Introduction Severe consequences are likely to occur if WeaveTech decides to explore downsizing its workforce. Downsizing will greatly affect the company’s reputation regarding the quality of products they produce and their economic output. Downsizing rarely achieves its intended level of cost savings and often causes poor morale, high levels of stress and guilt among employees who retained their jobs. Downsizing will affect the psychological culture of WeaveTech. Psychological contracts are unwritten understandings and informal obligations between an employer and its employees regarding their mutual expectations of how each will perform their respective roles (businessdictionary.com). They can include such things as the levels of employee commitment, job satisfaction and the quality of working conditions. Maintaining a strong employer and employee relationship can be the key to the ultimate success of WeaveTech. A pleasurable atmosphere within the work environment can be created with strong employment relations. Through improved employee morale, it will additionally increase employee motivation. The creation of a productive and pleasant work environment has drastic effects on an employee’s loyalty to the business and encourages a loyal workforce. Having such a loyal workforce …show more content…
Open door policies are designed to help eliminate barriers between the various levels of management and to help promote fairness in the workplace. In order to strengthen the employer-employee relationship, it will require much more than simply saying one exists. The literal interpretation of an open-door policy means -- barring obvious, closed-door conferences and the like -- that employees have the freedom to walk into the office of the company’s president to discuss a workplace issue (smallbusinesschron,
Employees are the most important asset of an organization and organization has the responsibility to keep happy, motivated and satisfied so that their interest does not diminish in work. Moreover, when employees are kept happy and satisfied then their productivity rises as they feel that the company has given them the importance.
Developing work attitudes is by reducing imprudence that was between the hourly workers and their mangers and increasing job satisfaction and organizational commitment. It is clear that workers at this motor company have the lowest job satisfaction in order of various negative influences that impact their life. First, mangers at this company did not treat their employees as a human, they treat them as machines, that should rich the demand by the end of the day, and called them by numbers not their name. Second, workers have intrinsic value, extrinsic value, and ethical values that ford would not respect. Third, Stressful work without any reward and the work environment that was not save, clean, or regulated at the plant. Finally, week bonds between mangers and workers that create week work energy and losing trust between employees as results the work has turned down frequently. In addition, at Ford Motor Company the physical and psychological
An employee’s morale is tied to their work, the more stressed and dissatisfied the employees are the more their work will suffer. A happy employee means more work will be done, working in a happy and safe and secure work environment will make the workers more willing to work harder.
The effect of mismanaged LAYOFFs on the remaining workforce and the effects, lack of management preparation, the human condition, and lack of mitigation strategies. We think that the problem with this article is that not enough managers or HR personal, know how to let a person go from their employment effectively. They sometimes don't realize the impact that it has on the other employees morals. Also, that sometimes companies don't take a closer look to make sure downsizing will be the answer to cutting costs like they think that it will. Every HR or manager should be let go in their lifetime so
There is a direct link between a high or low level of trust between the workers and management within a corporation and the productivity growth. Corporation must be willing and prepared to make small but regular investments that are required, and there will be a high substantial return, both in material and a healthy labour management climate. There are mainly three concepts that describe the working climate within a firm or organization: the satisfaction the employees get form working, the general trust in the corporation and level of trust the average employee has in the chief executive. Managers must mold their employees, and by doing that they will
Swatridge realizes the company is not being as efficient as they could be and downsizing is a strategy to keep costs down. Employees throughout the company are aware of this possibility and are constantly concerned about their job security. The uneasiness about not knowing whether layoffs are coming or not has younger employees worried about losing their jobs, older employees wanting to take early retirement, and skilled employees thinking about switching jobs. With the threat of downsizing looming throughout the company, employees are worried about job security, especially ones who have no other skills and would be hard for them to find a new job. There is a lack of communication between managers and workers which is affecting employee morale.
