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Back cover copy "This volume provides anyone using technology-enhanced assessments as part of organizational selection, promotion, or development programs, or considering their use, with both cutting-edge discussions of critical measurement issues and detailed examples of ongoing HR systems that highlight the opportunities and challenges of such assessments. Farr, professor, Department of Psychology, Pennsylvania State University"Assessment systems provide an efficient means to evaluate and deploy talent across our global business.

Technology-Enhanced Assessment of Talent highlights the science behind these technologies, as well as cutting-edge solutions shown to be effective in running the talent side of business. Rodriguez, Ph. The Jossey-Bass SIOP Professional Practice Series was launched in to provide I-O psychologists, organizational scientists and practitioners, human resources professionals, managers, executives and those interested in organizational behavior and performance with volumes that are insightful, current, informative and relevant to organizational practice.

The volumes seek to inform those interested in practice with guidance, insights and advice on how to apply the concepts, findings, methods, and tools derived from industrial and organizational psychology to solve human-related organizational problems. Table of contents Foreword by Allen I. Foundations for Measurement 21 John C. Scott and Alan D. Mead 3. Implementing Assessment Technologies 66 Douglas H. Reynolds 4. Glaze 5. Computerized Adaptive Testing Rodney A. McCloy and Robert E.

Gibby 6. Bauer, Donald M. Truxillo, Kyle Mack, and Ana B. Costa 7. Ruggeberg, and Carrol Ray Hall, Jr. Van Rooy, and Victoria A. Davis Grubb Hartog Video-Based Testing at U. Customs and Border Protection Jeffrey M. Second, the talent pool deeper in the organization often occupies roles that are critical to the ongoing success of the business.

It is necessary to secure their continued employment and commitment to help the new business reach high performance levels fast. Unfortunately, the human psyche is such that it tends to hear or read all the negative implications in any piece of communication. As annoying as this may be, you have to do it.

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Never create illusions. The most honest communication is usually frank. The emotions around loss or change traditionally have been categorized as some of the strongest stressors. The neu- rosensory research around emotional intelligence suggests that strong emotional responses from the brain have priority over the more rational side of the brain. Managing such a situation requires sensitivity and ongoing care. The best help you can give employees with long-lasting effect is to help them assess their job strengths and weaknesses accurately.

Money simply is a plaster on the wound; it does not help heal the wound. Always have employees consider redeployment. Support the managers delivering the message. Most of them, regardless of their seniority, are not trained to give bad news and need special support around the process. They forget that trust can be built only on truth and sincerity. A positive workplace requires unvarnished honesty. There is no one-size-fits-all retention lure. I recommend that HR professionals try to customize retention programs to the individual employees whom the organization seeks to keep.

In addition, the employees you want to retain most often are the more talented ones who frequendy have more options in the labor market. Be mentally ready for twice the delay than the one announced at the onset. Such times bring out the best, but also the worst, in people. Insist that senior management roles be dealt with the soonest, so that they can be announced before or, at the latest, at the time of the close of the deal.

If you do it quickly, the pain is sharp but brief. Such an attitude can create a positive image of an employer of choice. Not wanting to take anything for granted, we saw the breakup of our company as a huge develop- Who Moved My Drink? During such a massive resizing effort, the role of HR is not always clear. Typically, HR is seen as a non-revenue- producing role and is likely to be high on the list of to-be-cut jobs. Moreover, there is an increased workload in the function to process all the personnel changes, often with increasingly fewer people to do the work.

At the same time, HR personnel usually are being sought out for emotional support. We designed and implemented responsive and adequate interventions to allow the organization to deliver its strategic objectives while at the same time preparing it for its future destiny. Any HR professional who is faced with resizing issues should respond proactively. These are qualities that are at the top of the list when companies seek to recruit their future strategic HR people.

An Internet start-up is a fast-paced and ever-changing environment that forces you to hit the ground running. You learn aspects of your job that you would not have experienced if you were working in a more established or traditional company. The philosophy is that time is money, and growth is the key to success. Fill that bubble with talent, and help create an organization that will attract candidates from all over the world. The Internet bubble has burst. The company I work for was a spin-off of a large media company.

Within a year, my company grew from twenty employees to over four hundred. Every department was growing, with three employees seated in one cubicle, facilitating new employee orientations every other day. Days like these make you flex your HR muscle and put everything you have learned about recruiting, benefits, employee relations, and training to the test to make this growing machine roll as smoothly as possible. The one piece missing in the picture was profit.

