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Hazara University Haripur Campus


Marketing Plan of “Orange Juice”

Subject : Marketing Managment (2nd semester)

Submitted to: Sir Adil Ibrahim Paracha

Alveena Habib (Group Leader)

Muhammad Asif Khakan
Nayyar Abbas
Awais Ibrahim
Abdual Wajid
Numan Younas
Faisal Ali
Feroz Khan
Zohaib ur rehman
This research project would not have been possible without the support of many
people.specialy our teacher Sir.Adil Ibrahim Paracha who was abundantly helpful
and offered invaluable assistance, support and guidance.

I am almost thankful to all my group members who contribute their time and their
utmost dedication in completion of this task.

I would have not finished this project without the support of my family who has
always been there for me whenever I need them, the encouragement they give to
keep me going and their love to empower me that never fails all the time. Thank

To my brother whose support has always been my source of strength and

inspiration. To my friends who helped me in researching on different fields
concerning this project. Thank you.

I would also like to thanks to my senior Ehtisham Bhai,Bilal bhai and as given me
a chance to prove that I can do things on my own. He gave me a lot of positive
perspective in life. Who taught me things far more of my understanding. I thank
them challenging me to do this project. To you sir, I give you lots of thanks and
respect. Thank you.

I thank Mr.RAZA Muhammad who is the Purchasing head of the Cornett Food
Pakistan EBM(Hattar) for sharing his valuable time and for giving me helpful
information to finish this project. Thank you.

Downsizing and layoffs, once phenomena associated mainly with individual
company distress or larger economic downturns, have become permanent
features of the global business landscape. This entrenchment of job-shedding
activity has been driven by a number of factors. These factors include: more
rapidly evolving technologies and business cycles, intensified pressure to
improve stock performance, and mergers and acquisitions. At the same time, a
growing body of evidence has shown that companies often fail to realize
anticipated gains from downsizing, and nearly always suffer from substantial
hidden costs. Employers therefore have begun to understand that simply
reducing headcount may not be a strategy for long-term advantage. (For
purposes of this overview, "downsizing" - defined as a net reduction in a
company's workforce - also includes "layoffs," which can take place in one part of
a company concurrent with hiring in another part of the same company.)

Leadership companies recognize the myriad implications of downsizing and take

any of a variety of approaches to what has become known as "responsible
restructuring." Strategies can include adopting business practices that avoid the
need for layoffs, embracing training programs that redeploy "redundant"
employees to different jobs within the company, and employing other innovative
means to avoid or reduce the need to downsize. When downsizing must occur,
leadership companies adopt practices that eliminate or reduce potential
problems, including open communications, fair severance benefits, transition
services for those being downsized, and adequate attention to "survivors" - the
employees left behind to work inside a downsized company.

Business Importance

Businesses are recognizing that there are hidden and often very significant costs
associated with layoffs and downsizing. This is particularly true when job cuts are
poorly planned and implemented, a state of affairs common to companies
seeking short-term results from downsizing. At the same time, many companies
are understanding that significant benefits may be realized through strategies
that avoid downsizing and layoffs altogether, or carry out these activities in more
strategic - and, ultimately, less-costly - ways. Among the business rationale for
responsible downsizing:

Traditional downsizing doesn't achieve its goals. A wealth of evidence

indicates that the benefits companies frequently hope to realize from downsizing
fail to materialize or, if they do, are limited and short-lived. For example:

Cost Savings: While downsizing is intended to reduce a company's overhead,

the savings frequently are less than expected or, in some cases, nonexistent.
Research at the University of Wisconsin at Milwaukee showed that while nearly
all Fortune 1000 companies downsized between 1985 and 1990, fewer than half
met their cost-cutting goals. A 1995 study by Watson Wyatt Worldwide found that
only 46 percent of companies surveyed met their expense-reduction goals after
downsizing, and fewer than 33 percent met their profit objectives; only one in five
enhanced shareholder return on investment.

Profits and Performance: These, too, are expected to rise following a

downsizing, although this often isn't the case. The American Management
Association, in its 1998 Staffing and Structure Survey, concluded that firms that
showed a workforce decrease in the 1990s are far more likely to report long-term
decline in worker quality, product quality, operating profits, and shareholder value
than they are to report a long-term improvement. Meanwhile, a 1997 study by
business school professors at the University of Colorado at Denver, which
analyzed downsizing trends at Standard & Poor's 500 firms over a 12-year
period, found that companies that downsize are generally no more profitable than
those that do not.

Share Price: Downsizing often doesn't pay off in shareholder value, according to
several studies. For example, a 1997 Wharton School of Business analysis of 52
studies involving several thousand companies found that corporate restructuring
had little if any positive impact on earnings or stock performance. The year
Watson Wyatt study mentioned above found that only one in five downsizing
companies enhanced shareholder return on investment.

