Management Changes Affects Employee Morale

1398 Words6 Pages
Management Changes Affects Employee Morale
As the world changes, many organization may create changes to their company structure in order to remain successful and look good amongst shareholders. These organizational changes may be beneficial for the company overall. However, it may affect the remaining employee’s morale. Some organizations changes such as layoffs, reduce work hours, a stagnate in benefits increases and rewards may result in management trying to figure out a way to motivate and gain employees trust and loyalty.


When an organization experiences a downturn in the economy, they may be force to perform employee layoffs. Organizations such as the Boeing Company announced in September 2001, that they will be
…show more content…
Some of these proactive measures could include speaking with loan officers to refinance personal loan, cut back on dinning expenses or discontinue insurance plans or retirement matching plans. Even though furloughs may temporarily aid organization on reducing pay cuts in staying in business employee may choose not to return to work after being furlough or the employee may consider to find another place of employment.
Organization may offer senior employees early retirement as another method for to reduce operation cost during an economy downturn. Senior management and those who have been working for an organization the longest usually make the highest salaries and have the best benefits package Bradley J, B. & Demand M. (2011). Early retirement of senior employees may result in can result lost of unspoken knowledge over a long run. One would suggest that the organization.

Some organizations perform furloughs in economy recession. A furlough is mandatory time off for an employee. For non-exempt employees, the employer doesn’t pay the employee when the employee is not at work. However, exempt employees are required to take a mandatory full workweek off without pay ( Salary reduction of any kind can also be hardened on the employee where as the individuals may
Get Access