"Case Study on Organizational CommunicationsCase Study on Organizational CommunicationsProblems and Solutions – Managing Layoffs and Re-OrganizationName of AuthorIn partial fulfillment of the requirements of Management __________________________________________College of _________1 Case Study on Organizational CommunicationsTable of ContentsIntroduction .................................................................................... Error! Bookmark not defined.Problem Definition......................................................................... Error! Bookmark not defined.Methodology .................................................................................. Error! Bookmark not defined.Problem/Fact finding ................................................................................................................... 4Suggested Solutions .................................................................................................................... 5Summary and Conclusion ............................................................................................................... 7References ...................................................................................... Error! Bookmark not defined.Case Study on Organizational Communications Problems & Solutions – Managing Layoffs and Re-Organization2 Case Study on Organizational Communications1. Introduction & Problem DefinitionIn the aftermath of global financial crisis, we have seen signs of economic recovery in the recentyears. Despite job growth in some areas, there are specific sectors relating to Real estate andconstruction in UAE which have been severely affected resulting in employee layoffs anddownsizing. Reports indicate those in UAE construction sector have had large-scale culls, giventhe sharp decline in new project releases (Nair, 2016). Press reports suggest that since mid-2015,UAE, Saudi Arabia, Qatar and other countries in the region have curbed spending on someconstruction projects and reduced energy subsidies to limit budget deficits caused by cheap oil(Reuters, 2016). Softening oil prices have further dented the job market and layoffs have becomefrequent. However, mismanaged layoffs can go really out of hand if the organization does notmanage the process of layoff well and/or lacks a proper policy around employee layoffs. Suchmismanaged layoffs can land the organization in Labor disputes, Court cases that can lead tosignificant financial losses besides loss of reputation and goodwill for the company. If theorganization is listed, it can result in massive decline of its share market price leading to severeerosion in enterprise value.In order to give a dimension to this issue, we cite reference to Dubai based real estate developercompany Damac Properties. Even with its CEO’s efforts to stem losses, Damac reportedly had tolay off hundreds of employees amid a sharp downturn in real estate prices. Several buyers suedDamac Properties as a result of construction delays. A Dubai court ruled in favor of oneCanadian buyer and required Damac to pay him $710,000 (Dolan K.A. 2016). 3 Case Study on Organizational CommunicationsIn this background, I have undertaken this Case Study since the problem has lot of relevance forbusiness environment of UAE. This problem, inter alia, revolves around break-down inorganizational communication channels.Therefore, it is important for the management andHuman Resources team to make sure that the employees come through the transition process oflayoffs successfully.Often, at the point of re-organization & layoffs, workers are uncertainabout their role and position, and they react in a manner which is less than productive.In thisCase Study, we analyze the organizational problem of managing employee layoffs in aAl MadinaConstruction Company referred to as AMCC. Further, we attempt to develop creative solution toresolve the stated problemthrough necessary re-organization and also suggest how to overcomebarriers to implement the solutions proposed.2. MethodologyMultiple factors can trigger employee layoffs: a merger, technology changes, business modelchanges, industry changes or economic downturn. Regardless of what triggers layoffs, the impacton employees can be difficult.Company referred in this Case Study is AMCC that employed 55 full time employees till 2014.In 2015-16, due to deterioration in real estate development activity, the company had toterminate more than 15 employees.Imetfew employees who were laid off without notice and thecompany sources to understand the problem of layoff.I will incorporate the ideas from ourdiscussion into this case study that summarize the issue, identifies the problem, why and whatthe solution is.4 Case Study on Organizational CommunicationsIt came to my knowledge that since the company AMCC did not have any written HR manualthat was shared with the employees; the staff that was terminated was naturally shocked to havebeen treated like that. The terminations were sudden and with immediate effect. It was alsoinformed by one of the employees that the company’s managers were not trained properly incommunicating how, why and when about downsizing to the employees. We also came to know that gratuity and end-of-service benefits were not fully settled in one ofthe cases and the employee had to run from pillar to post to follow up for payment of the same.All these issues compounded and some of the employees sued the company and filed labor casesin the court and grievances through other appropriate forum. These problems not only divertedthe resources of the company from its core activities to fighting court cases but also brought