Before downsizing, Bon Bon’s plan to downsize and why it must do so must be told to the workforce early. This will give the employees that may be dismissed an opportunity to prepare for their futures and less of a feeling of uncertainty with their situation. It will also give the remaining employees more respect for the company and give them more job security since they feel that the company will be honest with them with respect to company business. 16 Morale, climate, and culture are negatively impacted during layoffs and downsizing.
Bon Bon must recreate the work environment, so that people build their self-esteem, find work satisfying, and achieve at higher levels. This means that whenever possible leaders or supervisors must be visible and accessible so that employees can interact with them on a daily basis. The leading managers must reassure the employees of their value to the manager and Bon Bon. A individual with each of them, to let them know why and how they are valued; tell them what you feel they contribute to your effective, may result in continuously improving work environment.
No matter how reassuring you can be, on some level, after layoffs, trust has been injured and employees need reassurance about their security. They need reassurance about why the people who were let go in the downsizing were chosen. They need reassurance about their future. 17 Internal communication will play a vital role in retaining trust from employees. One main threat the company is competition. It is very important for Bon Bon to think of the product range and maybe think about introducing new ideas – innovate.
However, the research and development of this maybe cost a substantial amount, maybe something that Bon Bon cannot afford to do at present but must consider it in the near future. Due to the financial position that Bon Bon is currently in, the Bank is very reluctant to find out what is going on and how Bon Bon will improve the situation that it is now in, it is important that Bon Bon show that they are dealing with the problems, however, it may be best if Bon Bon had a meeting with the Bank Manager to explain the situation and show how they are improving it.
This meeting may decrease the pressure derived from the bank and make the bank more confident that we are looking into the problems. Customers, suppliers and the local community play a major part in Bon Bon. The relationship between them and Bon Bon is a very fragile one. Bon Bon must speak to the suppliers and ensure them about their financial position. The local community will be affected by any of Bon Bon’s decision; therefore it will be important to keep the community informed of all changes and constantly reassure them.
As far as the customers are concerned it will be important for Bon Bon to win back its customers from its competitors and the lack of innovation and “tired” product range is preventing Bon Bon from doing this. In the near future Bon Bon may have to go through the process of Recruitment and Selection to acquire a suitable number of employees with appropriate skills, in order to meet the manpower requirements of Bon Bon. These vacancies could either be filled by existing employees who have the skills in the form of promotions if within the firm or alternatively the vacancies could be job-posted or advertised outside.
It will be the job of the Human Resources department to attract and select suitable candidates for these vacancies. A great deal of people will be affected in the process of job-cuts. The decision should be carefully analysed before decisions are made in order to make the process easier on all parties involved. Four general downsizing steps should be followed in order for a successful downsizing, these are: analysis, planning, implementation, and managing the survivors. These steps will reduce the negative affects that job-cuts results from such as reduced loyalty, productivity, morale, and distrust in the company.
Making the job-cuts as easy as possible for all parties involved is the responsibility of both management and human resources. Steps should be taken to ease the affects on employees, laid-off employees, and also management. The main key to a successful organisational downsizing process is good communication. This is something that Bon Bon lacks, the managers must interact more with the employees, clear communication links must be established and this could be through general meeting with employees and keeping employees up-to-date with the changes in the organisation.
Last but not least, Bon Bon must consider extending its product range in order to meet customer’s needs, something that it is not fulfilling to do at present and in return it is losing valuable customers to its competitors. However, innovation will require research and development which could prove costly in the long term, this is something that Bon Bon might not be able to do as yet, because of its overdraft and the concern raised by the bank.
Bon Bon must find alternative investment this could be done internally or externally. Out of these the following are only likely to make a significant change. I concentrated more upon these in Section 1 and they were as follows early retirements, laying-off, voluntary redundancies and compulsory redundancies. Out of these options I would recommend that the early retirement package be offered to the older employees, these are most likely to be the ones that have been serving Bon Bon for over 40 years.
This will be a peaceful way of resolving this matter as the employees will be able to enjoy life without having to work and will show that Bon Bon has the employees best interest at heart. For the employees who are willing to take voluntary redundancy a enhanced package must be offered, however this could prove costly for Bon Bon as there is always a chance that the more skilled and experienced employees or department managers may take this package, this may leave Bon Bon with an less skilful and experienced team.