Communication and Decision Making (3)C
Communication is one of the most important investments that organizations need to have (McNamara, 2013). Effective communication is a panacea to better decision making in an organization. Communication creates understanding and enhances the working relationships helping the organization to achieve its goals and objectives (McNamara, 2013). Important decisions in an organization include issues of retrenchment, disciplinary among many others. This paper seeks to address various questions relating to the decision to lay off some employees because of the prevailing problems facing the organization.
This case study involves termination of employment for some of the employees because of problems the organization is going through. The organization is experiencing a slow growth as the cost of materials and wages is rising while profits are going down. This therefore is something that requires urgent measures to ensure that the company does not collapse. This initiative will therefore see the order processing department loss four of its 12 employees, human resource will lose two of its five employees and production will lose eight of its 40 employees.
As a manager, addressing the supervisors and department managers of these departments I have the responsibility to rather address various issue in the meeting convened. The question of why this termination is taking place is one of the questions that I will have to address. As indicated, the decision is mainly to ensure that the company survives. For this to happen, it is important for the costs to be reduced. Therefore, by reducing the number of employees, it is one of the methods of reducing the costs of doing business, as money to pay their salaries will be saved. Many other options could be adapted to salvage the situation but this was the most effective in ensuring that the company is able to manage and to continue its processes.
Terminating employment of these employees will have some impacts on the affected departments. This is because they will not be able to render their services as usual. The work that they were doing will therefore be shifted to the few remaining employees. This means that the retained employees will have to go an extra mile by doing more work than before. Therefore, the respective areas may not perform to the expected. Another reason for this may be due to fear and de-motivation resulting from the termination of their colleagues. Likewise, the affected areas or department may record positive performance because of the reduced cost of paying employees.
Another important concern that I will address in this meeting with the mangers and supervisor is on how they need to plan for the termination without breaking confidentiality. The issue is of high sensitivity and therefore requires proper management and planning to avoid causing go slows and strikes in the organization. The managers and supervisors therefore, will be required to avoid disclosing this information to any third party or a person that did not attend the meeting. This will be achieved by informing them ion the likely reactions such as picketing and go-slows that may jeopardize the operations of the company. I will assure them that the entire situation or the information will be conveyed in a good manner to avoid any go-slows or strikes.
Transition after the termination is yet another issue that will be discussed in the meeting. Termination will leave some gaps that will require to be filled to ensure that the objective of the organization is achieved. Transition will to some extend be affected by the outcome of the termination. In the case the process is done smoothly to the satisfaction of all those affected, the organization will have to make some adjustments to ensure that they remain on track. The scope of duties and responsibilities of the remaining employees will be expanded to ensure that all areas are attended to. Consequently, remaining employees will be called upon to readjust their duties and responsibilities to ensure that the organization achieves its goals. Other changes may include, revising of the employees salaries and other employment benefits to align with the current trends.
In this meeting, I will also address many other issues that I feel that managers and supervisors need to know. One of these is dealing with the aggrieved employees once the information is conveyed. Some of the employees will be shocked about this news as it is given within a short span of time. Some may be depressed and stressed. Therefore, it is prudent for the supervisors and managers to ensure that all employees affected are well counseled to ensure that the announcement does not affect their normal life. They should be made to understand the reason why this termination had to occur and assured of any assistance to enable them cope with the situation.
Explanation of the decision I face and the decision-making challenges
The decision that I face as the manager is whether to terminate the employees to accrue profits or retain them and continue making losses. This is a very difficult situation because, it is coming at a very short span and at the same time, these employees are depending on this employment as their source of livelihood. Terminating their employment means that, they will not have a source of livelihood. Likewise, retaining them mean that the company will incur losses and this risks its closure. The cost of doing business has gone up, with the increasing cost of accessing raw materials and in terms of salaries.
The decision-making challenge is whether the strategy will work for the companies positively or not. Reducing employees is not a guarantee that the company will be in a position to break even. This may lead to more problems in the company such as lack of motivation that may deter the company from achieving its goals. Another challenges, is whether the managers and supervisors will cooperate and ensure that the process is handled smoothly. They did not have information about this and therefore, they may not buy into this idea as it is likely to lead to strikes and go slows. This may deter implementation of this process.
Another challenge is that the organization faces a risk of coming to standstill, as employees will not be able to agree to such arrangements because of poor communication and preparation. Such decisions requires adequate time to prepare employees psychologically. Therefore, it is a challenge and may be it requires proper strategies to ensure that it is well conducted.
In conclusion, it is prudent for managers to communicate appropriately when making decisions such as termination of employment. The affected employees should be informed in good time to enable them to prepare psychologically and emotionally. A decision like this affects their livelihoods and should not be taken slightly.
Reference
McNamara, C. (2013). Basics in internal organizational communications.
Retrieved August 21, 2013 from:
http://www.managementhelp.org/mrktng/org_cmm.htm
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