The "downstream" costs can be large. Several studies indicate that

downsizing can have hidden and very significant costs that emerge over time.
Among them:

Reduced Productivity: The morale and reduced productivity of employees that

survive downsizing - those that represent the future of the company - are
frequently a problem. They may be required to take on additional workloads and
adapt quickly to new work situations, often in an environment undermined by
reduced trust and increased uncertainty.

Loss of Key Talent: In a downsizing environment, companies often find that

their key employees and top performers depart the company, stripping it of
valuable human capital, critical skills, and institutional memory. In some cases,
downsizing disrupts or destroys the informal networks of employees that often
contribute significantly to company productivity. For example, the Economist
magazine in April 1996 reported on an insurance company whose claim
settlements rose sharply following staff cuts in its claims department. Further
investigation found that a few long-time employees who had lost their jobs had
created an informal but effective way to screen claims, which disappeared after
the downsizing.

Decreased Risk-Taking and Entrepreneurism: A 1995 study by McGill

University and the Wharton School of Economics found that "Downsizing seems
to interfere with the web of informal relationships that innovators use to win
support and resources for new products, and which helps mesh innovative
activities with those of the firm as a whole."

Potential legal and administrative costs: Many companies find that the price of
downsizing can be high in the costs of legal challenges, disability claims, and
other unanticipated costs. For example, a 1997 survey of 300 midsized and large
companies by the American Management Association and CIGNA Corp. found
that eliminating jobs can lead to an increase in disability claims, both
occupational and non-occupational, particularly stress-related claims. The study
also found that claims last an average of 25 percent longer than in companies
that haven't downsized. A top executive at a large facilities-services firm quoted
in Personnel Journal said that 90 percent of the 600 claims, charges, and cases
the company had open were filed following a termination.

The benefits of responsible restructuring can be substantial. A large body of

studies and company experiences provide compelling reasons for companies to
seek alternative, more responsible means of managing workforce size and
allocation. Among the benefits:

A more flexible, performance-oriented workforce. A number of successful

companies attribute much of their success to having created a culture in which
employees feel valued and empowered. A common element to these companies'
cultures is an implicit or explicit company commitment to long-term employment.
For example, motorcycle manufacturer Harley Davidson has made it clear to
employees that they needn't worry about unemployment if they come up with an
efficiency measure that reduces labor costs.

Adapt to changing conditions. Many companies that downsized have found

themselves at a competitive disadvantage when market conditions required
additional employees. By contrast, companies that engaged in responsible
restructuring practices have found it easier to bring back former employees and
hire new ones during business upturns. For example, the goodwill created by a
generous severance package offered by Aetna Inc. when it closed a facility in
Kansas City allowed the company to bring back former employees when it
encountered problems recruiting staff in other cities. Similarly, Lancaster, Pa.-
based High Steel Structures went to great lengths to preserve jobs at one plant.
When the market rebounded after six months, the company's commitment to its
employees paid off, enabling the company to maintain morale and job skills (as
reported in the Sloan Management Review).

Preserve good relations with stakeholders. Some companies have suffered

public relations problems as the result of employee cutbacks, or have found
themselves bitterly unpopular with their local communities when downsizing is
handled badly. But companies that have downsized responsibly often are
rewarded by positive media support and the cooperation of unions and
community groups. Another interested party may be investors. Since 1996,
CalPERS, a large institutional investor, has stepped up efforts to persuade
companies it invests in to reduce layoffs and improve employee relationships.

Maintain diversity. Downsizing, particularly if not well-planned, can hit individual

demographic, gender, or racial groups hard, undermining years of a company's
efforts to improve its diversity.

Recent Developments

Downsizing has become an entrenched feature of the global business landscape,

even in strong and growing economies. At the same time, companies are
achieving a better understanding of the links between how they implement
downsizing and their ability to achieve sustained commercial success. Among
the significant developments:

Downsizing Goes Global. The combination of industry restructuring, regional

economic fluctuations, the spread of free enterprise, and shifting market demand
has led to downsizing and layoffs in all parts of the globe. Former Soviet bloc
countries are grappling with downsizing issues as they privatize industries and
shrink bureaucracies. China, as it moves to revitalize its centrally planned
economy, is expected to conduct one of the largest downsizing exercises in
history as state enterprises privatize. Mergers and acquisitions in the U.S. have
continued at a steady pace in recent years, leading to downsizing and
restructuring. The next wave of mergers will be in Europe, say experts, as
globalization trends continue. The Asian economic crisis has led U.S.-based
companies operating there to use outplacement services at a growing rate to
deal with massive layoffs. Such trends have further challenged multinational
companies' efforts to adopt fair restructuring policies and practices at the same
time that they have received increased pressure to do so from external
stakeholders, including the media, investors, customers, regulators, and citizen

