Question

What are some of the potential problems that must be dealt with after an organization experiences a major trauma such as massive layoffs?

Answer 1

There are many possibilities and drawbacks an organization has to face when it experiences major trauma such as massive layoffs. This happens when major number of employees are being laid down by the company. After this major layoff the first and foremost thing that organization face is lack of trust from its remaining employees. As the employees' asr insecure about their job the trust factor is lost somewhere and the remaining people also start searching for better opportunities as they feel that they will be also laid off if any such situation comes. Second, it demotivates the employees. The dedication the staff showed earlier is lost and to regain it is a tough task and that too time taking. Making things back to normal is a bit difficult. Filling staff with enthusiasm in such a condition is very difficult as the situation made them very insecure, the motivation level declines to zero. The employees who are not laid off may miss working with the others which hamper their performance. There is always a pinch inside that someone was laid off. The employees, on the other hand, laid off feel that they were not good enough to keep their position. Even when the situation normalizes the organization may face staff turnover as people tend to migrate for better options. An organization can itself face the crunch of efficient staff and the production goes down which not only hampers sales as well as profit. Hence downsizing has various impacts which are both internal as well as external.significantly lower levels of job security, and higher levels of role ambiguity, intent to quit, depression, and health problems all these problems are at employee level for an employer it is difficult as its brand value goes down, people generally avoid to work in such organization, commitment factor of employees reduce which reduces the overall quality output of the firm, a stressful work environment exist in the organization which further reduces the performance level.