A workforce comprises of the key stakeholders in an organization. The upper or middle management take decisions to reduce the number of employees for different reasons. Matsa & Miller (2014) identifies major grounds of the reduction in staff is to gain financial benefits by reducing costs, create an innovative environment, and increase the productivity (Matsa & Miller, 2014). However, the reduction plan may have an adverse effect on the performance of the remaining employees as they become narrow-minded and risk averse. Palmer, Dunford, & Akin (2009) present credible alternatives for mitigating the risks associated with layoffs including training for searching and grooming new talent and pay cuts of low-performing employees.
The pre-planning is essential in the preparation of reduction strategy before taking the decision of layoffs (Palmer, Dunford, & Akin, 2009). The pre-planning will help in reducing the negative effects that may occur due to layoffs. The organization is also responsible for creating an easy way out for the fired employees so that they can continue their efforts in the same field or another. Moreover, alternative solutions can be reviewed in pre-planning that will help in decision making.
Organizations should consider Weisbord's Six-Box Model for decisions related to the reduction in staff as it is articulated in change management literature.
Figure 1: Weisbord's Six-Box Model
The model is suggested to be useful for organizations in aligning their change management strategies and ensuring high benefits associated with the change. All entities require incorporating their current external and environmental factors in a suitable model for implementing change in their organization (e-HRM Inc., 2013). The decision for downsizing the workforce depends on the specific conditions of the organization where leaders should assess the changes made and formulate a plan that can mitigate the chance of negative consequences (Palmer, Dunford, & Akin, 2009). The management should incorporate change internally while focusing on its long-term goals and objectives rather than solely considering the current environmental conditions (Matsa & Miller, 2014). The organization must strive to retain talented, committed, and result-oriented employees even in the worst conditions as they will prove to be useful and beneficial for enhancing the overall performance in the later periods.
References
e-HRM Inc. (2013, August 19). Organizational diagnostic model - Weisbord’s six-box model (1976). Retrieved http://e-hrminc.blogspot.com/2013/08/organizational-diagnostic-model.html
Matsa, D. A., & Miller, A. R. (2014). Workforce reductions at women-owned businesses in the united states. ILR Review, 67(2), 422-452.
Palmer, I., Dunford, R., & Akin, G. (2009). Managing organizational change: A multiple perspectives approach (2nd ed.). New York: McGraw-Hill/Irwin.
