Justifying his support, Charlesnow has authority which he needed to revitalize UPC and build his politicalcredibility. He wanted all his top management team to agree together on UPC’sfuture.
In response to Andrew’s decision, Samuel thinks layingoff people is a foolish and a short-term solution to the problem which is muchmore deeply rooted. UPC was in the same situation in the past which turned outto be failure. If downsize is tobe successful, it must succeed the first time in order to gain creditabilitywith customers, suppliers, investors and most importantly the stayers. Morelayoffs the second time will destroy the already poor morale of the employeesand UPC’s directions and priorities.Employee segmentation which Andrew has recommended will have a seriousimpact on the efficiency of the entire workforce in UPC and not just Convertors,leaving or staying.
Taking on more responsibilities to the one who survive inorder to make up for the work done will be more stressful. Convertors is themost profitable division of UPC and each member of the division is a StarPerformer. Taking 11% cut across the board means letting go our Star Performerswill seriously damage Convertors and loss in revenue. As a company, we should look at proving jobenrichment opportunities to increase depth and not quantity.
Offering voluntaryexits will result in bringing in some temporary workers to fill in thepositions left vacant by laid off highly skilled personnel which means in notime Andrew will be fighting once again with excess workforce if thesereplacements become permanent. The aim for effective Performance Management toenable employees to reach their full potential but implementing performancemanagement at this stage will be a clear sign of targeting under-performingworkforce and sending a message across that we don’t need them. Anothercritical aspect will be to remain unbiased during this whole process.
This is compassionlessempathy on our part and we may also lose our star performers during aperformance misunderstanding. We should allow people to leave or remain withdignity. Biggest challenge for Andrew will be to neutralize Samuel’s reaction. Ifhe is to implement the strategies suggested, he has to ensure positive outcomes