Organization behavior report.

Essay by webtoneUniversity, Master'sA, October 2007

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This report provides an insight to the risks, costs and problems that ABN AMRO management

may face and should consider while executing downsizing. Various risks and problems are

explained and recommendations are made to minimize them.

The potential risks such as vengeance of laid off employees, morale deflation of survivors, and

slump of creativity are discussed in detail. The financial impact of improper downsizing such as

legal cost and retaliatory behavior costs are discussed. In addition, we have suggested ways to

minimize these costs. The various types of problems that are generally faced by the managers

who execute downsizing are discussed at length and an insight about how these problems can

be avoided is discussed.

ABN AMRO management should prepare a thoroughly planned and time bound strategy for

downsizing. Management should make its concerns known to the employees and seek their

input before starting to downsize. The reasons for downsizing should be clearly communicated

and discussed in detail with all the employees including the survivors.

This is important to keep

the morale of the survivors high in order to avoid unrest among them. Employees being laid off

should be treated with empathy and dignity and advance notice should be given to them.

Management should provide career services to the employees and provide training which

would be of help to find another job. The way management treats the laid off people will have

tremendous impact not only on the survivors but also on its image.

The managers or supervisors who will deliver the final message to the victims should be trained

so that they can handle the situation in a desired and consistent way. The training should focus

not only on the external challenges from the situation but also on the internal challenges that

managers and supervisors might face...