2. CONTENTS
5-6 Definitions
7-8 Work behaviour components
9-12 Typical scenarios
13-14 Strategies
15-17 Emotions
18-21 Forms of loss
22-23 Justice in the workplace
24-25 The organizational re-design process
26-31 Downsizing
32-34 Alternatives to downsizing
35-38 Layoffs
39-41 The costs of layoffs
42-44 What can I say?
45-48 What can I do?
49-50 Conclusion and questions
Page 2
4. Page 4
Introduction to Toronto Training
and HR
Toronto Training and HR is a specialist training and
human resources consultancy headed by Timothy Holden
10 years in banking
10 years in training and human resources
Freelance practitioner since 2006
The core services provided by Toronto Training and HR
are:
Training event design
Training event delivery
Reducing costs, saving time plus improving
employee engagement and morale
Services for job seekers
10. Typical scenarios 1 of 3
• Lowered productivity
• Fatigue and tiredness
• Reduced levels of employee
engagement
• Higher rates of sickness
absence including stress-
related health issues
• Decline in customer service
• Apprehension about the future
• Excessive spreading of
rumours and gossip
Page 10
11. Typical scenarios 2 of 3
• Drinking alcohol or smoking
• Withdrawal from team-based
activities
• Focusing all of one's attention
on "flight" or "getting out" of
the situation, instead of
focusing on work done
• Diminished creativity and
innovation
• Insecurity, anxiety and fear
• Resignation and sluggishness
Page 11
12. Typical scenarios 3 of 3
• Communication difficulties
• Feelings of injustice, distrust
and often anger towards the
organization
• Observation that optimism is
not an attitude that squares
with the organization’s
overriding values
• Competitive and very divisive
atmosphere
• Resistance to change
• Intention to leave employment
Page 12
19. Forms of loss 1 of 3
• Loss of security and support
• Loss of control
• Loss of positive outlook
• Loss of self-efficacy
• Loss of territory
• Loss of identity
• Loss of perceived competence
• Loss of relationships
• Loss of justice and truth
Page 19
20. Forms of loss 2 of 3
THEORIES
• Psychodynamic theory
• Attachment theory
• Task theory
• Social learning theory
• Cognitive behavioural theory
• Constructivist theory
• Transition theory
Page 20
21. Forms of loss 3 of 3
• Stages of grieving
• Sense of justice and
supervisory support
• Dealing with loss
Page 21
25. The organizational re-design
process
• Define key principles
• Review programs and activities
• Re-design structures and
processes
• Review roles and functions
• Align decisions in planning and
strategies
Page 25
28. Downsizing 2 of 5
IDENTIFYING EXCESS POSITIONS
• Assess current organizational
structure
• Pinpoint surplus individuals and
overlap
• Determine optimal organizational
structure
• Highlight excess positions in the
organizational structure
Page 28
29. Downsizing 3 of 5
DECISION TO DOWNSIZE
• Cost reduction
• Productivity improvement
• Responding to competitive
threats
• Consolidation after a merger or
acquisition
• Increasing efficiency
Page 29
30. Downsizing 4 of 5
WAS IT FAIR?
• Whether it was justified
• Whether it was consistent with
corporate culture
• Whether management provided
ample advanced notice
• Whether management provided
adequate explanations
• Whether senior managerial levels
were also affected
Page 30
31. Downsizing 5 of 5
WAS IT FAIR? (CONTINUED)
• Extent to which terminated
employees were taken care of
• Extent to which employees were
involved in the downsizing process
Page 31
36. Layoffs 1 of 3
• develop an effective
communication strategy which
is ongoing and consistent with
as much information as
possible
• plan the layoff process so that
it is – and is seen to be –
fair, objective and transparent
• treat those employees at risk
of losing their jobs, are treated
with compassion and respect
Page 36
37. Layoffs 2 of 3
• try to do all the cuts at the same time
and provide a ‘soft landing’ ideally
• if possible tell survivors how the
decisions were made
• make sure that the survivors know
that you understand they may
experience problems after the
restructuring, and that they will be
given practical assistance after the
layoffs have taken place
• be as open and honest with
employees as possible to foster trust
Page 37
38. Layoffs 3 of 3
• develop success criteria – as well as
identifying objectives linked to the
layoffs, ensure that targets based on
the remaining workforce are
developed-one measure of a
successful layoff exercise lies in the
number of survivors who
subsequently remain (rather than
resign) and who continue to be
motivated and perform at their
previous level of competence
Page 38
40. The costs of layoffs 1 of 2
• Severance pay
• Paying out accrued vacation
and sick pay
• Outplacement costs
• Cost of rehiring employees in
the future
• Low morale and risk-adverse
survivors
• Potential lawsuits
• Sabotage
Page 40
41. The costs of layoffs 2 of 2
• Workplace violence from
aggrieved employees or former
employees
• Loss of institutional memory
and knowledge
• Diminished trust in
management
• Reduced productivity
Page 41
43. What can I say? 1 of 2
CO-WORKERS
• Sad to hear about it
• Display empathy
• Offer to help in any way
• Listen
• Not too many questions
• Let them guide the discussion
Page 43
44. What can I say? 2 of 2
MANAGERS
• Be open and honest about your
feelings
• Demonstrate personal empathy
• Respect individualism
• Prepare and distribute question
and answer documents
• Shift focus to the future
• Offer visible support
• Apply multiple communication
channels
Page 44
46. What can I do? 1 of 3
• Thorough, two-way
consultation with a clear vision
of a brighter future
• Practical support in managing
workloads
• Support in skill development to
equip staff for new ways of
working
• Involvement in change
programs
Page 46
47. What can I do? 2 of 3
RESPONDING TO SURVIVORS
• Treatment of survivors
• Ignoring and distancing
• Managers and organizational
silence
• Underestimating the survivor
loss
Page 47
48. What can I do? 3 of 3
SCOPE FOR IMPROVEMENT
• Trust in management
• Levels of employee
engagement
• Productivity
• Stress levels
Page 48