Managerial action and learning during downsizing

This qualitative case study was designed to explore perceptions of how managers learned to move their employees forward during periods of downsizing. The underlying assumptions of the study were: (1) managers can and do learn ways to manage in good and bad times, (2) having employees engaged in the work is a desirable outcome, (3) the organization highly valued its reputation as an employer of choice.;The site for the study was the U.S. headquarters for a multi-national corporation that experienced unprecedented downsizings and major reorganization following rapid growth. The main sources of data were: in-depth interviews with 17 managers, a focus group comprised of 7 employees, documentary analysis, and informal discussions with human resources professionals.;The study was designed to examine how managers accustomed to managing during times of high growth learned to take action in the aftermath of unprecedented downsizing to move their employees forward. There were several key findings from the study, specifically: (1) managers described fewer incentives at their disposal to ameliorate the widespread emotional reactions of employees as a result of the downsizing; (2) managers described actions that included communicating and coaching in different ways to move their employees forward; (3) managers indicated that they learned these actions in largely informal ways, through dialogue and interactions with others; and (4) most managers cited active communication by the CEO as an initial source of support, while the discontinuation of that support by the CEO was perceived as a barrier to their ability to restore stability.;The key recommendations emanating from this study suggest: (1) top management should continuously work to remain accessible and set the tone, building an organization that values managerial communication and coaching capabilities; (2) human resources should create programs and initiatives that support managers as managers learn to communicate and coach employees through continuous transition. Human resources should also develop initiatives for building a talent base that represents a diversity of perspectives; (3) managers need to intentionally focus on developing expertise in communication and coaching to guide employees through downsizing and organizational change.