Organizational downsizing can negatively impact remaining employees through increased workloads and job insecurity. Managers should minimize these effects through open communication, maintaining morale, supporting employees, and motivating them. Communication is key and should address the reasons for downsizing and future plans transparently. Maintaining morale involves anticipating reactions, implementing interventions like training, and monitoring attitudes over time. Providing career counseling, training, and a clear timeline can support employees. Finally, managers can re-motivate staff through establishing goals, involving employees, and recognizing contributions.

1. Organizational downsizingGroup 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 Disaster/Safety ReasonsFinancial ReasonsOrganizational ReasonsProduction ReasonsSeasonal Reasons

4. PCCWHSBChttp://www.youtube.com/watch?v=SfISF3vatZ8Examples

5. Negative reaction- Attitudinal reaction- Behavioral reaction

6. Reduced job insecurity

7. Afraid of making mistakes

8. Afraid of being laid off later

9. Increased turnover intentions

10. Reduced Commitment

11. Reduced Job satisfactionAttitudinal reactions

12. Population of psychological effect that the remaining employeessuffer

13. Demoralization layoffs are disheartening lower work performance lower commitment lower productive lower profitUnfairnessDoubt about the way of choosing who should be fired Demoralization and unfairness

14. Worry Reduction on salary Another lay-off Prospect of the jobStress Facing an increased workload Maintaining high work quality Workers may suffer from high pressure Lead to psychological disease, such as PhobiaWorry and stress

15. Disillusionedlay-off shows the company is facing financial problem Worry about the company’s future Guilty The remaining employees lost good friends and coworkers in company's recent layoffsDisillusioned and guilty

16. Employees has no right to sayDecision of layoff is issued by companyLack of chance to express their feelings and thoughtsLow self-esteem

17. Lowered work effort

18. Due to job insecurity

19. Less likely to innovate and take risks

20. Worsened Relationships

21. Relationships between employees tend to be less "familial"

22. Be more competitiveBehavioral reactions

23. Increased absence rates

24. Due to increased workload

25. Due to reduced time for rest

26. Take up tasks which may not be of their strength

27. Greater number of occupational diseasesBehavioral reactions

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

29. Implementation of downsizingCommunicationMaintain the morale in the companyProvide supports to the current employeesRe-motivate the employeesWays to reduce the negative effects

30. Be fair in implementing layoffsUse weighed totem poleEight-step strategy for downsizing

31. Allow employees to leave with dignityHelp those displaced find new jobsAvoid belittling laid-off employeesBe cautious when hiring outside executivesEight-step strategy for downsizing

32. Keep employees informed about the company's goals and expectationsSet realistic expectationsUse ceremonies to reduce anger and confusionEight-step strategy for downsizing

33. Implementation of downsizingCommunicationMaintain the morale in the companyProvide supports to the current employeesRe-motivate the employeesWays to reduce the negative effects

34. After downsizing, employees spend significant amounts of time gossiping and worrying about the uncertainties in the future.

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

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

37. The communication should cover the following topics:Point out weakness, room for improvement of the lay-off employeeAdmit 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