The bubble was about to burst. Less than a year after topping off at over employees, we now are a company with approximately employees. Nevertheless, it is a road that every HR professional can learn from and may have to go down at some point in his or her career. One of the challenges that a HR professional has to balance is the desires of the executive staff and board of directors with the needs and rights of employees.

Staff reduction often is the first area that management considers when attempting to reduce overhead expenses. It is the HRjob to make sure that any staff reduction is done legally, fairly, and humanely. It is also the part of the job that is not very pleasant. Concern for people is what made most of us choose HR as a career.

We help employees every day in a way that not only affects their work life but their home life as well. Starting a newjob is a big milestone. Losing a job can be devastating. Like most other Internet firms, it is only a few years old and grew very quickly and then contracted quickly.

These reductions were due to shutting down of some on-line networks. The first reduction in force occurred in May The employees who were let go during this layoff worked directly on those networks. The second layoff, in October , was primarily a reduction in overall workforce, and cuts were made across the board. All of these job reductions were implemented on an involuntary basis. On average, they were allotted about three hours to pack up their belongings and leave the building. The largest, 60 Resizing the Organization and probably die most emotional, layoff was the most recent. For months, we experienced a lot of turnover within our company.

The job market was hot, and people could go anywhere they wanted. Now, people do not have the same options. Consequendy, conducting a layoff during these times is even more painful for everyone. The Layoff Prior to our most recent layoff, we had employees. We had conducted a few layoffs and had seen reductions in staff through resignations and performance issues.

During the past six months, our vice president of HR resigned.

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We had to let our recruiter go, and my HR generalist resigned to move out of state. The executive team would like the layoff to occur six business days later, on the following Tuesday. Tuesday was selected because we needed the six business days to decide where the cuts in staff would take place and have time to get everything organized. At this point, our attorney okayed our reduction numbers.

There was a sense within the company that it was just a matter of time before another layoff would be announced. It was not a great working environment. I told them that there was no layoff planned at the moment, but that every one of us was working in an uncertain environment and that we all should be saving money and carefully planning for the future. Employees know when a company is in trouble. How a layoff should be conducted always is up for debate. Do you tell people in advance? What day of the week do you let them go?

What time during the day? Who should do it? How much time do you give them to pack up their belongings? Overall, there is no perfect way of implementing a layoff. The whole process is dismal. The most important thing to remember is that the decisions being made are affecting people and their families. Often, they make the decisions to lay off staff, but on the day of die layoff, they are nowhere to be seen.

We decided that it made more sense for managers to talk to their employees individually and inform them about the reduction on Thursday morning, three business days before the layoff. This approach would give time to employees who were being let go to give their work to those remaining and give them a few extra days to get their bearings.

Preparing the Final Packages Thursday Afternoon: Three Business Days Before the Layoff Now it is time to kick into administrative overload and prepare the final packages for the exiting employees. It is imperative to be organized and thorough when putting packages together. If all of the paperwork is in order, the day of the layoff will run much more smoothly and you can focus on what is really important: the people. Putting packages together takes time and can be tedious.

Here is the process that I followed to make sure I had everything covered. First Things First It is imperative that the list of employees being laid off remains confidential, even after the employees have been notified. Payroll has to cut their final checks. It also is important to examine employee tiles and check for any special agreements or circumstances. Some employees, de- Another Layoff? Give the final list to the payroll manager, so he or she can cut final and severance checks. Payroll also can provide the dollar amounts of money owed, so that the amount is available for the separation agreement.

You can mail-merge data into letters when you are ready. Finally, it important to determine what company property the employees have been issued such as cell phones, credit cards, and laptop computers. This information is usually available from the information technology, accounting, or facilities department. Putting the Packets Together Buy enough letter-size manila envelopes one per employee for paperwork.

In addition, buy a sufficient number of small manila envelopes to collect keys, door badges, and cellular phones from each employee. Change of address form. Put this right at the front of the paperwork. Separation procedures. This document outlines what is in the final package. People who are being let go may be in shock or confusion. Two copies of their separation agreement. The separation agreement is a legal document that oudines their termination of employment. It should be on company letterhead and needs to be reviewed by an attorney. Once the employee reviews it and agrees to the terms, he or she signs it and returns it to HR.

Final paycheck. A final paycheck is given to the employee, along with information describing exacdy what is being paid, such as unused vacation time, bonuses, and severance pay. Stock option summary. Unemployment brochures and information. You can get this information off the Internet for each state. The information should be easily understood, along with the telephone numbers and locations of local unemployment offices. Employee assistance program brochures. Most employee assistance programs provide counseling and referral services. Once you have all of the documents assembled, customize them by using mail-merge from the information on your Excel spreadsheet.

