Happy New Year: \"Good News-Bad News!\" Marquis and his family were looking forw
ID: 413788 • Letter: H
Question
Happy New Year: "Good News-Bad News!"
Marquis and his family were looking forward to the new year. The past year had been a good one for him and his family. He had just finished his fourth year with the Savannah, Georgia, street department and had celebrated the completion of his associate's degree in supervisory management. He loved his job and was awaiting new opportunities that might come his way.
On January 11, this evening news reported that the city was experiencing grave financial difficulties. The state's property tax changes had created a $4.1 Million reduction in revenue, and sales tax projections were $2.3 million below projections. The administration was recommending the elimination of fifty-seven positions in order to help the city reduce expenses. The report said that the city would also be offering a retirement package to 583 eligible employees, with the hope that at least 187 of them would accept the package. As he retired for the evening, Marquis felt sad for those employees. He himself had received good job evaluations and felt secure in his position.
The next morning, the director of utility operations held a staff meeting and announced that the street department would be elimination eight positions. Later that morning, Marquis experienced the shock of his life. The director informed him that while his job performance was very good and he was a valued employee, he was on the low end of the seniority list and as such, was being let go. The HR department would be contraction him soon for a meeting to discuss option and entitlements.
Later in the day, Sharon Carlson, the HR Director, reaffirmed that Marquis was a valuable employee, but she reiterated that the city was experiencing a grave financial situation and this first round of job eliminations might be just the tip of the iceberg. As one of the employees whose position was being eliminated, Marquis was entitled to outplacement services and some classes on resume writing and interviewing techniques. The last day of February would be Marquis's last day on the payroll. After that time, he would be responsible for the full cost of his medical insurance.
Marquis pondered his situation. At least fifty-seven employees would be looking for work in a depressed economic climate. He wondered how he would support his family and whether he would be able to find a job as good as the one he was leaving.
1. The depressed economy has caused many organizations to eliminate thousands, if not millions, of jobs across the nations. This has had a profound effect on employee morale both for those whose jobs have been eliminated and for the survivors left behind who are expected to do more and more. What steps should the city's HR department do to minimize the impact of downsizing on employee morale? on those who survive?
B. What else could the HR department have done to soften the blow on the eliminated employees?
C If you were Marquis, what would you do? Identify a course of action.
Explanation / Answer
1.
To reduce the impact of downsizing on employee morale, it is important to consider the perspectives of the surviving employees. The employer (the city in this case) should assign the management to sit with the surviving employees to chalk out short-term plans and projects which can encourage them to participate more in activities and target completion over which they have some control rather than discuss on the external factors and effect of downsizing. It is also important to let them understand the rationale behind the downsizing very clearly and how objectively the employer has conducted the same. This will reduce the panic among them so that they can focus on their tasks in the respective workplaces.
2.
The employees who were laid off should have been treated fairly. For example, instead of letting them feel a surprise (consider the case of Marquis itself), discussions and communications could have been planned much earlier than the actual downsizing process started. This could have let them prepare for the even. Also, assistance could have been provided in terms of finding alternate employment (e..g part-time jobs) by working with private sectors. Furthermore, the employees could have been treated morally by spreading the downsizing equitably at every level of the hierarchy (e.g. Marquis could have been assured that people at higher levels are also laid off like him who was at the lower level of the hierarchy).
3.
Marquis should, first of all, reach out to all his available connections either through word of mouth or through the social media to seek help in this situation for alternate employment. He can also enlist himself in a professional recruiter's (job consultant's) database with his full range of educational qualifications and experience. Finally, he can also apply for the unemployment benefits of state or federal government if that is available.
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