River Flow Incorporated has seen its core business of developing water sanitation devices undergo some major changes in recent years due to environmental regulations and the discovery of new technologies. River Flow's leaders realize that the company must undergo an extensive restructuring to survive. What steps can River Flow's leaders take to reduce the negative effects of restructuring efforts on employees? Explain.

Question

What will be an ideal response?

Answer 1

Student answers will vary but should demonstrate understanding of how companies can minimize the negative effects of restructuring. A sample answer follows.
 
The negative effects of restructuring are higher stress and uncertainty. Managing layoff survivors is one step. The best ways to help layoff survivors adjust are to do things that give them a stronger sense of control. Allowing survivors to have a voice in how to move forward or help set the plans about how to accomplish future goals is another way by which managers can help employees feel more in control. Frequent communication and participation in decision making should be practiced, especially when the company is hiring and firing at the same time. The leaders at River Flow need to make sure they carefully manage and support employees who survive layoffs. They can give the employees a voice in how to move forward, and keep communication open.