HBR Case Study: The Layoff

What’s the best way to downsize?  There are many options:  across the board pay cuts, first in first out, last in first out, cut entire unit among others.  The problem is that there is no easy way and no one will be happy with the decision.

This case talks about a company needing to cut significant costs quickly.  The most intriguing point of the article is that company management did not have a clear policy on what to do in this case.  A policy would have been a great tool to direct the downsizing and at the same time company employees would understand the process.  No one likes change, especially during layoffs, however communication and planning are very effective tools to make the change easier to handle.

Explore posts in the same categories: BADM 720 - Organizational Behavior

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