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Re-Organization and Layoff Team Summary

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This week in class our learning team took a look at how managers often mismanage layoffs. We took a look at what the problem at hand was, why it was a problem, and what some possible solutions could be. We identified that the problem presented in this article is often times managers mismanage the process of laying off staff. Whether it be from a lack of training or not knowing how to deal with people and their different reactions, managers do not always consider the layoff process in its entirety. If not handled well, this process can traumatize the staff that is losing their job as well as the remaining staff. It is important that employers consider the affected employee, the remaining staff, and alternatives to layoffs before the process occurs. Mismanaged layoffs is a problem because the process of laying someone off is a traumatic experience. Layoffs affect more than just the terminated employee. It can also affect the remaining staff by causing them to feel like they do not have job security.

Current employee and public perception of the company can also be affected in a negative manner. It is essential that companies remember they are dealing with people and not commodities in these types of situations. Possible solutions at managing layoffs would include considering alternatives to reducing staff, properly training managers how to handle layoffs, or implementing a hiring freeze. Companies should consider whether job losses are in fact necessary. Too often organizations result to downsizing and don’t even consider the alternatives because they want to show shareholders they are trimming costs. Alternatives to layoffs include cutting wages in management as well as lower level positions, transferring employees to other departments, and using fewer contract workers. Also, training managers on the different type of reactions that managers will see when laying employees off would assist in process.

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