Few government departments or branches have
escaped the necessity of downsizing. The
last three or four years have brought almost
constant cuts in staffing, and some
departments have been "hit" several times.
For many downsizing has become an annual
process.
When managers are faced
with downsizing, they tend to focus on the
immediate and practical needs that emerge at
the time when staff are being let go. After
all, employees need to be selected and
notified, one of the most difficult tasks
for any manager. Jobs responsibilities need
to be shuffled, and generally the period
where downsizing is occurring is very busy
and emotionally taxing.
Unfortunately, there is a
tendency for managers to focus on those that
are leaving rather than those that remain.
This also holds true for central training
and consulting agencies who are asked to
support the laid off employees with career
development help, counseling, and other
supports. There is no question that laid off
employees deserve and need these kinds of
supports and services. Unfortunately, there
is a tendency to forget that after the
laid-off workers are gone, the "survivors"
must soldier on, and the manager must deal
with the long-term effects on the remaining
organization.
We are now seeing the
effects of downsizing on those that remain.
One of the most telling comments is often
put forth by employees a year or two after
downsizing, and it goes like this:
"Sometimes I think that the ones who were
laid off are the lucky ones". They usually
go on to describe a workplace where
employees feel:
-
A lack of executive
commitment to their functions
-
confusion about the
priorities of their organization
-
Increased workloads
-
confusion about their
mandate
-
A sense of being
betrayed by executives and managers
-
A profound sense of
distrust
-
A sense of futility
with respect to long-term planning
-
undervalued and
unappreciated
In operational terms,
this translates into a number of problems.
-
The organization
moves towards less risk-taking and
innovation
-
Destructive conflict
tends to increase
-
Internal competition
for resources increases
-
Individual staff
members devote less effort to working
together and more attention to doing
things that will protect themselves.
-
General listlessness
and lethargy
-
decreases service
levels and increased public hostility
It is easy to understand
these effects when they occur close to the
time when down-sizing occurs, and remaining
staff "grieve" the loss of friends and
colleagues. But, these effects are now being
seen as long as one or two years AFTER the
downsizing period. There are indeed long
term effects of downsizing that need to be
addressed.
Understanding
the Organizational Downcycle
To counter-act the long
term effects of downsizing, managers need to
understand how organizations slip into "downcycles".
An organizational
downcycle can be characterized as a
long-term process where the organization
becomes progressively more depressed,
insular, protective and confused. The
important thing to note is that this process
occurs slowly, sometimes imperceptibly, and
that if the process is allowed to continue
unchecked, it gets worse. The downcycling
organization loses its positive momentum and
enthusiasm. A vicious circle is formed. It
snowballs. Bad feelings and depression
become the norm rather than occasional,
until, in extreme cases, the organization
becomes unable to move effectively, and the
work climate can become intolerable for
everyone.
Because the process tends
to be gradual, managers tend to assume that
the problems that occur early in the
downcycling will solve themselves without
attention. It is easy to assume that staff
will "get over" the effects of downsizing
over time. This may be the fatal mistake,
because if the process is left unmanaged,
there is a good chance that staff will
become more demoralized.
One final point on the
downcycle is in order. When an organization
is close to the bottom of a downcycle, it is
extremely difficult to turn the organization
around. This is because levels of trust,
hope and enthusiasm are so low that
staff will have little faith in the
effectiveness of any approach that promises
to be helpful.
Some
Prescriptions
-
Proactive management
activities are always required when
downsizing occurs. Managers must realize
that they "can pay now or pay later",
and that delaying actions designed to
revitalize the organization will result
in a huge cost down the road.
Managers should consider that the period
immediately after downsizing is
critical. Action or inaction during this
period will determine whether the
organization moves into a depressed
downcycle, or makes the commitment to
move forward. Downsizing time should
also be a time when the organization's
mandate and vision are revisited. It
should be a time when the manager
dedicates him/herself to the long-term
health of the organization by
clarifying, supporting and building
trust. Above all, this is the time where
the manager's prime responsibility is to
communicate, both with staff, and with
executives. One focus of communication
should be clarifying mandate, vision,
priorities
and commitment levels.
-
Proactive long-term
approaches should also be applied by any
central agencies charged with "helping"
downsizing organizations. Support should
be offered to those that are displaced,
but, in the long term, help offered to
"survivors" will be much more important
in determining organizational health. As
a manager, ask, or demand that these
services be made available by central
agencies, or procure them from private
vendors, if the central agency won't do
the job.
-
If you are in the
unfortunate position of managing an
organization that is "downcycling", you
need to be aware of two things. First,
it will get worse if neglected. Second,
interventions to turn the cycle around
must be considered as long-term
projects. One shot consulting or
training isn't going to do much, and it
may be damaging. Remember that your
organization may have been moving
downward for a year or two, and that it
is going to take a substantial period of
time to reverse the process. Positive
change will require a consistent effort
on your part, and may require consulting
help over a period as long as a year.
Conclusion
We are seeing more of the
long-term effects of downsizing on
organizational health. When downsizing is
undermanaged, there is the danger that an
organizational downcycle will be created,
and left to continue unchecked over several
years. The results can be destructive to the
organization and the individuals that work
there.
It is far easier to avoid
or correct this cycle at the time when
downsizing occurs, and far less costly. It
is important that downsizing trigger
organizational renewal strategies
immediately.
If proactive action is
missing, or is ineffective, corrective
actions down the road will require a long
term commitment. Once an organization
reaches the bottom of a downcycle, it will
take considerable time to reverse the
process.
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amin@aiminlines.co.th
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