Downsizing...Right-sizing, lay-offs or workforce adjustment, whatever the current "correct" terminology, the fact remains that it is the most difficult thing that managers will deal with in their careers.

There are two issues regarding downsizing.  First, the period of downsizing brings with it incredible anxiety for everyone.  Both managers and employees have to "get through" this period where downsizing is announced and individuals are notified.  While this is the period of greatest short term stress, it is an acute situation. The second problem, and one of much more long term significance is the issue of those that remain.  Somehow managers have to deal with the fall-out from the downsizing process, and move their organizations beyond the grief, the anger and the loss of morale that characterizes these major organizational events.  It is those that remain that will determine what happens to the organization.  We are going to talk about the long term issues here. 

In the first few weeks after downsizing even those who still have jobs will feel a lot of difficult things.  Grief, anger, sense of betrayal, and depression are common "normal" reactions.  Typically productivity drops as people work through their feelings by talking with each other.

During this time, it is important that you do not pressure employees unduly, either in the areas of increasing productivity, or in expressing feelings about the change.  Some people want to talk, others not.  Some will work harder and some will not.  Your job is to help by gently talking to them, both in group settings and individually about their reactions, and how you can help.

During this period, you need to take stock of your own emotional situation.  Your ability to lead people through the tough times will depend on your own physical and emotional health.  Try not to cut yourself off.  Talking to colleagues outside your organization is a good idea, or at least, venting your own feelings with someone unconnected with your organization.  If you find yourself plagued by sleeplessness, mood swings and depression and guilt, don't hesitate to take advantage of support services that are available. 
Normalizing


It is difficult for leaders to determine when it is time to start sending the message that "business as usual" must prevail.  Too early and you alienate and anger staff...too late and you end up wallowing.  It is best to start normalizing slowly and gently.

The situation in your organization can be helped if you start to address any operational problems that might have been caused by the downsizing.  Any shifting in staff will result in new challenges in terms of doing business, and there can be some confusion and chaos regarding how you are going to go about doing "business" with a smaller staff complement.

It is important that the chaos be reduced.  Normally this will mean clarifying with staff any concerns they have about getting the business done, and problem-solving around the issues.  The longer that there is confusion, the more likely there will be permanent effects on organizational health and morale.


While the feelings of employees are important during this phase, staff need to be slowly moved back to getting the job done.  By getting clear understandings of the changes, you will create a climate of stability, which is necessary for the "recovery" of people in the organization.

The first part of adjusting to downsizing is to address the feelings of those that remain.  The second is to focus on dealing with the operational problems stemming from the changes, and the third step deals with the future.