Proposal_for_Effects_of_Downsizing_on_Morale_in_the_Office_of_Student_Affairs

The Effects of Downsizing on Morale in the Office of Student Affairs Prepared for Donna Parker, M.D. Associate Dean, Office of Student Affairs University of Maryland School of Medicine Prepared by Anyone and Nobody Assistant Director for Records and Registration University of Maryland School of Medicine February 25, 2012 Memorandum TO: Donna Parker, M.D., Associate Dean for Student Affairs FROM: Anyone, Assistant Director for Records and Registration DATE: February 25, 2012 SUBJECT: The Effects of Downsizing on Morale in the Office of Student Affairs (OSA) Research on the effects of downsizing in the Office of Student Affairs (OSA) focuses on the affects downsizing has had on the surviving employees' morale, health, and productivity. As a manager, I am particular interested in the behaviors and attitudes of the surviving employees, because of its importance in maintaining productivity. The information gathered and cited in this report will provide results that identifies and supports how and why downsizing affects employee morale. The proposal will provide you with a better understanding of the effects downsizing has had on our surviving employees and provide recommendations on maintaining productivity. Conducting primary research consist of the concerns and issues voiced directly by the employees, changes in employee attendances, and the impact on productivity. In addition to primary sources, secondary research (which is done by previous researchers) has rendered information that supports and validates my findings. Currently there is no quick fix method or remedy to downsizing. However, the results of this research will summarize how surviving employees perceive the consequences of downsizing. How downsizing affects employee well being and office productivity, and what the Office of Student Affairs can do to address current concerns and minimize the impact of downsizing in the future. I would like to acknowledge Mr. Gregory Robinson in the Human Resource Department for his assistance on this project and thank the surviving employees in OSA for sharing their concerns and issues with me. Your support and guidance throughout this project is very much appreciated. Should you have questions regarding this report, I can be reached at (410) 706-7476 or sbeasley@som.umaryland.edu. cc: Mr. Gregory Robinson TABLE OF CONTENTS Executive Summary Introduction Statement of the Problem Purpose of Research Employee Feedback Attendance Results Productivity Suggested Solutions Conclusion References EXECUTIVE SUMMARY This proposal analyzes the affects downsizing has had on the morale of the surviving employees in the Office of Student Affairs. The intent of the research is to identify employee concerns and what can be done to prepare and aid managers with downsizing activities that will assist them in engaging in a more effective way to address downsizing. What are the effects of downsizing on the surviving employees' When a company goes through downsizing the employees' level of trust diminishes. Creating an environment that is uncertain and displays high levels of stress and anxiety by the employees left behind. How can we address the affects of downsizing' We can begin addressing the affects of downsizing by being as honest as possible with our employees by sharing future staffing plans. Keep the lines of communication open by providing a forum that gives employees a voice and implement processes that keep them engaged. Why do we need to address employee well being during downsizing' Human capital is necessary to keep the office afloat. The affects of downsizing compromises employees’ ability to focus on the task. The loss of focus affects the level of productivity and the efficiency of the office. Therefore, stressing the importance for management to be sensitive to the needs of the employees by taking their concerns into account. Recommendations: The following recommendations were gathered from first hand conversations with the surviving employees and assistance provided by Human Resources. Management could work with Human Resources to develop a transition plan for the survivors, such as courses on stress management, training available to help employees adjust to new job demands, and performance development initiatives. • Employees feel if the lines of communication remained open leading up to and during the downsizing process the level of trust could be maintained. • Be sensitive to the employees moving on, but also address the needs of the surviving employees by setting clear expectations. • For the employees requiring assistance from someone outside of the office, they should be encouraged to seek support through the Employee Assistance Program (EAP) at http://www.umb-eap.org/2. In economic crisis downsizing is inevitable. Implementing management training and the creation of a transitional plan that addresses the surviving employees' concerns and needs is crucial to maintaining productivity and running the office in an efficient manner. The Effects of Downsizing on Morale in the Office of Student Affairs INTRODUCTION In December 2008, New York (CNNMoney.com) reported that "The National Bureau of Economic Research (NBER) announced the U.S. has been in a recession since December 2007."1 As a result of the recession, one of the economic measures taken resulted in a decline in the