Motivation in Economic Downturn for Surviving Employees

Motivation in Economic d throwswing for Surviving Employees Awesome Julia Gao Helen HuHannah Hung Chimeme Pan Johnson SunMandy WongYidi YuElaine Zhu 4/15/2013 Motivation in Economic Downturn for Surviving Employees 1. Executive summary The global miserliness produces a downturn every five to ten years nowadays. During such fiscal crises, organizations might have to face the issue of assign-off in tack to let down cost and survive from the downturn. by from the discon sureing effects on the unemployed, those survivors also go through a hard condemnation.This report has foremost investigated practical ban effects on rest employees. It is found that survivor syndrome, including five major types, occurs among survivors. also, quatern relevant solutions for managers atomic number 18 provided to minimize the nix influence on remaining employees and to support in store(predicate) development of the family. Lastly, stream issues and concerns with respect to motivatio n maintenance atomic number 18 also discussed for feasibility. 2. Introduction During the financial crisis, many organizations are downsizing and laying off their employees.A major doer that contributes to the failure of most organizations to achieve their objectives aft(prenominal) downsizing is that they do non adequately and effectively address the people factor related to live on employees throughout the process. In other words, most companies focus on consoling the leavers instead of concerning the ostracise effects on the survivors. Survivor Syndrome is a intellectual condition that occurs when people perceives themselves to have done wrong by live a traumatic event when others did non.In the field of management, it refers to the veto psychological and natural continue that originations layoffs bring to the remaining dressers (Cascio, 1993). In this report, we identified 5 major negative effects on survived employees and provide possible solutions to the manage rs. 3. Major negative effects 3. 1 Psychological effects 1. Job insecurity. Survivors wonder how bulky they go out be able to keep their line of merchandises, and they worry that they are not prepared to find rifle elsewhere, or that there are no comparable outside jobs.Since survivors are at the risk of losing jobs, they no abundant-lasting regard themselves as an integral organization member, as which they are accountable for the future of organization. 2. Depression, anxiety and fatigue. The process is demoralizing and tasteful for the managers who must lay off employees, as healthful as for employees who lose friends and colleagues. After the layoffs, much work and more(prenominal) pressure to perform, mentally and emotionally drained after survival. 3. Reduced risk-taking and creativity.Many survivors are afraid to face challenging jobs, accept a bare-ass task, or discuss a work-related problem for fear that they founder themselves to criticism or poor exercise ap praisals and become the score of future layoff. As a result, they are receptive to their status quo as be safe instead of taking initiative. 4. Dis deposit and betrayal. Doubts whitethorn arise roughly the wisdom of the layoff choices when survivors believe that someone laid off is more subject than a remaining one.The feeling of un wanness prat lead to worries approximately the transparency of organization operation therefrom causing distrust and possible job-hopping. 3. 2 Physical effect Apart from the psychological negative effects, layoffs may also influence the physical health of the survivors. Great pressure and impenetrable workload privy have a bad impact on employees immune system. Under this situation, people are probably to have more physical symptoms, like stomachache, headache and cold. 4. Solutions for managers The following are four solutions provided to minimize negative effects on survivors. . 1 Open Communication research has proposed that procedural jus tice, which is the perceived fairness of the process white plagued to determine statistical distribution of rewards, has a critical role to play in the management of employee organizational commitment, trust in the corporations and turnover intentions. Hence in times of dubiety and fear, increasing the perception of procedural justice is the key to rebuild trust and confidence among the employees and accordingly combat the Layoff Survivor Syndrome. This could be achieved through unfastened communication. . 1. 1 Communicate about the downsizing Managers could pursue promoting perceived fairness and transparency through openly addressing the downsizing event, explaining explicitly and honestly the rule as closely as procedure for the layoffs and illustrating how the action of downsizing will lead to future organizational success. Open-book management, a strategy that is designed to champion facilitate the communication process, is widely drawed by many recognisable corporation s such as the HSBC Group and Cathay Pacific during downsizing.Through disclosure of the expound business and financial information, the practice provides employees with insights into the companys situation and hence the rationale for layoffs. Moreover, the approach empowers employees to take ownership of their work as they are now fully aware of the implications of their actions on the companys performance. As a result, they are motivated to take the initiative to help reduce cost. Furthermore, managers should be poopdid about the potential drawbacks of the policy.For instance, while downsizing needs leads to outgrowthd workload and prolonged working hours that create an overwhelming stress for the survivors, timely and quality communication with the employees about their new roles and responsibilities is hence imperative form to help them better manage the pressure and maintain employee morale and productivity. 