However downsizing seems to be a common practice

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However, downsizing seems to be a common practice regardless of the economic situation.In this case study, Mr. John, President of Plastic Packaging (a small bottle manufacturingcompany located in western Massachusetts), has decided that downsizing is the solution to therecent financial struggles that the company is experiencing as a result of a decrease in customerdemand. He sent a mass e-mail to all of the employees at the facility to explain some of thedisappointing financials and his decision to use a downsizing strategy to deal with the situation.The massage made the 75 employees of plastic packaging company to start panicking. The lackof proper communication and poor nature of disseminating the downsizing news gave room torumors and misinformation. This is very counter-productive when trying to curtail the attendantfallout of the downsizing process. Mismanaging the information process could lead to distrust ofemployees of their managers or executives. The shock precipitated from the news about the
DECISION MAKING ASSIGNMENT7potential layoffs will leave the people anxious, confused, surprised, and upset with this executivedecision.Every good captain’s goal is to always get the ship to safety every time. Sometimesduring a terrible storm some drastic decision has to be made for the good of all. It may requirethrowing some luggage overboard to lighten the ship. This move will not augur well with thepassengers. Some unpalatable step may be required to save the sinking ship.Another scenario to explain how difficult a decision to downsize is for both theemployers and employees is related to the hurricane disasters. When they hit, the governmentdecides to prevent Cypress River from overflowing it bank by releasing some water in acontrolled manner. The controlled release damaged quite a number of homes that were givenprior notice and evacuated to safety. They successfully saved about 95 percent of the nearbyhomes from total hurricane destruction by sacrificing about 5 percent. These are the types of harddecision leaders make at some point or many times in the life of the company. The employerbelieves laying-off some workers to cutting overhead would help return the company toprofitability. The employee on the other hand is mostly impacted and feels the brunt of thedownsizing process see things differently. To the employee, he or she believes that there must besome compensation for their loyalty. Some had had the opportunity to jump ship before thefinancial decline but decided to stay with the company. If the employer demands loyalty from theemployees, they must also be willing to give it especially when it matters most like the time ofdownturn when downsizing seems to be the easiest fix.

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Term
Fall
Professor
Bandy,K

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