Changing Company Approaches. In recent years, companies have significantly

changed their approaches to downsizing and layoffs. For example, a growing
number of companies of all sizes and sectors are seeking alternatives to reduce
layoffs or mitigate their impacts. In its 1998 Staffing and Structure Survey, the
American Management Association reported that 41 percent of companies now
offer voluntary separation plans, compared to 17 percent in 1989. At the same
time, mandatory cutbacks -such as demotions, downgrades, transfers, and
shortened work days - have decreased dramatically. The benefits offered to
those laid off also are changing. A 1998 study by the New York based consulting
firm Manchester found that while U.S. companies are providing less-generous
cash payments to laid-off workers, they are offering a broader array of non-cash
benefits, such as retraining, résumé assistance, job-finding assistance, and
extended health benefits. The study attributed this trend to company cost-cutting
measures and to a tighter U.S. labor market, which gave employers confidence
their former workers would quickly find new jobs.

A Growing Emphasis on Training. While the traditional notion of lifetime

employment - in which employees stay with a single employer throughout their
careers - has all but disappeared, an increasing number of companies are
placing an emphasis on lifetime employability by stepping up training programs.
By enhancing their job skills, companies not only make their employees more
valuable, but also make them less vulnerable to the impacts of being laid off.
Fortune magazine, in its 1998 article on the best companies to work for in
America, noted that "extensive training and development" is growing in
importance "because it offers valuable benefits to both employer and worker." It
reported that "the 100 Best are making major investment in employee education
at multimillion-dollar facilities and through generous tuition-reimbursement
programs." On average, the "100 Best" offered 43 hours of training for each
employee during 1998. But Fortune further noted that "Education is a sensible
investment for employers only if they can hold on to the minds they have
expensively trained. A partial but obvious remedy is a policy, or at least a strong
bias, against layoffs."

A New Definition of Loyalty. In addition to increasing training, companies are

showing other signs of loyalty to employees, emphasizing long-term, if not
lifetime, employment. A growing number are helping employees establish greater
financial security that may be portable when they change jobs; helping
employees achieve work-life balance; encouraging employee ownership; and
providing incentives to employees to engage in "lifetime learning." For example,
Intel Corp. has made all employees, not just top managers, eligible for its stock-
option plan and spends 6 percent to 7 percent of it annual payroll on training, four
times the industry average. In doing so, the company has been able to redeploy
employees from declining business units to areas of high growth, helping Intel
avoid layoffs.

Growing Labor-Management Partnerships. There are signs that employers

and unions are finding mutual value in working in partnerships to avoid or
mitigate the impacts of downsizing and layoffs. "Rather than protest [layoffs],
unions are more likely to help laid-off workers make the transition to new jobs,
often working in tandem with the very manager who did the laying off," reported
the New York Times in 1998. For example, Maytag Corp. announced a 1996
layoff at its Indianapolis facility nine months in advance and sweetened the
severance package beyond what was required in its contract with the Sheet
Metal Workers Union. Among other things, the company participated in a worker-
management committee that supervised retraining and counseling and added
overtime in its final months to help workers reduce debts and increase savings.
Maytag's approach was contrasted with that of another company that had laid off
1,000 workers on short notice and suffered adverse publicity for its actions.
External Standards

There are few clear-cut external standards in the area of downsizing. In the
absence of such standards, most companies have sought guidance by
benchmarking peer companies or other leadership companies, and by seeking
ways to avoid or mitigate the harm of layoffs and downsizing. Companies must
also refer to the sometimes complex set of legal and government policies in
effect in their countries of operation and origin.

International Standards

The International Labour Organization, as part of its Tripartite Declaration of

Principles concerning Multinational Enterprises and Social Policy, has a number
of Conventions and Recommendations that address downsizing. Chief among
these is Convention 158, concerning Termination of Employment at the Initiative
of the Employer, which makes provisions for reasonable notice of termination,
appeal of termination, and severance benefits. The three recommendations,
while not legally binding, are the best known and most frequently cited
international standards regarding terminations. They state that multinationals,
particularly when operating in developing countries, should "strive to assume a
leading role in promoting security of employment, and provide reasonable notice
of operational changes such as mergers, takeovers, or transfers of production to
appropriate government authorities and employee group representatives so that
the implications may be examined jointly in order to mitigate adverse affects to
the greatest possible extent. This is particularly important in the case of a closure
of an entity involving collective layoffs or dismissals." Employers also are urged
to take such measures as offering reduced hours, voluntary early retirement,
internal transfers, and retraining in lieu of downsizing. Finally, if layoffs prove
necessary, employers are urged to assist affected workers with retraining and a
search for alternative employment.

Legal Standards

Companies around the world must comply with a wide variety of laws related to
workplace practices. In addition to observing the appropriate laws for the
countries in which they are operating, global corporations must refer both to their
home countries' laws as well as to international standards. In most European
countries, for example, companies must comply with a relatively strict body of
legislation that specifically addresses downsizing. In the U.S., very little
legislation specifically addresses downsizing, though a large body of federal law
protects employees from discriminatory practices and a range of legal standards
may come into play when an employee is terminated. Additionally, class-action
suits may be filed on behalf of a group alleging discriminatory termination.

Among the relevant U.S. laws:

The Worker Adjustment and Retraining Notification Act (WARN) requires
employers with more than 100 employees to give 60 days or more notice in
advance of plant closings and mass layoffs.

The U.S. Equal Employment Opportunity Commission (EEOC) has the

authority to investigate complaints, to make a finding as to whether unlawful
discrimination has occurred, and to seek remedy in court. The EEOC also is
empowered to issue regulations and guidelines interpreting the law. These
interpretations are not binding on either employers or courts, but usually are
given considerable weight by both.

Title VII of the Civil Rights Act of 1964 prohibits discrimination on the basis of
race, color, religion, gender, or national origin.

The Age Discrimination in Employment Act of 1967 protects workers who are
at least 40 years old.

The Americans with Disabilities Act of 1990 outlaws discrimination against

people who are disabled.

The Civil Rights Act of 1991 provides for financial damages in employment
discrimination cases. This act has fueled a wave of wrongful-termination lawsuits,
because it allows plaintiffs to be awarded not only reinstatement, back pay, and
attorney's costs, but also compensatory and punitive damages, thus creating a
strong incentive for both plaintiffs and their attorneys.

Implementation Steps

Company approaches to downsizing are many and varied and there are few
templates to follow. Following are some key issues to consider:

Consider downsizing's full costs. Before implementing any layoffs or

downsizing, it is important to carefully consider all of the costs involved - the
direct costs as well as the indirect costs. Any decision to layoff employees should
make a compelling case for how the job cuts will help achieve long-term
company goals. Consider such costs as the potentially reduced productivity of
"surviving" employees, the loss of institutional memory, the potential legal
challenges, and the potential negative public relations that may result. Consider
also the costs associated with several short- and mid-term business scenarios,
including the potential need to hire and train staff several months or a year later
when conditions improve.

Examine alternative strategies. A variety of alternatives to downsizing may

provide the same or additional benefits at a lower cost. These include:
deploying surplus workers to growth areas of the company, utilizing retraining
and internal placement assistance when necessary;

making managers responsible for finding new positions within the company for
downsized employees;

identifying temporary internal work arrangements at employees' standard

salaries, even if the arrangements are for jobs that traditionally pay less;

establishing job-sharing or work-sharing arrangements among employees;

restricting overtime, enabling more employees to share the available workload;

establishing "employee exchanges," through which employees are "loaned" to

customers, suppliers, or other local companies for temporary periods;

assigning employees to voluntary community activities that fit with the company's
philanthropic goals;

encouraging voluntary time off and leaves of absence, during which employees
continue to receive benefits and retain seniority;

implementing wage freezes or pay cuts that apply to all employees, including
managers; and

implementing voluntary separation and early-retirement programs.

Communicate fully and continually with employees. Research shows that

employees with a full understanding of their industry and their company's
situation feel less stress and more control, even if that knowledge suggests that
layoffs may be inevitable. Make sure communication is clear, candid, and that
employees are given the chance to ask questions and express their views. For
example, ask employees about their ideas and suggestions for avoiding layoffs.
Encourage them to participate in cost-cutting and efficiency measures, and to
offer strategies for growth and the development of new markets that may
alleviate the need for downsizing. In addition, make sure employees are the first
to know about the downsizing by maintaining confidentiality about any layoff
plans. Rumors and paranoia flourish - and productivity and risk-taking plummet -
in an atmosphere of leaks and partial information. Avoid having employees learn
about their own layoffs from news reports.

Provide long-term notice: If layoffs are deemed necessary, give employees as

much notice as possible. Many employers now give notice a full year in advance,
or even longer. When the rationale for layoffs is clearly communicated, and the
package of severance benefits makes it clear that management values employee
input, companies find that workers will remain productive and quality-conscious
up until the end. More than half of the 531 U.S. companies that responded to a
1993 study on best practices in corporate restructuring conducted by
outplacement firm Wyatt Company reported that early communications helped
companies achieve profitability goals (59 percent) and expense-reduction goals
(54 percent).

Respect diversity. Keep the company's diversity in mind before, during, and
after the layoff process. Before deciding who to downsize, analyze the make-up
of your workforce - by gender, race, and age - with statistics broken down by
department, job groups and salary grades. Then, before laying off employees,
analyze similar data on potentially affected employees to be sure no particular
group is disproportionately affected. Similarly, form a diverse, cross-functional
team to plan and manage layoffs. At a minimum, such a team should include
representatives from human resources, labor relations, operations, finance,
public relations, community relations, government affairs, and legal affairs.
Diverse, cross-functional teams have proven to be effective at addressing the
needs of employees and external stakeholders, and presenting clear messages
about why and how the company is downsizing.