4. 1. 2 Communicate about the future Goal Setting Theory understand ably demonstrates that working towards a close is a major source of job motivation.Effective communication about the organizations post-layoff goals and visions is therefore important in maintaining and strengthening employee commitment. Regular update on the organizations long term strategies will further reinforce trust and confidence among the employees, as not only does the action train them that the leadership is actively lick the problems, but also conveys a clear message that they are be valued and respected by the company. While open ommunication should be advance at all directs, particular attention should be devoted to the concourse of employees who are highly skil conduct and professional in their field cod to their great inclination to leave for greener pastures in times of uncertainty, as well as those who are personally affiliated with the laid off as they tend to experience the greatest emotional toll from loss of their co-workers. 4. 2 Job reassignment Job r eassignment means to redesign item-by-item roles according to their talents and background.Job reassignment is inborn in clarifying everyones duty in order to assure that the company can still function normally. And in another aspect, straightlaced job reassignments may also to some extent reduce the negative effects on survivors such as job insecurity and anxiety. 4. 2. 1 Job design Here are some suggested actions for job redesign, including combining tasks, creating natural work units, establishing internal or external client sexual relationships, expanding jobs vertically, and gap feedback channels.The actions mentioned above provide the survivors with more and better opportunities to develop their skills and to take the responsibility. Since the workload of individual survivor usually becomes heavier, what managers can do might be reservation the job more motivating for the survivors. They will help the survivors to experience the meaningfulness of their work, and also ha ve higher working satisfaction. It will also be able to keep survivors from feeling passed over during the downsizing they must be assured of their value, which will reduce their job insecurity. 4. 2. Training and supporting programs Besides job design, managers should do a lot more work in order to assure that job reassignment is being carried out successfully, in which schooling and supporting programs should be nominateed. whatsoevertimes in the haste of layoffs, employees are shifted to new assignments without appropriate preparation such as job insecurity and omit of confidence in competency. It is found that people are uneasy because they are not sure what they are supposed to be doing, who they should be accountable to, or if they are doing a good job(Wexley & Silverman, 1993).In the wake of a downsizing, managers are suggested to sit down with each employee to help clarify his or her new role. Employees need to know what expectations have changed and how those changes ma y have an impact on their daily work. Research shows that most employees find great encourage in knowing exactly what theyre working toward and exactly whats expected of them. Additionally, a large portion of anxiety is caused by lacking confidence in competency. Survivors worry that they will not be competent in their new restructured job functions that the survivors do not ever possess.So immediately after layoffs, employees should be trained on how to handle new tasks or responsibilities. 4. 3 Pay-for-performance As the expectancy theory states motivation= expectation *instrumentality * valance, in relation to effort, performance and rewards. Therefore, we suggest the liquidate-for-performance scheme to work alongside this theory. The general caprice is rewarding through the deferred payment of work done by overachievers, thus encouraging performance levels. There are, however, several takes to this approach according to Stephen OBryne. . 3. 1 Pay versus target soften is ti ed to performance Some companies believe that pay-for-performance is best reached by awarding compensation when the performance level is above a target level, thus a decrease if it is infra target level. Companies such as Procter and Gamble are known to use this method. For example, in its 2010 proxy statement, P&G describes pay for performance this itinerary We pay above target when goals are exceeded and below target when goals are not met. 4. 3. 2 Pay doesnt go up when performance is poorThis method defines pay for performance in terms of performance and pay changes. In its 2008 U. S. proxy voting guidelines, ISS said it would vote against compensation delegacy members when the company has a payforperformance disconnect, defined as an increase in pay coupled with a decrease in performance. 4. 3. 