labor market and the rise of the unemployment rate. This shift forced many companies to identify ways of maintaining their survival. The outcome of this shift for many companies was to downsize the workforce by implementing layoffs, furloughs, and pay cuts. The primary purpose of downsizing is to create a positive outcome for the company by trimming the workforce to save cost. As a result of the recession, the University of Maryland required all departments to cut their operating and personnel budgets. The mandate to downsize impacted the Office of Student Affairs (OSA) with the phasing out of one full-time position and furloughs and pay cuts for the surviving employees. What OSA management did not take into account was the impact downsizing would have on the remaining employees. When employees began to rebel, the psychological effects of this change quickly became apparent to management. Employees began complaining about the workload, frequent call outs, employee turnovers increased, the change in office morale, and the decline in customer service. However, no transitional plan had been devised to deal with the survivors, and still to date, no plan exist in the Office of Student Affairs. Moving forward OSA management realizes a plan should be devised to address the morale and well being of its’ employees during change. During a brainstorming session, management thought the following questions were of great importance and crucial to maintaining the stability of the office environment. How would the change (downsizing) affect the survivor's morale' How do we deal with the concerns and issues of the survivors' How could management transition the workload and maintain productivity' These are the questions that will be addressed throughout this research proposal. ________________________________________________________________________________________________________________________________________________1Recessions are identified by the National Bureau of Economic Research (NBER), according to which the most recent recession began in December 2007and ended in June 2009. STATEMENT OF THE PROBLEM The economic crisis of the U.S. has resulted in many companies downsizing their workforce. This crisis has created a shift in the labor market and an increase in unemployed workers. Consumed with finding ways to determine how to cut cost, many companies have failed to consider the impact downsizing would have on the morale of the surviving employees. With feedback providing from the survivors in the Office of Student Affairs along with existing research done by other researchers, my findings will support and validate the need for employers to have a plan in place for the remaining employees. PURPOSE OF THE RESEARCH The purpose of this research is to assess the impact downsizing has had on the morale of the survivors left behind in the Office of Student Affairs. Providing leadership with documentation that substantiates the concerns shared by the surviving employees will capture an audience able to make and implement change and give the employees a voice. The first hand research gathered from the surviving employees feedback will provide leadership with a better understand and help them to determine the critical issues of that should be confronted. EMPLOYEE FEEDBACK ATTENDANCE RESULTS PRODUCTIVITY SUGGESTED SOLUTIONS Until a formal plan is devised to address the effects of change on employee morale, employees are encouraged to seek assistance through the following programs. For the employee requiring assistance outside the realm of the office, they can be referred to the Employee Assistance Program (EAP). As described on the website http://www.umb-eap.org/, the service provides “free, confidential counseling and referral service for employees and their family members.”2 To assist the surviving employees with sharpening their skills and broadening their skill set, the campus offers E-Learning. E-learning is a free online training environment that offers over “2,400 business and technology courses available to UMB faculty and staff via the internet.”3 Interested employees should reference the following link for more information on E-learning http://www.hr.umaryland.edu/e-learning/. 2Free Counseling Service for UMB employees and their family members. 3Free Online training environment offered to UMB faculty and staff. CONCLUSION Primary and secondary research supports how downsizing affects the morale of the surviving employees. Leadership of the OSA recognizes that during such change the concerns and needs of the surviving employees should be taken into account. Realizing a healthy work environment is necessary to maintain the efficiency and productivity of the office. Based on this research, management in the OSA will collaborate with Human Resources to compose a plan that will address ways to effectively lead and manage staff during times of change. References ____1Isidore, Chris, It's Official: Recession Since Dec. 07. CNNMoney.com. (Last Updated: December 1, 2008: 5:40 PM ET), February 16, 2012, http://money.cnn.com/2008/12/01/news/economy/recession/index.htm University of Maryland, Baltimore. (2012). Human Resource Services, Employee Assistance Program. Retrieved February 29, 2012 from http://www.umb-eap.org/ University of Maryland, Baltimore. (2012). Human Resource Services, E-Learning. Retrieved February 29, 2012 from http://www.hr.umaryland.edu/e-learning/