Preserving Employee Morale During Downsizing Harvard Case Solution & Analysis

As companies continue to cut, they should consider how to maintain the morale of their employees to realize the benefits, such as better performance and greater flexibility. Those who survive layoffs and managers who must implement these layoffs often have a reduced liability. Their confidence in the company could be destroyed, and they may feel helpless in the actions of top management. The authors suggest four steps approach to reducing gleaned from interviews and surveys that will keep workers confidence and a sense of opportunity. First, consider the reduction as a last resort. Furthermore, the reduction should be part of well-defined, long-term vision, which fits into the overall strategic plan of the company. Second, consider the needs of all stakeholders - the survivors, laid-off employees, the community, local and national press, and any affected government agencies. The company should create cross-functional teams to represent the interests of all stakeholders. Third, at the stage of ad executives to explain the need to reduce and how it helps us in the long term. The fourth phase, implementation, is most important. Leaders must communicate frequently and be open and honest. The company should do everything possible to ensure that the dismissed employees are busy elsewhere and offer a generous benefits package. It should seek ideas remaining employees on the processes of restructuring and provide any necessary training. "Hide
by Karen E. Mishra, Gretchen M. Spreitzer, Aneil K. Mishra Source: MIT Sloan Management Review 15 pages. Publication Date: December 1, 1998. Prod. #: SMR035-PDF-ENG

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