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Example research essay topic: Taking Place R Amp - 1,640 words

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... ions are answered and concern is shown for employees (Hirschhorn & Gilmore, 1992). It is also very important that top management be very honest and open about the reasons that the downsizing is taking place (Hirschhorn & Gilmore, 1992). This will help to avoid much of the distrust that will normally come from finding out that jobs are about to be lost (Hirschhorn & Gilmore, 1992).

If the company can communicate its vision and surviving employees see the personal control that they will have over their future much of the distrust will be avoided (Hirschhorn & Gilmore, 1992). The same is true for downsized employees who must understand that they need to find other employment (Hirschhorn & Gilmore, 1992). By making sure that their benefits and severance packages are carefully explained it will help them feel more in control (Hirschhorn & Gilmore, 1992). It is often difficult to explain to employees why downsizing is taking place but it is best to explain it as well as possible so that these employees and do not feel as though they have done anything wrong personally that has cost them their jobs (Hirschhorn & Gilmore, 1992). An Act called WARN was created in 1988 and requires 60 days notice for all employees when a company decides to lay off workers or close the facility (Hirschhorn & Gilmore, 1992).

Some companies frown on this because they believe that giving advanced notice will make these employees leave much sooner than the 60 days when they are still needed, but various studies have indicated that employees who have been notified well in advance are actually more loyal to a company and will often delay starting in a new position until they have been released from their old one (Hirschhorn & Gilmore, 1992). One company, Kimberly-Clark, went even further than this and announced all of their expected layoffs at one time (Hirschhorn & Gilmore, 1992). This prevented individuals from spending the next year wondering what would happen to them and gave much more time for other employees who knew they would be losing their job in several months to find other employment (Hirschhorn & Gilmore, 1992). When making the announcement, it is very important that it is timed correctly (Hirschhorn & Gilmore, 1992). Employees do not want to see information about the downsizing on television or in the newspaper before they hear about it from their company (Hirschhorn & Gilmore, 1992). The announcement should be made to the employees on the same day that the information is released to the media (Hirschhorn & Gilmore, 1992).

Early in the week and early in the day is also important when making this type of announcement (Hirschhorn & Gilmore, 1992). Making an announcement such as this at 4 o'clock on Friday afternoon is a bad choice because employees feel that they have no time to ask many of the questions that they might wish to discuss (Hirschhorn & Gilmore, 1992). Employees who have been given this information should also be offered the day off because productivity often goes down greatly on the day that these individuals discover their impending downsizing (Hirschhorn & Gilmore, 1992). The fourth thing to do is implement the downsizing (Kets de Vries & Balazs, 1997). This should be done as carefully as possible because employees who have survived this long and employers who have done things right up to this point have trust in each other (Kets de Vries & Balazs, 1997). It has remained throughout all of the planning and the announcement, and to destroy it when the downsizing was actually implemented would ruin all of the hard work that has come before it (Kets de Vries & Balazs, 1997).

When the downsizing is implemented those that are leaving should be helped to find other jobs and employees that are staying should be trained how to carry out many of the responsibilities that they will be facing once the workforce has been downsized (Kets de Vries & Balazs, 1997). Often these individuals will be taking on many of the job functions that other co-workers have previously had and as such different skills are often required for these (Kets de Vries & Balazs, 1997). Many employees may feel that they are being burdened too much and training them will help to give them competence in the new environment (New, 1996). They will feel more confident and will not be so frightened as they deal was some of the uncertainties that they face (Kets de Vries & Balazs, 1997). Some companies that are forced to downsize are capable of doing it the right way (Kets de Vries & Balazs, 1997). High Steel Structures, in Lancaster Pennsylvania, builds bridges (Mishra, 1996).

It was founded in 1931 and it ran 61 years without ever laying anyone off (Mishra, 1996). Unfortunately, in 1992 there was a strong downturn in the industry and it was forced to downsize (Mishra, 1996). Since it had been such a leader in trust and empowerment of employees it was easier for the downsizing to take place (Mishra, 1996). First the company changed from three shifts to two shifts but this was not enough so the facility in Williamsport was chosen to be closed (Mishra, 1996). Remaining employees were filled in regarding this every three months and information was provided to them weekly about work contracts (Mishra, 1996).

They knew that if things did not get any better the Williamsport facility would be shut down and the employees had many questions about whether the market would make a turnaround or not (Mishra, 1996). Even though it was difficult to answer some of the questions the employees had, management did their best (Mishra, 1996). They also kept morale up by doing simple things like cooking steaks for all of the 200 employees during a year where there was no lost time due to any type of accidents (Mishra, 1996). The present of the company served the meals and the following year when there were less employees but still no lost time the steaks were cooked again and shrimp cocktail was also served (Mishra, 1996).

Even though this seemed like a simple thing to do workers felt as though their employer actually cared about them (Mishra, 1996). Finally, the Williamsport facility did have to be shut down and a small group was chosen to help with the closing of the facility and potentially reopen it someday (Mishra, 1996). Six months after the Williamsport facility was closed it was reopened (Mishra, 1996). The small group returned even though many of them were working at other companies and many of the other employees who had been previously laid off were able to come back as well (Mishra, 1996). Because the employees that returned had the knowledge of how to run the plant and the morale was very high due to the way the downsizing had taken place, the facility was immediately successful upon its reopening (Mishra, 1996).

This is but one example of the way that downsizing can be done correctly. Each stage in downsizing has to work to avoid many of the dis empowerment and mistrust that often comes with it (Daft & Lewin, 1993). It is very stressful not only for the employees but for the managers as well when downsizing is implemented (Daft & Lewin, 1993). However, the trust and empowerment that individuals are able to keep when they are downsized correctly will help become much of the source of competitive advantage (HR, 1993).

This has a lot to do with the environment of today which seems to survive on rapid change and a great deal of uncertainty (Brockner, Tyler, & Cooper-Schneider, 1992). In any type of future crisis for any organization, employees that remember the fact that they were treated very well by the company will have much more trust in that organization and therefore the surviving employees of that company will continue in the strength and perseverance to build a much stronger company in the future. Works 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. (1995, March 14). Axes to Continue to Fall in Defense Industry.

Wall Street Journal, A 2. Daft, R. L. & Lewin, A. Y. (1993). What Are the Theories for the 'New' Organizational Forms? Organizational Science, 4, i-vi David W.

H. & Malone, M. S. (1992). The Virtual Corporation. New York: HarperCollins. Hirschhorn, L. & Gilmore, T. (1992).

The New Boundaries of the 'Boundary less' 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. Kozlowski, S. W. , Chao, G. T. , Smith, E. M. , & Hedlund, J. (1993).

Organizational Downsizing: Strategies, Interventions, and Research Implications. In C. L. Cooper and I.

T. Robertson, eds. , International Review of Industrial and Organizational Psychology. New York: Wiley, 262 - 332. Mishra, A.

K. (1996). Organizational Responses to Crisis: The Centrality of Trust. In R. M. Kramer and T.

R. Tyler, eds. , Trust in Organizations. ' Frontiers of Theory and Research. Thousand Oaks, California: Sage, 261 - 287 New York Times Special Report: The Downsizing of America. (1996). New York: Random House, 5.


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