Downsizing Decision-Making Discussion
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As the senior manager of Izzy’s Bed Emporium, Areama has many decisions to make that will impact effectiveness and efficiency during the company’s downsizing. The first, and likely most important decision, involves creating a new organizational structure and workplan (Lively, 2020). Merging different departmental functions and eliminating positions is the first decision that will then lead to many other decisions occurring. In order to make the decision about the new organizational structure, Areama will need to work with corporate as well as her current employees. A group approach with open communication is vital during a downsizing event (Lively, 2020 & SHRM, n.d.). Areama needs to make sure she stays informed from corporate and is transparent with her employees regarding the process. This will help to build and maintain trust while avoiding rumors that can negatively affect employee morale (ASP, 2020). After decisions are made regarding the new structure, Areama needs to decide how to communicate to the people within the positions that will be affected. Recognizing that this will be painful and difficult for the all those involved, Areama needs to remain objective and do her best to use emotional intelligence to avoid personal biases, be mindful of her choice of words and timing, and recognize that people are not being cut – positions are being cut, and the employees are unfortunately affected by those cuts (Rice, 2021). Being respectful of corporate’s plans, Areama also needs to decide if she thinks it’s best to fight with corporate’s decision about using a consultant to deliver the news given that this is a small-town family-
owned company and she likely has a relationship with all the employees. Additionally, Areama will need to decide and work on providing alternative options such as early retirement, voluntary layoffs (considering some many not want to work for a big corporate company after previously being family-owned), and providing outplacement/transition services to displaced employees to help alleviate the stress associated with transitioning to new employment (Lively, 2020). These options will help send the message that the company is still looking out for its people, even when difficult decisions regarding downsizing are necessary. This helps maintain company reputation and employee morale during the transition period (Lively, 2020). Finally, Areama will need to decide about the reallocation of job responsibilities, how to adjust benefits
and compensation based on added responsibilities, and how to provide new training to those with expanded roles (SHRM, n.d.). Again, the key to success for this decision involves clear and open communication. Maintaining as much normalcy as possible by continuing with regularly scheduled meetings and procedures, while focusing on the job and emphasizing the new opportunities being presented are all ways to help restore employee morale while maintaining effectiveness and efficiency (ASP, 2020). Given that the downsizing is a nonprogrammed decision for Areama, a systematic process will help with the decision-making process (Black & Bright, 2019).. This involves first recognizing that a decision needs to be made (completed already). Next, Areama will need to generate multiple options. This should involve communicating with other people within the company and being creative. Areama then needs to analyze the options and consider all the factors. This
will involve considering the long-term implications as well as thinking critically and again, communicating with others. The next step is to select an option and then implement the selective option. While recognizing not everyone will be pleased with the decision, communication is key during these steps. Sharing information regarding the reasons behind the
decisions and addressing any conflicts in a productive way are important to maintain employee
morale. Finally, evaluating the decisions made is an important final step that may then lead to additional decisions being made regarding possible re-hiring or other alternatives if necessary (Black & Bright, 2019). ASP. (2020). 8 Tips for Effective Leadership During Downsizing. https://www.theaspteam.com/blog/8-tips-for-effective-leadership-during-downsizing
Black, S. & Bright, D. (2019). Organizational Behavior.
OpenStax. https://openstax.org/books/organizational-behavior/pages/6-1-overview-of-managerial-
decision-making
Lively, R. (2020). Downsizing: What Critical Steps Do You Need to Take? Rai Resources. https://rairesources.com/4-critical-steps-when-downsizing/
Rice, D. (2021). 10 Strategies for Dealing with Layoffs. HR Exchange Network. https://www.hrexchangenetwork.com/hr-talent-management/articles/10-strategies-for-
dealing-with-layoffs
SHRM. (n.d.). Managing Employees in a Downsized Environment. https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/
managinginadownsizedenvironment.aspx
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- I selected the Customer Service Department and the strategic levelarrow_forwardLet’s assume you are the new full time manager that the school has hired to take over running the wellness center and create 2 new programs to bring in more students/faculty to use the facilities. You’ve been given permission and budget to hire 2 assistant managers, 1 personal trainer, 2 employees (desk attendant/operations/floor coverage for safety) and 2 student workers (desk/attendant/operations). You need to create a proposal to give to the school on ways to improve the wellness center. What 2 new programs are you adding? ( examples might be: Yoga class in the gym, Crossfit program outside, water aerobics, walking club, etc) You have use of the gym and the pool. Do you need any equipment? (dumbbells, yoga mats, certifications for the employees or hiring an independent contractor,etc) How much will that cost? Provide a description of the new program and then list out the following: For each program you must list: Purpose: (How will this benefit the member and facility?)…arrow_forwardLet’s assume you are the new full time manager that the school has hired to take over running the wellness center and create 2 new programs to bring in more students/faculty to use the facilities. You’ve been given permission and budget to hire 2 assistant managers, 1 personal trainer, 2 employees (desk attendant/operations/floor coverage for safety) and 2 student workers (desk/attendant/operations). You need to create a proposal to give to the school on ways to improve the wellness center. Think: How will you market these new changes to students and faculty? What methods will you use? How much will that cost? How will you know these methods have been successful (what can you do to check this)? Provide 1 example of a marketing strategy ( flyer, instagram post, etc) Marketing Plan Method: Cost: Success measurement: Example:arrow_forward
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- The Selection Committee of the Atlas University of Engineering reviewed 35 applications for the Head of Metallurgy Department position. After two rounds of eliminations, the top three candidates were invited for the final interviews in which the Committee met with each candidate for one hour. The top three candidates were then invited to the campus to meet and exchange views with the key faculty members and the students’ representatives. The Committee finally recommended the selection of Dr. Jamil Ahmed, who has a doctorate in Metallurgy from a prestigious university. As Secretary of the Selection Committee, you are required to write a letter of about 150 – 200 words, which will be sent to the candidates who were eliminated in the first two rounds, advising them that they will not be receiving employment offers. This letter should be addressed to: Mr. XYZ Plot No. F- 4000 North Nazimabad, Block 5 Karachi – 12345 Note: Assume your name is Khan Ali, Manager HR. Follow the indirect…arrow_forward2. Jamila wants to set up a manufacturing unit, so she meets with Rashid, a humanresource manager at her company. Rashid explains that in order to decide on thehuman resource needs for the unit, they should conduct a workflow analysis. Shesuggests they start by defining the outputs of the process. To do this, what shouldJamila define?A) the processes that will be involved in manufacturingB) the number of people required for productionC) the type of products that will need to be manufacturedD) the special equipment, facilities, and systems needed for productionE) the data and information needed by the work unitarrow_forwardFor tis week I will request from you to solve this mini case. The CEO of the Baker Inc, wants to implement a new accounting system, to improve work flow through the company’s sales, cash receipts, accounts payable, and cash disbursement procedures. The CEO is, however, concerned about the potential disruption that the implementation will have on operations. In an announcement letter to Baker’s employees, the CEO stated that: “I have contracted Flybynight Consulting Group to do the needs analysis, system selection, and design work. The programming and implementation will be performed in-house using existing IT department staff. The development process will be unobtrusive to user departments because Flybynight knows what needs to be done. They will work independently, in the background, and will not disrupt departmental and internal audit work flow with time consuming interviews, surveys, and questionnaires. This promises to be an efficient process that will produce a system that will…arrow_forward
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- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub
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ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub