Organization Behavior Report.

6309 words - 25 pages

EXECUTIVE SUMMARYThis report provides an insight to the risks, costs and problems that ABN AMRO managementmay face and should consider while executing downsizing. Various risks and problems areexplained and recommendations are made to minimize them.The potential risks such as vengeance of laid off employees, morale deflation of survivors, andslump of creativity are discussed in detail. The financial impact of improper downsizing such aslegal cost and retaliatory behavior costs are discussed. In addition, we have suggested ways tominimize these costs. The various types of problems that are generally faced by the managerswho execute downsizing are discussed at length and an insight about how these problems canbe avoided is discussed.ABN AMRO management should prepare a thoroughly planned and time bound strategy fordownsizing. Management should make its concerns known to the employees and seek theirinput before starting to downsize. The reasons for downsizing should be clearly communicatedand discussed in detail with all the employees including the survivors. This is important to keepthe morale of the survivors high in order to avoid unrest among them. Employees being laid offshould be treated with empathy and dignity and advance notice should be given to them.Management should provide career services to the employees and provide training whichwould be of help to find another job. The way management treats the laid off people will havetremendous impact not only on the survivors but also on its image.The managers or supervisors who will deliver the final message to the victims should be trainedso that they can handle the situation in a desired and consistent way. The training should focusnot only on the external challenges from the situation but also on the internal challenges thatmanagers and supervisors might face from within themselves.On the basis of thorough analysis of the situation at ABN AMRO and considering the impact ofhuman factor on the productivity of the bank, a time bound estimate of the change inproductivity is made. As per our estimate the productivity will fall initially for couple ofmonths but if the downsizing is carried out considering our recommendations we assure thatproductivity will come back to its existing level within six months of downsizing.Reference of various studies, researches and professional literature that was referred whilepreparing this report is provided at the end of the report.Downsizing 3Risks of Downsizing and potential cost1. Risks of Downsizing if the practice is carried out in improper waya. Vengeance of layoff employeesImproper technique used in downsizing may cause the retaliatory action of the employee.According to Encyclopedia Britannica's online website,, "Executives managedthe downsizing process by gathering 27 anxious employees, already rumored to be on thechopping block, into a room to deliver the news. According to eyewitness accounts, it took theexecutive in charge 12 rambling...

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