Re-organization and Layoff: Issue and Problem Identification

PHL/320

Re-organization and Layoff: Issue and Problem Identification
In Week Two, Team D discussed the article Mismanaged layoffs can go ‘horribly wrong’ (Bouw, 2013.) The initially chosen focus of the group discussion was the potential ramifications of poorly handling the conversation terminating the employee. Reflecting on the article through further group discussion, and realizing the scope of the team’s initial impression is limiting the problem to a small component of the larger issue, Team D asserts the broader issue is that employers often turn to downsizing as the go-to method of cutting costs. Experts in the Bouw article provide evidence that knee-jerk layoffs to appease shareholder are often a mistake and cite why. Through the collaborative process of discussion, the team benefits from gaining confidence in the decision to change the focus of issue exploration from miscommunicating when firing to the drawbacks of layoffs. By clearly defining the problem that was not immediately apparent, Team D can now concentrate on discussing practical solutions for the broader underlying issue of unnecessary downsizing.
Problem Identification The first step to successfully tackling any problem is identifying it. According to Dr. Henry Hornstein, downsizing within a company should be the last resort if cost cutting is necessary (Bouw, 2013.) He hypothesizes that it is approximately a 50 percent chance that the measure will not result in the savings that upper management is anticipating. Given the many potential drawbacks of a company defaulting to laying off their employees to demonstrate budget trimming to shareholders, the risk may not justify the terminations. Human resource experts in the article explain that the fear and resentment that potentially results from the remaining staff after layoffs could lead to a reduction in productivity, and leaves employees fearful of taking risks necessary to function at a high level of job performance. Furthermore, to client and suppliers, the image of downsizing projects is one of potential trouble within the organization; possibly leading to a reduction of trust or damage to the company’s reputation. The team consensus is that the underlying problem is that layoffs are dangerous to employee morale and productivity, and to the company image.
The Group Collaboration Process In the discussion of Bouw’s article last week, Team D spent the most time zeroing in on communication methods of firing, and how to perform the task efficiently. The discussion briefly concentrated on the broader problem of downsizing as an alternate viewpoint; however, the solutions portion of the discussion and the essay focused on the symptom of handling the layoffs poorly. Upon a closer examination of the underlying issue and problem in the article, the team agrees downsizing as the default method of cutting costs within an organization is the broader point in the discussion.
Advantages of Group Decision Making According to Bateman and Snell (2012, p. 101), there are five potential benefits to group decision making. A larger pool of information, varying strengths, and perspectives lead to a broader range of ideas. The intellectual stimulation an organization provides can inspire creativity. Furthermore, group members participating in a collaborative decision usually understand why such decision was made and tend to commit fully to the decision since they had input. For Team D, the discussion provided two perspectives of the article and identified two potential issues regarding layoffs, poor communication when terminating employees, and the possible drawbacks of downsizing at all. Without the team discussion, individual team members may have chosen to focus one of those issues while ignoring the other. Team members also understood and committed to the final decision of focusing upcoming papers and discussion on the drawbacks of downsizing, which provides a boost in confidence in our interpretation of the problem.
Disadvantages in Group Decision Making One person dominating the discussion or the decision-making process is a drawback in group decisions (2012, p. 101.) Satisficing is another risk in a group decision setting, which occurs when group members in a rush to get out of a meeting or discussion seize upon the first option in the interest of quickly finishing. Groupthink is also a danger in any group decision because the fear of upsetting the balance of the team by dissenting is a powerful force. Due to time constraints of members and the difficulty of working together online, Team D is potentially experiencing satisficing by quickly agreeing with a seemingly good idea immediately.
Clearly Defining a Problem Leads to Solutions In week two, Team D muddied the issue the article, Mismanaged layoffs can go ‘horribly wrong’ is presenting. Rather than focusing on downsizing itself as the topic that can go “horribly wrong,” the team chose to pinpoint on the communication aspect of the termination. As such, the discussion and subsequent paper identify solutions to the symptom of the underlying problem rather than the issue of downsizing, the real potential company killer. Identifying, defining, and dissecting a problem are mandatory steps, otherwise, presenting solutions that do nothing to address the real issue is the likely result.
Conclusion
Team D agrees that downsizing as the default reaction to cost cutting is problematic, and should be the option of last resort. Company layoffs potentially result in reducing employee morale and productivity and damaging the organization’s reputation with clients and suppliers (Bouw, 2013.) Through group discussion and collaboration, the team agrees to change our initial focus on the communication process of terminating an employee to the underlying issue of avoiding downsizing when possible. The team is benefitting from a group decision because together we are committing to the consensus opinion that layoffs are the underlying issue needing solutions, and coming to a consensus decision provides confidence that our assessment of the problem is correct. Now that the issue is clearly defined, the team’s focus can shift to collaborating on finding solutions in the coming weeks.

References
Bateman, T., & Snell, S. (2012). Management: Leading and collaborating in the competitive world (10th ed.). Retrieved from The University of Phoenix eBook Collection database.
Bouw, B. (2013, Jun 28). Mismanaged layoffs can go 'horribly wrong'. The Globe and Mail Retrieved from http://search.proquest.com/docview/1372044112?accountid=35812