"Strategies for Responsible Restructuring"

Wayne Cascio

Academy of Management Executive

August 2002, pp. 80-91

Research has cast significant doubts over the effectiveness of downsizing as a preferred strategy for restructuring. The author of this article identifies nine suggestions that he recommends as the basis for restructuring responsibly:

1. Carefully consider the rationale behind restructuring;
2. Consider the virtues of stability;
3. Before making any final decisions about restructuring, managers should make their concerns known to employees and seek their input;
4. Don't use downsizing as a "quick fix" to achieve short-term goals in the face of long-term problems;
5. If layoffs are necessary, be sure that employees perceive the process of selecting excess positions as fair, and make decisions in a consistent manner;
6. Communicate regularly and in a variety of ways in order to keep everyone abreast of new developments and information;
7. Give survivors a reason to stay, and prospective new hires a reason to join;
8. Train employees and their managers in the new way of operating; and
9. Examine all HR systems carefully in light of the change of strategy or environment facing the firm.

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