The more customized and professional you can make the documents, the better. Once the mail-merges are complete, print the documents and assemble the packets. I also printed out the name, de- Another Layoff? This approach makes it easy for employees to know what they need to turn in to the company and informs them they can do so by just putting it in the envelope. Coaching the Managers Every employee responds differently to a layoff.

Some are cool and understanding. Some make light of it. Some sob all day. Others get mad and frustrated. Some become vocal, and some shut down. This diversity of responses also is true for the leadership. When managers have to make choices to cut employees from their staff, it is very difficult and very emotional. They work with these people every day, and in many cases they are like a family.

As an HR professional, it is my job to check in with those managers and help them through this process. I coach each manager on how to talk with the employees who are being let go. We review some of the questions that the employee might ask during the meeting. Why am I getting tired? Walking managers through the paperwork that their employees will be receiving not only helps the employee but also gives some control back to the manager. By Tuesday morning, the packets are together and ready to be picked up by the managers.

We have decided that the managers will hold their meetings with their employees starting at A. Because I am the only HR professional, I can sit in on only a few of the meetings. The more experienced managers do not need me in their meetings. However, they know where I am if they want me.

I have requested a counselor from our employee assistance plan to be on-site. We informed employees that we were paying them through the end of the day, but they could pack their belongings as soon as they wanted and go home. Employees who were not being laid off could take the day off if they were upset or simply wanted to get out of the office for the day. After the manager had finished meeting with the terminated employee, the employee came to my office as directed, bringing the paperwork.

We signed the necessary documents, and I gave them their severance check. They came to my office with scared faces, some with relieved faces, some with no statement, and a handful with tears in their eyes. You cannot predict how people are going to react.

Even in the Internet environment where layoffs have become commonplace, the pain is still very real. I was amazed at how many laid-off employees came by to see how I was doing. Many came to thank me for orchestrating a process that can be cold and calculated, and making it one of respect and professionalism. The Another Layoff? I definitely hugged back. We have begun holding employee lunches once a week hosted by our CEO, president, or CFO and allow open discussion to take place between them and every employee attending the lunch.

It is something they will remember for the rest of their lives. When you look back at previous jobs, what you think of first is not what you did every day on that job but the people you did it with. That is why I work in HR. I am fortunate to work with people from all parts of an organization and assist them in ways that they will remember forever. Raymond G. This is the case for many companies, particularly those competing in volatile and rapidly changing industries, such as the dot-coms and other Internet, telecom, and electronic-based organizations.

How does a business get the people it needs, when it needs them, and adjust on the fly to the ups and downs of the business or industry it Much of what is described in this chapter is a result of my experiences obtained while working at W. Some of the principles and methods described in this chapter may be extensions or adaptations of what is actually being practiced at Gore today and are offered as suggestions for right-sizing purposes in general.

This chapter presents a model for accomplishing this task that is based on individual employee contributions aligned with business needs. All associates are ranked by their teammates and leaders at least once a year, and the resulting lists place everyone in rank order based on contribution, from highest to lowest. The process was relatively simple in the early days when the company was small and everyone knew what everyone else was doing. The contribution assessment process gets more complicated as teams and workplace size grow.

This is one of the reasons that Gore has kept its teams relatively small, generally fewer than two hundred associates in total. The primary use of this ranking information is for pay-setting purposes. People are not paid based on seniority or job title at Gore. Rather, pay is based on the contributions the employee is making to the success of the company.

Higher contributors have the opportunity to make more money than lower contributors. This philosophy helps avoid salary compression and ensures that associates who are doing great things for the organization are properly rewarded. As business staffing needs change, the contribution needs of the business ultimately will dictate the outcomes of these staffing decisions. The health of the organization will be maintained and improved as associates with high contribution potential are added and individuals with unacceptably low contribution are removed.

This process is best practiced on an ongoing basis to ensure overall organizational health and improvement; it may accelerate in times of major business growth or decline. Diligence at practicing this process on a continuous basis can minimize or dampen the need to change staffing levels in large chunks during major business shifts, especially downturns. Layoffs may be inevitable when business downturns are large and sudden. Details of the Model A contribution-based system for staffing is well integrated with the hiring process.

A company following this philosophy is constantly seeking individuals who have the skill and talents necessary to be successful within the organization. Ensuring that the company is populated with people capable of making high contributions is critical to the long-term success of the organization.

