Layoffs and Restructuring in Organizations: A Critical Evaluation

This essay critically evaluates the practice of layoffs and restructuring within organizations, examining their impact on employee sustainability, morale, and organizational culture. It highlights the potential for demotivation and disruption, emphasizing the need for careful consideration and alternative approaches to workforce transitions. The essay discusses the implications of layoffs, including the loss of employee relationships and potential damage to a company's image. It stresses the importance of communication, corporate social responsibility, and responsible restructuring strategies. The author suggests that layoffs should be considered a last resort, and explores options such as employee training and development to maintain organizational quality and employee well-being. The essay uses the example of Nokia to illustrate the challenges and consequences of layoffs.

Running head: LAYOFFS AND RESTRUCTURING ORGANISATIONS
Layoffs and Restructuring Organisations
Name of the Student
Name of the University
Author Notes:

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LAYOFFS AND RESTRUCTURING ORGANISATIONS
There are many factors that affect the sustainability of employees in a company. It has
been found that layoffs are the most underrated aspects of sustainability of an organisation.
While factors such as motivation and provision of hygiene factors are paid due attention, the
practice of laying off the employees is an aspect of the organisations around the world that is
overlooked. Layoff involves terminating employees with or without prior notice, which affects
the employees who are being subject to retrenchment from the company. It has been found that it
also leads to demotivation between other employees and departments of the organisation. Thus,
layoffs in an organisation is a factor that is worth the scrutiny. The aim of the paper is to
critically evaluate the scope of layoff practices and the measures that can be taken in order to
avoid the adverse that and organisation might face internally and externally as a result of the said
practice.
Regardless of the size of the companies, they might face a situation in their operational
cycle that might involve restructuring of the flow of operations within the organisation. As a
result of the need for change, the employers of the companies might face dilemmas regarding
retention of certain employees. It has been found that organisations around the world are
constantly seeking for qualified personnel to fill voids in the companies. From the article it has
been found that the employer, on certain occasions have to make room for newer and better
employees with higher qualifications and competencies. Even if the existing employees are
already functioning properly in the role that they are designated in, the organisations are
constantly seeking for opportunities to delight the stakeholders in order to achieve corporate
governance. Such situation give rise to layoffs which involves terminating certain employees.
Layoffs can occur not only as a result of the above, however, a situation when the organisation is
lacking in capital or any other forms of resources might lead to employee retrenchment.

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Furthermore, on certain instances, employees are not even informed that they are going to lose
their positions in the company until the very last moment. I have come across situation during
my internship in a reputed organisation when the head of the PR team got sacked from their
position for unjustified reasons. The individual who was the leader of the PR team was a good
leader in my opinion and performed his tasks effectively as a result of which he gained approval
from co-workers. After the latter was removed from their position, I found out that the person
was terminated from their position not because for any fault from their part but because the
management felt that he was not good enough for the position and felt a need to hire someone
with more qualifications. This left the whole team in shock and every member felt that their jobs
where at risk, as a result of which some other members dropped their resignations. The
management of companies around the world should realise that sudden layoffs as the above lead
to catastrophic implications which result demotivation within the existing employees and
disrupts the smooth flow within the companies which hampers the internal culture of the
organisations.
It has been found that numerous employees feel unsafe in a company when uninformed
layoffs take place in the organisation that they are associated with. When employees are engaged
to the operations in an organisation, they are likely to develop relationships with other members
in the organisation which is recognised win the basic needs of affiliation that has been
propounded by Abraham Maslow. Thus, layoffs result in loss of relations between the employees
which demotivates them and hampers the culture within the organisation. Implication as such can
be catastrophic for companies and it can result in loss of productivity of the functional
departments of the organisation. Employers who practice layoff should be aware of the
aforementioned factors and pay attention to the basic needs of the employees. While corporate

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governance is important, it is also important for companies to carry out corporate social
responsibility. The latter involves welfare of the employees which determines the degree of
affiliation that the existing employee have with the organisation. It further determines the
employability quotient of the company that helps in sustaining the activities of the company in
the long run. Thus, the employers should keep the same in mind and formulate their operations
and activities accordingly.
It can be understood that employee layoffs are vital in some cases and have to be carried
out in order to maintain the quality of the operations that are carried out in the organisations.
Communication is crucial to ensure all the operation within the organisation. Same applies
during the process of layoffs. The employees should be informed that the organisation is facing
difficulties in certain operations as a result of which the organisation has a plan to rehabilitate or
remove some employees from the system. Educating the employees who are subject to the layoff
will act as a responsibility that the employers of the companies exercise. It can be said that
employee layoff should be thought of at the last resort when all other options are no longer
viable. One should try to avoid the same, which would help in ensuring that the other employees
who are not subject to the same fate are not demotivated. It further helps in maintaining the
image of a company as a desirable employer who cares for the employees. It can be said that
employers should look for options such as training, development and education of the employees
which will attaining the quality that is needed to satiate the needs of the stakeholders who are
associated with the organisation.
On a concluding note, it can be said that layoffs are practiced by companies to boost or
propel the quality of operations of the company. However, it has been found out that it has

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implications such as demotivation and hindrances in the organisational culture and thus the same
should be treated as a last resort.