SCENARIO-BASED QUESTIONS Company Downsizing ? You are the president of Technik Inc Global competition and reduced market share have sent profits on a downward spiral, which will result in employee layoffs. Nearly 10 percent of the employees will be

Question

laid off, effective in one week. They will receive two weeks' severance pay, accrued sick leave pay, and career consulting from the human resources department. Write an interoffice memorandum announcing this negative organization news.

Answer 1

Write the interoffice memorandum inductively, beginning with a short, neutral paragraph.
Note how important good employees are to any business. Thank the employees for their hard work and interest in the company's success. Comment on their positive contributions and remind them of the talent and skill they bring to the workplace.

Describe the recent problems of global competition in the industry and how it has negatively impacted Technik Inc. State the facts and reasons for the problem.

Present the bad news by de-emphasizing it in a dependent clause of a complex sentence. Show empathy to the employees' feelings.

Provide information on the severance benefits and career counseling. Offer to write a letter of reference that can be used for a job search.

End with a positive idea that affirms an employee's capability to be hired by other companies.

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A proposed solution follows:

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TO: All Technik employees

SUBJECT: Changes at Technik

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During our ten years in business, we have experienced many years of successful sales, thanks to our hard-working employees. Many of you have been with us this entire time and have contributed your skills and extensive knowledge to making this company a success. Many of our newcomers have brought innovative ideas, cutting-edge knowledge, and admirable team efforts to our company. All of you have worked hard together, often sacrificing by working long hours to complete deadlines.

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We have produced great products that we can be proud of. This would not have happened without such a great group of employees. You are well aware that in the past year increased global competition has drastically reduced our market share. We have kept you posted each quarter and made our best efforts to communicate honestly and openly with you. In light of these quarterly postings, a few employees understandably have sought jobs elsewhere. Most of you have demonstrated an ongoing commitment and optimism that profits would increase each quarter. We have tried to cut costs as much as possible to avoid laying off Technik employees. Unfortunately, these cutbacks in expenses are no longer enough. We are now faced with the reality of downsizing in order to survive as a company. As president, it is not an easy choice to decide who stays and who goes. In fact, it is one of the toughest decisions that I have had to make during my 10 years in this position. I value all of you and the impressive contributions you have made to this company.

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The details of this downsizing will be given to those who are laid off, but the bottom line is that Technik must reduce the number of employees by 10 percent, effective next week. Today, the affected employees will receive notices of layoff. In an effort to provide some financial cushion, they will also receive a severance package that includes two weeks' severance pay plus any accrued sick leave pay. Career consulting will be available from the human resources department, and supervisors will write letters of recommendations for those who need them.

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We hope we have turned the corner toward financial stability. Again, thank you for your dedication to your work and this company.