Consequently, the recruiting effort must seek people who are capable of being high contributors within the organization and the business model and requirements it has developed. In addition, the organization needs a process to assess employee contribution for compensation and other reward and feedback purposes. This process must ob- Contribution-Based Process for Right-Sizing an Organization 71 jectively identify low contributors in order for appropriate action, which gives the employee the direct feedback he or she needs to make performance adjustments and improve.

It is crucial that low contributors be given prompt and direct feedback. However, good leadership will ensure that this feedback is obtained and delivered in a professional and timely manner. Employees who do not make the necessary improvements eventually will need to leave the company. Define goals driven by leadership, usually with associate input and objectives needed to meet business requirements.

Determine tasks needed to achieve goals and objectives. Associates make commitments to complete these tasks. Associates attempt to complete commitments. A contribution is a function of how effectively commitments are completed and the relative importance or impact of the commitments toward achieving the goal or objective. The tasks and resulting commitments necessary for a team to reach its objectives or goals ultimately are defined and agreed on by teammates or leadership, or both.

If the tasks are not properly defined or not performed effectively, wasted effort results. Ensuring that work tasks are appropriate and sufficient is vital. If the tasks and commitments are correct for the objectives at hand and if all contributors successfully complete their commitments, the 72 Resizing the Organization team is well on its way to achieving the goals set forth due to these contributions. At Gore, for example, people make their own commitments; they are not assigned work. They choose their commitments based on a combination of factors, such as what needs to get accomplished, what skills are needed to do the work, and their own skill level and interests.

High contributors need to be recognized and rewarded for their efforts. Because they are making the biggest impact to the success of the business, they must be kept happy and challenged. These are the people the organization must do its best to retain, no matter what it takes. Losing one of these people must be held up as a leadership sin—a real failing. People move between them all the time [General Electric, , p. They need to show improvement since they are prime candidates for replacement. If an organization wants to strengthen itself, it can least afford to keep these em- Contribution-Based Process for Right-Sizing an Organization 73 ployees.

In a growing business, these people need to be replaced with those of higher contribution potential. In a flat or declining business, these people are the most susceptible to losing their jobs as productivity improves or business downturns occur. Obviously, they should be given opportunities to improve their situation, but time is of the essence for them to do so. This process is easiest when teams are small and everyone knows what everyone else is doing.

Such approaches also complicate the process, making it more difficult to teach and administer. One of the reasons that Gore traditionally has kept its production teams relatively small is to enable associates to know a larger percentage of the workforce. The model is a useful tool for both internal job movement and increasing or decreasing the overall workforce size. Ajob opportunity could be hlled in this way: 1. The opportunity is posted for internal candidates to review and consider.

Interested and qualified candidates apply. A similar process is followed for tilling position openings with external candidates. Typically, this process is conducted only if a suitable internal candidate cannot be identified. Consequently, additional emphasis must be placed on information supplied by the candidate, personal interviews, and reference checking. The organization needs to separate from these unacceptably low contributors in order to remain healthy. Where an organization draws this line also may be dictated on the growth expectations for the business, as well as other factors related to workforce skill level and availability.

At GE, this line is drawn directly above the bottom 10 percent of the organization. At Gore, anyone whose contribution is low after repeated feedback is in jeopardy. Also, an organization would be wise to separate these problem employees from an organization within the initial ninety- day probationary period of employment. In addition, the information collected during this time is excellent feedback for all new employees, so they know exactly how their early contributions are being viewed. This feedback is valuable input that new employees can use to make adjustments in their work or behavior to improve their overall contribution.

When a workforce is too large for the economic condition the company is facing, ramp-down adjustments may needed. This has been the case for many companies in the telecom, electronic, and other related industries throughout due to industry slowdowns in those markets.

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Many companies serving these industries had been ramping up capacity and people in the late s and into the year to support the seemingly unending growth throughout this period. When economic conditions began to worsen in , many companies had to reduce staff quickly. A contribution-based reduction plan avoids this outcome.

This process is fairer than a seniority-based system since it rewards employees for actual contribution, not simply service time. A potential pitfall of using contribution data for layoff purposes is that some employees may be unwilling to participate in the assessment process. The fact that these data eventually may be used to terminate a coworker can alienate some individuals. This information can be useful in many ways for an organization and its people. As staffing needs change, it provides the information necessary to make adjustments in a fair, timely, and objective manner.

