Dioscuss the below:
Q: Explain how the team used the four key factors to make the suggested business decisions.
Mismanaging Employee Layoffs
When a business is not doing well, it has to make decisions particularly to minimize the costs, and one of the decisions is laying off staff. Once the business makes that decision, again it has to decide the part of the company (department) layoff will affect together with the number of employees that will be affected and the type of severance package. Additionally, the businesses have to ensure that it shows some sympathy and care for the workers being laid off as well as keeping up the morale of the staff that is remaining. This is a business situation every company faces
The article summarizes on the issue of the things that can go wrong upon mismanagement of layoffs. Majority of the managers especially the human resource managers do not have expertise in the proper handling of layoffs. As a result, a couple of things go wrong. Managers fail to prepare their employees for layoff, and as a result, they are caught up with employees' emotions that they cannot handle (Bouw, 2017). Moreover, un-respectful handling of layoffs causes humiliation and psychological disturbance to the laid-off employees. Also, mismanaged layoff has consequences on the business's operations as the remaining employees may view the layoff negatively. Businesses do not recognize the adverse effect of layoff on the morale of the remaining employees and productivity. Layoffs instill fear and resentment in the remaining employees towards the business. At times, businesses consider layoff as the solution to trim costs, and they do not consider other alternatives, and this is not the solution to the bottom line of the problem. Business should clearly define the problem to address the problem upfront to avoid unnecessary layoffs (Bouw, 2017).
The problem in this article is that managers do not know how to go about layoffs effectively. Managers do not effectively communicate to the employees about layoff to prepare them leading to the employees feeling humiliates and causing adverse psychological effects on them. Also, due to their ineffectiveness in handling layoffs, they are unable to handle the reactions of the employees being laid off and those remaining. They rush to downsizing without really addressing the bottom line of the problem and realizing the consequences. The managers do not realize the consequences of layoffs on the morale of the remaining employees. Layoffs generate uncertainty among the remaining employees resulting in productivity loss. Layoffs are unnecessary, but businesses seem to consider it as the best solution to cut costs (Bouw, 2017). Therefore, businesses should exhaust all the alternatives.
The consequences of layoff on the employees being laid off and the remaining employees present the ineffectiveness of managers in handling layoff as the underlying problem. Businesses effect layoff immediately and the employees are not given a chance to air their concerns regarding the layoff. The managers do not recognize the employees as an asset, and they approach layoff in an inhumane manner, and this attracts a negative reception of the business by the employees. They do not even consider the negative consequences on the employees being laid off and the remaining employees.
According to Robbins (2009), managers do not effectively handle layoffs, and as a result, thereafter many things go wrong. Laying off staff is an emotional thing for the laid employees, and in a majority of the cases, this would be avoided if the employees to be laid off are made aware and prepared for the same. However, businesses do not communicate and prepare these employees. The staff that survives the cutbacks need reassurance regarding their future but due to mismanagement of layoffs uncertainty becomes common among the workers and this adversely affects the morale and in turn the productivity of the remaining employees.
A well-defined problem results in breakthrough solutions. Most businesses when faced with situations they tend to develop solutions without sufficiently and rigorously defining the problem the business is attempting to solve and communicating the importance of these problems. In the absence of sufficient definition of the problem, businesses miss opportunities, and in the end, they end up taking actions that are not effective and have negative consequences on the business (Spradlin, 2012). Critically, analyzing and precisely defining and communicating the problem yields innovative solutions.
In conclusion, managers ineffectively handle layoffs, and as a result, negative consequences follow thereafter. A majority of businesses consider layoffs as the best alternative to cut costs without considering other alternatives. Research has shown that managers do not effectively handle layoffs and as a result, thereafter many things go wrong. However, businesses can develop innovative solutions through clearly defining the problem.