e
2. Communication
Communication is the key element during the planning, implementation and postimplementation stages of downsizing. Lack of knowledge and/or information can breed mistrust of management and dampen employee morale among survivors of downsizing. Employees do not want to be in a vacuum. A recent survey conducted found that a high loyalty rate after a downsizing is partially due to honest communication (Morrall, 1999). More than 43 percent of the surveyed employees said that their immediate supervisor explained the downsizing. Others indicated that they were aware of the downsizing through the organization's publicity programs (e.g. company newsletter). Because of these programs, employees perceived that the organization conducted the downsizing openly, which contributed to the maintaining of their loyalty and commitment to the organization.
Human resource leaders must ensure constant, candid and two-- way communication during downsizing. Too much communication is impossible during downsizing. During a reduction in the workforce at L.L. Bean, the company conducted 27 town-hall meetings over a twoweek period. Nearly a third of each meeting was reserved for questions from the audience. The company president, Leon Gorman, felt that this was the richest part of each meeting. It let front-line people vent their feelings and know that they had been heard (Serving the American Public: Best Practices in Downsizing, 1997). Employees must be given these opportunities to vent their fears and ask questions. Employees need to understand the reasons for the downsizing and reorganization; the status of those who will leave and what benefits they will receive to help them through the transition; the immediate next step in continued business activities; and discussions of any recommitment programs scheduled in the near future (Jackson, 1996). Without these understandings, many survivors will become angry, resentful and depressed, which will have a great impact on productivity after downsizing.
David Noer (1993), author of Healing the Wounds: Overcoming the Trauma of Layoffs and Revitalizing Downsized, stresses that communication during the downsizing process must be clear and truthful. A full and open explanation of the reasons behind downsizing helps prevent feelings of unfairness and promotes the sentiment that the downsizing is a shared experience. This clear and truthful communication from leadership helps dispel rumors which are worse than reality. In addition, it demonstrates to the survivors that senior management is aware of what is happening, is in control and is concerned about the impact of its decisions on employees. This communication also provides senior management with an opportunity to stress to the survivors that the result of the downsizing will be a healthier organization (Serving the American Public: Best Practices in Downsizing, 1997).