Layoff Case Study

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Layoffs are one means by which an organization can reduce expenses with the intent of improving its bottom line. Despite being typically performed as a last resort, layoffs often have a negative impact on the remaining workforce. As a manager, there are numerous areas for concern in managing the workforce going forward. The human costs related to downsizing are “immense and far-reaching” with one of the most profound being survivor syndrome according to Hanson (2015, p. 187). Also known as survivor’s guilt, this condition relates to the emotions felt by those still employed and some of the effects include decreased motivation, moral, and job satisfaction, as well as an increased proclivity to search for other employment. This volunteer turnover being another grave concern for managers, and retention of the remaining workforce is usually dependent on their existing perception of the organization and its culture (Sitlington & Marshall, 2011). Also relayed by …show more content…

Gomez-Mejia et al. (2016) maintain that “clear communication, marking the occasion, and listening to workers” are several ways to facilitate the transition for the remaining staff (p. 195). HR can support the managers in this endeavor by providing counseling to assist layoff survivors, as well as terminated employees, in understanding and dealing with the changes (Sitlington & Marshall, 2011). Research suggest that communication from a variety of sources such as HR, help employees to understand the circumstances and increase their perception of fairness, which helps to negate the undesirable consequences of the layoff (Tourish, Paulsen, Hobman & Bordia, 2004). Proper information dissemination through the HR team can also help to squelch the spread of unfounded rumors, internally as well as externally through the media, according to Gomez-Mejia et al.

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