You are the Plant Manager of a small manufacturing facility in a large industrial area of the state. The plant is a union-free facility and the sole manufacturing site for the Business Unit. The Business is not doing well financially.

Background

The facility was part of an acquisition made by the Corporation about two years ago. Prior to this acquisition the facility was part of a company that had poor employee relations practices. You are relatively new to the position. You were transferred in by your Corporation a few months ago. Not only are you looked at as an “outsider” but so is the Corporation you work for. You are working hard to establish a good relationship with all the employees.

The Business is not doing well financially. Matter-of-fact, the Business is losing money. Corporate management has made it very clear that they are not happy with this situation and expect some changes in the very near future.

Situation

You have made a close analysis of the organization and feel that the organization is over staffed in all departments. There is no question in your mind that the number of employees must be reduced by approximately 25 percent.

QUESTIONS

As the manager in charge, you are also very interested in continuing to develop a more positive morale in the employees and maintain a union-free workforce.

How do you communicate this to your staff and employees?

How would you handle the communications process? Would you involve anyone else?

What important steps must you take before you make the “big” announcement?

Discuss in detail what issues and decisions must be made to effect the reduction in personnel. Describe the implementation plan you would choose including the order in which all related activities are to take place.