Demoralization is the result of a corporate downsizing and if not handled well by the officers of the corporation, the corporation can expect a decrease in; worker efficiency, production, teamwork, and cooperation. Adding to this and equally negative would be increases in; absenteeism, tardiness, mistakes and additional job loss. None of these create a positive work environment. Downsizing also places a large amount of stress on the individual's life outside the workplace as well.It is very difficult for the remaining employees to continue being productive for many reasons. These people that remain are now the same people responsible to improve the profitability of the organization. Left to work in an environment where an employee feels they have no control over their future, none the less their day to day employment status. They are asked to continue to work not knowing if they or one of their associates or colleagues will be in the next round of layoffs. They have to carry the guilt of being able to continue working while their friends and coworkers are now seeking employment elsewhere. This can have dramatic negative effect on teamwork and one can see a how a metaphor can be drawn between this and troops that go to war do not want to make friends with someone who may die the next day. In that the person you are working with may be the next one to suffer the consequences of downsizing.Beyond the stresses faced within the workplace, the stress outside the workplace can be just as disturbing. Many of the plans for the future can be postponed or become completely defunct. Matters such as marriages, babies, vacations and any other prospects of life would all be effected. Consider a person may have been counting on his or her income to be the sole income so that their spouse could leave their job to be a full time parent. The result of two parents now being unemployed would have a drastic effect on the individuals as well as...