In good times, low contributors can be replaced with higher contributors. This strategy can reduce the possibility of a larger layoff if conditions worsen. Reference General Electric. Annual report. Lester Jill R. Kickul Thomas J. Bergmann Kenneth P. De Meuse For the past decade, organizations have had to cope with a highly competitive and dynamic marketplace. As executives have sought to resize their organizations, they also have developed strategies to increase employee commitment and satisfaction.

An 78 Resizing and the Psychological Contract 79 important issue that executives must ponder is what messages their organizational actions are sending to employees. If employees think that organizations view them as expendable, this likely will have an effect on their perceptions of their psychological contract and its fulfillment.

Without these expectations, neither die employee nor the employer has the incentive to contribute to each other, and the relationship could not endure. The employer and employee believe that both parties have made promises to each other, and both have accepted the 80 Resizing the Organization same terms of exchange Rousseau, In a transactional exchange, organizations promise to provide specific monetary remuneration for employee contributions. Therefore, a short-term agreement between the two Resizing and the Psychological Contract 81 parties results because the exchange is defined by economic terms, a close-ended time frame has been established, and the scope of the obligations is very narrow.

Table 5. This psychological contract promoted lifetime employment and loyalty between employee and employer. Modern organizations are resizing themselves in a variety of ways. In fact, research has shown that mergers and acquisitions, as well as layoffs, have reached record levels during recent years. With regard to layoffs, in the first quarter of alone, there were 1, mass layoff actions resulting in a loss of ,jobs.

During the early s, many experts believed that mass layoffs were a temporary event and eventually employment stability would return to normal. From an equity theory perspective Adams, , individuals try to find an equitable balance between what they receive from the organization and their own contributions. In other words, the more careerist the employee was, the stronger the relationship was between perceived contract violations and lack of trust in the organization. Overall, Robinson found moderate relationships between specific contract breaches and trust, civic virtue, performance, and intentions to remain with the organization.

In the same study, Robinson found that prior trust in the organization at the time of hiring moderated the association between psychological contract breach and trust eighteen months after employees were hired. Individuals with low prior trust in the organization exhibited lower feelings of trust after a contract breach than did those individuals who had high initial trust in their Resizing and the Psychological Contract 85 relationship with their employer. Individuals who have a low level of initial trust are more likely to interpret the unfulfilled promises in an unfavorable manner, diereby confirming their initial attitude regarding the organization.

Building on this theory, it seems reasonable to expect that an employee will be motivated to make more extreme responses to contract breach when the outcomes that have been violated are extremely important to that individual. Employee Attributions for Psychological Contract Breach The types of attributions that employees make when they perceive a psychological contract breach has occurred also may influence their responses to breach.

Rousseau and Morrison and Robinson suggest diree main reasons that psychological contracts go unfulfilled. First, reneging occurs when organizations intentionally and willfully fail to keep their commitments to employees. For example, organizations sometimes engage in layoffs even when they are making sizable profits and members of the top management team are receiving large bonuses. In such cases, individuals are likely to perceive that the organization could have lived up to its prior commitments but chose not to do so.

Third, incongruence occurs when the employee recognizes that there has been an honest misunderstanding regarding the terms or conditions of the employment relationship. We label this category of response nullification. Remember that employees offer their contributions to the organization in exchange for the inducements they expect to receive.

Although the self-serving bias makes it unlikely that employees will make this particular attribution very often, it is important to recognize this possibility. Leventhal, Karuza, and Fry suggested there are at least six procedural rules that individuals use in judging fairness: 1. Procedures that are consistent across individuals and over time consistency 2.

Opportunities in place that can be used to modify or reverse decisions based on inaccurate information correctability 4. Allocation processes that are compatible with prevailing moral and ethical standards ethicality 6. No personal self-interest and blind allegiance that may narrow preconceptions bias suppression Any violation by a decision maker or an organization can lead to perceptions of procedural injustice.

When there is a perception of fair treatment, employees may feel that they have a respected and dignified position within the group or organization, thereby heightening their feelings of self-worth. The employee, in turn, may have strong feelings of anger and blame the organization for being causally responsible for the downsizing activity. Huseman and his colleagues , contend that there are three types of individuals who have varying degrees of sensitivity to equity: benevolents, equity sensitives, and entitleds.

At one end of the spectrum are the benevolents, who place their emphasis on the relationship with their employer. In the middle of both benevolents and entitleds are the equity sensitives, who place the same emphasis on having a good employment relationship and achieving desired outcomes. Wiry is resizing necessary?