Stay on schedule: Announce a specific timeline for implementation of

downsizing activities and transition services, and stick to it. Sticking to schedules
and keeping promises helps preserve credibility and trust, both among affected
employees and survivors.

Share the pain: Senior managers should demonstrate that they are sharing the
burden of downsizing. They should not announce management bonuses or
salary increases during a period of downsizing. In addition to destroying trust
among laid-off employees and survivors alike, this invites criticism from external
stakeholders such as investors and community groups.

Craft a fair package: Develop a fair benefits package that fits the needs of
affected employees. In addition to severance, these benefits may include
outplacement assistance; personal, financial, and career counseling; an
allowance for job retraining, education costs, or small business startup; and
assistance with medical and dental insurance coverage. Prepare employees for
the tax implications of their severance packages, and consider compensating
them for sizable one-time liabilities. In addition, help affected employees
integrate benefits available in the public sector with those offered by the
company. Private Investment Councils (PICs), State Worker Dislocation Units,
local organizations, and federal programs such as the Job Training and
Partnership Act can provide funds for and assist with job development, training,
and placement. Consider also outside experts, who often prove to be extremely
useful in assisting with transition services. Nonprofit organizations such as the
Council for Adult and Experiential Learning as well as a variety of for-profit
companies can provide expert assistance, particularly in areas such as job
placement and counseling.
Consider external impacts: Anticipate and prepare for consequences outside
the workplace. Layoffs frequently trigger sharp increases in child, spousal, and
substance abuse. Companies often find they can assist most effectively in these
areas by providing confidential access to counseling services, and by working
with and providing extra support to social service organizations that in these

Redesign jobs: Accompany downsizing with thoughtful restructuring of the

organization and changes in work design. The negative effects of downsizing are
most pronounced when survivors are simply asked to shoulder the load of those
who are laid off, without accompanying changes in job descriptions and duties.
Involve employees in this process. Employees are more likely to feel valued and
empowered within the changed environment when management invests in them
through training.

Avoid "survivor guilt": Anticipate morale problems and "survivor guilt" among
employees who have not been laid off, and take positive steps to help employees
to recommit and reengage. Articulate a clear vision for the company and the
place within it that remaining employees will have, including opportunities that will
be available to them. In addition, prepare managers for what is sometimes
described as "terminator guilt," morale problems they may face after
implementing a downsizing.

Document the process: Document the planning and implementation of all

layoff-related activities. Careful documentation of a well-designed process,
particularly when it demonstrates fairness to workers and good faith efforts to
assist them with their transitions, goes a long way toward protecting companies
from litigation.

Managing after Downsizing



A Manager's Guide to Coping With Layoffs

Your organization has just experienced one of the most unsettling events in
modern corporate life and now YOU are expected to make things work under the
new rules. But what are the new rules? How will you re-engage the traumatized
workforce and get the business back on track?

As bad as it seems...

You are not the first to got through this and you won't be the last. Once viewed
as extreme measures, downsizing, de-layering, restructuring, and other dramatic
changes in the workplace are now "normal" business practice. Change
management has become an important leadership skill for all managers.

People and organizations DO survive and adjust to the new reality. Not only
does life go on, but many people actually prosper and grow as a result of having
change thrust upon them. It is often true that "when one door closes another is

There is help available from those who have gone through this experience
before you. The insights and suggestions that I offer you on this site come
directly from my own experiences in numerous workforce reductions and
organizational upheavals. There are websites, books, courses and consultants
who can all help you get through and lead others through the ensuing chaos that
results from downsizing.

What you are dealing with...

Downsizing is a very personal and emotional experience for people caught up

in the events. Some managers believe that those who are not dismissed will feel
relieved, even grateful that they survived to keep their jobs. This might be true in
some cases, where the cuts are few and widely felt to be justified. However, in
the large scale cutbacks that result in a decimated organization where long term
working relationships are severed and people are expected to take on new roles,
something quite different occurs. People go into shock.

Strange as it seems at first, those who survive the downsizing process may
suffer as much as those who don't!

The survivors experience an emotional shock that prevents them from

suddenly changing direction. They freeze like a "deer in the headlights." The
familiar pattern is broken and the momentum that comes from routine and
repetition will take time to recover. Not knowing what to do, people will wait and
see what happens. They are waiting for leadership, someone to tell them what to
do next.

Even more than the loss of familiarity and momentum is the sense of personal
loss that many people feel at seeing their friends leaving or their positions
eliminated. It feels very much like a death in the family and needs the
compassion and time for mourning that we expect whenever a loved one is lost.

A good manager will have the compassion for the human need to cope with
the shock and fear that people feel, combined with a sense of optimism, direction
and mission that will help them through the often painful transition from what was
to what is to be. There are actually 3 steps that will need to be accomplished
before the new organization is back on its feet.

