Wednesday, September 17, 2008

Downsizing 101


Charged with giving the bad news? Here are your ethical responsibilities

Most discussions about downsizing focus on the legal, economic, or psychological issues raised by this practice. These are essential concerns, but we rarely consider how or why downsizing is also an ethical issue. The next two columns are an attempt to redress that problem. Here, we'll consider your ethical responsibilities if you are the one charged with giving the bad news. In the second column, we'll look at what you ought and ought not to do if you are the one being downsized.

WHAT'S IN A NAME?

Downsizing refers to a company's decision to reduce its workforce for reasons other than poor performance, criminal conduct, or unethical behavior on the part of those being let go. The word is a euphemism meant to soften the blow as much for the company as it is for the soon-to-be eliminated. There is nothing wrong with making a difficult task easier to bear. In fact, there are good ethical reasons for doing so, as we'll soon see. Still, there is no getting around the fact that downsizing is a type of layoff, with all that this implies. The ethical manager will keep in mind what is really going when he or she is charged with letting good people go.

See full Article.