Management Changes Affects Employee Morale

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Management Changes Affects Employee Morale
As the world changes, many organization may create changes to their company structure in order to remain successful and look good amongst shareholders. These organizational changes may be beneficial for the company overall. However, it may affect the remaining employee’s morale. Some organizations changes such as layoffs, reduce work hours, a stagnate in benefits increases and rewards may result in management trying to figure out a way to motivate and gain employees trust and loyalty.


When an organization experiences a downturn in the economy, they may be force to perform employee layoffs. Organizations such as the Boeing Company announced in September 2001, that they will be cutting 10,000 jobs which is caused by the U.S. airlines to decrease operational capacity by about 20% due to traffic reductions. Airlines are expected to park older aircraft and defer deliveries of newly built transports as they trim their operational fleets (Smith B. (2001)). The Boeing Company is an American multinational aerospace and defense corporation that was founded in 1916 and is the largest exporter by value in the United States (Smith B. (2001)). This layoffs will created a shortage of aerospace jobs and has created a tough hiring environment for unemployed workers. Brockner, J. (1992) stated that “if the layoffs are mismanaged, thereby hampering survivors' productivity and morale, then the organization stands to lose a sizeable portion of the savings it hoped to achieve by introducing layoffs.” Even though employee layoffs may allow organizations to cut jobs and safeguard relationships with the existing employee this can be create a challenge to the remaining employees in that, they may experience excessive stress of increase workload, lack of motivation and they may consider searching for a new place of employment to reduce redundancy. Heathfield, S, M (2010) stated that “employees experience an increased level of...
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