3 Pay versus market pay is tied to performance Adopting target pay/prior year pay as a benchmark for assessing pay-for-performance has led some companies to focus on market pay inste ad.Companies such as Dow Chemical and CSX agree that superior performance should lead to above market pay and poor performance should lead to below market pay. 4. 3. 4 Pay centile equals Performance percentile If a company provides target levels of pay at or above a particular percentile but the performance does not meet the percentile of peer companies, the firm should redesign its compensation strategy to align it with the organizations compensation. This can help the situation as it recognizes the efforts of individuals and thus boosting the general morale of the employees.Limitation in this approach lies in deciding the target levels. For example, some companies may adopt a needlessly high target pay level which may result in the rewarding of poorly behaved executives with pay levels that, albeit lower than those for well performing executives, remain above the market. 4. 4 Individualized recognition and reassurance quite a little have social esteem needs such as recognition a nd belongingness. Employee recognition and reassurance is a critical issue especially when a company is dealing with downsizing, where the survivors are both physically and psychologically affected.Here are 4 detailed ways to raise employee recognition. 4. 4. 1 Offer reassurance whenever possible quotation is the essentially positive feedback that lets employees know they are valued and appreciated by theirco-workers, supervisors and the organization. Employee recognition could be raised from daily works to formal events. Certainly, special tasks, important meetings and awards presentation are good chances for creating employees sense of belongings and self-actualization. Apart from those formal situations, bonuses and prizes, daily appreciation and reassurance are also important.By sending thank-you e-mail or a handwritten note of praise, employees would feel that their hard work is being rewarded. Then, they will be more motivated and continue to work harder (Murdock, 2010). 4. 4 . 2 Provide counseling for survivors for further development Counseling can take the format of buddy program in which manager acts as mentor and employee as mentee. Manager may meet with employees on an individual or small-group basis to devise a personal plan for goal achievement. By doing this, the survivors will be aware of the opportunities they still have remaining in the company.Besides, a feedback system can also be ceremonious where the employees give feedback about their progress in achieving individualized goals and managers help to quantify and make improvement on their plan at the same time (Boyd, 2013). The program serves as a channel for mutual communication in the company. Therefore, remaining employees can release the distress brought about by downsizing. 4. 4. 3 Continue to communicate, especially one-to-one Individualized communication would be a modified way to boost morale based on distinct personality type of employees.By communicating with employees individu ally, managers are able to understand their feelings and problems and offer helps to improve the situations (jobsDB HK, 2007). Also, they could realize employees personalities and take them into account when designing plans for reducing negative effects from lay-off. For instance, for an employee with need for affiliation according to the Three-Needs Theory, he/she probably prefers a social event to renew his/her personal network. As a result, surviving employees could be easily motivated. 5. ConclusionThis report discusses 5 negative effects on employees who have survived organizations layoff and the corresponding solutions. Layoffs due to the financial crisis can lead to physical problems and a series of negative psychological effects including job insecurity, depression, anxiety and fatigue, reduced risk-taking and creativity, distrust and betrayal. Facing such a situation, open communication, job reassignment, pay for performance, and individualized recognition & reassurance are the four corresponding solutions suggested. However, the real situation is much more complicated, where more issues should be taken into consideration.One concern is the diversity of workforce. Different employees have different values, backgrounds, making it challenging for managers to identify and satisfy their needs. Another concern is the culture difference. to the highest degree current motivation theories are based on the situation in the United States and managers cannot assume that motivational programs well fit in their own case. Therefore, it is suggested that managers should incorporate local cultural factors and personal characteristics when dealing with the downsizing negative effects. 1 . Cascio, W. F. (1993).Downsizing what do we know? What have we learned. Academy of Management Executive, 7(1), 95-104. 2 . Wexley, K. N. , & Silverman, S. B. (1993). Working Scared Achieving Success in Trying Times Jossey-Bass. 3 . Murdock, K. (2010). Boosting Morale of Employees Important During Tough Times How You Can Do It in Three Easy Steps. The Washington Post. 4 . Boyd, J. (2013). How to Motivate Employee Performance. eHow. Retrieved from http//www. ehow. com/how_5996416_motivate-employee-performance. html 5 . JobsDB HK. (2007). Boost Staff Morale. Retrieved from http//hk. jobsdb. com/HK/EN/Resources/EmployerArticle/morale? ID=500