thecompany bad name.Having a strategy and plan can help minimize the negative impact of layoff on employees,former employees and public perception of the organization(Lotich, 2010).Layoffs are complexcircumstances for anyone to deal with and it needs to be handled with fastidious hands.Lack ofproper communication between upper management and manager as well as manager to theemployee had been the underlying issues.We determined that poor communication is theunderlying issue that caused the problem between management and employee.Suggested Solutions? Communicate through direct staff meetings & Personal messages:Direct communication is the backbone of developing trust and overcoming barriers inany situation.Poor communication can reflect badly on any company and could be5 Case Study on Organizational Communicationstheir ultimate downfall.The manager will do well to have direct face-to-face meetingwith the affected staff. In case constraints of different location exist, the managershould conduct meeting through audio-visual aids and remote video conferencing. Theidea is to exchange frank and fair views and communicate the reality to the employees.The manager should exercise empathy, compassion, and good communication skillswhen dealing with the employee.Letting people go on a Friday afternoon, for example,is a terrible idea. When a manager displays these traits, it can help with the process andmake everything go much smoother.When an employee is given this type of news,many emotions can present themselves to the manager. The employee will be worriedabout their family, future and how they will be able to pay bills.Questions like why isthis happening?Does the company plan to hire us back at a later date? Do we have theoption to move to a different department? Managers need the skills and information tohelp employees with all emotional reactions.In situations like these the concernedmanager needs proper training to handle it. There is no substitute to personal messagesthat are delivered to the employee respectfully. If there are any severance pay, gratuityand allowances, those should be settled.? Give the most pressing information firstAt a time when the question on everyone’s mind is “Is there bad news ahead?” it isimportant to let them know that the first thing. Don’t bother starting with a discussionof the competition, market forces, or the financial environment; no one will payattention until their most critical question is answered. (Robbins, S 2009). There isimportant role for the CEO of the organization as well. He/she can help the managers6 Case Study on Organizational Communicationsby giving them his prepared, written statement covering the relevant facts, includingend of service benefits payable, insurance, and any outplacement options.? Develop written policy/staff manualIncorporate human resource training (role-playing, scenarios, etc.), written policy andprocedures, and third party present rule for new and existing employees. Givingdifferent scenarios to the employees as it helps the employees to deal with varioussituations and employer are also able to understand the reaction of the worker. Scenarios also give a picture of the difficulties faced by the organization and it includescommunication.Communication is generally a top priority toward solution for anorganization at the time of change.This activity will assist managers to handle theemployees and situation.Scenarios in HR training give the result in long term as it aidsin the preparation of the mindset for every employee.The result with scenarios ispositive as management can handle situation and employees are mentally prepared forthe change shall it occur in their organization.? Soliciting staff feedbackSoliciting feedback from current employees provides information to members ofmanagement that could lead to possible solutions for handling layoffs, salaryrestructuring, as well as the disposition of future benefits, post-employment.In doingso, employees can explain their viewpoints that are sometimes not seen by members ofmanagement.This will also give the employees a sense of involvement within theorganization by expressing their thoughts, opinions, and fears as it relates to the status7 Case Study on Organizational Communicationsof their employment.Empowering employees to voice their views is a tool that shouldbe afforded to all members of an organization. ? Placement supportAfter the layoff, if the company provides some support through head hunters orplacement firms, it can ease the transition trauma a lot for the employee. Preparing aresume, giving experience certificates etc can be another support required when theemployee is dealing with high-stress. It sends a signal to the remaining employees thatthe organization cares for them.? Positive communication to remaining employeesIt is necessary to give a positive signal to the remaining surviving employees from themanagement side. The remaining employees will also get doubts on issues such aswhether their jobs will change and what will be the job security for them? Are furtherlayoffs imminent? Their doubts will begin with their own roles and expand outward totheir teams and to the company as a whole. Towards this end, the manager must addresstheir doubts and concerns through open dialogue so as to avoid this becoming anotherproblem of organizational communication channels.3. Summary and ConclusionWe found that poor organizational communication was at the heart of the problem of arbitraryand sudden layoffs which led to the employees approaching labor court and grievance redressalforum. This problem diverted the company from its core activities since management time was8 "