Mismanaged Layoffs Can Co 'Horribly Wrong'
The article raises a problem of layoffs and issues involved in the process. It discusses how companies that downsize or cease operations dismiss their employees. Since a job loss is a very sensitive issue for many people, this subject merits a particular attention. The article states: “It can go horribly wrong if they don't prepare properly" and this view is completely true (Bouw, 2013).
The problem of mismanaged layoffs has two serious concerns. Firstly, layoffs create emotional disturbance among employees, which is associated with loss of their job. This is a “humiliating, psychologically destructive process” (Bouw, 2013). In addition, people depend on their jobs because this is a source of their income. Thus, having no job enhances the feeling of insecurity. Secondly, dismissing personnel is always a challenge for an organization which claims to be socially responsible. Mismanaged layoffs create a negative image of the company both internally and externally. Clients and other stakeholders may change their view about the company which will have impact on sales and future contracts. As a result, the company may loose its market share and face a drop in its revenues.
There are various alternative solutions to layoffs. For instance, the company may consider to transfer employees to other departments, cut wages or reduce the number of contract workers. It can offer employees an opportunity to work as a freelancer or at reduced hours. This is always better than simply dismiss people. Firstly, this will enable employees to find another job and still have financial resources to make living. Secondly, it will enhance the company’s image as a socially responsible organization. In case if the company decides to go on with the layoff practice, it should do it in the most humane way keeping in mind that people are not commodities.
References
Bouw, B. (2013, June 28). Mismanaged layoffs can go 'horribly wrong'. The Globe and Mail, …
