Organizational downsizing can negatively impact remaining employees by increasing their workloads and potentially causing negative reactions. Managers can minimize these effects through clear communication, maintaining morale, providing support, and re-motivating employees. Effective communication includes explaining the reasons for downsizing, future plans, and addressing employee concerns. Maintaining morale involves anticipating responses, implementing interventions like training, and monitoring indicators such as surveys. Managers can provide supports through counseling, career assistance, and ensuring employees have the skills to handle new roles. Re-motivating involves focusing on goals, involving employees, and recognizing contributions.

1. Organizational downsizing Group 6

2. In recent years, many organizations downsize and lay off their employees. The remaining employees often have increased workloads. What are the possible negative reactions that he remaining employees may have? What can managers do to minimize the negative effects of downsizing? Introduction

3. Reasons of downsizing Business Demand Reasons (Demand decreases, supply Decreases) Disaster/Safety Reasons (Financial Crisis, Financial Tsunami) Financial Reasons (Lay off to reduce cost and increases cash flow) Organizational Reasons (Change in structure) Production Reasons (e.g., automation and technological advances) Seasonal Reasons (demand is affected by season - e.g., agriculture)

4. PCCW HSBC….Ppls feeling + results http://www.youtube.com/watch?v=yF8xphlFj8s&feature=related http://www.youtube.com/watch?v=SfISF3vatZ8 Examples

5. Behavioral reaction

7. Due to increased workload and reduced time for rest

8. Each worker will take up more task which may not be of their strength

9. Greater number of occupational diseases

11. due to job insecurity

12. less likely to innovate and take risks

13. Worsened Relationships

16. Reduced Job satisfaction

17. Reduced job insecurity

18. Employees are afraid of making mistakes and be subject to next round of layoff

20. Demoralization layoffs are disheartening lower work performance lower commitment lower productive lower profit Unfairness Remaining employees may doubt about the way of choosing who should be fired Managers should rebuild trust in company's management and direction. Demoralization and unfairness

21. Worry Reduction on salary Another lay-off Prospect of the job Stress Facing an increased workload Maintaining high work quality Workers may suffer from high pressure Worry and stress

22. Disillusioned lay-off shows the company is facing financial problem Remaining employees worry about the company’s future and the prospect of their job Guilty The remaining employees lost good friends and coworkers in company's recent layoffs Disillusioned and guilty

23. Decision of layoff is issued by company Employees has no right to say Lack of contribution Low self-esteem

24. How to reduce the negative effects on the employee?

25. Implementation of downsizing Communication Maintain the morale in the company Provide supports to the current employees Re-motivate the employees Ways to reduce the negative effects

27. Weighed totem pole

28. Be cautious when hiring outside executives as they may not be sufficiently knowledgeable of the industry to help the company. Keep employees informed about the company's goals and expectations. Set realistic expectations; executives must be optimistic but realistic. Use ceremonies to reduce anger and confusion - to convey to employees what is going on. Eight-step strategy for downsizing

29. Implementation of downsizing Communication Maintain the morale in the company Provide supports to the current employees Re-motivate the employees Ways to reduce the negative effects

31. By communicating with employees, it can make them feel part of the organization and restore their loyalty.

32. Communication will help to curb the worry and re-direct employee energies to the job at hand (Fisher, 1988).Communication

33. The communication should cover the following topics: Point out weakness, room for improvement of the lay-off employee Admit the fact of downsizing individually and confidentially. The fact that changes are coming. The purpose of the downsizing. The need for growth and profitability. Explain future plans. Describe what effect is expected on the organization. Emphasize that laid-off employees will be treated with respect and dignity and will receive appropriate severance pay. Listen to employee concerns. Communication

35. To emphasize this point, talk about where the company is headed, and describe any plans for growth.Communication

36. Communications Maintain the morale in the company Provide supports to the current employees Re-motivate the employees Ways to reduce the negative effect

38. There are three common aspects to a strategy for influencing morale. They were the ability to: Anticipate employee response. Identify interventions to impact morale. Monitor and evaluate morale and the impact of actions taken. Morale

39. Convince the workforce that job reductions were necessary. Apparent clarity or fairness in deciding on individual redundancies. Care over redundant staff. Managers should be willing or able to provide adequate time and support to individuals. Anticipating Employee Response

41. It will be seen as insensitive to deny the reality of the painful aspects of the change.

42. Communication has to be honest. Interventions To Build Morale

43. Giving direct support to the ‘survivors’ as well as the ‘victims’ of downsizing. Provide supports in the fields of Stress Management and Careers Counseling. Rebuild relationships through team building activities to between and within groups and departments. Interventions To Build Morale

44. Provide training to help staffs adjust to new job demands. Make them clear about what they are expected in the new working environment. Adopt reward strategies to boost morale. Use regular forums for managers to share their concerns with their peers throughout the change period, and avoid them feeling isolated. Interventions To Build Morale

46. For example, staff turnover, absence from work and performance indicators is often monitored numerically.Monitoring And Evaluation

47. Employee Attitude Surveys Through the increasing use of employee attitude surveys, attitudes and perceptions of employees are obtained. These can be used both to identify variations in response within the workforce, and track changing perceptions over time. Upward feedback Upward feedback is another way of collecting information on employee morale and response to initiatives. Monitoring And Evaluation

48. Communications Maintain the morale in the company Provide supports to the current employees Re-motivate the employees Ways to reduce the negative effect

49. Provide a timeframe. Provide psychological and career counseling. Provide training to the staffs. Providing supports

50. Communications Maintain the morale in the company Provide supports to the current employees Re-motivate the employees Ways to reduce the negative effect

51. Employee Commitment 1. Focus Establish clear goals, expectations, and values. 2. Involvement Employees have input into planning, problem solving, and decision making that affect their job. Re-motivate employees

52. 3. Gratitude Recognition and appreciation are shown for employee efforts and accomplishments. 4. Accountability Responsibility is given and producing results at high standards expected and upheld. Re-motivate employees

53. What managers do to minimize the negative effects of downsizing towards the people being lay off? Clear explanation Outplacement Financial assistance

54. Loyalty Morale Job satisfaction Organizational commitment Physical and mental health Work quality Effects on the employees

55. http://www.youtube.com/watch?v=AVAIojrW9_I http://www.bls.gov/mls/mlsrstruct.pdf http://money.cnn.com/video/news/2009/03/02/news.hsbc.030209.cnnmoney/ ref