Is it Working in Australia? Australia: The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.…

    • 2259 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Downsizing, no matter how it is done, creates stress and corporate discontent for employees, and proper human resources planning attempts to limit this negative impact. Employees who are discontent can display negative behaviours and performance issues may begin to arise. With issues in performance within the organization, productivity may begin to decrease, which means that the cost to produce goods once again increases, threatening the benefits that may have come from downsizing.…

    • 1015 Words
    • 5 Pages
    Good Essays
  • Better Essays

    The employees of an acquired firm have no history with an acquiring firms management and therefore it is highly unlikely they will have the same level of trust as employees of the acquiring firm (Bargeron, Lehn, & Smith, 2015). In order to build this trust, the organization needs to inform their employees that mistakes have been made, that they’re aware of these mistakes, and that they are going to rectify them. Next, since employee appraisals have not been conducted correctly in the past, there is no way the company can utilize these appraisals in order to determine future layoffs. In turn, D- Bart’s best option is to put all employees on the same playing field, by conducting job interviews in order to determine who will be moving on to the new company (Gomez-Mejia, Balkin, & Cardy, 2016).…

    • 990 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Throughout corporate America, downsizing is a common practice. The concept of downsizing as a strategic tool wasn 't introduced until the 1980 's, and today it is a well known system. This has been caused by the accelerated growth of international and global competition throughout the past two decades. Increasing competition is forcing companies to drive their costs as low as possible, and the quickest, easiest way to cut costs is to cut jobs. Top management within corporations is most worried about the impact downsizing will have on their costs, and they are usually less apprehensive about the influence on the employees affected. Two views on this topic are presented in Marc Street 's Taking Sides. The first will argue against downsizing for…

    • 1409 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Academic Advisor

    • 1566 Words
    • 7 Pages

    There are two terms of downsizing: downsizing by need and downsizing by preference. On the first case the company is obliged to reduce number of its employee without previous planning due sudden challenges like financial crisis, new technology revelation and market changes, In this case employees can lose there jobs permanently. On the second case, organizations have a stable situation in the market and there is no…

    • 1566 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Brockner, J. (1992) stated that “if the layoffs are mismanaged, thereby hampering survivors ' productivity and morale, then the organization stands to lose a sizeable portion of the savings it hoped to achieve by introducing layoffs.” Even though employee layoffs may allow organizations to cut jobs and safeguard relationships with the existing employee this can be create a challenge to the remaining employees in that, they may experience excessive stress of increase workload, lack of motivation and they may consider searching for a new place of employment to reduce redundancy. Heathfield, S, M (2010) stated that “employees experience an increased level of…

    • 1388 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    Home Depot Hr Role

    • 1930 Words
    • 8 Pages

    McKinley, W., Sanchez, C. M., Schick, A. G., & Higgs, A. C. (1995). Organizational downsizing: Constraining, cloning, learning [and executive commentary]. The Academy of Management Executive (1993-2005), 9(3), 32-44. Retrieved from http://www.jstor.org.proxy.library.georgetown.edu/stable/4165271…

    • 1930 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Motivational Methods

    • 1119 Words
    • 5 Pages

    Organizational downsizing constitutes a set of activities designed to improve organizational efficiency, productivity, and competitiveness. These activities are undertaken by management. Whether implemented through attrition, layoffs, hiring freezes or a combination of these methods it is usually cost driven and considered more efficient for the organization. The success of the downsizing requires a well restructuring plan, good communication regarding the plan, employee involvement to include time comment, energy, and effort in implementing this plan. Once planning the change, identifying the challenges and implementing the transformation the ensuing downsizing and expected results from placed initiatives need to be evaluated and addressed. This restructuring would capitalize on existing profitable programs while eliminating high cost and low utilization programs. This strategy can also support more permanent cultural structures and ensure success for excellence not just cost savings (Woodward, 1999).…

    • 1119 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    There is a well known issue in corporations when it comes down to downsizing. Corporate downsizing is that act of corporations cutting workers usually by closing whole plants or divisions to increase profits. This practice is often used today and is thought by some to be a moral practice to improve economy overall. On the other hand, some think that it causes the workers great suffrage from unemployment, which leads to loss of homes, depression, and crimes. Furthermore, it affects the economy by the decrease in money flow. Many believe that the people who invest their money in the corporation (shareholders) deserve to have the most interest from the managers to maximize their profits. One method of maximizing their profits is to downsize workers. Some people have a problem with that because they believe that the employees being cut at the expense of maximizing profits for the shareholder is morally wrong. John Orlando thinks that downsizing is often wrong. In his article, The Ethics of Corporate Downsizing, he gives both sides of the argument for downsizing then tells how to apply his finding in real corporations.…

    • 962 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The euphemism, downsizing describes the involuntary termination of a number of employees based on an employer’s decision to reduce staff or to cease operations all together (Walsh, 2013). Employers are often faced with tough decisions to reduce staff in response to many different factors. There are important legal issues that need to be considered as they will impact business owners if not addressed.…

    • 815 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Being that this is uncharted territory for the company, Jim Claussen, vice president for human relations, had been struggling with how to address the issue with employees. As the company’s fortunes worsened, he could see that employees were becoming more and more disaffected. Their insecurity about their jobs was taking a toll on attitudes. The company’s downsizing was big news, and the employees didn’t like what they were hearing.…

    • 1941 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Ethics

    • 583 Words
    • 3 Pages

    It seems unavoidable these days that it is all about dot com or tech company going through downsizing or layoff due to economy hard times, evolving business climate, product profitability and operation cost decision. Although corporate downsizing is an existing and accepted management tool but the morality is still in doubt. Sadly, most of the time it is unclear at the worker level why he or she is being terminated at an already profitable business. All forms of downsizing are unethical and there is no evidence shows that there is real upside to the company after eliminating the employee in terms of profit increase. In any case, the affects can be serious for the company business itself and employee.…

    • 583 Words
    • 3 Pages
    Good Essays

Related Topics