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Discussion Thread: Training, Development, and Separations
Reply to Classmate’s Post (C.M)
• Your reply to the classmate’s post (see below) must be 250-300 words
• 2 Scholarly Sources (published within the last 5 years) must be used and cited properly in text and in References section (APA 7th Edition)
• The textbook must also be used as a source
• Include Biblical integration (include Scripture, passage, and how it applies)
• All citations and references must be in current APA format
• Do not use the same sources or Biblical integration from your former post (also included below) or that the classmate used
Classmate’s (C.M) Post to Reply to:
Question that was asked: The impact of downsizing an organization through layoffs can have a devastating psychological impact on those employees who survive the layoff. If you were a manager in this situation, what concerns do you think you would have in managing the workforce going forward? What role would HR play in supporting managers in this effort?
Between 1981 to 1981, cooperate downsizing had become a worldwide practice, having attained its highest position in the most recent recession. For the companies that are experiencing economic problems, corporate downsizing is recommended due to its cost effectiveness, and a significant strategy to boost revenue while reducing cost.
According to research by Halrton (2019), a seven percent workforce decrease only results in a one percent reduction in total labor expenditures. Companies rarely achieve the promised improvements and instead endure the adverse effects of layoffs on those employees who remain employed after a round of layoffs. Those who are regarded to have survived a layoff are frequently individuals who are unsatisfied with their employment, lack trust in the organization, put less effort into it, and are severely overworked. As a result, a manager ought to be ready to address the survivors.
As a manager in this scenario, it would be evident to you the devastation that a layoff will bring for both the individuals who are let go and those who remain employed after the layoff. It is the management’s responsibility to ensure that the remaining workers are fully and openly talked about all the necessary changes to establish the level of comfort they feel and ensure that they grasp the situation. It is crucial in a situation such as this, according to Noe (2013), to ensure positive morale and that output continues to be done. Three essential things should be done to maintain morale.
As a manager, the first thing I would do is to ensure that the dialogue with the employees was clear and precise. In case of any discussions on termination of employment contracts, being honest and specific is always the best action to take to enhance integrity. The fellow administrator may have various challenges handling all the additional stress of not knowing and making decision on whether they will maintain their positions if any coworker gets fired from their work. The situation may be tough especially if the fired worker is a family member or best friend. Therefore, they expect to have their concerns aired, and I should do everything in my power to address and explain the challenge to them. Secondly, I must not watch and keep silent about the events that are transpiring in this whole time, rather I would stand high and address the issues. Lastly, I would ensure that every employee has got a personal mentor to talk to, whether it is a coworker, legal mentor or HRM, to get undisclosed information and further clarifications.
The manager is responsible on boosting positive energy by communication to the workers on reason for layoffs, as well as the processes that will be put in place to manage the layoffs. Colossians 4:6 says, “Let your speech [be] always with grace, seasoned with salt, so that you may know how to answer every man.” This verse is a reminder to us from the Bible. Those who could keep their jobs despite the layoff are more likely to be understanding and develop a positive view if they believe that their emotions count. The second step is not to ignore what is happening and call a meeting to inform the survivors and end the situation. The third is to ensure that the remaining employees’ interests and concerns are considered, as their contributions are vital to the firm (Sofia Chatzis, 2021). All these processes have a capacity for improvement by involving the docket of human resource as an active stakeholder in the procedure.
Since downsizing has become a major issue since 1980s, human resource management has discovered and implemented new ideas in its role. Wood (2017) points out that it is important for the human resource professional to have a vast knowledge and experience in the organization’s procedures and have a keen interest in all the processes and welfare of the company’s workers. While HR would explain the reason for the layoffs and offer a smooth transition, managers would be required to deliver the news in person rather than in a memo. HR would insist on this requirement. In addition, HR would maintain consistent touch with the survivors by keeping open communication channels to ascertain their level of contentment and address any problems they might have.
References
Colossians 4:6 (NIV)
Halton, C. (2019). Downsizing Definition. Investopedia. https://www.investopedia.com/terms/d/downsize.asp
Noe, R (2023). Human Resource Management – 13th edition. ISBN13: 9781264188895
sofiachatzis. (2021, February 10). CIPD Employee Engagement: An Evidence Review. Engage for Success. https://engageforsuccess.org/insights-data-surveys/cipd-employee-engagement-an-evidence-review/Links to an external site.
