Effects of Forced Layoff
Layoff has become a frequent strategy for organizations competing with others. However, it hardly assists organizations to achieve their objectives like cost reduction, competitiveness, profitability, increased productivity and efficiency levels. Layoff therefore, refers to the planned removal of roles or jobs so as to save cost (Gruenberg, Moore & Greenberg, 2010). This essay seeks to explain the effects of layoff on the survivors and organization.
Employees who retain their positions after layoffs experience increased stress. Furthermore, the growing concern among these workers on further layoff reduces their performance since they are preoccupied with how the layoffs would affect their security personal job security (Mawhiney & Lewis, 2009). Moreover, layoff makes the workers seek for other jobs before the next layoffs could take place. This activity also increases distrust and absenteeism of workers since their work productivity and quality decrease. Layoff drives away workers who pay attention to their personal security, leaving the organization under pressure to get replacement. Besides, the destabilization and demoralization of workers lead to reduced productivity and negligent performance. As asserted by Thomson (2008), the savings an organization anticipates to attain through layoff are reduced by the decrease in the quality and productivity of employees.
In summary, layoff is a detrimental action to the employees; therefore, an organization should be ready to control the reactions of the remaining workers in the organization. After the displacement, it is imperative for the management to give strong leadership since the remaining workers need to be aware of changes in the organization, how to fit in and what is expected of them (News Briefs 2009).
References
Gruenberg, L., Moore, S. & Greenberg, E. (2010). Managerial reactions to implementing layoffs: The effects on well-being and withdrawal behaviors. Boulder, CO: Institute of Behavioral Science, University of Colorado at Boulder.
Mawhiney, A. & Lewis, J. (2009). Through the eyes of the beholder: Perceived effects of mass layoffs in a single-resource community. Ontario: Human Resources Development Canada.
News Briefs (2009). If you must lay off workers, consider the long-term effects. HR
Psychology, 13, 73-80.
Thomson, N. (2008). Coping with job loss: An attributional model. The Journal of Focus, 79, 8-9.
