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Reorganization and Layoff: Decision Making and Evaluation Paper

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Reorganization and Layoff: Decision Making and Evaluation Paper

Reorganization and Layoff: Decision Making and Evaluation Paper
“One in seven U.S. families goes bankrupt in the course of a decade, 90% of them are educated, middle-class families, mostly with children (Warren & Tyagi, 2003).” Job loss is one of the major causes. Middle-income jobs are usually impacted most during reorganization and layoffs. To help protect the middle-class consumer, it is important for companies to train its managers about the effects of layoffs, and proper handling of layoffs.
The Middle-income
A typical family, living a middle-class lifestyle with children, usually requires both parents to work. If one parent loses their job, the family could face a financial crisis (Warren & Tyagi, 2003). It is common that middle-income jobs are the most affected by reorganization and layoff, especially at big factories and companies. Many companies rely on the middle-income consumer, so companies need to be careful with why and how they reduce its workforce. As seen in bankruptcies, many markets hurt when middle-income jobs are lost.
Business Decision
To help maintain a healthy market and company perception by the public, companies need to avoid layoffs if possible, and when necessary handle the issue with care and professionalism. A good business decision is for a company to invest in training its managers on the effects of layoffs and proper handling of layoffs. When managers have an understanding of the feelings involved and the effects of losing their job, they will have more sensitivity to the situation and better motivation to find ways of avoiding a layoff. A company should always properly train its personnel on the company’s policies and procedures concerning layoffs, and check to make sure they are followed. Other opportunities for training include sensitivity training, and role playing, to give managers a feel for what it is like to lose their job. Knowing the effects helps a manager deliver the news, when necessary, with respect and compassion. The saved relationships help keep a positive light between the workers and the company, which also helps with consumer perception (Ramlall, Al-Sabaan, & Magbool, 2014).
Solution and Factors
For a company to establish good management practices, it must invest time and money into training. Some companies have established practices over a long life of the company, and usually train within the organization. Newer companies and smaller companies need to establish its practices and might need to hire an outside training firm. There are many firms and programs to help train H.R. managers and even the workforce. The training will prepare managers to handle the different effects of the job. A prepared management team can greatly help minimize the effects of a layoff for all involved.
As mentioned, training a workforce takes a financial commitment by the company. A company must commit to employee time for training and staffing for the training. This can be an obstacle for small or struggling companies. Even after the training obstacles, implementation can bring obstacles as well. It is hard to predict employees’ reactions, as well, a manager’s reaction. Some people, despite training, could resort to their own methods. Companies need to establish a check to follow up and see if it was effective and being followed.

Conclusion
Reorganization and layoffs have many effects. The middle-income consumer and job market are greatly impacted when companies reduce workers. Companies need to put a good effort into keeping middle-income jobs and minimizing the effects of layoffs. Good management training is a good decision by companies for business. Through good training, companies help the market and their employees by keeping people working, minimizing anger from employees, and limiting bad company perception.

References:
Ramlall, S., J., Al-sabaan, S., &Magbool, S., (2014). Layoffs, coping, and commitments:
Impact of layoffs on employees and strategies used in coping with layoffs. Journal of Management and Strategy. 5(2).
Warren, E.,& Tyagi, A., W., (2003). Middle-class woes. Sociological Forum. 21(3).

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