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Management: Layoffs and Reorganizations

Layoffs and reorganizations are some of the most devastating issues that employees face in the course of their duties. Layoffs occur as a result of the reduction in the workforce. They may be caused by the decrease of demand, financial problems, or other business related reasons. Reorganizations, on the other hand, refer to the abolition of one or more positions in a department, office, or unit, which could result in the loss of employment. Changes in the duties, responsibilities, or scope of authority may lead to the abovementioned issues as well. In other instances, reorganization may assume the form of changes in the reporting structure within an organization.

Any changes at the workplace may cause panic among both an employer and employees. At first glance, it may seem that an employee is the only one at a disadvantage due to job loss and loss of income, which may result in homelessness and other negative outcomes. However, all stakeholders who experience reorganization or layoff suffer from it. Top executives, including CEOs, general managers, and managing directors, in this context referred to as employers, must take some factors into consideration when dealing with layoffs. This is an underlying issue because it involves the prospect of legal suits, affects employee morale, and increases the possibility of retaliations from disgruntled workers.

Employers restructure organizations and lay off workers for various reasons. For example, an organization may be lacking adequate tasks to keep the staff fully occupied. This means that the work available is not enough to afford paying the people performing the tasks. In other cases, organizations lay off employees or reorganize firms with the aim of cutting costs. However, some of the companies get sued for such actions and end up spending much more resources on paying compensation and litigation fees. As a result, an organization may find itself in a worse financial situation than it was prior to a reorganization. In addition, due to such changes, organizations tend to suffer from decreased productivity and employee morale. Long-term effects may include increased employee turnover, which is costly to an organization as it leads to constant recruiting to replace the leaving staff (Nissen, 1998).

Layoffs and reorganizations are detrimental to the society as they increase the level of unemployed persons. High unemployment rates give rise to social problems, including prostitution, drug abuse, drug trafficking, robbery, crime, early and unwanted pregnancies, homelessness, and lack of education and food among others. Consequently, the government has to spend federal resources on food stamps and shelter for homeless persons and reduce taxes (Walsh, 2012).

In most cases, the reasons behind layoffs and reorganizations are beyond the control of the organization undertaking them. However, an effective group collaboration process may help define the problem and find possible solutions. Adequate planning and preparation are key to the minimization of legal risks. Employers should keep records of all actions that have been taken as well as the decisions made. This may come in handy in the case of potential lawsuits. If a former employee feels that they were discriminated against during the layoff or restructuring process, they may sue the company for damages or unlawful dismissal (Walsh, 2012).

In regards to employee productivity, loyalty and morale, it is crucial that the management acts professionally by engaging the employees left after a layoff. Employers and employees should actively cooperate and work as a team in order to identify the possible reasons leading to layoffs and any potential outcomes. Collaboration involves the placing of people in groups that are assigned tasks, tests, or projects. Each person is required to present his or her personal views on the issue at hand. One of the main advantages of group collaboration is creativity: people combine their ideas and come up with new ways of solving problems. Group collaboration also encourages conflict resolution. In addition, it encourages and teaches group members to share experiences and learn from other members. Consequently, the group collaboration process will help to observe the issue of layoffs from different angles, since every member of the team will have an opportunity to express his or her opinion regarding the problem and possible solutions.

However, communication should happen not only after layoffs and reorganization. Even when the problem has not yet become urgent, teams have to incorporate collaboration in their daily activities to spot any changes. In order to define and solve the issue of layoffs, the management, with the help of their employees, should perform the following steps:

•    identify various groups that require communication and guidance;
•    carry out meetings with top executives and management;
•     communicate outside departments to make announcements regarding reorganization;
•    study the market to spot any changes in demand an customer preferences (Nissen, 1998).

Layoffs and reorganizations are some of the most devastating issues that employees face in the course of their duties. Layoffs occur as a result of the reduction in the workforce. They may be caused by the decrease of demand, financial problems, or other business related reasons. Reorganizations, on the other hand, refer to the abolition of one or more positions in a department, office, or unit, which could result in the loss of employment. Changes in the duties, responsibilities, or scope of authority may lead to the abovementioned issues as well. In other instances, reorganization may assume the form of changes in the reporting structure within an organization.

Any changes at the workplace may cause panic among both an employer and employees. At first glance, it may seem that an employee is the only one at a disadvantage due to job loss and loss of income, which may result in homelessness and other negative outcomes. However, all stakeholders who experience reorganization or layoff suffer from it. Top executives, including CEOs, general managers, and managing directors, in this context referred to as employers, must take some factors into consideration when dealing with layoffs. This is an underlying issue because it involves the prospect of legal suits, affects employee morale, and increases the possibility of retaliations from disgruntled workers.

Employers restructure organizations and lay off workers for various reasons. For example, an organization may be lacking adequate tasks to keep the staff fully occupied. This means that the work available is not enough to afford paying the people performing the tasks. In other cases, organizations lay off employees or reorganize firms with the aim of cutting costs. However, some of the companies get sued for such actions and end up spending much more resources on paying compensation and litigation fees. As a result, an organization may find itself in a worse financial situation than it was prior to a reorganization. In addition, due to such changes, organizations tend to suffer from decreased productivity and employee morale. Long-term effects may include increased employee turnover, which is costly to an organization as it leads to constant recruiting to replace the leaving staff (Nissen, 1998).

Layoffs and reorganizations are detrimental to the society as they increase the level of unemployed persons. High unemployment rates give rise to social problems, including prostitution, drug abuse, drug trafficking, robbery, crime, early and unwanted pregnancies, homelessness, and lack of education and food among others. Consequently, the government has to spend federal resources on food stamps and shelter for homeless persons and reduce taxes (Walsh, 2012).

In most cases, the reasons behind layoffs and reorganizations are beyond the control of the organization undertaking them. However, an effective group collaboration process may help define the problem and find possible solutions. Adequate planning and preparation are key to the minimization of legal risks. Employers should keep records of all actions that have been taken as well as the decisions made. This may come in handy in the case of potential lawsuits. If a former employee feels that they were discriminated against during the layoff or restructuring process, they may sue the company for damages or unlawful dismissal (Walsh, 2012).

In regards to employee productivity, loyalty and morale, it is crucial that the management acts professionally by engaging the employees left after a layoff. Employers and employees should actively cooperate and work as a team in order to identify the possible reasons leading to layoffs and any potential outcomes. Collaboration involves the placing of people in groups that are assigned tasks, tests, or projects. Each person is required to present his or her personal views on the issue at hand. One of the main advantages of group collaboration is creativity: people combine their ideas and come up with new ways of solving problems. Group collaboration also encourages conflict resolution. In addition, it encourages and teaches group members to share experiences and learn from other members. Consequently, the group collaboration process will help to observe the issue of layoffs from different angles, since every member of the team will have an opportunity to express his or her opinion regarding the problem and possible solutions.

However, communication should happen not only after layoffs and reorganization. Even when the problem has not yet become urgent, teams have to incorporate collaboration in their daily activities to spot any changes. In order to define and solve the issue of layoffs, the management, with the help of their employees, should perform the following steps:

·         identify various groups that require communication and guidance;

·         carry out meetings with top executives and management;

·          communicate outside departments to make announcements regarding reorganization;

·         study the market to spot any changes in demand an customer preferences (Nissen, 1998).

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