Endings - People need to understand and come to accept that the changes
are real and not reversible. The old organization, the old ways are gone and
won't be restored. Something has ended...forever. It is reasonable and proper to
mourn for the loss, but eventually it is necessary to move on.

Transitions - There is an in-between time when you are letting go of the old
and getting familiar with the new. It is a time of uncertainty and often confusion,
discomfort and high stress. People may even feel incompetent until they master
new tools, new skills and new roles. This is the wilderness through which
managers have such a critical role of leadership if the new organization is to take
hold and prosper.

New Beginnings - As people come to accept and master their new roles, the
structure of the organization begins to gel and once again a routine and sense of
"normalcy" begin to become apparent. The old ways fade into memory and the
new ways become the expectation. People feel competent and confident again.
Productivity increases as people focus on the job at hand rather than dwelling on
personal anxieties.

Tips for Managing After Downsizing...

Recognize that downsizing or any dramatic change will be met with an

emotional response that will be as intense as the situation is threatening. In many
cases people will fee victimized and will need to mourn their loses before they
can move on. Try to buy them time and professional counseling if you can.

In any given group, expect that 70 to 80% will be apathetic or take a "wait and
see" attitude. They need to be led. Another 10 to 15% will be openly hostile or
will subtly sabotage the changes and try to return to the way things were before.
The remaining 10 to 15% are your leaders. They will proactively try to help you
make things work. Put them in charge of the others.

Try to exude optimism and "can do" regarding changes that need to be made.
Promote optimism and positive thinking and speaking as much as possible. Don't
deny the trauma and pain that is occurring, but find the bright spots and
emphasize those rather than dwelling on the loses, the difficulty of making the
transitions or all the work that is piled up and needs to be done. Minimize
criticism and fault finding. Celebrate every success, no matter how minor.
Develop a vision of the future that draws people toward doing the right things.
Specifics can be developed as you go along, but it is essential that people have a
clear and understandable picture of the goal in their minds. It is also important
that they see something in it for themselves so they will begin to get on board
and lend their voluntary support.

Build teamwork. Create a sense that "we are all in this together and need each
other to make it." Acknowledge that everyone's contribution is essential and their
input is valued. Encourage group discussions where people can freely express
their feelings and offer suggestions. Bring treats. Sometimes even a bag of
cookies can offer some comfort and break the ice. Get people kidding and
laughing, even if some of the humor is "gallows humor."

If you can see what is coming with some time to prepare, then start creative
problem solving as soon as possible. Get training for managers and other
leaders in the human aspects of change. In good times, most managers are 80%
technically oriented and 20% people oriented. During times of crisis, those
numbers should reverse until routine is established again. Most technical
managers will need human resources training and support. Read books and take
courses on managing change...before you have to implement.

Way over communicate everything. When things seem to be coming apart, the
normal communication links break down just as suspicion and mistrust begin to
predominate. Some news is always better than no news, even if it is the same
old news. If people don't hear anything, they fear the news is so bad that no one
wants to tell them. Bore them to tears with as much detail as often as possible.
Trust will build.

Be honest about the realities and future expectations. Don't say "the layoffs
are over" if there is any uncertainty that the business situation has stabilized. It is
not uncommon for a series of changes to occur during the process of
readjustment. If people begin to relax their guard only to get more shocking
news, they will be much slower to trust any statements in the future.

Empathetic leadership is far more effective than being a threatening autocratic

boss. Certainly some things need to be pushed, but during the traumatic
transition period, don't focus too much on efficiency, mistakes or poor attitudes.
Instead spend your efforts in coaching and encouraging people to be successful
in bridging the gap between the old and new. Reward each success and let the
ones who adjust more quickly be examples for the struggling members of the

Remember that personal strength and strong supportive relationships are

often forged in the fires of adversity. When the crisis has passed, many people
will be surprised by some of the skills they exhibited that they would otherwise
never have realized. They may well be on the road to new careers, happier lives
and better jobs.

Remember: in today's business environment...change is the norm, not the


Leading Those That Remain

Work911/Bacal & Associates Business & Management Supersite


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 (only 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.

The First Few Weeks

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.

This applies to you as the leader of your organization. However, as a

leader you have an important role to play in helping employees get past the initial

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.

Listening is key here. Ask questions and keep your own comments to
a minimum, and don't exhort or pressure people. By showing concern and
interest, you will be working towards repairing the sense of broken trust that
accompanies downsizing.

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.


The initial shock of downsizing is likely to linger for some time,

certainly for more than the two weeks mentioned. Unfortunately, you and your
staff have goals to accomplish, people to serve. At some point there is a need to
get on with it, to normalize the situation.
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.

During this period, both group problem solving meetings and

individual discussions are appropriate and recommended. Bring ALL staff into
the discussion, and make sure everyone is clear what they should be doing.

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.