A longer- term concern is how human resource practices can be used to ensure open communication persists over time in order for future change initiatives to be effective.


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Maintain constant dialogue to answer questions and provide additional input to meet employee expectations and needs. Monitor employee attitudes and needs to determine when future public forums between the CEO and employees are needed. Facilitate many of the resizing benefits provided to employees who are being displaced for example, schedule outplacement services, coordinate employee severance packages, and provide counseling services. Engage in activities such as providing counseling, updates on new compensation packages, and additional job training to those who are remaining with the organization.

Serve as the change liaison between top management and employees on a daily basis. Provide information and answers to questions that arise as the organizational change effort evolves. Correct inaccurate rumors that are traveling along the corporate grapevine. Allocate time to respond to questions concerning what is now expected from employees in the organization over the short and long terms. During these dynamic times, employees become more focused on whether they feel the organization is treating them fairly. Perceived breaches still will lead to negative attitudinal and behavioral responses.

There are three key levels that must be highly involved in this communication process. Chief Executive Officer Although employees may look to their immediate supervisors first when assessing levels of psychological contract fulfillment, they are likely to focus more attention on top executives when making 94 Resizing the Organization attributions as to why psychological contract breaches are occurring. Although we acknowledge this may be prudent for routine business activities, it is important for employees to hear directly from executives when major change initiatives are under consideration.

Often this becomes an issue of leadership. If employees comprehend the potential benefits of the changes, they will be more likely to perceive that they have been treated justly. Probably the best way to do that is to gather feedback from an employee survey. In essence, organizations need to know what employees want if they hope to retain and motivate the key people in their workforce.

The organization must constantly monitor the changing need structure of its employees. Human resource managers need to be aware that as the strategic direction of the organization changes, the operational design of the total reward package and its method of implementation performance assessment also must change in order to increase the likelihood that it will satisfy the needs of employees.

When there have to be changes in the psychological contract, employers should seek to modify it in terms that are reflective of the new employment conditions. Human resource managers should ensure that employees 96 Resizing the Organization understand how the organization is trying to meet their multiple needs. In addition, they should give employees the opportunity to express any new changes in their expectations of what they believe their organization should provide to them.

Although companies are very cognizant of the detrimental impact of layoffs on those who lose their jobs, they often forget about the struggles of those who remain with the organization. Noer recognizes a major reason for the long-term suffering of layoff survivors is that they feel violated by changes in the psychological contract. Employees are dependent on supervisors to provide information and answers to questions that arise as resizing evolves. By keeping employees informed, these individuals can increase the likelihood that employees will view the changes in a more positive light.

Human Resource Practices That Increase the Likelihood of Resizing Success Previous research has demonstrated the adverse consequences of a poorly implemented downsizing effort.

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There is a lack of strong data to support the belief that downsizing will solve the financial woes of an organization Cascio, ; De Meuse et al. Downsizing is only one type of resizing strategy. Figure 5. Second, organizations enable the employee to learn how to adapt to resizing initiatives successfully.

A crucial aspect of managing a resizing process is to make sure that the remaining employees are clearly informed of the opportunities that exist in the changed work environment Brockner, Performance Appraisal Supervisory and managerial personnel within organizations should receive guidance on giving employees adequate explanation of all job and role changes. If the company is confident in what it can offer in that area, the chances of a successful relationship are good. As the psychological contract continues to be transformed, employees frequendy perceive their organization as failing to live up to its psychological contract obligations.

For others, it means a violation of the expectation that organizational members will be treated with respect. Fortunately, organizational change and psychological contract breach do not have to be inescapably tied to one another. Most of these steps revolve around efforts to improve the communication occurring among executives, human resource staff, supervisors, and the employees who may be affected the most by the changes.

Organizations that have made the effort to build cognition- based trust over time with their employees will be more successful in dealing with employee concerns during times of organizational change and likely will face less opposition to the resizing effort. By improving communication networks and more closely aligning human resource practices with organizational strategies, these organizations will build trust. References Adams, J. Inequity in social exchange. Berkowitz Ed. Orlando, FL: Academic Press.


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  • Announced job cuts hit record high in April. USA Today. Section 2 Key Practices. Section 3 Critical Issues. Section 4 Perspectives. Section 5 Bibliography. About The Authors. Name Index. Subject Index. For more than twenty-five years he has consulted with managers, HR professionals, executives, and CEOs from more than organizations. Silzer specializes in executive and management leadership, assessment, selection, coaching, and development, and in strategically driven HR systems.

    Ben E. Dowell is an independent talent management consultant.