Wood, J. (2017, November 29). The Manager’s Role in Employee Well-Being. Gallup.com; Gallup. https://www.gallup.com/workplace/236249/manager-role-employee.aspxLinks to an external site.
My Former Post and References Previously Used:
Layoffs in the corporate setting entail temporary or permanent termination of employees. The layoffs are necessary for business settings even though they can psychologically affect the remaining staff. The reasons for layoffs are mostly due to pressure in the market with high competition, thus necessitating downsizing to cut costs. An evident example that led to layoffs and downsizing is the COVID-19 pandemic. Many businesses could not pay their employees and thus had to enact layoffs to aid them in running smoothly amid the global pandemic. Businesses throughout the globe enacted layoffs to sustain and maintain a competitive edge in the market, as many others faced closure due to bankruptcy and huge employee turnovers (Tarki et al., 2020).
The burden of layoffs is left to the managers, who must ensure that the remaining employees do not lose morale due to the layoff of other team members. Downsizing can have a negative impact on an organization as it can lead to reduced work morale. The remaining employees may feel betrayed after seeing some of their co-workers and close friends fired. It can alter the work environment with increased voluntary turnover and low innovation. Those who survive layoffs start worrying about their job security and may become detached from the workplace as they worry about possibly losing their jobs as well.
The effect of downsizing a company by using layoffs can leave a negative psychological impact on the surviving employees. They are arguably left with distrust and with low morale to continue working in an efficient manner. It is difficult for the managers, who are responsible for maintaining morale, encouraging continued teamwork, and ensuring the team continues to work towards achieving a common goal. The best approach a manager can employ is partnering with Human Resources, who may be equipped to better explain why layoffs occurred and how they are necessary for the organization (Mujtaba & Senathip, 2020). Trust lost due to layoffs should be earned by the manager by maintaining open lines of communication with the employees.
Managers can encourage employees to maintain their zeal and focus by reminding them of organizational goals and mission. Managers should inform employees of impending layoffs. Managers may also curb fear and distrust by communicating with their team what criteria is used for determining which employees will be laid off. Decisions should be made as swiftly as possible to minimize negative chatter that could instill further fear, distrust, or low morale amongst the team. Effective communication can aid the remaining employees in recovering quicker after layoffs are completed.
Human resources staff members can help managers to better manage the morale of employees who survive the layoffs. They can assist in ensuring that there is open communication between the employees and management. Managers, on the other hand, should communicate their expectations to their staff clearly and concisely. After some workers have been laid off, management should organize events such as bonding and team building to aid the remaining employees in rebuilding morale and becoming acclimated to new team dynamics. The event can work as a transition point and help employees have closure. Managers and Human resources personnel should communicate to the workers that the event is to aid employees in easily transitioning to normal operations after the layoffs (Noe et al., 2023).
The process of laying off employees and remaining with the most competent may be compared to the Parable of Talents. In the Parable of the Talents, Jesus Christ talks about a master entrusting his property to his workers whom he gave five talents, two talents and one talent, respectively. In the end, the servants with five talents and two talents worked hard and multiplied them, but the one with one talent was lazy and hid it. The master rewarded the servants who had worked hard and took away the talent from the servant who had one and gave it to the more talented one (Mathew 25:14-30). It relates to laying off less productive employees and rewarding those working harder to produce better results. The parable relays that it is a privilege to be given resources and opportunities, which should be diligently used to fulfill God’s purposes. In the work setting, the employees are entrusted with meeting organizational goals and thus should work hard to meet the objectives. Those who are less diligent in doing so may find themselves at greater risk of being laid off should an organization be placed in the position to need to do so.
In conclusion, layoffs negatively affect employees, but they are necessary for running an organization. Management and the human resources team should work towards encouraging and uniting the remaining employees. They can form meaningful relationships and boost their workplace morale by ensuring healthy communication between the workers and managers.
References
Bible, K. J. (1996). King James Bible (Vol. 19). Proquest LLC.
Mujtaba, B. G., & Senathip, T. (2020). Layoffs and downsizing implications for the leadership role of Human Resources. Journal of Service Science and Management, 13(02), 209–228. https://doi.org/10.4236/jssm.2020.132014
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2023). Human Resources Management: Gaining a Competitive Advantage, Thirteenth Edition. New York, MA: McGraw-Hill Education.
Tarki, A., Levy, P., & Weiss, J. (2020). The coronavirus crisis doesn’t have to lead to layoffs. Harvard Business Review Digital. Retrieved, 4.