People need a vision of the future, a sense of what they are trying to
achieve, and they also need to know that they are part of a goal-oriented team
pulling in the same direction. While we have talked above about "getting
through", futuring involves people in trying to create (or confirm) a vision of the
organization, and it's goals, values, purpose, etc. It is the creation and
commitment to these things that will work to revitalize an organization that has
been downsized.

The futuring process is usually a group process, and can extend to

undertaking strategic planning, re-examination of priorities, operational planning,
and review of role and mission. By doing these kinds of things you promote a
sense that the future will bring positive, exciting things. Organizations that have
lost staff need to have that sense if they are to rebuild.


Leading staff through downsizing requires the leader to exercise

superior judgement and decision-making. It's a complicated task that involves
the leader in recognizing the natural reactions of those that remain in the
organization, and determining the right timing for moving the organization from
the emotional reactions to a focus on the present and future. While it is difficult,
the consequences of mis-managing or under-managing the situation are severe.
Both management and staff will suffer if the timing is wrong, or managers deny or
avoid dealing with the fall-out from downsizing.

The Downsizing Process

The sorting and clearing process is by far the most DAUNTING part of making a
later life move (or preparing for later life even if a move is not part of the plan).
Below are some tips and suggestions for starting the process of going through
years of accumulated belongings in your home.


Begin in the areas of the house that you are currently not USING. Many older
adults are still living in the same houses where they raised their families. In most
situations, there are areas of the house that are currently not being used --
upstairs bedrooms, the basement family room, etc. Start the sorting and clearing
process in these rooms because it will be least DISRUPTIVE to everyday life.
These areas also often contain lots of items that have not been used in a
considerable length of time and that will not be missed when passed on to
children, grandchildren, charity or the auction house.


Start with the large items in each room and work your way down to the small
items. The rationale for this? It's easier to start with furniture and the bigger
pieces and you'll feel like you are making some PROGRESS. If you start with the
small items, you may get overwhelmed and frustrated before you even get
started. With large items, either prepare a list of your decisions (e.g. dresser --
keep; will work well in a smaller bedroom), or use stickers and mark the items as
you decide what to do with each piece.


Sort the items in each room as follows:

items that you want to KEEP as you move forward

items that will be passed on to FAMILY or friends

items that will be SOLD via a garage sale or auction

items that will be given to CHARITY

items that need to be thrown away

Again, keep a list of your decisions, separate the items into separate piles, or
mark the items with stickers. The goal is to GET RID of as much stuff as possible
as you work through the downsizing process. What does this mean? This means
putting items to be thrown away into garbage bags and setting out this trash for
pickup each week. This means calling your charity of choice and arranging for a
pickup as soon as you have enough items to justify their making a trip. This
means asking family and friends to make arrangements to get their items, or to
have their belongings mailed to them.

I always tell people that one of the easiest places to start with clearing a house is
telling their family that it's time to come get their stuff! Tell your KIDS that it's
time for them to collect the things that they still have STORED at your house.


Allow plenty of flexibility and time for the sorting and downsizing and trust the
process. Plan to spend maybe one or two hours at a time (at most) working
through the sorting process. This is not a task that you can do for LONG
PERIODS of time at any age -- there will be too many emotions and memories
stirred up because in essence you are sorting through the years of your life. Take
time for recalling memories, to shed tears as you need to, and to share stories
with friends and family. And be easy on yourself and flexible when making


This is a very important and valuable part of the later life transition process. Allow
yourself time to REMEMBER and to grieve losses. Don't rush yourself to make
too many decisions at once. If you need to discuss with family or friends what to
do with certain items or belongings, take time to do so. If you can't make a
decision about something, then set it aside and THINK about it for awhile until
you do come to a decision. Also remember that you can change your mind about
any item as long as it's still in your possession. If you've started early and are
planning ahead, you should be able to work at a pace that is comfortable for you
and your situation.


For many people, starting the sorting and decision-making process is as difficult
at walking out to a yard piled with leaves in the fall and deciding where to begin
raking. The task appears to be so OVERWHELMING! All you can do in this
situation is to START somewhere and to approach it step by step, pile by pile
until the job is finished.


I stress keeping focused as much as possible because it's so easy to do a little

bit here, a little bit there and never feel like you're getting anywhere. I see this
happen with my clients all the time. I leave them with a list of things to do and
return after a week and though they tell me they've been very busy, I can't see
that anything has been accomplished. And neither can they. Start working in a
specific room in your house or even a specific area of this room (say a closet or
drawer) if you need to start smaller. Stick with what you are working on until it is
FINISHED. You'll feel better because you'll be able to see what you have
accomplished and this will give you momentum to continue the sorting and
downsizing process.


Remember that your goal is to SIMPLIFY your life. I always tell my clients that
they don't need to get rid of everything but they do need to pare down their years
of accumulated belongings to the key things, the favorite things they want to
have around them and that they need or enjoy using. Think about what you really
use in your home on a day-to-day or week-to-week basis and I bet you'll see that
this amounts to a FRACTION of what you have in your house.


