tensive follow-up meetings could have also been essential in relieving fears and anxieties. It is imperative that companies maintain trust, keep the lines of communication open, and develop a strategic plan for its employees to follow after the initial downsizing. Taking these steps will enable the company and the workforce to prepare for the challenge of working with fewer resources and begin meeting the new challenges they may face in their new structured environment. At this point the Human Resource department should be highly involved in the decision-making process. After all, they are largely responsible for the high wages and often times over-hiring of the workforce. They are the department to implement, not to create in a lay-off situation. They also direct the employee as far as labor laws, fair compensation, employee information and act as a go-between for management. Their mission is to protect the interests of the employee, while carrying out the needs of management. It is a proven fact that 80% of companies that downsize suffer from low morale among the workforce, which in turn creates lower productivity and often lower profits. Organizations must make strategic plans to carryout downsizing in order to have its effect be a positive one. It must weigh out all of its options before planning such a desperate move. Will the downsizing be profitable to the company? Will employee morale be lowered by the cutback? Have all other options been exhausted before the lay-off was decided upon? What strategic plan has been developed to ensure that the survivors feel confident in their employment and that they understand what their new focus should be. Alternative strategies should be exhausted before the final decision to downsize. Ways to reduce the payroll without having to have a lay-off is in the company's best interest. Long before the need to downsize, an organization should consider a hiring freeze as an option. This option consist...