Lester (2002) submitted that employees are likely to experience a diminished level of commitment, a decreased level of work performance, and they are likely to witness to the fact that their psychological contract had being breached. In addition, Conway & Briner (2002) stated that the psychological wellbeing of employees is likely to reduce when there is a breach in the psychological contract and as result, talent retention in an organisation will diminish (Tekleab & Taylor, 2003).
Downsizing has become a commonplace strategy for organizations to adopt in an effort to cut costs, eliminate redundancies, and streamline organizational systems. Over the last 15 years, many organizations have engaged in downsizing more than once. Most companies have learned from the mistakes of the past, but some companies are still trying to use the same tactics today that were used in the mid 1980s, that leave employees reeling.
The phrase "I have an open door policy" was very intriguing to me in my early career. As a younger staff person, I envisioned the day when I could be a supportive, empathetic manager who was able to respond to any of my employees' needs, questions, and comments whenever they needed me. I envisioned people coming to my door (which was open, of course), asking, "Got a minute?" then me leaving my work, talking with the employee, them thanking me for being such an inspirational manager, then me going back to my work and picking up just like I never left it. Ah, the naiveté.
During a company’s lifecycle downsizing may be a necessary and unavoidable. Downsizing is defined as “the planned elimination of positions and jobs” (Cascio, 1993, p. 96). Economic downturns, changes in the business environment, and increased levels of competition can all lead to employee layoffs and ultimately downsizing. At least two mechanisms, recessions and changes in product demand, lead to reductions in a firm’s demand for labor (Blau, & Kahn, 1981). In the long-run a layoff may have a positive impact on an organization by reducing labor costs and restoring an organization’s finances (Gomez-Mejia, Balkin, & Cardy, 2016). Organizations downsize to cut labor costs, improve profitability, and achieve a greater competitive advantage (Maertz, Wiley, LeRouge, & Campion, 2010). However, a layoff at a multinational corporation can be a very traumatic event that affects thousands of employees and their families (Gomez-Mejia, et al., 2016).
• Management Policy- GM (K) uses the open door policy to encourage its workers to present their ideas and give their opinions on work related issues.
A company’s human and intellectual capital is one of its most valuable assets. Good workplace conditions and relations can help a company to attract, keep and develop human capital, keeping operations and staff morale high. Employees are more likely to be motivated, committed
The appeal for others to want to work for your organization is also an essential aspect of the work environment. The main question asked here is “Is this a good company to work for?” This can encompass the physical working conditions, established relationships, and also additional benefits of working for the specific organization. The physical environment can vary between actual safety issues to adequacy of pay or even the availability of additional benefits. The appearance of good working conditions and good jobs makes organizations attractive to the
The downsizing of a company can affect employees before, during and after it occurs. Employees usually know of a possible downsizing, care of the almighty grapevine, months before it is supposed to happen. Thus, employees may become paranoid and self-absorbed, and their top priority is their own career rather than the bottom line of their employer. This causes them to be unfocused and prevents them from performing their jobs efficiently. Many workers would also be perfectly willing to stab their peers in the back in hopes of keeping their job. Usually when a downsizing is complete, the company is at an all-time low. This is due to the fact that in almost every merger, acquisition or downsize, employees are faced with uncertainty about their jobs before and after the restructure. After a large percentage of downsizes, ten percent of the remaining workforce will easily adapt to the change, while another ten percent will never adapt. Workers who survive the downsize often have feelings of anger, fear or distrust. Further internal problems result from employees who survive with the company, but cannot adapt to their new settings and expectations, and eventually quit their job.
Many companies look to salaries and benefits as the first places to cut back when looking to make changes that involve cost-saving. When this happens, it is inevitable that some employees will leave the company to seek employment elsewhere. The employees that remain, whether they stay voluntarily or because they could not find employment elsewhere, are often resentful. Motivation decreases, taking job performance along with it. Employees lose their company loyalty and may even become angry enough to purposefully sabotage the company.