Try to think of sorting and downsizing your belongings as a natural process of

completing and RELEASING -- like leaves falling from the tree in autumn. You
can do this -- and believe me, you will feel so good when this job is done and you
have new, clutter-free space in your home and in your life!

Improving Employee Retention Before and After Downsizing

In a down economy organizations sometimes forget that retaining employees is

an important issue. When organizations go through the difficult process of
downsizing it’s natural to overlook the need to develop retention programs meant
to keep the remaining people happy and productive.
Shouldn’t the employees who survived a downsizing be thankful their jobs were
saved? Perhaps, but employees who see their friends and colleagues let go will
be fearful and disconcerted. They will wonder if the company is still the best
place for them to pursue their careers. Given a chance to go someplace they
think is more secure, employees may begin to be disengaged and jump ship.

As always, the employees most likely to have the opportunity to get a job
elsewhere are precisely the ones you least want to see go. Working to improve
employee retention after downsizing is a wise tactical move. In this article we’ll
show how it’s done.

Getting off on the Right Foot

Companies that do the right things pre-downsizing will have the fewest problems
with retention post-downsizing. The key is to engage employees in the
downsizing process; they need to feel that downsizing was done with them not to

Involving employees in downsizing is counterintuitive; the natural tendency of

managers is to shut themselves behind closed doors and call all the shots. At a
minimum, very open and honest communication before, during and after the
downsizing process helps maintain employee morale. Even better is to ask
employees for their ideas on saving money and generate new revenue—not only
do you get good ideas, you prove to employees that downsizing is only being
used as a last resort.

Keeping employees engaged not only improves retention, it improves productivity

at a time when reduced headcount makes productivity more important than ever.

Information and Engagement

Another way to improve retention is to survey your employees to find what their
likes/dislikes, ideas for improvement, etc. Employers often are hesitant to do a
survey after downsizing fearing they will get bad news, but it is a powerful way to
engage and retain those who remain. In addition to the usual survey questions,
you can ask questions aimed specifically at finding out how people are feeling
about the downsizing process and life in the organization after downsizing. The
survey process needs to include not just asking the right questions, but also
analyzing and publishing the results then working with your people to implement

For example Drake’s HR consulting team performed an overarching HR audit for

a chain of restaurants and that audit included an employee survey. The company
suspected that people were not happy with their compensation. However, the
survey showed that people were not unhappy, they were just confused.
Employees didn’t know if they would get a bonus or not and what it would be
based on. The company didn’t need to increase the compensation, just do a
better job of communicating how it worked—which is exactly what they did.

Digging for More Insights

Another basic but underutilized tool is exit interviewing. When anyone leaves
after a downsizing event, HR should be doing exit interviews to get as much
intelligence from the employee as possible.

However, just as with surveys, it is not enough simply to collect information. It is

important that every six months or every year you gather up the data, summarize
the results and communicate to employees what you are learning from the exit
interviews. Then, explain what you are doing in response to what you’ve learned.
If you fail to summarize and communicate or don’t make positive changes
employees will suspect that you may be hiding the results and all your good
intentions will be undone. By doing these things, not only do you make the
changes needed to improve retention, the simple fact of listening to employees
drives engagement making it less likely they will leave.

One client asked Drake’s HR consulting team to conduct online and telephone
exit interviews for their call centre business across North America. The client
believed the high turnover was caused by poor compensation and poor
supervisory skills. But the exit interviews showed that people were actually
leaving because they simply didn’t like the job. This result showed why the recent
investments in training supervisors and increasing compensation were not having
an effect. After the HR consulting intervention the client changed their recruiting
process to ensure candidates got a realistic sense of the job before they were
hired. Listening to employees through exit interviews, and acting on what was
learned, enabled the call centres to improve retention.

A Sense of Belonging

Finally, organizations should look at a variety of culture building activities that

create a sense of team. People will stay to support their team members even
when times are tough. Being on a team can improve morale and help people
focus on bigger goals. You don’t need sophisticated or expensive HR consulting
interventions to create a sense of team. Meetings to discuss shared objectives,
celebrations of successes, and group meals are all simple ways to create a
sense of belonging.

All the actions we have discussed are good HR processes at any time. What
companies overlook is how these processes are particularly valuable after a
downsizing event when morale is fragile and the organization absolutely needs
the best from every employee.

Drake’s Approach

Drake has many decades of experience helping small and mid-sized firms with
their HR needs. We’ve learned how to take off-the-shelf solutions and tailor them
to the specific needs of the client’s business—because every company truly does
have some unique issues. We take a consultative approach focused on
generating Exponential Impact (tm) for your business, through a long-term
relationship. Our focus is on helping you engineer an improved bottom line
through the efficiency and effectiveness of your people. If we can’t do that…then
you shouldn’t work with us!

Drake writes extensively on HR issues and the solutions to those issues. You
can read our white papers at www.drakeintl.com.