D) What would be the impact of corporate downsizing and temporary job assignments on employees’ attitudes and behaviors?
Answers
Answer:
Explanation:Corporate downsizing serves as a way for a company to maintain profitability levels, but the action often causes negative effects within the workplace. The people who leave aren't the only ones who feel the effects. The remaining employees feel the negative effects even after the downsizing takes place, and those can have a harmful effect on your business.
Financial Cost
Downsizing reduces the amount you pay in salaries and benefits, but it comes with its own set of costs. Severance packages and payment for any continued benefits potentially cost you a large chunk of money at the time of downsizing, depending on how many people you let go and what their contracts say about layoffs. Any employees who have built up vacation time receive a payout for that amount, adding to your costs. Employees who stay with the company often take on the responsibilities of those who leave. This takes time away from their own duties and may result in overtime, costing you more money. If the business turns around and you need to hire more employees in the future, you incur more expenses for advertising, recruiting, screening and hiring employees.
Decreased Morale
As soon as the downsizing announcement occurs, expect the company morale to decline. Employees worry about who will lose their jobs and how the company will function once they are gone. After the downsizing takes place, remaining employees may face greater work responsibilities without extra pay, decreasing morale even further. The employees may worry that another round of layoffs are possible. If the reasons for downsizing or the process of eliminating employees is considered questionable by employees, you may lose trust and respect.
Productivity and Creativity Drops
According to a study performed by Teresa Amabile from Harvard Business School, downsizing is one of the factors that cause a decrease in creativity in the workplace. The workplace becomes a less creative environment and employees don't make as many bold, creative moves in their work. In some cases, the employees may reserve ideas in case they too are downsized or decide to move to a different company. Lower creativity sometimes translates into lower productivity and fewer innovative ideas to keep your company competitive.
Potential for Legal Issues
Even if your company has a valid reason for downsizing, you face the potential for legal fallout if any of the terminated employees feel they were targeted unfairly. Accusations of discrimination or unjustified layoffs leave you exposed to expensive lawsuits. Your company also stands to earn a bad reputation which could further hurt business.