You have probably heard the old office threat, "The beatings will continue until morale improves". Many people smile a bit when they hear it. At the same time, there is an urge to cringe, as all too often, that destructive management practice is a bit too familiar for comfort. Is this archaic threat part of your company's management style?
Fear is not a good motivator over the long term. While many managers will point to a time when a good scare moved a lackluster employee into action, the effect was usually short lived. If fear becomes the over riding emotion in the company's culture, morale will fall to very low levels. Instead of innovation and creativity, employees will turn their attention to holding onto their jobs. In times of layoffs, fear of further cutbacks, and rumours of department and plant closures, leads to lower productivity. This staff response should be expected and not arrive with a shock to management.
The problem for a manager faced with the need to let go a number of employees is how to carry it out without irreparable morale damage. The key is to initiate and nurture a culture of open and honest management. An ethical company will not hide behind platitudes and vague denials that layoffs may be taking place. The secret will get out through that informal communications channel known as the office grapevine. The problem with the grapevine is the information may be entirely inaccurate. Staffers will expect the worst, causing a steep decline in productivity and mood. Open discussion is a better course of action.
If there are impending layoffs, make all of the cuts at once. Don't do it in steps or phases. Even if the latest round of layoffs is the final one, employees will still fear that more employees will be let go sooner or later. The possibility that it may be them tends to create fear that lowers production dramatically. A worker keeping their head down isn't doing much useful work. Bite the bullet and get the pain taken care of all at once.
When the layoffs are completed, call all of the staff together and tell them the truth. Explain why people were let go and what the plans are for the future. Be sure to spell out that the remaining workers are part of the permanent team. Leave no room for doubt. Let no new possible downsizing rumours enter the informal chat around the water cooler or lunch room. Once you give your word as an ethical business person, stick to it. If the layoffs are not over, complete the job, and then call the company wide informational meeting.
No one likes layoffs, but they are better done quickly. Demonstrate to the remaining staffers that you are an open and honest company. They will reward you with higher productivity and new ideas for products and services.
The need for any morale building beatings will never be required in an open and ethical organization.
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