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Downside
of Downsizing: How to Know Cutbacks Are Just Around the Corner
Auburn, Aug.
16, 2002---The definition of
downsizing is a reduction in the workforce or manpower within a
company. When workforces are reduced, employees lose jobs.
Long before companies announce layoffs or
terminations, warning signs usually abound. For example, rumors
circulate that layoffs are in the works. There also may be items in
local papers or in the news about the health or strength of company
(or industry in general). A few individuals may have been terminated
here and there; a shift or department is temporarily shut down; or
the company adopts a salary or hiring freeze. All of these actions
are clues or warning signs to watch.
"Every employee should maintain a high level of
awareness during periods when positions are most likely to be
eliminated," says Dr. Jacquelyn P. Robinson, an Extension
workforce development specialist. General economic downturns,
business slowdowns that are often seasonal, or the period following
a merger or buyout, are the most likely times for workforce
reductions.
During these periods, there are always warning signs
that could jeopardize job security; and most fall into two
categories: proximity driven or management driven, says Robinson.
Proximity driven clues are those that affect
employees directly, giving them some degree of control. An
unsatisfactory job performance appraisal, especially if raises are
tied to it, having work constantly scrutinized or being excluded
from informal team or office meetings may be signals that jobs are
being targeted. Each of these clues, either separate or in
combination, should send a message that something is wrong and
employees should begin to take steps to protect their jobs.
An unsatisfactory evaluation, justifiable or not,
may signal the beginning of the end. Couple a poor review and little
or no pay raise with work being constantly examined or no longer
being trusted, may be a serious sign the employer is laying the
groundwork for termination.
Being on the "inside track" is an
important part of performing a job well. Taking part in the politics
present in every type of working environment is essential to
remaining on top of the work situation. Workers suddenly left out of
the chat in the coffee break room, not being invited to impromptu
business lunches, and not receiving any new assignments, are subtle
proximity driven clues that the excluded employee's job may be at
risk.
Management clues are those that affect the executive
level of company administration. Rank and file employees have little
or no control over decisions at this level. One of the first signs
that terminations or layoffs may be coming is a shakeup at the
executive level. Key managers are replaced with new ones who do not
fit with the mission and goals of the company.
"The risk involved in changing management is
the trickle-down effect," Robinson says. "New leaders
usually bring different management styles and a whole new set of
priorities and goals. After all, their jobs --not those of the
employees -- will be on the line if they cannot make a significant
impact in the company's bottom line. This means that jobs may be
slashed; departments may be eliminated; or company focus may change
entirely. "
Employees may not be able to save their jobs if
management is determined to cut positions. They can, however,
position themselves in the event their jobs are threatened. If it
looks like the company may be planning some type of restructuring or
downsizing move, employees need to take decisive steps to cope with
upcoming changes.
Source: Dr. Jacquelyn P. Robinson, Workforce
Development Specialist, Alabama Cooperative Extension System, (334)
844-5353
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